Slides
Page 1
Materion Corporation 2Q 2026 Earnings Presentation August 5 , 2026 2026 Materion Corporation E BIOT A MATERION
Page 2
2 © 2026 Materion Corporation Agenda Introduction Kyle Kelleher – Director, Investor Relations and Corporate FP&A Opening Remarks & Business Update Jugal Vijayvargiya – President and Chief Executive Officer Financial Review Shelly Chadwick – Vice President and Chief Financial Officer Q&A Question and Answer Session
Page 3
© 2026 Materion Corporation Forward-looking Statements and Non-GAAP Financial Information These slides contain (and the accompanying oral discussion will contain, where applicable) “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results expressed or implied by these 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, including changes in tax regulations or guidance promulgated pursuant to the new legislation implemented in the One Big Beautiful Bill Act; 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 of infectious diseases and other extraordinary events including geopolitical events such as the conflict between Russia and Ukraine and the conflict between the United States and Iran and other risk factors disclosed in periodic reports filed with the Securities and Exchange Commission. Consequently, these forward-looking statements should be regarded as the Company’s Current plans, estimates, and beliefs. The Company does not undertake and specifically declines any obligation to update or publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. To supplement our consolidated financial statements presented in accordance with GAAP, the Company considers certain financial measures that are not prepared in accordance with GAAP, including value-added sales (VA sales), adjusted earnings before interest and taxes depreciation and amortization (EBITDA), adjusted net income, adjusted earnings per diluted share and net debt (cash). The Company uses these non-GAAP financial measures, in addition to GAAP financial measures, to evaluate our operating and financial performance and to compare such performance to that of prior periods and to the performance of our competitors. Also, the Company uses these non-GAAP financial measures in making operational and financial decisions and in establishing operational goals. The Company also believes providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, helps investors evaluate our operating and financial performance and trends in our business, consistent with how management evaluates such performance and trends. The Company also believes these non-GAAP financial measures may be useful to investors in comparing its performance to the performance of other companies, although its non-GAAP financial measures are specific to the Company and the non-GAAP financial measures of other companies may not be calculated in the same manner. 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 slides 19 through 27 in the appendix. For more information on Non-GAAP measures, please refer to the appendix. 3
Page 4
© 2026 Materion Corporation Jugal Vijayvargiya President and Chief Executive Officer Opening Remarks & Business Update 4
Page 5
© 2026 Materion Corporation See appendix for reconciliations of value-added sales, adjusted EBITDA, adjusted EBITDA margin, adjusted EPS (which excludes acquisition amortization), free cash flow and free cash flow conversion to their most comparable GAAP financial measures. Certain data presented above has been rounded for presentation purposes. Q2 2026 Highlights Record value-added (VA) sales of $308.2 million, up 15% YoY and up 18% sequentially ▪ Highest quarterly aerospace & defense sales and significant growth seen across semiconductor, industrial, energy and telecom & data center ▪ Each business segment delivered double-digit YoY sales growth Record adjusted EBITDA of $71.8 million and margin of 23.3%, up 29% YoY ▪ Exceeded 23% adjusted EBITDA margin for the first time in Company’s history ▪ Electronic Materials delivered record adjusted EBITDA margin of 32%; fifth consecutive quarter of margin expansion ▪ Sixth consecutive quarter of profitability improvement in Precision Optics; first time surpassing 20%+ adjusted EBITDA margin since 2021 Record adjusted EPS of $1.90, up 39% YoY and up 50% sequentially Strong free cash flow generation of $59M in the quarter; ~150% conversion Awarded ~$15M in new business to supply advanced materials critical to engine performance for a large commercial space customer Delivered Record Sales and Earnings as Backlog Reaches New High 5
