Materion Corp (MTRN)
NYSE:MTRN
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Materion
(NYSE:MTRN)
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Rating:67Neutral
Price Target:
$153.00
▲(1.42% Upside)
Action:ReiteratedDate:02/14/26
The score is driven primarily by improving (but still inconsistent) financial performance and a constructive technical uptrend. This is partly offset by a very expensive valuation, while the latest earnings call supports a cautiously optimistic outlook with 2026 growth guidance and strong bookings/backlog, tempered by near-term operational and cash-flow risks from the Clad Strip disruption.
Positive Factors
Demand and bookings momentum
Growing backlog, record bookings and a large RFQ pipeline provide multi-quarter revenue visibility across semiconductor, defense and energy. This durable demand base reduces reliance on single-quarter cycles and supports sustained top-line expansion if conversion and execution remain intact.
Negative Factors
Operational quality/control risk
A material quality event that halted facilities demonstrates operational and quality-control vulnerability. Such failures can damage relationships with large customers, require significant restart and remediation costs, and impose longer qualification cycles, creating lasting execution and reputational risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Demand and bookings momentum
Growing backlog, record bookings and a large RFQ pipeline provide multi-quarter revenue visibility across semiconductor, defense and energy. This durable demand base reduces reliance on single-quarter cycles and supports sustained top-line expansion if conversion and execution remain intact.
Read all positive factors
Materion (MTRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.40B
Dividend Yield0.43%
Average Volume (3M)228.62K
Price to Earnings (P/E)34.5
Beta (1Y)1.23
Revenue Growth3.93%
EPS Growth-73.94%
CountryUS
Employees3,000
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)1.53
Shares Outstanding20,801,338
10 Day Avg. Volume156,244
30 Day Avg. Volume228,622
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)2.74
Price to Sales (P/S)1.44
P/FCF Ratio51.64
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue2.29
Enterprise Value/Gross Profit13.58
Enterprise Value/Ebitda22.03
Forecast
1Y Price Target
$170.00Price Target Upside12.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)6.31
Revenue Forecast (FY)$1.90B
Materion Business Overview & Revenue Model
Company Description
Materion Corporation, through with its subsidiaries, produces advanced engineered materials used in semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center in the United States, Asia,...
How the Company Makes Money
Materion makes money primarily by manufacturing and selling advanced materials and precision-engineered products to OEMs and other industrial customers, generating revenue from product shipments under customer purchase orders and longer-term suppl...
Materion Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presented a balanced picture: significant operational and commercial progress across Electronic Materials and Precision Optics (strong revenue growth, margin expansion, record bookings, and a growing backlog), plus constructive 2026 guidance and strategic investments (defense beryllium capacity). These positives were offset by a material quality event in Precision Clad Strip that led to temporarily idled facilities, a sharp revenue and EBITDA decline in Performance Materials for the quarter, working capital and cash flow pressure from the disruption, and near-term restart costs. Management framed the Clad Strip event as contained with corrective actions implemented and expects a ramp in 2026. Given the breadth of growth drivers, margin improvement, record bookings, and forward guidance that outweigh the isolated but meaningful operational setback, the overall tone is cautiously optimistic.Positive Updates
Electronic Materials: Strong Quarter and Margin Expansion
Value-added sales of $94.1M in Q4, up 20% year-over-year and up 18% sequentially; full-year organic growth of 8%. Adjusted EBITDA of $22.0M representing a 23.4% margin, with ~500 basis points improvement year-over-year. Management expects continued top-line growth in 2026 driven by semiconductor demand (AI, HPC, data storage).
Negative Updates
Precision Clad Strip Quality Event and Facility Idling
A quality control failure impacted product shipped to the company's largest customer, prompting temporary idling of two Precision Clad Strip facilities in Q4 for root-cause fixes and system-wide quality enhancements. This event materially constrained Q4 shipments to that customer and required additional ramp and restart costs.
