Materion Corporation (NYSE: MTRN) today reported fourth quarter
and full-year 2024 financial results, provided 2025 earnings
guidance and announced a new mid-term profitability target.
Fourth Quarter 2024 Financial Summary
- Net sales were $436.9 million; value-added sales1 were $296.1
million
- Net loss of $48.8 million, or $2.33 loss per share, diluted,
versus net income of $19.5 million, or $0.93 per share, in the
prior year quarter; record quarterly adjusted earnings of $1.55 per
share versus $1.41 in the prior year quarter
- Operating loss of $38.3 million versus operating profit of
$27.6 million in the prior year quarter; record quarterly adjusted
EBITDA2 of $61.5 million versus $53.3 million in the prior year
quarter
Full-Year 2024 Highlights
- Net sales were $1.68 billion; value-added sales were $1.10
billion
- Net income was $5.9 million, or $0.28 per share, diluted,
versus $95.7 million, or $4.58 per share, in the prior year period;
adjusted earnings of $5.34 per share versus $5.64 in the prior year
period
- Adjusted EBITDA of $221.2 million, versus $217.7 million in the
prior year
- Achieved mid-term target of 20% adjusted EBITDA margin for the
year, first time in company history
- Established new mid-term adjusted EBITDA margin target of 23%
based on the Company’s prospects and performance expectations
- Secured several significant new business wins and customer
partnerships further strengthening the organic pipeline
- Precision Optics transformation underway with appointment of
new business president
- Completed sale of non-core large area targets business in
Albuquerque, New Mexico
"The fourth-quarter and full-year results showcase the
significant impact of our initiatives to enhance operational
performance, streamline our cost structure, and optimize the
Company’s footprint. I am extremely proud of our global team for
their relentless efforts to serve our customers and drive
improvements across Materion, even in the face of ongoing
challenging market conditions," said Jugal Vijayvargiya, President
& CEO of Materion.
“2024 was a landmark year for Materion, as we achieved our
mid-term target of 20% adjusted EBITDA margin for the first time in
the Company's history. Achieving this level of performance in soft
market conditions gives us confidence to look ahead to what’s next,
as our end markets strengthen, and we deliver on our organic
initiatives while executing further operational improvements. With
this in mind, we have established a new mid-term adjusted EBITDA
margin target of 23%, delivering an additional 300 basis points of
improvement over the next several years. We expect to deliver
another year of strong performance in 2025, as a result of our
improved operational performance, and strengthening market
conditions as we move through the year.”
FOURTH QUARTER 2024
RESULTS
Net sales for the quarter were $436.9 million, compared to
$421.0 million in the prior year period. Value-added sales were
$296.1 million for the quarter, up 2% from the prior year period
primarily driven by strength in space & defense and improvement
in semiconductor. This increase was partially offset by continued
headwinds across automotive, industrial and energy.
Operating loss for the quarter was $38.3 million and net loss
was $48.8 million, or $2.33 loss per diluted share, compared to
operating profit of $27.6 million and net income of $19.5 million,
or $0.93 per share, in the prior year period.
Excluding special items3 including a non-cash goodwill and
intangible impairment in Precision Optics, adjusted EBITDA was a
quarterly record $61.5 million, or 20.8% of value-added sales,
compared to $53.3 million or 18.4% of value-added sales in the
prior year period. This record adjusted EBITDA was driven by higher
volume, favorable price/mix, strong cost management and operational
performance.
Adjusted net income was $32.4 million excluding acquisition
amortization, or $1.55 per diluted share, compared to $1.41 per
share in the prior year period.
FULL-YEAR 2024 RESULTS
Net sales for the year were $1.68 billion, compared to $1.67
billion in the prior year. Value-added sales were $1.10 billion for
the year, down 3% from the prior year due to weakness in several
key end markets including industrial, energy and automotive. This
decrease was partially offset by strength in space & defense
and precision clad strip.
Operating profit for the year was $47.2 million and net income
was $5.9 million, or $0.28 per diluted share, compared to operating
profit of $136.4 million and net income of $95.7 million, or $4.58
per diluted share, in the prior year.
Excluding special items, adjusted EBITDA for the year was $221.2
million, compared to $217.7 million in the prior year. The increase
was driven primarily by strong operational performance, cost
management and improved mix driven by new business.
