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MATERION CORPORATION REPORTS
SECOND-QUARTER 2025 FINANCIAL RESULTS

MAYFIELD HEIGHTS, Ohio – Materion Corporation (NYSE: MTRN) today reported second-quarter 2025 financial results and affirmed full year outlook.

Financial Summary
•Net sales were $431.7 million; value-added sales1 were $269.0 million
•Net income of $25.1 million, or $1.21 per share, diluted, versus net income of $19.0 million, or $0.91 per share, in the prior year quarter; adjusted earnings of $1.37 per share versus $1.42 in the prior year quarter
•Operating profit of $36.8 million versus operating profit of $32.1 million in the prior year quarter; adjusted EBITDA2 of $55.8 million, versus $57.8 million in the prior year quarter

Business Highlights
•Delivered second-quarter record adjusted EBITDA margin of 20.8%
•Generated ~$36 million free cash flow3 in the quarter
•Repurchased 100,000 shares during the quarter at an average of ~$78/share
•Completed acquisition to expand semiconductor footprint and capabilities in Asia

“Our business performed very well in the quarter, delivering record margins and strong cash flow, despite the anticipated slowdown in demand from our customers in China,” said Jugal Vijayvargiya, President & CEO of Materion. “These results are a testament to the outstanding work our teams have done to improve the cost profile and operational performance of our company.”

“Looking ahead, we are encouraged by positive signs we are seeing in several of our end markets. As order rates start to improve and we continue to win new business, we feel confident in affirming our full year guide, despite continued uncertainty surrounding the tariff environment.”
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SECOND-QUARTER 2025 RESULTS
Net sales for the quarter were $431.7 million, compared to $425.9 million in the prior year period. Value-added sales were $269.0 million for the quarter, down 2% organic4 from the prior year period due to lower PMI shipments and sales into China. This decrease was partially offset by strength in aerospace & defense, energy and non-China semiconductor.
Operating profit for the quarter was $36.8 million and net income was $25.1 million, or $1.21 per diluted share, compared to operating profit of $32.1 million and net income of $19.0 million, or $0.91 per share, in the prior year period.
Excluding special items5, adjusted EBITDA was $55.8 million, or 20.8% of value-added sales, a second-quarter record, compared to $57.8 million or 20.7% of value-added sales in the prior year period. This decrease was driven by lower volume, partially offset by continued strong operational performance and structural cost improvements.
Adjusted net income was $28.5 million excluding acquisition amortization, or $1.37 per diluted share, compared to $1.42 per share in the prior year period.

OUTLOOK
The business performed well in the first half of the year, driving strong results in a volatile and uncertain macroeconomic environment. As we look to the second half, we remain focused on delivering to our customers, driving above market growth and capturing new business opportunities in several key end markets. With improving market dynamics, we expect to deliver a strong second half. With that, we are affirming our initial guide of $5.30 to $5.70 adjusted earnings per share for the full year.

ADJUSTED EARNINGS GUIDANCE
It is not possible for the Company to identify the amount or significance of future adjustments associated with potential insurance and litigation claims, legacy environmental costs, acquisition and integration costs, certain income tax items, or other non-routine costs that the Company adjusts in the presentation of adjusted earnings guidance. These items are dependent on future events that are not reasonably estimable at this time. Accordingly, the Company is unable to reconcile without unreasonable effort the forecasted range of adjusted earnings guidance for the full year to a comparable GAAP range. However, items excluded from the Company's adjusted earnings guidance include the historical adjustments noted in Attachments 4 through 9 to this press release.

CONFERENCE CALL
Materion Corporation will host an investor conference call with analysts at 10:00 a.m. Eastern Time, July 30, 2025. The conference call will be available via webcast through the Company’s website at www.materion.com. By phone, please dial (888) 506-0062. Calls outside the U.S. can dial (973) 528-0011; please reference participant access code of 928518. A replay of the call will be available until August 13, 2025 by dialing (877) 481-4010 or (919) 882-2331 if international; please reference replay ID number 51694. The call will also be archived on the Company’s website.

