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Sep 29, 2023

Materion Q3 2023 Earnings Report

Materion reported record earnings and demonstrated operational excellence.

Key Takeaways

Materion Corporation reported record third quarter earnings, with net sales of $403.1 million and adjusted EBITDA of $55.4 million. The company affirmed the midpoint of its 2023 earnings guidance, expecting a 10% increase year over year.

Net sales reached $403.1 million; value-added sales were $270.5 million.

Operating profit was $36.5 million, with a record adjusted EBITDA of $55.4 million, a 14% increase year-over-year.

Net income was $1.27 per diluted share, with record adjusted earnings of $1.51 per share.

The full year earnings outlook midpoint was affirmed at $5.80 per share, a 10% increase year-over-year.

Total Revenue
$403M
Previous year: $428M
-5.9%
EPS
$1.51
Previous year: $1.19
+26.9%
Value-added Sales
$271M
Previous year: $290M
-6.9%
Gross Profit
$88.9M
Previous year: $82.7M
+7.5%
Cash and Equivalents
$16.4M
Previous year: $20.7M
-20.7%
Free Cash Flow
-$17.5M
Previous year: -$3.72M
+371.0%
Total Assets
$1.75B
Previous year: $1.7B
+2.7%

Materion

Materion

Materion Revenue by Segment

Forward Guidance

Materion narrowed the range and affirmed the midpoint of its full-year adjusted earnings per share guidance in the range of $5.70 to $5.90, an increase of 10% at the midpoint versus the prior year.

Positive Outlook

  • Accelerating contributions from megatrend-aligned organic pipeline
  • Strong operational performance
  • Ability to execute
  • Deliver another year of record results
  • Affirmed full-year adjusted earnings per share guidance midpoint

Challenges Ahead

  • Slower than expected market recovery
  • Potential insurance and litigation claims
  • Legacy environmental costs
  • Acquisition and integration costs
  • Certain income tax items, or other non-routine costs

Revenue & Expenses

Visualization of income flow from segment revenue to net income