Read all updates
Q4-2025 Updates
Positive
Negative
Electronic Materials: Strong Quarter and Margin Expansion
Value-added sales of $94.1M in Q4, up 20% year-over-year and up 18% sequentially; full-year organic growth of 8%. Adjusted EBITDA of $22.0M representing a 23.4% margin, with ~500 basis points improvement year-over-year. Management expects continued top-line growth in 2026 driven by semiconductor demand (AI, HPC, data storage).
Read all positive updates
Company Guidance
Management guided 2026 adjusted EPS of $6.00–$6.50 (about 15% growth at the midpoint versus FY2025 adjusted EPS $5.44), noting a slower Q1 (roughly 10% above last year) as Clad Strip is ramped with some incremental restart costs and then sequential step‑ups through the year driven by strong top‑line growth in defense, semiconductor, energy and space; they reiterated a mid‑term adjusted EBITDA margin target of 23% (up from FY2025 adjusted EBITDA of $217M at 20.7% VA margin) and said free cash flow should strengthen via working‑capital optimization and disciplined capex. Management also highlighted balance‑sheet capacity (net debt ≈ $445M, $224M available on the credit facility, leverage ~2.1x), backlog up ~7% year‑over‑year with H2 backlog +12% vs H1, nearly $140M of new bookings (plus $35M booked so far this year) and a ~ $200M RFQ pipeline, and a $65M beryllium capacity investment (≈24‑month build) to support expected defense growth.Materion Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
64
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.79B | 1.68B | 1.67B | 1.76B | 1.51B |
| Gross Profit | 308.63M | 325.99M | 349.04M | 343.88M | 283.76M |
| EBITDA | 182.03M | 203.30M | 203.04M | 177.52M | 125.67M |
| Net Income | 74.82M | 5.89M | 95.70M | 85.99M | 72.47M |
Balance Sheet | |||||
| Total Assets | 1.80B | 1.70B | 1.76B | 1.69B | 1.61B |
| Cash, Cash Equivalents and Short-Term Investments | 13.68M | 16.71M | 13.29M | 13.10M | 14.46M |
| Total Debt | 600.90M | 517.04M | 493.73M | 504.91M | 523.17M |
| Total Liabilities | 859.52M | 828.75M | 877.67M | 891.99M | 887.04M |
| Stockholders Equity | 943.28M | 868.88M | 885.05M | 799.99M | 720.44M |
Cash Flow | |||||
| Free Cash Flow | 49.96M | 7.01M | 24.54M | 38.35M | -12.67M |
| Operating Cash Flow | 103.24M | 87.82M | 144.41M | 115.96M | 90.24M |
| Investing Cash Flow | -98.14M | -79.61M | -119.22M | -79.73M | -494.27M |
| Financing Cash Flow | -9.82M | -4.19M | -24.85M | -35.56M | 393.01M |
Materion Technical Analysis
Positive
150.86
Price Trends
149.04
Positive
138.98
Positive
124.36
Positive
Market Momentum
3.38
Negative
65.14
Neutral
94.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTRN, the sentiment is Positive. The current price of 150.86 is above the 20-day moving average (MA) of 145.51, above the 50-day MA of 149.04, and above the 200-day MA of 124.36, indicating a bullish trend. The MACD of 3.38 indicates Negative momentum. The RSI at 65.14 is Neutral, neither overbought nor oversold. The STOCH value of 94.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTRN.
Materion Risk Analysis
Materion disclosed 31 risk factors in its most recent earnings report. Materion reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Materion Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $3.40B | 34.48 | 8.14% | 0.43% | 3.93% | -73.94% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
50 Neutral | $794.16M | -5.12 | -22.22% | 1.17% | -16.89% | -403.77% | |
48 Neutral | $9.81B | -100.09 | -5.04% | ― | 26.44% | -95.87% | |
47 Neutral | $3.52B | ― | -49.89% | ― | ― | ― | |
44 Neutral | $1.88B | -14.68 | 9999.00% | ― | ― | -111.94% | |
44 Neutral | $1.07B | -0.87 | -35.30% | ― | ― | -18.77% |
* Basic Materials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.