Page 6
© 2026 Materion Corporation Q2 2026 Market VA Sales vs. Q2 2025 Comments Semiconductor $77.5 23% ▪ Fourth consecutive quarter of YoY growth as the proliferation of AI continues to drive broad- based momentum Aerospace & Defense $69.3 40% ▪ Delivered highest quarterly sales driven by new business initiatives and strong market growth ▪ Strong order bookings continue to support accelerated growth Consumer Electronics $47.9 -17% ▪ Decrease driven by lower precision clad strip sales ▪ Up 1% YoY excluding precision clad Industrial $44.7 16% ▪ Third consecutive quarter of YoY improvement with growth across each business segment Energy $18.9 21% ▪ Increase driven by new energy applications Automotive $15.1 -4% ▪ Slight decrease due to continued market softness Telecom & Data Center $11.4 49% ▪ Fifth consecutive quarter of YoY growth led by AI infrastructure buildout End Market Performance 6
Page 7
© 2026 Materion Corporation 2026 Sales Outlook Improving: Now Expecting Mid-Teens YoY Growth 7 ▪ Exited the quarter with record backlog, up ~30% YoY and up ~20% since the beginning of the year ▪ 1H 2026 incoming orders reached new high, growing ~30% YoY ▪ Strong momentum continues in defense with record $90M of incoming orders and $500M+ in open RFQs ▪ Incoming orders in 1H 2026 vs 1H 2025: ▪ Space orders up ~100% ▪ Aerospace and defense orders up ~50% ▪ Semiconductor orders up ~20%
Page 8
© 2026 Materion Corporation 8 Materion Enabling the Future of Space Systems Satellites Housings and thermal management for optics Semiconductor materials for high-performance computing, power and communications systems Optical filters and mirrors for laser communication Filter arrays for Earth observation In-space Propulsion Be and alloyed materials for microreactor components Surface Power Be and alloyed materials for microreactor components Performance Materials Electronic Materials Precision Optics Rovers & Exploration Structural components and optical coatings & filters for rovers and exploration vehicles Launch Alloyed materials for engine components, launch towers, vacuum nozzles, booster tiles and heat shielding Precious metal and chemical materials for engine components and thermal barrier coatings Telescopes and Probes Beryllium (Be) mirrors, optical filters and beamsplitters for space-based telescopes Alloyed materials for deep-space probes Semiconductor sensors for image processing Ground-to-space Be components, optical coatings & filters for observatories Alloyed materials and precision clad strip for heat shielding and base stations Filters for laser communication ground stations
Page 9
© 2026 Materion Corporation ▪ Delivered record quarterly VA sales, adjusted EBITDA and EPS ▪ Each business segment delivered double-digit YoY sales growth ▪ Exceeded 23% quarterly adjusted EBITDA margin for the first time in Company’s history ▪ Strong free cash flow generation of $59M in the quarter; ~150% conversion ▪ Financial Outlook ▪ Increasing full year sales outlook again, now expecting mid-teens YoY growth ▪ Raising full year adjusted EPS guidance range to $6.80 - $7.20, an increase of ~30% from 2025 at the midpoint ▪ Driving meaningful progress towards achieving full-year adjusted EBITDA margin target of 23% ▪ Expect to deliver strong free cash flow from higher earnings and working capital improvements Key Takeaways 9
Page 10
© 2026 Materion Corporation Shelly Chadwick Vice President and Chief Financial Officer Financial Review 10
Page 11
