Materion Corporation today reported first quarter 2026 financial results and provided an update to the full-year outlook.
Financial Summary
- Net sales were $549.8 million versus $420.3 million in the prior year quarter; value-added sales1 were $261.8 million versus $259.3 million in the prior year quarter
- Net income of $19.4 million, or $0.92 per share, diluted, versus net income of $17.7 million, or $0.85 per share, in the prior year quarter; adjusted earnings of $1.27 per share versus $1.13 in the prior year quarter
- Operating profit of $28.2 million versus operating profit of $27.2 million in the prior year quarter; adjusted EBITDA2 of $52.9 million or 20.2% of value-add sales versus $48.7 million or 18.8% in the prior year quarter, representing 140 basis point margin expansion
Business Highlights
- Value-added sales grew 10% year on year, excluding precision clad strip
- Electronic Materials delivered 18% value-added sales growth with record adjusted EBITDA and EBITDA margin
- Precision Optics transformation delivered its strongest top line since 2021 and the 5th consecutive quarter of bottom-line improvement
- Exiting the quarter with record backlog, up more than 20% year on year and up 15% since the beginning of the year
“I am very pleased with the strong start to the year, as our teams delivered double-digit growth across most of our end markets and improved operational performance throughout the company. Electronic Materials achieved its strongest results on record, while the Precision Optics transformation took another meaningful step forward, delivering well ahead of expectations,” said Jugal Vijayvargiya, President & CEO of Materion.
“We continue to see unparalleled momentum in our order rates, and we exited the quarter with a record backlog, increasing our confidence in the results we expect to achieve in 2026.”
FIRST QUARTER 2026 RESULTS
Net sales for the quarter were $549.8 million, compared to $420.3 million in the prior year period. Value-added sales were $261.8 million for the quarter, up 1% from the prior year period driven by growth across most end markets, partially offset by lower precision clad strip shipments.
Operating profit for the quarter was $28.2 million and net income was $19.4 million, or $0.92 per diluted share, compared to operating profit of $27.2 million and net income of $17.7 million, or $0.85 per share, in the prior year period.
Excluding special items3, adjusted EBITDA was $52.9 million, a first quarter record of 20.2% of value-added sales, compared to $48.7 million or 18.8% of value-added sales in the prior year period. The adjusted EBITDA margin was driven primarily by higher volume, favorable price/mix and strong operational performance in Electronic Materials and Precision Optics.
Adjusted net income was $26.7 million excluding acquisition amortization, or $1.27 per diluted share, compared to $1.13 per share in the prior year period.
OUTLOOK
Supported by the momentum in our order book and an all-time high backlog as we exited the first quarter, our confidence in delivering strong results has meaningfully strengthened. We now expect top‑line growth in the low double‑digit range. We are reaffirming our full‑year adjusted earnings per share guidance of $6.00 to $6.50, with increasing conviction in achieving results toward the high end of the range.
ADJUSTED EARNINGS GUIDANCE
It is not possible for the Company to identify the amount or significance of future adjustments associated with potential insurance and litigation claims, legacy environmental costs, acquisition and integration costs, certain income tax items, or other non-routine costs that the Company adjusts in the presentation of adjusted earnings guidance. These items are dependent on future events that are not reasonably estimable at this time. Accordingly, the Company is unable to reconcile without unreasonable effort the forecasted range of adjusted earnings guidance for the full year to a comparable GAAP range. However, items excluded from the Company’s adjusted earnings guidance include the historical adjustments noted in Attachments 4 through 8 to this press release.
CONFERENCE CALL
Materion Corporation will host an investor conference call with analysts at 9:00 a.m. Eastern Time, April 29, 2026. The conference call will be available via webcast through the Company’s website at www.materion.com. By phone, please dial (888) 506-0062. Calls outside the U.S. can dial (973) 528-0011; please reference participant access code of 960083. A replay of the call will be available until May 13, 2026 by dialing (877) 481-4010 or (919) 882-2331 if international; please reference replay ID number 53274. The call will also be archived on the Company’s website.
FOOTNOTES
1 Value-added sales deducts the impact of pass-through metals from net sales
2 EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization
3 Details of the special items can be found in Attachments 4 through 8
ABOUT MATERION
Materion Corporation is a global leader in advanced materials solutions for high-performance industries including semiconductor, industrial, aerospace & defense, energy and automotive. With nearly 100 years of expertise in specialty engineered alloy systems, inorganic chemicals and powders, precious and non-precious metals, beryllium and beryllium composites, and precision filters and optical coatings, Materion partners with customers to enable breakthrough solutions that move the world forward. Headquartered in Mayfield Heights, Ohio, the Company employs more than 3,000 talented people worldwide, serving customers in more than 60 countries
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