Adjusted net income was $111.8 million excluding acquisition
amortization, or $5.34 per diluted share, compared to $5.64 per
diluted share in the prior year.
OUTLOOK
After a challenged macroenvironment in 2024, we remain
cautiously optimistic about the market dynamics entering 2025, and
are expecting mid-single digit top-line growth from our businesses,
excluding precision clad strip. The precision clad strip inventory
correction is expected to continue through 2025, returning to
growth in 2026. Despite this impact, we expect earnings growth in
2025 from market outperformance, continued operational excellence,
cost management and portfolio optimization actions. With this, we
are guiding to the range of $5.30 to $5.70 for full year 2025
adjusted earnings per share, an increase of 3% from prior year at
the midpoint.
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 10:00 a.m. Eastern Time, February 19, 2025. 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 357106. A replay of the call will be
available until March 5, 2025 by dialing (877) 481-4010 or (919)
882-2331 if international; please reference replay ID number 51061.
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.
FORWARD-LOOKING
STATEMENTS
Portions of the narrative set forth in this document that are
not statements of historical or current facts are forward-looking
statements. Our actual future performance may materially differ
from that contemplated by the forward-looking statements as a
result of a variety of factors. These factors include, in addition
to those mentioned elsewhere herein: the global economy, including
inflationary pressures, potential future recessionary conditions
and the impact of tariffs and trade agreements; the impact of any
U.S. Federal Government shutdowns or sequestrations; the condition
of the markets which we serve, whether defined geographically or by
segment; changes in product mix and the financial condition of
customers; our success in developing and introducing new products
and new product ramp-up rates; our success in passing through the
costs of raw materials to customers or otherwise mitigating
fluctuating prices for those materials, including the impact of
fluctuating prices on inventory values; our success in identifying
acquisition candidates and in acquiring and integrating such
businesses; the impact of the results of acquisitions on our
ability to fully achieve the strategic and financial objectives
related to these acquisitions; our success in implementing our
strategic plans and the timely and successful start-up and
completion of any capital projects; other financial and economic
factors, including the cost and availability of raw materials (both
base and precious metals), physical inventory valuations, metal
consignment fees, tax rates, exchange rates, interest rates,
pension costs and required cash contributions and other employee
benefit costs, energy costs, regulatory compliance costs, the cost
and availability of insurance, credit availability, and the impact
of the Company’s stock price on the cost of incentive compensation
plans; the uncertainties related to the impact of war, terrorist
activities, and acts of God; changes in government regulatory
requirements and the enactment of new legislation that impacts our
obligations and operations; the conclusion of pending litigation
matters in accordance with our expectation that there will be no
material adverse effects; the disruptions in operations from, and
other effects of, catastrophic and other extraordinary events
including outbreaks from infectious diseases and the conflict
between Russia and Ukraine and other hostilities; realization of
expected financial benefits expected from the Inflation Reduction
Act of 2022; and the risk factors set forth in Part 1, Item 1A of
the Company's 2023 Annual Report on Form 10-K and in other reports
that we file with the SEC.