11 © 2026 Materion Corporation $1.37 $1.90 Q2 2025 Q2 2026 Adj. EPS $269.0 $308.2 Q2 2025 Q2 2026 Value-added Sales ($M) $55.8 $71.8 Q2 2025 Q2 2026 Adj. EBITDA ($M) Q2 2026 Operating Performance Record Adjusted EPS of $1.90, up 39% YoY • Interest expense benefit of $0.03 • Tax headwind of $0.07 • Up 50% sequentially Record adjusted EBITDA at $71.8 million, or 23.3% of VA, up 250 bps YoY ▪ Exceeded 23% adjusted EBITDA margin for the first time in company’s history ▪ Increase driven primarily by higher volume, strong price/mix and operational performance ▪ Up 36% sequentially Record value-added sales of $308.2 million, up 15% YoY ▪ Highest quarterly aerospace & defense sales and significant growth seen across semiconductor, industrial, energy and telecom & data center ▪ Each business segment delivered double-digit YoY sales growth ▪ Up 18% sequentially 23.3% +29% +39%+15% See appendix for reconciliations of value-added sales, adjusted EBITDA, adjusted EBITDA margin and adjusted EPS (which excludes acquisition amortization) to their most comparable GAAP financial measures. Certain data presented above has been rounded for presentation purposes. 20.8%
Page 12
12 © 2026 Materion Corporation Record adjusted EBITDA of $71.8 million, or 23.3% of VA, up 250 bps YoY ▪ Increase driven primarily by higher volume, strong price/mix and operational performance ▪ SG&A reflects growth-related investments including R&D ▪ Other includes currency impact and incentive compensation See appendix for reconciliations of value-added sales, adjusted EBITDA and adjusted EBITDA margin to their most comparable GAAP financial measures. Certain data presented above has been rounded for presentation purposes. 20.8% 23.3% 20.8% 23.3% Q2 2026 Financial Comparison
Page 13
13 © 2026 Materion Corporation $41.5 $48.3 Q2 2025 Q2 2026 Adj. EBITDA ($M) 24.6% 25.4% $168.5 $190.0 Q2 2025 Q2 2026 Value-added Sales ($M) Performance Materials SegmentPerformance Materials Segment Industrial Aerospace & Defense Automotive Consumer Electronics Energy Value-added sales of $190.0 million, up 13% YoY ▪ Increase driven by significant growth across aerospace & defense, telecom & data center, energy and semiconductor end markets ▪ Up 36% sequentially driven by new business initiatives and favorable market dynamics, alongside normalization of precision clad strip Adjusted EBITDA of $48.3 million, or 25.4% of VA, up 80 bps YoY ▪ Increase driven by higher volume and strong price/mix ▪ 530 bps of sequential margin improvement Outlook: ▪ Expect continued top-line growth from order book momentum across several markets, led by aerospace & defense +16%+13% Q2 Performance by End Market Telecom & Data Center See appendix for reconciliation of value-added sales to the most comparable GAAP financial measure. Certain data presented above has been rounded for presentation purposes.
Page 14
14 © 2026 Materion Corporation $17.8 $28.0 Q2 2025 Q2 2026 Adj. EBITDA ($M) $76.1 $87.4 Q2 2025 Q2 2026 Value-added Sales ($M) Electronic Materials Segment Semiconductor Automotive Industrial Q2 Performance by End Market 23.4% 32.0% Value-added sales of $87.4 million, up 15% YoY ▪ Increase driven primarily by continued strength in semiconductor ▪ New business initiatives across semiconductor and AI adoption fueling high demand for chips and data storage devices Record adjusted EBITDA of $28.0 million, or 32.0% of VA, up 860 bps YoY ▪ Increase driven by higher volume, strong price/mix and operational performance ▪ Fifth consecutive quarter of margin expansion, up 370 bps sequentially Outlook: ▪ Expect continued top-line growth driven by semiconductor market outgrowth and new business initiatives +15% +57% Energy Life Sciences See appendix for reconciliation of value-added sales to the most comparable GAAP financial measure. Certain data presented above has been rounded for presentation purposes. Aerospace & Defense
Page 15
15 © 2026 Materion Corporation $2.2 $6.6 Q2 2025 Q2 2026 Adj. EBITDA ($M) $24.4 $30.8 Q2 2025 Q2 2026 Value-added Sales ($M) Precision Optics SegmentPrecision Optics Segment Value-added sales of $30.8 million, up 26% YoY ▪ Increase driven by market strength across all end markets ▪ Fifth consecutive quarter of top-line improvement, the highest quarterly sales since 2021 Adjusted EBITDA of $6.6 million, or 21.4% of VA ▪ Increase driven by higher volume and favorable price/mix/performance ▪ Sixth consecutive quarter of bottom-line improvement, up 350 bps sequentially ▪ First time delivering 20%+ margin since Q1 ‘21 Outlook: ▪ Expect continued top-line growth supported by ongoing business transformationLife Sciences Q2 Performance by End Market Automotive Aerospace & Defense Consumer Electronics Industrial +26% Semiconductor +206% 21.4% See appendix for reconciliation of value-added sales to the most comparable GAAP financial measure. Certain data presented above has been rounded for presentation purposes. 9.0%
