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Sep 30, 2022

Materion Q3 2022 Earnings Report

Materion reported record third-quarter results, driven by strong performance across several major end markets and the HCS-Electronic Materials acquisition.

Key Takeaways

Materion Corporation reported record third-quarter financial results with net sales of $428.2 million and value-added sales increasing 35% year-over-year to a record $290.4 million. Adjusted EPS reached an all-time record of $1.31, despite bottom-line results falling short of expectations due to short-term headwinds and operational challenges. The company updated its full-year 2022 adjusted earnings per share guidance to $5.15 to $5.25.

Net sales reached $428.2 million.

Value-added sales increased 35% year-over-year to a record $290.4 million.

Adjusted EBITDA was a record $48.8 million.

Adjusted EPS reached an all-time record of $1.31.

Total Revenue
$428M
Previous year: $388M
+10.4%
EPS
$1.19
Previous year: $1.1
+8.2%
Value-added Sales
$290M
Previous year: $216M
+34.6%
Gross Profit
$82.7M
Previous year: $74.3M
+11.3%
Cash and Equivalents
$20.7M
Previous year: $18M
+14.8%
Free Cash Flow
-$3.72M
Previous year: -$23.5M
-84.2%
Total Assets
$1.7B
Previous year: $1.18B
+43.9%

Materion

Materion

Materion Revenue by Segment

Forward Guidance

The company updated the 2022 adjusted earnings per share guidance to the range of $5.15 to $5.25 to adjust for the impact of the aforementioned headwinds. This updated range represents a ~30% increase from the prior year at the midpoint.

Positive Outlook

  • Strong end market demand
  • Growth from strategic initiatives

Challenges Ahead

  • Impact of aforementioned headwinds

Revenue & Expenses

Visualization of income flow from segment revenue to net income