Materion | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 613.91 M

Revenue: As of FY2026 Q2, the actual value is USD 613.91 M, beating the estimate of USD 549.82 M.

EPS: As of FY2026 Q2, the actual value is USD 1.84, beating the estimate of USD 1.3867.

EBIT: As of FY2026 Q2, the actual value is USD 52.03 M.

Materion Corporation reported strong financial results for the second quarter and six months ended July 3, 2026, compared to the prior year periods, achieving record quarterly value-added sales, adjusted EBITDA, and adjusted EPS. Each business segment delivered double-digit year-over-year sales growth, and the company exceeded 23% quarterly adjusted EBITDA margin for the first time. Materion Corporation exited the quarter with a record backlog, up approximately 30% year-over-year and 20% since the beginning of the year, and was awarded approximately $15 million in new business to supply advanced materials for a commercial space customer.

Consolidated Financial Performance

Second Quarter Ended July 3, 2026 vs. June 27, 2025

• Net Sales: $613.9 million, up from $431.7 million.
• Value-added Sales: $308.2 million, up from $269.0 million.
• Gross Margin: $104.3 million, up from $82.6 million.
• Operating Profit: $51.7 million, up from $36.8 million.
• Net Income: $38.8 million, up from $25.1 million.
• Adjusted EBITDA: $71.8 million, up from $55.8 million.
• Adjusted EBITDA as a % of Value-added sales: 23.3%, up from 20.8%.
• Free Cash Flow (FCF): $58.7 million, up from $35.7 million.
• Free Cash Flow Conversion as a % of Net Income: 151%, up from 142%.

Six Months Ended July 3, 2026 vs. June 27, 2025

• Net Sales: $1,163.7 million, up from $852.0 million.
• Value-added Sales: $570.0 million, up from $528.3 million.
• Gross Margin: $186.2 million, up from $158.8 million.
• Operating Profit: $79.9 million, up from $64.0 million.
• Net Income: $58.1 million, up from $42.8 million.
• Adjusted EBITDA: $124.8 million, up from $104.5 million.
• Net cash provided by operating activities: $70.5 million, up from $65.4 million.
• Free Cash Flow (FCF): $39.0 million, up from $30.2 million.
• Free Cash Flow Conversion as a % of Net Income: 67%, down from 71%.

Segment Performance (Second Quarter Ended July 3, 2026 vs. June 27, 2025)

Performance Materials Segment

• Net Sales: $207.9 million, up from $182.8 million.
• Value-added Sales: $190.0 million, up from $168.5 million.
• Operating Profit: $36.5 million, up from $31.0 million.
• Adjusted EBITDA: $48.3 million, up from $41.5 million.
• Adjusted EBITDA as a % of Value-added sales: 25.4%, up from 24.6%.

Electronic Materials Segment

• Net Sales: $375.2 million, up from $224.4 million.
• Value-added Sales: $87.4 million, up from $76.1 million.
• Operating Profit: $23.1 million, up from $13.3 million.
• Adjusted EBITDA: $28.0 million, up from $17.8 million.
• Adjusted EBITDA as a % of Value-added sales: 32.0%, up from 23.4%.

Precision Optics Segment

• Net Sales: $30.8 million, up from $24.5 million.
• Value-added Sales: $30.8 million, up from $24.4 million.
• Operating Profit: $4.3 million, up from - $0.6 million.
• Adjusted EBITDA: $6.6 million, up from $2.2 million.
• Adjusted EBITDA as a % of Value-added sales: 21.4%, up from 9.0%.

Outlook / Guidance

Materion Corporation expects mid-teens top-line growth for the full year. The company is raising its full-year adjusted earnings per share guidance to $6.80 to $7.20, representing a 30% increase from the prior year at the midpoint. This improved outlook is driven by strong first-half results, increasing backlog, and robust order rate momentum.