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1. Company Snapshot

1.a. Company Description

Materion Corporation, through with its subsidiaries, produces advanced engineered materials used in semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center in the United States, Asia, Europe, and internationally.It operates through Performance Alloys and Composites, Advanced Materials, and Precision Optics segments.The Performance Alloys and Composites segment offers advanced engineered solutions comprising beryllium and non-beryllium containing alloy systems and custom engineered parts in strip, bulk, rod, plate, bar, tube, and other customized shapes.


This segment operates the bertrandite ore mine and refinery located in Utah that provides feedstock hydroxide for its beryllium businesses and external sale.The Advances Materials segment produces advanced chemicals, microelectronics packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal pre-forms, high temperature braze materials, and ultra-pure wire.This segment offers its products from its facilities, as well as through direct sales offices and independent sales representatives.


The Precision Optics segment designs and produces precision thin film coatings, optical filters, and assemblies.This segment sells its directly from its facilities, as well as through direct sales offices and independent sales representatives throughout the world.The company was formerly known as Brush Engineered Materials Inc.


and changed its name to Materion Corporation in 2011.Materion Corporation was incorporated in 1931 and is headquartered in Mayfield Heights, Ohio.

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1.b. Last Insights on MTRN

Materion Corporation's recent performance was negatively impacted by a net loss of $48.8 million in Q4 2024, compared to a net income of $19.5 million in the prior year quarter. The company's value-added sales decreased to $296.1 million, down from $312.5 million in the same period last year. Additionally, Materion's adjuvant sales, which are a key metric for the company, reached a record high of $43.1 million in Q4 2024. However, this growth was not enough to offset the decline in other sales categories.

1.c. Company Highlights

2. Materion's Q3 2025 Earnings: Strong Margin Expansion and Secular Growth

Materion reported a 1% increase in sales to $263.9 million, driven by 7% organic growth in Electronic Materials and 21% growth in Precision Optics. Adjusted earnings per share (EPS) were $1.41, flat year-over-year, while adjusted EBITDA was $55.5 million, down 2% year-over-year. The company achieved an all-time high EBITDA margin of 27% in Electronic Materials and a return to double-digit EBITDA margins in Precision Optics. As noted by Jugal Vijayvargiya, equipment downtime issues in their largest plant are mainly resolved, and they expect to catch up on the majority of the sales in Q4.

Publication Date: Nov -23

📋 Highlights
  • Record Electronic Materials EBITDA Margin:: Achieved 27% margin driven by improved cost structure and new business initiatives.
  • Defense Sector Growth:: Bookings up 40% with $150M in RFQs expected to drive future orders.
  • Semiconductor Market Recovery:: High-performance memory sales rose over 30% due to AI-driven demand.
  • EBITDA Margin Progress:: Company-level EBITDA at 21%, nearing 23% midterm target despite $10M Q3 shipment losses.
  • Energy Sector Partnerships:: $441M net debt position with $214M credit capacity, plus $50M stock repurchase authorization.

Segment Performance

Electronic Materials drove growth with a 7% increase in sales, benefiting from improved cost structure and new business initiatives. Precision Optics also saw a significant improvement, with sales up 21% and a return to double-digit EBITDA margins. The semiconductor market is recovering, driven by the proliferation of AI, with sales into high-performance memory applications increasing over 30%.

Secular Growth Opportunities

Materion is well-positioned in key markets like semiconductor, defense, space, and energy, which are seeing strong secular demand growth. The company has developed molybdenum-based products in high demand for smaller node chips and is working with new and existing customers as production ramps. In energy, Materion has a strong position in traditional energy and opportunities to grow with new energy, including a supply agreement with Commonwealth Fusion Systems.

Valuation and Outlook

With a P/E Ratio of 125.73 and an EV/EBITDA of 13.98, the market is pricing in high expectations for Materion's future growth. Analysts estimate next year's revenue growth at 7.3%. The company's net debt position was approximately $441 million, with $214 million of available capacity on its credit facility. Materion remains on track to deliver free cash flow of roughly 70% of adjusted net income, with a full-year 2025 guidance unchanged at $5.30 to $5.70 per share.

Operational Highlights

The company is focused on improving operational reliability through capital improvements and maintenance. Materion has made significant progress in its cost structure, allowing it to deliver a 27% EBITDA margin in Electronic Materials. The company is also investing in new product development, including ALD products, which are expected to replace some tungsten use in the semiconductor market.