Attachment 1
Materion Corporation and
Subsidiaries
Consolidated Statements of
Income
(Unaudited)
Fourth Quarter Ended
Year Ended
(In thousands except per share
amounts)
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Net sales
$
436,871
$
421,043
$
1,684,739
$
1,665,187
Cost of sales
343,895
341,328
1,358,754
1,316,145
Gross margin
92,976
79,715
325,985
349,042
Selling, general, and administrative
expense
41,134
39,858
145,588
157,911
Research and development expense
6,316
6,442
29,028
27,540
Goodwill impairment
56,067
—
56,067
—
Long-lived asset impairment
17,134
—
17,134
—
Loss on asset disposal
6,412
—
6,412
—
Restructuring expense
687
630
6,848
3,824
Other — net
3,573
5,145
17,685
23,323
Operating profit (loss)
(38,347
)
27,640
47,223
136,444
Other non-operating (income)
expense—net
(518
)
(569
)
(2,443
)
(2,710
)
Interest expense — net
8,844
8,503
34,764
31,323
Income (loss) before income
taxes
(46,673
)
19,706
14,902
107,831
Income tax (benefit) expense
2,177
238
9,014
12,129
Net income (loss)
$
(48,850
)
$
19,468
$
5,888
$
95,702
Basic earnings per share:
Net income (loss) per share of common
stock
$
(2.35
)
$
0.94
$
0.28
$
4.64
Diluted earnings per share:
Net income (loss) per share of common
stock
$
(2.33
)
$
0.93
$
0.28
$
4.58
Weighted-average number of shares of
common stock outstanding:
Basic
20,758
20,644
20,732
20,619
Diluted
20,923
20,936
20,928
20,911
Attachment 2
Materion Corporation and
Subsidiaries
Consolidated Balance
Sheets
(Unaudited)
(Thousands)
December 31, 2024
December 31, 2023
Assets
Current assets
Cash and cash equivalents
$
16,713
$
13,294
Accounts receivable, net
193,793
192,747
Inventories, net
441,299
441,597
Prepaid and other current assets
72,419
61,744
Total current assets
724,224
709,382
Deferred income taxes
2,964
4,908
Property, plant, and equipment
1,315,586
1,281,622
Less allowances for depreciation,
depletion, and amortization
(804,781
)
(766,939
)
Property, plant, and equipment—net
510,805
514,683
Operating lease, right-of-use assets
64,449
57,645
Intangible assets
109,312
133,571
Other assets
22,140
21,664
Goodwill
263,738
320,873
Total Assets
$
1,697,632
$
1,762,726
Liabilities and Shareholders’
Equity
Current liabilities
Short-term debt
$
34,274
$
38,597
Accounts payable
105,901
125,663
Salaries and wages
20,939
25,912
Other liabilities and accrued items
47,523
45,773
Income taxes
4,906
5,207
Unearned revenue
13,191
13,843
Total current liabilities
226,734
254,995
Other long-term liabilities
12,013
13,300
Operating lease liabilities
62,626
53,817
Finance lease liabilities
12,404
13,744
Retirement and post-employment
benefits
26,411
26,334
Unearned income
75,769
103,983
Long-term income taxes
1,818
3,815
Deferred income taxes
3,242
20,109
Long-term debt
407,734
387,576
Shareholders’ equity
868,881
885,053
Total Liabilities and Shareholders’
Equity
$
1,697,632
$
1,762,726
Attachment 3
Materion Corporation and
Subsidiaries
Consolidated Statements of
Cash Flows
(Thousands)
December 31, 2024
December 31, 2023
Cash flows from operating activities:
Net income
$
5,888
$
95,702
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion, and
amortization
68,676
61,644
Amortization of deferred financing costs
in interest expense
1,714
1,712
Stock-based compensation expense
(non-cash)
10,560
10,092
Amortization of pension and
post-retirement costs
(307
)
(1,318
)
Loss on sale of property, plant, and
equipment
1,201
20
Deferred income tax (benefit) expense
(16,598
)
(7,005
)
Impairment charges
73,201
—
Loss on asset disposal
6,412
—
Net pension curtailments and
settlements
—
142
Changes in assets and liabilities, net of
acquired assets and liabilities:
Decrease (increase) in accounts
receivable
(3,723
)
23,359
Decrease (increase) in inventory
(468
)
(18,700
)
Decrease (increase) in prepaid and other
current assets
(11,345
)
(22,663
)
Increase (decrease) in accounts payable
and accrued expenses
(15,757
)
6,631
Increase (decrease) in unearned
revenue
(24,692
)
(17,361
)
Increase (decrease) in interest and taxes
payable
(2,619
)
3,771
Increase (decrease) in unearned income due
to customer prepayments
—
16,676
Other — net
(4,326
)
(8,288
)
Net cash provided by operating
activities
87,817
144,414
Cash flows from investing activities:
Payments for purchase of property, plant,
and equipment
(68,649
)
(110,550
)
Payments for mine development
(12,159
)
(9,326
)
Proceeds from sale of property, plant, and
equipment
1,203
654