Page 16
16 © 2026 Materion Corporation Cash, Debt and Liquidity ($M) Q2 2025 Q2 2026 Short-term Debt $19.9 $17.5 Long-term Debt $405.7 $423.2 Total Debt $425.6 $440.7 Cash & Cash Equivalents $12.6 $20.0 Net Debt (Cash) $413.0 $420.7 TTM Adjusted EBITDA $222.7 $237.2 Net Debt (Cash) / TTM Adj. EBITDA 1.9x 1.8x Strong free cash flow generation of $59M in the quarter; ~150% conversion Leverage below midpoint of target range of 1.5x – 3x Approximately $233 million available on revolving credit facility ▪ Adequate liquidity remains to support growth initiatives No share buyback activity this quarter ▪ Board authorization in place for up to $50M of shares Balanced capital allocation approach, prioritizing organic investment
Page 17
17 © 2026 Materion Corporation $5.44 $6.80 - $7.20 Adj. EPS GuidanceFull Year 2026 Guidance 2026 Modeling Assumptions Capital Expenditures $75M Interest Expense $28M Mine Development – New Pit Openings $25M Effective Tax Rate ~14% Depreciation and Amortization $75M Acquisition Amortization $10M 2026 Guidance ▪ Increasing full year adjusted EPS guidance to $6.80 - $7.20, an increase of ~30% from 2025 at the midpoint Note: This guidance was provided on August 5, 2026, and has not been confirmed or updated. The Company disclaims any obligation to do so based on any subsequent event or any other reason. In addition, as discussed on slide 3, it is not possible for the Company to forecast future adjustments to GAAP earnings. ~30% 2025 2026E
Page 18
18 © 2026 Materion Corporation Invest in Materion as We Advance Our Strategy Becoming a global leader in high-performing advanced materials serving diverse and attractive markets well aligned with megatrends Building robust pipeline with investments in R&D as we focus on developing innovative solutions for our customers Leveraging strong cash flow and deploying a disciplined, strategic approach toward profitable growth opportunities, both organic and inorganic Energized management team laser focused on execution and increasing value for all stakeholders
Page 19
19 © 2026 Materion Corporation Reconciliation for Value-added Sales 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. The use of value-added sales allows management to assess the impact of differences in net sales and analyze the resulting profitability without the distortion of metal pricing movements, which the Company believes would be useful information for investors.
Page 20
20 © 2026 Materion Corporation Reconciliation for Non-GAAP Measures We have adjusted the results for certain special items such as restructuring and cost reduction initiatives (including costs associated with temporarily idled facilities), Electronic Materials inventory adjustment, business transformation costs, environmental remediation, Precision Optics impairments, additional start up resources and scrap, and merger, acquisition and divestiture related costs from the applicable GAAP financial measure. Management reviews the results of operations without the impact of these items to assess profitability from ongoing activities and believes this will assist investors in analyzing our financial results.
Page 21
21 © 2026 Materion Corporation Reconciliation for Non-GAAP Measures (Cont.) We have adjusted the results for certain special items such as restructuring and cost reduction initiatives (including costs associated with temporarily idled facilities), Electronic Materials inventory adjustment, business transformation costs, environmental remediation, Precision Optics impairments, additional start up resources and scrap, and merger, acquisition and divestiture related costs from the applicable GAAP financial measure. Management reviews the results of operations without the impact of these items to assess profitability from ongoing activities and believes this will assist investors in analyzing our financial results.
