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Materion (MTRN) investor relations material
Materion Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Achieved record Q2 adjusted EBITDA margin of 20.8% and strong free cash flow, with EBITDA at $55.8M and net income up 32% year-over-year to $25.1M.
Value-added sales were $269M, down 2–4% organically year-over-year, but up sequentially; net sales reached $431.7M.
Completed acquisition of tantalum solutions assets in South Korea, expanding semiconductor capabilities in Asia.
Repurchased 100,000 shares at ~$78/share and paid down $26M in debt during the quarter.
Defense, aerospace, and energy markets drove growth, offsetting softness in China and consumer electronics.
Financial highlights
Adjusted EPS was $1.37, down 4% year-over-year but up 21% sequentially; net income for Q2 was $25.1M.
Free cash flow was $36M for the quarter, a record Q2, with year-to-date conversion exceeding 70% of adjusted net income.
Gross margin improved to $82.7M, with margin as a percentage of value-added sales rising to 31%.
Net debt at quarter end was $413M, with $257M available on the credit facility; leverage below 2x.
SG&A expense was $35M (8% of net sales); R&D expense decreased 17% to $6.4M.
Outlook and guidance
Affirmed full-year adjusted EPS guidance of $5.30–$5.70, supported by strong YTD performance and improved order rates.
Q3 expected to be similar or slightly better than Q2, with a strong Q4 anticipated due to demand and defense shipment timing.
Capital expenditures projected at $70M for 2025, focused on new product development and infrastructure.
On track for 70%+ free cash flow conversion and 20%+ adjusted EBITDA margin for the year.
Evaluating impact of new U.S. tax legislation, with effects to be reflected in Q3 2025 financials.
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