Net cash used in investing
activities
(79,605
)
(119,222
)
Cash flows from financing activities:
Proceeds from (repayment of) borrowings
under credit facilities, net
45,692
8,065
Repayment of debt
(30,342
)
(15,415
)
Principal payments under finance lease
obligations
(683
)
(1,645
)
Cash dividends paid
(11,087
)
(10,621
)
Deferred financing costs
(156
)
—
Payments of withholding taxes for
stock-based compensation awards
(7,610
)
(5,234
)
Net cash used in financing
activities
(4,186
)
(24,850
)
Effects of exchange rate changes
(607
)
(149
)
Net change in cash and cash
equivalents
3,419
193
Cash and cash equivalents at beginning
of period
13,294
13,101
Cash and cash equivalents at end of
period
$
16,713
$
13,294
Attachment 4
Materion Corporation and
Subsidiaries
Reconciliation of Non-GAAP
Measure - Value-added Sales, Operating Profit, and EBITDA
(Unaudited)
Fourth Quarter Ended
Year Ended
(Millions)
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Net Sales
Performance Materials
$
211.0
$
201.1
$
744.5
$
755.5
Electronic Materials
204.2
193.9
845.7
805.8
Precision Optics
21.7
26.0
94.5
103.9
Other
—
—
—
—
Total
$
436.9
$
421.0
$
1,684.7
$
1,665.2
Less: Pass-through Metal Cost
Performance Materials
$
15.2
$
15.1
$
56.5
$
66.9
Electronic Materials
125.6
116.2
530.4
471.1
Precision Optics
—
—
0.2
0.1
Other
—
—
—
—
Total
$
140.8
$
131.3
$
587.1
$
538.1
Value-added Sales (non-GAAP)
Performance Materials
$
195.8
$
186.0
$
688.0
$
688.6
Electronic Materials
78.6
77.7
315.3
334.7
Precision Optics
21.7
26.0
94.3
103.8
Other
—
—
—
—
Total
$
296.1
$
289.7
$
1,097.6
$
1,127.1
Gross Margin
Performance Materials(1)
$
62.6
$
50.5
$
203.2
$
216.5
Electronic Materials(1)
26.0
21.5
99.5
100.4
Precision Optics(1)
4.4
7.7
23.3
32.1
Other
—
—
—
—
Total(1)
$
93.0
$
79.7
$
326.0
$
349.0
(1) See reconciliation of gross margin to
adjusted gross margin in Attachment 8
Note: Quarterly information presented
within this document and previously disclosed quarterly information
may not equal the total computed for the year due to rounding
Fourth Quarter Ended
Year Ended
(Millions)
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Operating Profit (Loss)
Performance Materials
$
43.4
$
33.0
$
132.1
$
143.9
Electronic Materials
2.9
3.8
29.4
28.6
Precision Optics
(77.0
)
(0.4
)
(84.7
)
(2.0
)
Other
(7.6
)
(8.8
)
(29.6
)
(34.1
)
Total
$
(38.3
)
$
27.6
$
47.2
$
136.4
Non-Operating (Income) Expense
Performance Materials
$
0.1
$
0.2
$
0.5
$
0.6
Electronic Materials
—
(0.1
)
—
(0.1
)
Precision Optics
—
—
(0.4
)
(0.6
)
Other
(0.6
)
(0.7
)
(2.5
)
(2.7
)
Total
$
(0.5
)
$
(0.6
)
$
(2.4
)
$
(2.8
)
Depreciation, Depletion, and
Amortization
Performance Materials
$
10.1
$
7.6
$
37.7
$
31.2
Electronic Materials
4.4
4.3
18.0
17.0
Precision Optics
2.4
2.6
11.0
11.3
Other
0.4
0.6
2.0
2.1
Total
$
17.3
$
15.1
$
68.7
$
61.6
Segment EBITDA
Performance Materials
$
53.4
$
40.4
$
169.3
$
174.5
Electronic Materials
7.3
8.2
47.4
45.7
Precision Optics
(74.6
)
2.2
(73.3
)
9.9
Other
(6.6
)
(7.5
)
(25.1
)
(29.3
)
Total
$
(20.5
)
$
43.3
$
118.3
$
200.8
Special Items(2)
Performance Materials
$
0.2
$
5.6
$
9.5
$
6.7
Electronic Materials
7.4
2.8
14.6
7.3
Precision Optics
73.5
1.6
75.2
2.8
Other
0.9
—
3.6
0.1
Total
$
82.0
$
10.0
$
102.9
$
16.9
Adjusted EBITDA Excluding Special
Items
Performance Materials
$
53.6
$
46.0
$
178.8
$
181.2
Electronic Materials
14.7
11.0
62.0
53.0
Precision Optics
(1.1
)
3.8
1.9
12.7
Other
(5.7
)
(7.5
)
(21.5
)
(29.2
)
Total
$
61.5
$
53.3
$
221.2
$
217.7
The cost of gold, silver, platinum, palladium, copper,
ruthenium, iridium, rhodium, rhenium, and osmium is passed through
to customers and, therefore, the trends and comparisons of net
sales are affected by movements in the market price of these
metals. Internally, management also reviews net sales on a
value-added basis. Value-added sales is a non-GAAP financial
measure that deducts the value of the pass-through metals sold from
net sales. Value-added sales allows management to assess the impact
of differences in net sales between periods or segments and analyze
the resulting margins and profitability without the distortion of
the movements in pass-through market metal prices. The dollar
amount of gross margin and operating profit is not affected by the
value-added sales calculation. The Company sells other metals and
materials that are not considered direct pass throughs, and these
costs are not deducted from net sales to calculate value-added
sales.
