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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.
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Q2 2025 earnings summary30 Jul, 2025

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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Frequently asked questions

Materion Corporation manufactures advanced engineered materials including alloys, beryllium products, precision coatings, and ceramics. The company serves sectors such as aerospace, semiconductor, automotive, and energy with high-performance materials and components. The company is headquartered in Mayfield Heights, Ohio, and its shares are listed on the NYSE.

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