Materion (MTRN) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, April 29, 2026 astatine 11:59 AM CDT 39 min read

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DATE

Wednesday, April 29, 2026 astatine 9:00 a.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer — Jugal Vijayvargiya

• Vice President and Chief Financial Officer — Shelly Chadwick

Full Conference Call Transcript

Jugal Vijayvargiya, President and Chief Executive Officer; and Shelly Chadwick, Vice President and Chief Financial Officer. Our format for today's league telephone is arsenic follows: Ju volition supply opening comments connected the quarter. Following Jugal, Shelly volition reappraisal the elaborate fiscal results successful summation to discussing expectations for the remainder of 2026. We volition past unfastened up the telephone for questions. Let maine punctual investors that immoderate forward-looking statements made successful the presentation, including those successful the outlook conception and during the question-and-answer portion, are based connected existent expectations. The company's existent show whitethorn materially disagree from that contemplated by the forward-looking statements arsenic a effect of a assortment of factors. Those factors are listed successful the net property merchandise we issued this morning.

Additionally, comments regarding net earlier interest, taxes, depreciation, depletion and amortization, nett income and net per stock bespeak the adjusted GAAP numbers shown successful Attachments 4 done 8 successful this morning's property release. The adjustments were made successful the anterior twelvemonth play for comparative purposes and removed peculiar items, noncash charges and definite discrete income taxation adjustments. And present I'll crook implicit the telephone to Jugal for his comments.

Jugal Vijayvargiya: Thanks, Kyle, and bully morning, everyone. I'm pleased to beryllium with you contiguous to sermon our archetypal 4th show and stock what we're seeing for the remainder of the year. VA income were up 10% year-over-year, excluding precision clad strip, reflecting beardown request crossed astir of our extremity markets. Electronic Materials income accrued 18% versus past year, driven by AI-led request for high-performance representation and information retention applications, on with strengthening request successful powerfulness applications and connection devices. Precision Optics delivered 43% year-over-year apical enactment summation with caller concern coming online crossed aggregate extremity markets and applications. While Performance Materials income were astir flat, excluding precision clad, this was chiefly owed to shipment timing.

The bid publication continues to physique driven by beardown request successful aerospace and defense, vigor and telecom and information center. We expect a meaningful measurement up successful income successful Q2 and passim the remainder of the year. As for precision clad strip, the accumulation ramp-up is progressing good and remains connected schedule. We are present producing astatine the aforesaid complaint arsenic earlier the prime issue. We besides delivered beardown net successful Q1 with EBITDA margins exceeding 20%, a grounds for our archetypal quarter, fixed our emblematic seasonality. Electronic Materials continues to beryllium an outstanding performer, achieving grounds profitability connected precise beardown sales.