The Company’s pricing policy is to pass the cost of these metals
on to customers in order to mitigate the impact of price volatility
on the Company’s results from operations. Value-added information
is being presented since changes in metal prices may not directly
impact profitability. It is the Company’s intent to allow users of
the financial statements to review sales with and without the
impact of the pass-through metals.
(2) See additional details of special items in Attachment 5.
Attachment 5
Materion Corporation and
Subsidiaries
Reconciliation of Net Sales to
Value-added Sales, Net Income to EBITDA and Adjusted EBITDA
(Unaudited)
Fourth Quarter Ended
Twelve Months Ended
(Millions)
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Net sales
$
436.9
$
421.0
$
1,684.7
$
1,665.2
Pass-through metal cost
140.8
131.3
587.1
538.1
Value-added sales
$
296.1
$
289.7
$
1,097.6
$
1,127.1
Net income (loss)
$
(48.8
)
$
19.5
$
5.9
$
95.7
Income tax expense
2.2
0.2
9.0
12.2
Interest expense - net
8.8
8.5
34.7
31.3
Depreciation, depletion and
amortization
17.3
15.1
68.7
61.6
Consolidated EBITDA
$
(20.5
)
$
43.3
$
118.3
$
200.8
Net Income as a % of Net sales
(11.2
)%
4.6
%
0.4
%
5.7
%
Net Income as a % of Value-added sales
(16.5
)%
6.7
%
0.5
%
8.5
%
EBITDA as a % of Net sales
(4.7
)%
10.3
%
7.0
%
12.1
%
EBITDA as a % of Value-added sales
(6.9
)%
14.9
%
10.8
%
17.8
%
Special items
Restructuring and cost reduction
$
0.7
$
4.2
$
11.4
$
11.1
Electronic Materials inventory
adjustment
—
—
2.8
—
Business transformation costs
0.7
—
1.3
—
Pension settlement
—
0.2
—
0.2
Additional start up resources and
scrap
—
5.6
6.1
5.6
Precision Optics impairments
73.2
—
73.2
—
Merger, acquisition and divestiture
related costs
7.4
—
8.1
—
Total special items
82.0
10.0
102.9
16.9
Adjusted EBITDA
$
61.5
$
53.3
$
221.2
$
217.7
Adjusted EBITDA as a % of Net sales
14.1
%
12.7
%
13.1
%
13.1
%
Adjusted EBITDA as a % of Value-added
sales
20.8
%
18.4
%
20.2
%
19.3
%
In addition to presenting financial statements prepared in
accordance with U.S. generally accepted accounting principles
(GAAP), this earnings release contains financial measures,
including operating profit, segment operating profit, earnings
before interest, taxes, depreciation, depletion and amortization
(EBITDA), net income, and earnings per share, on a non-GAAP basis.
As detailed in the above reconciliation and Attachment 6, we have
adjusted the results for certain special items, including the
following:
- Restructuring and cost reduction – Costs include restructuring
charges, costs associated with temporarily idled facilities as a
result of decreased demand and costs associated with disposal of
assets associated with obsolete products.
- Electronic Materials inventory adjustment – During the third
quarter of 2024, the Company determined that material costs from
prior years were understated due to unrecognized metal refine
expense and other inventory adjustments.