3. NewsRoom

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Fisher Asset Management LLC Has $10.09 Million Stake in Materion Corporation $MTRN

Dec -04

Source: defenseworld.net

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Materion: Margin Expansion And Clean Energy Optionality

Dec -04

Source: seekingalpha.com

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American Century Companies Inc. Acquires 164,433 Shares of Materion Corporation $MTRN

Dec -03

Source: defenseworld.net

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Rockland Resources Financing Fully Subscribed

Nov -13

Source: thenewswire.com

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Chuck Royce's Strategic Moves: Significant Reduction in Air Lease Corp

Nov -12

Source: gurufocus.com

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Y Intercept Hong Kong Ltd Takes Position in Materion Corporation $MTRN

Nov -05

Source: defenseworld.net

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Reviewing Materion (NYSE:MTRN) and Fortuna Mining (NYSE:FSM)

Nov -04

Source: defenseworld.net

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Materion Corporation $MTRN Shares Bought by Bessemer Group Inc.

Nov -03

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.84%)

6. Segments

Electronic Materials

Expected Growth: 8.5%

Materion Corporation's Electronic Materials segment growth of 8.5% is driven by increasing demand for advanced semiconductor materials, 5G infrastructure expansion, and rising adoption of electric vehicles and renewable energy systems, which rely on Materion's specialized materials and components.

Performance Materials

Expected Growth: 9.2%

Materion Corporation's Performance Materials segment growth of 9.2% is driven by increasing demand for advanced materials in the semiconductor, LED, and solar industries. Strong sales of beryllium-based products, growth in the 5G infrastructure market, and expanding presence in Asia also contribute to the segment's growth.

Precision Optics

Expected Growth: 8.8%

Materion Corporation's Precision Optics segment growth of 8.8% is driven by increasing demand for advanced optical components in the medical, industrial, and semiconductor markets. Strong sales of precision optical components for 3D sensing, augmented reality, and laser-based applications also contribute to the growth. Additionally, the company's strategic investments in research and development, and its focus on operational efficiency, have enabled it to capitalize on emerging trends and opportunities.

7. Detailed Products

Beryllium and Beryllium Alloys

Materion's beryllium and beryllium alloys are used in a variety of applications, including aerospace, defense, and commercial industries.

Copper and Copper Alloys

Materion's copper and copper alloys are used in a range of applications, including electrical and electronic components, industrial equipment, and consumer products.

Inorganic Chemicals

Materion's inorganic chemicals are used in a variety of applications, including the production of catalysts, fuel cells, and other industrial processes.

Microelectronic Materials

Materion's microelectronic materials are used in the production of semiconductors, flat panel displays, and other electronic components.

Optical Filters

Materion's optical filters are used in a range of applications, including astronomy, biomedical research, and industrial inspection.

Precious Metals

Materion's precious metals are used in a variety of applications, including jewelry, catalytic converters, and other industrial processes.

Specialty Coatings

Materion's specialty coatings are used in a range of applications, including aerospace, defense, and industrial processes.

Technical Materials

Materion's technical materials are used in a variety of applications, including aerospace, defense, and industrial processes.

8. Materion Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Materion Corporation's products are specialized and have few substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

Materion Corporation's customers are diverse and have limited bargaining power due to the company's strong market position and product offerings.

Bargaining Power Of Suppliers

Materion Corporation's suppliers have some bargaining power due to the specialized nature of the materials they provide, but the company's strong relationships and diversified supply chain mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including significant capital requirements and the need for specialized expertise.

Intensity Of Rivalry

The intensity of rivalry in the industry is high due to the presence of several established competitors, leading to a competitive landscape that requires Materion Corporation to continually innovate and improve its offerings.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.89%
Debt Cost 8.74%
Equity Weight 67.11%
Equity Cost 9.79%
WACC 9.45%
Leverage 49.01%

11. Quality Control: Materion Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CF Industries

A-Score: 5.9/10

Value: 6.5

Growth: 5.8

Quality: 7.1

Yield: 4.0

Momentum: 5.0

Volatility: 7.0

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RPM International

A-Score: 5.2/10

Value: 3.6

Growth: 6.6

Quality: 5.7

Yield: 4.0

Momentum: 3.0

Volatility: 8.7

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UFP Industries

A-Score: 5.0/10

Value: 5.8

Growth: 6.4

Quality: 6.0

Yield: 3.0

Momentum: 1.5

Volatility: 7.0

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Eagle Materials

A-Score: 4.3/10

Value: 3.7

Growth: 7.6

Quality: 6.1

Yield: 0.0

Momentum: 2.0

Volatility: 6.7

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Stock-Card
Materion

A-Score: 3.8/10

Value: 3.5

Growth: 3.2

Quality: 4.1

Yield: 0.0

Momentum: 7.0

Volatility: 5.0

1-Year Total Return ->

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Olin

A-Score: 3.7/10

Value: 5.5

Growth: 4.4

Quality: 2.0

Yield: 6.0

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

126.02$

Current Price

126.03$

Potential

-0.00%

Expected Cash-Flows