Materion Lifts 2026 Adjusted Earnings Outlook

The Tip Desk · November 4, 2026 · 3 min read

The advanced-materials maker raised full-year adjusted earnings to $7.10–$7.40 a share after record third-quarter sales of $567.3 million and a 33% midpoint increase.

Materion Corporation (MTRN) reported record third-quarter 2026 results and lifted its full-year adjusted earnings outlook to $7.10 to $7.40 a share, a 33% increase at the midpoint versus the prior year.

The Mayfield Heights, Ohio, advanced-materials company said net sales were $567.3 million, up 27.5% from $444.8 million a year earlier. Value-added sales, which strip out pass-through metals, were $313.7 million, up 19%.

Net income was $38.3 million, or $1.81 a share, versus $25.4 million, or $1.22 a share, a year earlier. Adjusted earnings excluding acquisition amortization were $1.93 a share versus $1.41. Operating profit was $50.4 million versus $34.9 million.

Adjusted EBITDA was a third-quarter record of $70.7 million, or 22.5% of value-added sales, versus $55.5 million, or 21.0%, a year earlier. The company said the result was driven by higher volume and strong price/mix, and described the year-over-year margin expansion as the fourth consecutive quarter of such expansion.

Sequentially, net sales fell from $613.9 million in the second quarter. Value-added sales rose from $308.2 million. Adjusted EBITDA declined from a second-quarter record of $71.8 million, and the margin compressed to 22.5% from 23.3%, after the company had exceeded 23% for the first time in its history. Sequential net income was $38.3 million, or $1.81 a share, versus $38.8 million, or $1.84 a share. Operating profit was $50.4 million versus $51.7 million. Free cash flow was about $46 million versus $59 million.

Year over year, free cash flow was about $46 million with 120% conversion, versus a $5.2 million outflow and (20)% conversion a year earlier.

Electronic Materials, the largest reportable segment, posted net sales of $336.6 million versus $246.8 million a year earlier and value-added sales of $103.4 million versus $79.7 million. Adjusted EBITDA was $33.2 million, or 32.1% of value-added sales, versus $21.6 million, or 27.1%.

Performance Materials net sales were $199.0 million versus $170.8 million; value-added sales were $178.7 million versus $157.1 million. Adjusted EBITDA was $42.6 million, or 23.8% of value-added sales, versus $38.0 million, or 24.2%.

Precision Optics net sales were $31.7 million versus $27.2 million; adjusted EBITDA was $5.5 million, or 17.4% of value-added sales, versus $3.2 million, or 11.8%. Other adjusted EBITDA was a $10.6 million loss versus a $7.3 million loss a year earlier.

The company said it delivered record quarterly value-added sales and earnings, the highest quarterly semiconductor sales in company history, and double-digit year-over-year sales and earnings growth in each segment. Incoming orders were up about 25% year over year and backlog reached an all-time high, up about 35% year over year.

President and CEO Jugal Vijayvargiya said the team’s commitment to delivering for customers across diverse end markets drove double-digit growth in each business segment. He said the outlook is very strong as the company enters the fourth quarter, with a meaningful step up in sales expected, supported by record backlog and robust demand, and that Materion is well-positioned to deliver its strongest quarter yet.

The company said year-to-date performance, record backlog and continued order-rate momentum have reinforced confidence in delivering record results for 2026. It is raising full-year adjusted earnings per share guidance to $7.10 to $7.40 from the $6.80 to $7.20 range set after the second quarter.

It said it is unable to reconcile the forecasted adjusted earnings range to a comparable GAAP range without unreasonable effort, citing items that are dependent on future events not reasonably estimable.