Materion Corp (MTRN)
NYSE:MTRN
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Materion
(NYSE:MTRN)
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Rating:64Neutral
Price Target:
$211.00
▲(39.86% Upside)
Action:Reiterated
Date:05/08/26
The score is held back primarily by weak recent free cash flow and a high valuation (P/E ~40). Offsetting factors include strong technical trend strength and a constructive earnings-call outlook with reaffirmed guidance and record backlog, though momentum appears stretched and cash conversion remains a key risk.
Positive Factors
Record backlog & broad order momentum
A record, diversified backlog provides multi-quarter revenue visibility and reduces short-term cyclical volatility. Strong defense and broad end-market RFQs mean secured demand and a clearer path to sustained revenue growth across aerospace, energy and electronics over the next several quarters.
Negative Factors
Weak free cash flow conversion
Severely weakened FCF reduces financial flexibility to self‑fund growth, deleverages, or absorb shocks. With FCF a small fraction of net income, the company depends more on debt/credit and careful working‑capital management, raising execution risk during reinvestment or slower demand periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog & broad order momentum
A record, diversified backlog provides multi-quarter revenue visibility and reduces short-term cyclical volatility. Strong defense and broad end-market RFQs mean secured demand and a clearer path to sustained revenue growth across aerospace, energy and electronics over the next several quarters.
Read all positive factors
Materion (MTRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.47B
Dividend Yield0.43%
Average Volume (3M)267.80K
Price to Earnings (P/E)40.0
Beta (1Y)1.30
Revenue Growth11.39%
EPS Growth651.28%
CountryUS
Employees3,000
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)3.69
Shares Outstanding20,801,485
10 Day Avg. Volume293,878
30 Day Avg. Volume267,802
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 Cap1.12
Enterprise Value/Revenue2.62
Enterprise Value/Gross Profit16.54
Enterprise Value/Ebitda26.79
Forecast
1Y Price Target
$223.00Price Target Upside47.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)6.4
Revenue Forecast (FY)$2.16B
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:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
Overall the call conveyed strong, broad-based operational momentum — highlighted by record backlog, exceptional Electronic Materials performance, a clear Precision Optics turnaround, margin expansion and reiterated guidance for low double-digit revenue growth and $6.00–$6.50 adjusted EPS. Key near-term negatives centered on the Precision Clad Strip quality disruption that depressed Performance Materials results in Q1, a temporary inventory-driven free cash flow constraint, and a Chinese semiconductor exposure that dampens reported semiconductor growth. Management indicates the clad issue is resolved, capacity is available, and order/backlog trends support stronger quarters ahead.Positive Updates
Record Backlog and Strengthening Order Book
Company exited Q1 with the highest backlog in its history; backlog up >20% year-over-year and 15% since the start of the year. Defense orders totaled $60M in Q1 with more than $300M in open RFQs. Over the last 12 months, order rates: aerospace & defense +50%, energy +20%, semiconductor +10% — indicating broad-based demand acceleration.
Negative Updates
Performance Materials Sales and Profitability Decline
Performance Materials value-added sales $139.5M, down 13% year-over-year (but up 5% sequentially). Adjusted EBITDA $28M or 20.1% of VA sales, down 32% year-over-year. Decline driven primarily by lower precision clad strip sales and the carry-through impact of operational challenges from late 2025.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Backlog and Strengthening Order Book
Company exited Q1 with the highest backlog in its history; backlog up >20% year-over-year and 15% since the start of the year. Defense orders totaled $60M in Q1 with more than $300M in open RFQs. Over the last 12 months, order rates: aerospace & defense +50%, energy +20%, semiconductor +10% — indicating broad-based demand acceleration.
