Materion Corp.

Other Industrial Metals & Mining • Basic Materials • Mayfield Heights, OH, United States • MTRN (NYQ)

216 486 4200 6070 Parkland Boulevard, Mayfield Heights, OH 44124, United States

Quarter: Q1 2026 Reported: January 23, 2026 Sentiment: Positive

Materion Corporation, together with its subsidiaries, produces advanced engineered materials in the United States, Asia, Europe, and internationally. The company operates in four segments: Performance Materials, Electronic Materials, Precision Optics, and Other. It provides beryllium and non-beryllium containing alloy systems and custom engineered metal solutions in strip, bulk, rod, plate, bar, tube, and other customized shapes; engineering and product development services; alloyed metals, beryllium products, and beryllium hydroxide; precision strip, rod, wire, and engineered strip metal products; ToughMet alloys; and SupremEX aluminum silicon carbide metal matrix composite formulation products. The company also operates the bertrandite ore mine and refinery that provides feedstock hydroxide for its beryllium businesses and external sale. In addition, it produces advanced chemicals, microelectronics packaging, precious and non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal pre-forms, and high temperature braze materials. Further, the company designs and manufactures precision thin film coatings, optical filters, and assemblies. Additionally, it offers inorganic chemicals and powders, specialty coatings, specialty engineered beryllium and copper-based alloys, beryllium composites, ceramics, and engineered clad and plated metal systems. The company sells its products to semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and life sciences through its facilities and service centers, independent distributors and agents, outside distributors, direct sales offices, and independent sales representatives. The company was formerly known as Brush Engineered Materials Inc. and changed its name to Materion Corporation in March 2011. Materion Corporation was founded in 1921 and is based in Mayfield Heights, Ohio.

Analysis Summary

Materion Corporation issued a business update prior to its Q4 2025 earnings release, detailing key operational and financial developments. The company addressed a significant quality issue identified by a large precision clad strip customer, which led to the temporary idling of production facilities. Following a thorough investigation and close collaboration, the issue has been fully resolved, new processes implemented, and production assets are now back online, ramping up through Q1 2026. Shipments have resumed, and Materion does not anticipate a material impact on its 2026 volume for this customer.

Financially, this discrete issue is expected to result in a $20-$25 million charge, covering a quality claim, material scrap expenses, and temporary plant idling costs. This charge will be excluded from the company's non-GAAP results. For Q4 2025, Materion anticipates delivering adjusted earnings per share in the range of $1.50-$1.55. For the full year 2025, adjusted EPS is expected to be $5.40-$5.45. These estimated results, while slightly below the midpoint of full-year guidance, were bolstered by stronger-than-expected performance in the Electronic Materials and Precision Optics segments.

Management expressed confidence in Materion's operational execution and growth prospects heading into 2026, despite the recent operational challenge. The company's estimates are preliminary and unaudited, subject to final adjustments. The update also reiterated various forward-looking statements and risk factors, including global economic conditions, market fluctuations, raw material costs, acquisition integration, and regulatory changes, which could impact future performance. No specific competitive positioning or analyst Q&A details were provided in this pre-earnings business update.

Key Highlights

• Quality issue with a precision clad strip customer identified and fully resolved.
• Materion expects a $20-$25 million charge related to the issue, excluded from non-GAAP results.
• Q4 2025 adjusted EPS estimated at $1.50-$1.55; Full Year 2025 adjusted EPS at $5.40-$5.45.
• Stronger-than-expected performance in Electronic Materials and Precision Optics segments.
• Production assets are back online and ramping up through Q1 2026.
• No material impact anticipated on 2026 volume for the affected customer.
• Management confident in 2026 operational execution and growth prospects.

Financial Metrics

eps

5.425

YoY: N/A

revenue

Not explicitly provided N/A

YoY: N/A

guidance

net income

Not explicitly provided N/A

YoY: N/A

Stock Performance (90 Days)

Data through Feb 13, 2026

Layoff Events

Earnings Calls

Positive Signals

• Quality issue with clad strip material fully resolved.
• Production facilities are back online and ramping up through Q1 2026.
• No material impact anticipated on 2026 volume for the affected customer.
• Stronger-than-expected performance in Electronic Materials and Precision Optics segments.
• Management's expressed confidence in operational execution and growth prospects for 2026.

Risks & Concerns

— Global economic conditions, including inflation, potential recession, tariffs, and trade agreements.
— Uncertainty in market conditions, product mix changes, and customer financial health.
— Ability to manage raw material costs, including precious metals, and pass them to customers.
— Risks associated with developing new products, acquisition integration, and timely completion of capital projects.
— Impact of extraordinary events such as war, terrorist activities, acts of God, or infectious diseases.