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Materion
(NYSE:MTRN)
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Rating:68Neutral
Price Target:
$324.00
▲(34.43% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid-but-not-flawless financial performance (growth and improving ROE with manageable leverage, offset by weaker and inconsistent free cash flow conversion) and a very strong, guidance-raising earnings call. Technicals are supportive with a clear uptrend but mixed momentum signals. Valuation meaningfully tempers the score due to the high P/E and low dividend yield.
Positive Factors
Broad end-market demand and backlog growth
Sustained, broad-based order growth across semiconductors, telecom/data center, defense and space creates a durable revenue pipeline. A ~30% backlog lift plus strong incoming orders supports multi-quarter production planning, capacity utilization and mid-teens sales targets.
Negative Factors
Inconsistent free cash flow conversion
Low and volatile FCF conversion versus earnings limits financial flexibility for organic capex, R&D and deleveraging. Historical swings (including negative FCF years) imply working-capital and reinvestment sensitivity that can constrain durable cash returns to shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad end-market demand and backlog growth
Sustained, broad-based order growth across semiconductors, telecom/data center, defense and space creates a durable revenue pipeline. A ~30% backlog lift plus strong incoming orders supports multi-quarter production planning, capacity utilization and mid-teens sales targets.
Read all positive factors
Materion (MTRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.39B
Dividend Yield0.27%
Average Volume (3M)363.88K
Price to Earnings (P/E)57.1
Beta (1Y)1.30
Revenue Growth11.39%
EPS Growth651.28%
CountryUS
Employees2,880
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)4.34
Shares Outstanding20,801,485
10 Day Avg. Volume231,415
30 Day Avg. Volume363,885
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$237.00Price Target Upside-1.67% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)6.43
Revenue Forecast (FY)$2.21B
Materion Business Overview & Revenue Model
Company Description
Materion Corporation (MTRN) is an advanced materials company that develops and manufactures engineered materials and related components used in high-performance applications. The company’s offerings include specialty alloys, precision optical mate...
How the Company Makes Money
Materion makes money primarily by manufacturing and selling advanced engineered materials and finished components to commercial and government customers. Its revenue model is largely product-sales driven: (1) Specialty engineered materials sales: ...
Materion Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operational momentum: record sales, earnings, EBITDA and margin expansion across all segments, robust backlog and order growth, and raised full-year guidance. Key strengths include exceptional Electronic Materials margins, a Precision Optics turnaround, and accelerating defense and space bookings. Risks discussed were limited and manageable but include margin sustainability in Electronic Materials (Q2 mix benefit), flat R&D relative to revenue growth, reliance on customer-funded CapEx, small one-time positive items in results, and ongoing exposure to input cost pressures and investor concerns about backlog prebuying. Overall, the positive achievements and upgrades significantly outweigh the modest challenges.Positive Updates
Record Quarterly Sales and Value-Added Revenue
Value-added sales (ex-pass-through precious metals) reached a record $308.2MM, up 15% year-over-year and 18% sequentially; company reported the highest quarterly sales in its history.
Negative Updates
Questions on Sustainability of Electronic Materials Margin Peak
Electronic Materials margin of 32% may reflect an unusually rich Q2 mix and one-time benefits; management cautioned that Q2 mix may be richer than the rest of the year, implying some risk to sustaining the peak margin level.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Sales and Value-Added Revenue
Value-added sales (ex-pass-through precious metals) reached a record $308.2MM, up 15% year-over-year and 18% sequentially; company reported the highest quarterly sales in its history.
Read all positive updates
Company Guidance
Materion raised its 2026 guidance, now expecting mid‑teens year‑over‑year sales growth and an adjusted EPS range of $6.80–$7.20 (midpoint ≈ $7.00), roughly a 30% increase versus last year at the midpoint and ≈12% above the prior guidance midpoint; management cited record Q2 results underpinning the raise — value‑added sales $308.2M (+15% YoY, +18% Q/Q), adjusted EPS $1.90 (+39% YoY, +50% Q/Q), and adjusted EBITDA $71.8M (23.3% of VA sales, +29% YoY, +250 bps) — plus a backlog up ~30% YoY (20% YTD), H1 incoming orders ≈+30% YoY, defense H1 orders $90M with >$500M open RFQs, space orders +100% YoY, semiconductor orders +20%, and telecom & data center ≈+50%; liquidity and cash guidance included Q2 free cash flow $59M (~150% cash conversion) with a full‑year FCF conversion target of ~75%, net debt ≈$421M, $233M available on the credit facility, leverage ~1.8x, and a CapEx plan around $75M (partially offset by a $65M customer award).Materion Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
72
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.10B | 1.79B | 1.68B | 1.67B | 1.76B | 1.51B |
| Gross Profit | 328.05M | 297.72M | 325.99M | 349.04M | 343.88M | 283.76M |
| EBITDA | 179.00M | 178.28M | 203.30M | 203.04M | 177.52M | 125.67M |
| Net Income | 90.12M | 74.82M | 5.89M | 95.70M | 85.99M | 72.47M |
Balance Sheet | ||||||
| Total Assets | 1.87B | 1.80B | 1.70B | 1.76B | 1.69B | 1.61B |
| Cash, Cash Equivalents and Short-Term Investments | 19.99M | 13.68M | 16.71M | 13.29M | 13.10M | 14.46M |
| Total Debt | 511.53M | 600.90M | 517.04M | 493.73M | 504.91M | 523.17M |
| Total Liabilities | 875.83M | 859.52M | 828.75M | 877.67M | 891.99M | 887.04M |
| Stockholders Equity | 994.87M | 943.28M | 868.88M | 885.05M | 799.99M | 720.44M |
Cash Flow | ||||||
| Free Cash Flow | 14.50M | 49.96M | 7.01M | 24.54M | 38.35M | -12.67M |
| Operating Cash Flow | 104.00M | 103.24M | 87.82M | 144.41M | 115.96M | 90.24M |
| Investing Cash Flow | -110.05M | -98.14M | -79.61M | -119.22M | -79.73M | -494.27M |
| Financing Cash Flow | 16.82M | -9.82M | -4.19M | -24.85M | -35.56M | 393.01M |
Materion Technical Analysis
Positive
241.02
Price Trends
246.03
Positive
208.96
Positive
171.56
Positive
Market Momentum
-3.54
Negative
66.51
Neutral
63.57
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 241.02 is above the 20-day moving average (MA) of 239.42, below the 50-day MA of 246.03, and above the 200-day MA of 171.56, indicating a bullish trend. The MACD of -3.54 indicates Negative momentum. The RSI at 66.51 is Neutral, neither overbought nor oversold. The STOCH value of 63.57 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $4.39B | 57.14 | 9.41% | 0.23% | 11.39% | 651.28% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
50 Neutral | $3.66B | -3.84 | -76.53% | ― | ― | -493.47% | |
48 Neutral | $594.22M | -5.38 | -15.03% | 1.73% | -11.77% | -85.76% | |
47 Neutral | $7.36B | -98.08 | -3.49% | ― | 60.93% | 34.20% | |
46 Neutral | $1.54B | -3.90 | 6542.67% | ― | ― | -243.05% | |
44 Neutral | $776.97M | -12.49 | -35.30% | ― | ― | -48.46% |
* Basic Materials Sector Average
MTRN
Materion
278.26
169.56
155.98%
GSM
Ferroglobe
4.13
0.00
0.00%
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-33.18%
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4.12
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IPX
Iperionx Ltd. ADR
23.87
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USAR
USA Rare Earth
17.41
2.37
15.76%
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.