Read all positive updates
Company Guidance
Materion affirmed full‑year guidance of low double‑digit revenue growth and reiterated adjusted EPS guidance of $6.00–$6.50 with growing confidence toward the upper end, driven by a record Q1 backlog (highest in company history; backlog +20% year‑over‑year and +15% YTD), strong order momentum (defense bookings $60M in Q1 and >$300M in open RFQs; 12‑month order rates: aerospace & defense +50%, energy +20%, semiconductor +10%), and business‑specific strength (Q1 value‑added sales $261.8M, adjusted EBITDA $52.9M or 20.2% of VA sales, adjusted EPS $1.27 up 12% YoY; Electronic Materials: $91.6M VA sales, adjusted EBITDA $25.9M and 28.3% margin; Precision Optics: $30.7M VA sales, $5.5M EBITDA and 17.9% margin; Performance Materials: $139.5M VA sales, $28M EBITDA and 20.1% margin). Management expects a 15–20% EPS step‑up in Q2 with larger back‑half gains, meaningful sequential top‑ and bottom‑line improvement in Performance Materials as clad production normalizes, continued EM and optics growth, stronger free cash flow for the full year despite a Q1 inventory build, net debt ≈ $474M with $192M available capacity and leverage ~2.1x, and planned CapEx of roughly $75M (plus ~$25M mine development) alongside customer‑funded investments (e.g., ~$65M beryllium expansion) while progressing toward a midterm EBITDA margin target of 23%.Materion Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.92B | 1.79B | 1.68B | 1.67B | 1.76B | 1.51B |
| Gross Profit | 303.50M | 297.72M | 325.99M | 349.04M | 343.88M | 283.76M |
| EBITDA | 187.36M | 184.93M | 203.30M | 203.04M | 177.52M | 125.67M |
| Net Income | 76.50M | 74.82M | 5.89M | 95.70M | 85.99M | 72.47M |
Balance Sheet | ||||||
| Total Assets | 1.88B | 1.80B | 1.70B | 1.76B | 1.69B | 1.61B |
| Cash, Cash Equivalents and Short-Term Investments | 16.19M | 13.68M | 16.71M | 13.29M | 13.10M | 14.46M |
| Total Debt | 562.41M | 600.90M | 517.04M | 493.73M | 504.91M | 523.17M |
| Total Liabilities | 920.44M | 859.52M | 828.75M | 877.67M | 891.99M | 887.04M |
| Stockholders Equity | 956.96M | 943.28M | 868.88M | 885.05M | 799.99M | 720.44M |
Cash Flow | ||||||
| Free Cash Flow | 6.73M | 49.96M | 7.01M | 24.54M | 38.35M | -12.67M |
| Operating Cash Flow | 80.58M | 103.24M | 87.82M | 144.41M | 115.96M | 90.24M |
| Investing Cash Flow | -92.75M | -98.14M | -79.61M | -119.22M | -79.73M | -494.27M |
| Financing Cash Flow | 11.94M | -9.82M | -4.19M | -24.85M | -35.56M | 393.01M |
Materion Technical Analysis
Positive
150.86
Price Trends
172.01
Positive
158.98
Positive
139.17
Positive
Market Momentum
10.29
Positive
67.76
Neutral
73.32
Neutral
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 below the 20-day moving average (MA) of 196.92, below the 50-day MA of 172.01, and above the 200-day MA of 139.17, indicating a bullish trend. The MACD of 10.29 indicates Positive momentum. The RSI at 67.76 is Neutral, neither overbought nor oversold. The STOCH value of 73.32 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $4.47B | 39.95 | 8.17% | 0.43% | 11.39% | 651.28% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $11.48B | -269.02 | -3.49% | ― | 60.93% | 34.20% | |
58 Neutral | $5.64B | -11.10 | -76.51% | ― | ― | -493.47% | |
52 Neutral | $1.35B | -0.87 | -35.30% | ― | ― | -48.46% | |
49 Neutral | $2.34B | ― | 6542.67% | ― | ― | -243.05% | |
48 Neutral | $801.63M | -27.50 | -15.03% | 1.17% | -11.77% | -85.76% |
* Basic Materials Sector Average
MTRN
Materion
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Materion Corporate Events
Executive/Board ChangesShareholder Meetings
Materion shareholders back board, pay and governance changes
Positive
May 7, 2026
Materion held its 2026 annual meeting of shareholders on May 7, 2026, with approximately 94% of the 20.8 million eligible common shares represented in person or by proxy, underscoring strong investor engagement. All nine board nominees, including ...
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.