- Business transformation costs – Represents project management
and implementation expenses related to the Company's automation and
transformation initiatives.
- Pension settlement - Represents settlement charges related to
the Company's international pension plans.
- Additional start up resources and scrap – Represents
incremental resource, consulting and specialists costs incurred
related to the ramp of the precision clad strip facility and scrap
related to product qualifications.
- Precision Optics impairments - Represents goodwill and
long-lived asset impairment charges within the Precision Optics
segment taken in the fourth quarter of 2024.
- Merger, acquisition and divestiture related costs – Includes
due diligence costs associated with potential merger, acquisition
and divestitures as well as loss on asset disposals.
Internally, management reviews the results of operations without
the impact of these costs in order to assess the profitability from
ongoing activities. We are providing this information because we
believe it will assist investors in analyzing our financial results
and, when viewed in conjunction with the GAAP results, provide a
more comprehensive understanding of the factors and trends
affecting our operations.
Attachment 6
Materion Corporation and
Subsidiaries
Reconciliation of Net Income
to Adjusted Net Income
and Diluted Earnings per Share
to Adjusted Diluted Earnings per Share (Unaudited)
Fourth Quarter Ended
Twelve Months Ended
(Millions)
December 31, 2024
Diluted EPS
December 31, 2023
Diluted EPS
December 31,
2024
Diluted EPS
December 31, 2023
Diluted EPS
Net income (loss) and EPS
$
(48.8
)
$
(2.33
)
$
19.5
$
0.93
$
5.9
$
0.28
$
95.7
$
4.58
Special items
Restructuring and cost reduction
0.7
4.2
11.4
11.1
Electronic Materials inventory
adjustment
—
—
2.8
—
Business transformation costs
0.7
—
1.3
—
Pension settlement
—
0.2
—
0.2
Additional start up resources and
scrap
—
5.6
6.1
5.6
Precision Optics impairments
73.2
—
73.2
—
Merger, acquisition and divestiture
related costs
7.4
—
8.1
—
Provision for income taxes (1)
(3.0
)
(2.4
)
(6.6
)
(4.4
)
Total special items
79.0
3.77
7.6
0.36
96.3
4.60
12.5
0.60
Adjusted net income and adjusted EPS
$
30.2
$
1.44
$
27.1
$
1.29
$
102.2
$
4.88
$
108.2
$
5.17
Acquisition amortization (net of tax)
2.2
0.11
2.5
0.12
9.6
0.46
9.8
0.47
Adjusted net income and adjusted EPS excl.
amortization
$
32.4
$
1.55
$
29.6
$
1.41
$
111.8
$
5.34
$
118.0
$
5.64
(1) Provision for income taxes includes the net tax impact on
pre-tax adjustments (listed above), the impact of certain discrete
tax items recorded during the respective periods as well as other
adjustments to reflect the use of one overall effective tax rate on
adjusted pre-tax income in interim periods.
Attachment 7
Reconciliation of Segment Net
sales to Segment Value-added sales and Segment EBITDA to Adjusted
Segment EBITDA (Unaudited)
Performance Materials
Fourth Quarter Ended
Twelve Months Ended
(Millions)
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Net sales
$
211.0
$
201.1
$
744.5
$
755.5
Pass-through metal cost
15.2
15.1
56.5
66.9
Value-added sales
$
195.8
$
186.0
$
688.0
$
688.6
EBITDA
$
53.4
$
40.4
$
169.3
$
174.5
Restructuring and cost reduction
0.1
—
2.9
1.1
Additional start up resources and
scrap
—
5.6
6.1
5.6
Business transformation costs
0.1
—
0.5
—
Adjusted EBITDA
$
53.6
$
46.0
$
178.8
$
181.2
EBITDA as a % of Net sales
25.3
%
20.1
%
22.7
%
23.1
%