Page 22
22 © 2026 Materion Corporation Reconciliation for Non-GAAP Measures (Cont.) We have adjusted the results for certain special items such as restructuring and cost reduction initiatives (including costs associated with temporarily idled facilities), Electronic Materials inventory adjustment, business transformation costs, environmental remediation, Precision Optics impairments, additional start up resources and scrap, and merger, acquisition and divestiture related costs from the applicable GAAP financial measure. Management reviews the results of operations without the impact of these items to assess profitability from ongoing activities and believes this will assist investors in analyzing our financial results.
Page 23
23 © 2026 Materion Corporation Reconciliation for Non-GAAP Measures (Cont.) We have adjusted the results for certain special items such as restructuring and cost reduction initiatives (including costs associated with temporarily idled facilities), Electronic Materials inventory adjustment, business transformation costs, environmental remediation, Precision Optics impairments, additional start up resources and scrap, and merger, acquisition and divestiture related costs from the applicable GAAP financial measure. Management reviews the results of operations without the impact of these items to assess profitability from ongoing activities and believes this will assist investors in analyzing our financial results.
Page 24
24 © 2026 Materion Corporation Reconciliation for Non-GAAP Measures (Cont.) We have adjusted the results for certain special items such as restructuring and cost reduction initiatives (including costs associated with temporarily idled facilities), Electronic Materials inventory adjustment, business transformation costs, environmental remediation, Precision Optics impairments, additional start up resources and scrap, and merger, acquisition and divestiture related costs from the applicable GAAP financial measure. Management reviews the results of operations without the impact of these items to assess profitability from ongoing activities and believes this will assist investors in analyzing our financial results.
Page 25
25 © 2026 Materion Corporation Reconciliation for Non-GAAP Measures (Cont.) We have adjusted the results for certain special items such as restructuring and cost reduction initiatives (including costs associated with temporarily idled facilities), Electronic Materials inventory adjustment, business transformation costs, environmental remediation, Precision Optics impairments, additional start up resources and scrap, and merger, acquisition and divestiture related costs from the applicable GAAP financial measure. Management reviews the results of operations without the impact of these items to assess profitability from ongoing activities and believes this will assist investors in analyzing our financial results.
Page 26
26 © 2026 Materion Corporation Reconciliation for Non-GAAP Measures (Cont.) We have adjusted the results for certain special items such as restructuring and cost reduction initiatives (including costs associated with temporarily idled facilities), Electronic Materials inventory adjustment, business transformation costs, additional start up resources and scrap, and merger, acquisition and divestiture related costs from the applicable GAAP financial measure. Management reviews the results of operations without the impact of these items to assess profitability from ongoing activities and believes this will assist investors in analyzing our financial results. ($ in millions) Q2 2026 Q2 2025 Q2 2026 TTM Q2 2025 TTM GAAP as Reported Net income $ 38.8 $ 25.1 $ 90.2 $ 16.3 Income tax expense (benefit) 5.7 4.0 6.7 10.2 Interest expense 7.5 8.3 30.7 32.8 Depreciation, depletion, and amortization 19.2 17.5 72.6 70.0 Consolidated EBITDA $ 71.2 $ 54.9 $ 200.2 $ 129.3 Special Items Restructuring and cost reduction $ 0.3 $ 0.5 $ 3.4 $ 4.9 Electronic Materials inventory adjustment — — — 2.8 Business transformation costs 0.1 0.2 0.7 1.6 Product quality issue — — 30.8 Environmental Remediation — — 0.6 Precision Optics impairments — — — 73.2 Merger, acquisition and divestiture related costs — 0.2 1.0 9.7 Pension settlement — — 0.3 — Additional start-up resources and scrap — — — 1.2 Other 0.2 — 0.2 — Total Special Items 0.6 0.9 37.0 93.4 Adjusted EBITDA $ 71.8 $ 55.8 $ 237.2 $ 222.7
Page 27
27 © 2026 Materion Corporation Free Cash Flow Reconciliation
Page 28
© 2025 Materion Corporation Materion enables what’s next Materion Corporation +1 216.486.4200 http://www.materion.com Connect With Us