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Jun 28, 2024

Materion Q2 2024 Earnings Report

Materion's Q2 2024 financial results were released, showcasing record performance and updated earnings guidance.

Key Takeaways

Materion Corporation reported record second quarter 2024 financial results, with net sales of $425.9 million and adjusted earnings per share of $1.42. The company has updated its full-year adjusted earnings per share guidance to $5.60-$5.90.

Net sales reached $425.9 million, with value-added sales hitting a second-quarter record of $279.8 million, up 4% year-over-year.

Net income was $19.0 million, or $0.91 per share, diluted; adjusted earnings were $1.42 per share, a 3% increase year-over-year.

Adjusted EBITDA reached a record $57.8 million for the quarter, compared to $55.5 million in the prior year.

Full-year adjusted earnings per share range was updated to $5.60–5.90, a 2% increase from the prior year at the midpoint.

Total Revenue
$426M
Previous year: $399M
+6.9%
EPS
$1.42
Previous year: $1.38
+2.9%
Value-added Sales
$280M
Previous year: $268M
+4.3%
Gross Profit
$77.7M
Previous year: $89.1M
-12.7%
Cash and Equivalents
$17.1M
Previous year: $16.6M
+3.2%
Free Cash Flow
-$1.86M
Total Assets
$1.8B
Previous year: $1.74B
+3.8%

Materion

Materion

Materion Revenue by Segment

Forward Guidance

Despite a softening outlook in semiconductor, automotive, and industrial end-market demand, Materion remains confident in its ability to deliver another year of record results. The company is revising its full-year 2024 adjusted earnings per share range to $5.60 to $5.90, an increase of 2% from the prior year at the midpoint.

Positive Outlook

  • Continued to win new business.
  • Drove operational improvements throughout the company.
  • Confident in ability to execute.
  • Confident to deliver another year of record results.
  • Adjusted earnings per share range is revised to $5.60 to $5.90.

Challenges Ahead

  • Outlook for semiconductor demand has softened.
  • Outlook for automotive end-market demand has softened.
  • Outlook for industrial end-market demand has softened.
  • Lowering the top end of guidance.
  • Unable to reconcile forecasted range of adjusted earnings guidance for the full year to a comparable GAAP range without unreasonable effort.

Revenue & Expenses

Visualization of income flow from segment revenue to net income