Materion (MTRN) Q3 2026 earnings summary

Executive summary

• Record Q3 value-added sales of $313.7M, up 19% YoY; adjusted EBITDA was $70.7M and adjusted EPS excluding acquisition amortization was a record $1.93, up 37%.

• All three segments posted double-digit YoY sales growth for a second consecutive quarter; record incoming orders and backlog supported higher FY 2026 guidance.

Financial highlights

• Net sales rose 28% to $567.3M; value-added sales increased 19% to $313.7M.

• Net income increased 51% to $38.3M; diluted EPS was $1.81 versus $1.22.

• Adjusted EBITDA rose 27% to $70.7M; adjusted EPS excluding acquisition amortization was $1.93 versus $1.41.

• Q3 free cash flow was $45.8M versus negative $5.2M, with 120% net income conversion; nine-month free cash flow was $84.8M.

• Nine-month net sales rose 33% to $1.731B; value-added sales increased 12% to $883.6M, net income rose 41% to $96.5M, and diluted EPS increased to $4.57 from $3.27.

Outlook and guidance

• FY 2026 adjusted EPS guidance increased to $7.10–$7.40, from $6.80–$7.20; midpoint implies 33% YoY growth. FY sales outlook anticipates high-teens growth.

• Q4 outlook calls for a meaningful sales step-up and strong top- and bottom-line performance; full-year 2026 is expected to be a record year.

• Performance Materials expects a Q4 sales step-up from large defense orders; Electronic Materials anticipates strong results from semiconductor demand and new business, while Precision Optics expects continued improvement.

• FY 2026 modeling assumptions include $70M capex, $28M interest expense, $25M mine development, $76M D&A, and a 13–14% effective tax rate.