EBITDA as a % of Value-added sales
27.3
%
21.7
%
24.6
%
25.3
%
Adjusted EBITDA as a % of Net sales
25.4
%
22.9
%
24.0
%
24.0
%
Adjusted EBITDA as a % of Value-added
sales
27.4
%
24.7
%
26.0
%
26.3
%
Electronic Materials
Fourth Quarter Ended
Twelve Months Ended
(Millions)
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Net sales
$
204.2
$
193.9
$
845.7
$
805.8
Pass-through metal cost
125.6
116.2
530.4
471.1
Value-added sales
$
78.6
$
77.7
$
315.3
$
334.7
EBITDA
$
7.3
$
8.2
$
47.4
$
45.7
Restructuring and cost reduction
0.2
2.8
4.5
7.3
Merger, acquisition and divestiture
related costs
7.0
—
7.0
—
Business transformation costs
0.2
—
0.3
—
Electronic Materials inventory
adjustment
—
—
2.8
—
Adjusted EBITDA
$
14.7
$
11.0
$
62.0
$
53.0
EBITDA as a % of Net sales
3.6
%
4.2
%
5.6
%
5.7
%
EBITDA as a % of Value-added sales
9.3
%
10.6
%
15.0
%
13.7
%
Adjusted EBITDA as a % of Net sales
7.2
%
5.7
%
7.3
%
6.6
%
Adjusted EBITDA as a % of Value-added
sales
18.7
%
14.2
%
19.7
%
15.8
%
Precision Optics
Fourth Quarter Ended
Twelve Months Ended
(Millions)
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Net sales
$
21.7
$
26.0
$
94.5
$
103.9
Pass-through metal cost
—
—
0.2
0.1
Value-added sales
$
21.7
$
26.0
$
94.3
$
103.8
EBITDA
$
(74.6
)
$
2.2
$
(73.3
)
$
9.9
Restructuring and cost reduction
0.3
1.4
2.0
2.6
Pension settlement
—
0.2
—
0.2
Precision Optics impairments
73.2
—
73.2
—
Adjusted EBITDA
$
(1.1
)
$
3.8
$
1.9
$
12.7
EBITDA as a % of Net sales
(343.8
)%
8.5
%
(77.6
)%
9.5
%
EBITDA as a % of Value-added sales
(343.8
)%
8.5
%
(77.7
)%
9.5
%
Adjusted EBITDA as a % of Net sales
(5.1
)%
14.6
%
2.0
%
12.2
%
Adjusted EBITDA as a % of Value-added
sales
(5.1
)%
14.6
%
2.0
%
12.2
%
Other
Fourth Quarter Ended
Twelve Months Ended
(Millions)
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
EBITDA
$
(6.6
)
$
(7.5
)
$
(25.1
)
$
(29.3
)
Restructuring and cost reduction
0.1
—
2.0
0.1
Business transformation costs
0.4
—
0.5
—
Merger, acquisition and divestiture
related costs
0.4
—
1.1
—
Adjusted EBITDA
$
(5.7
)
$
(7.5
)
$
(21.5
)
$
(29.2
)
Attachment 8
Materion Corporation and
Subsidiaries
Reconciliation of Non-GAAP
Measure - Gross Margin to Adjusted Gross Margin
(Unaudited)
Fourth Quarter Ended
Twelve Months Ended
(Millions)
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Gross Margin
Performance Materials
$
62.6
$
50.5
$
203.2
$
216.5
Electronic Materials
26.0
21.5
99.5
100.4
Precision Optics
4.4
7.7
23.3
32.1
Other
—
—
—
—
Total
$
93.0
$
79.7
$
326.0
$
349.0
Special Items (1)
Performance Materials
$
—
$
5.6
$
7.5
$
6.4
Electronic Materials
—
1.5
4.7
3.9
Precision Optics
—
1.0
0.2
1.3
Other
—
—
—
—
Total
$
—
$
8.1
$
12.4
$
11.6
Adjusted Gross Margin
Performance Materials
$
62.6
$
56.1
$
210.7
$
222.9
Electronic Materials
26.0
23.0
104.2
104.3
Precision Optics
4.4
8.7
23.5
33.4
Other
—
—
—
—
Total
$
93.0
$
87.8
$
338.4
$
360.6
(1) Special items impacting gross margin represent restructuring
and cost reduction, the Electronic Materials inventory adjustment,
and additional start up resources and scrap in 2024, and
restructuring and cost reduction and additional start up resources
and scrap in 2023.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250218125060/en/
Investor Contact: Kyle Kelleher
(216) 383-4931 kyle.kelleher@materion.com Media Contact: Jason Saragian (216) 383-6893
jason.saragian@materion.com https://materion.com Mayfield Hts-g
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