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Sep 27, 2024

Materion Q3 2024 Earnings Report

Materion's Q3 2024 performance reflected resilience amidst weak market conditions, driven by cost management and strategic actions.

Key Takeaways

Materion Corporation reported net sales of $436.7 million and net income of $22.3 million, or $1.07 per diluted share, for the third quarter of 2024. Adjusted EBITDA reached a record $56.7 million, with a margin of 21.5%.

Net sales reached $436.7 million; value-added sales were $263.8 million.

Net income was $22.3 million, or $1.07 per share, diluted; adjusted earnings of $1.41 per share.

Operating profit was $31.3 million; adjusted EBITDA reached a record third quarter value of $56.7 million.

Record quarterly adjusted EBITDA margin of 21.5% was achieved.

Total Revenue
$437M
Previous year: $403M
+8.3%
EPS
$1.41
Previous year: $1.51
-6.6%
Value-added Sales
$264M
Previous year: $271M
-2.5%
Gross Profit
$80.9M
Previous year: $88.9M
-9.0%
Cash and Equivalents
$17.9M
Previous year: $16.4M
+9.0%
Free Cash Flow
-$7.23M
Previous year: -$17.5M
-58.7%
Total Assets
$1.86B
Previous year: $1.75B
+6.2%

Materion

Materion

Materion Revenue by Segment

Forward Guidance

Materion expects to deliver a solid fourth quarter with a stronger top line combined with the continued benefit of cost and footprint initiatives. The company expects full year 2024 adjusted earnings in the range of $5.20 to $5.40 per share.

Positive Outlook

  • Stronger top line expected in Q4.
  • Continued benefit from cost initiatives.
  • Continued benefit from footprint initiatives.
  • Solid fourth quarter expected.
  • Full year 2024 adjusted earnings expected in the range of $5.20 to $5.40 per share.

Challenges Ahead

  • Conditions in many end markets remain weak.
  • Potential future recessionary conditions.
  • Impact of tariffs and trade agreements.
  • Impact of any U.S. Federal Government shutdowns or sequestrations.
  • Changes in product mix and the financial condition of customers.

Revenue & Expenses

Visualization of income flow from segment revenue to net income