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FOOTNOTES
1 Value-added sales deducts the impact of pass-through metals from net sales
2 EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization
3 See reconciliation of operating cash flow to free cash flow in Attachment 9
4 Excludes value-added sales from the divested Albuquerque, New Mexico large area targets business sold in 2024
5 Details of the special items can be found in Attachments 4 through 9

ABOUT MATERION
Materion Corporation is a global leader in advanced materials solutions for high-performance industries including semiconductor, industrial, aerospace & defense, energy and automotive. With nearly 100 years of expertise in specialty engineered alloy systems, inorganic chemicals and powders, precious and non-precious metals, beryllium and beryllium composites, and precision filters and optical coatings, Materion partners with customers to enable breakthrough solutions that move the world forward. Headquartered in Mayfield Heights, Ohio, the Company employs more than 3,000 talented people worldwide, serving customers in more than 60 countries.

FORWARD-LOOKING STATEMENTS
Portions of the narrative set forth in this document that are not statements of historical or current facts are forward-looking statements. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors. These factors include, in addition to those mentioned elsewhere herein: the global economy, including inflationary pressures, potential future recessionary conditions and the impact of tariffs and trade agreements; the impact of any U.S. Federal Government shutdowns or sequestrations; the condition of the markets which we serve, whether defined geographically or by segment; changes in product mix and the financial condition of customers; our success in developing and introducing new products and new product ramp-up rates; our success in passing through the costs of raw materials to customers or otherwise mitigating fluctuating prices for those materials, including the impact of fluctuating prices on inventory values; our success in identifying acquisition candidates and in acquiring and integrating such businesses; the impact of the results of acquisitions on our ability to fully achieve the strategic and financial objectives related to these acquisitions; our success in implementing our strategic plans and the timely and successful start-up and completion of any capital projects; other financial and economic factors, including the cost and availability of raw materials (both base and precious metals), physical inventory valuations, metal consignment fees, tax rates, exchange rates, interest rates, pension costs and required cash contributions and other employee benefit costs, energy costs, regulatory compliance costs, the cost and availability of insurance, credit availability, and the impact of the Company’s stock price on the cost of incentive compensation plans; the uncertainties related to the impact of war, terrorist activities, and acts of God; changes in government regulatory requirements and the enactment of new legislation that impacts our obligations and operations, including changes in tax regulations or guidance promulgated pursuant to the new legislation implemented in the One Big Beautiful Bill Act; the conclusion of pending litigation matters in accordance with our expectation that there will be no material
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adverse effects; the disruptions in operations from, and other effects of, catastrophic and other extraordinary events including outbreaks of infectious diseases and the conflict between Russia and Ukraine; realization of expected financial benefits expected from the Inflation Reduction Act of 2022; and the risk factors set forth in Part 1, Item 1A of the Company's 2024 Annual Report on Form 10-K.


Investor Contact:
Kyle Kelleher
(216) 383-4931
kyle.kelleher@materion.com

Media Contact:
Jason Saragian
(216) 383-6893
jason.saragian@materion.com
https://materion.com

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Attachment 1
Materion Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)

Second Quarter EndedSix Months Ended
(In thousands except per share amounts)June 27, 2025June 28, 2024June 27, 2025June 28, 2024
Net sales$431,658 $425,866 $851,988 $811,153 
Cost of sales349,000 345,007 693,151 659,082 
Gross margin82,658 80,859 158,837 152,071 
Selling, general, and administrative expense35,039 33,601 70,484 69,445 
Research and development expense6,413 7,702 12,918 14,844 
Restructuring expense479 3,048 2,517 4,668 
Other — net3,908 4,446 8,904 8,803 
Operating profit 36,819 32,062 64,014 54,311 
Other non-operating income—net(567)(640)(1,233)(1,283)
Interest expense — net8,230 8,802 15,147 17,081 
Income before income taxes29,156 23,900 50,100 38,513 
Income tax expense 4,016 4,864 7,262 6,068 
Net income$25,140 $19,036 $42,838 $32,445 
Basic earnings per share:
Net income per share of common stock$1.21 $0.92 $2.06 $1.57 
Diluted earnings per share:
Net income per share of common stock$1.21 $0.91 $2.05 $1.55 
Weighted-average number of shares of common stock outstanding:
Basic20,779 20,741 20,779 20,710 
Diluted20,833 20,914 20,874 20,937 

























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Attachment 2
Materion Corporation and Subsidiaries
Consolidated Balance Sheets

(Unaudited)
(Thousands)June 27, 2025December 31, 2024
Assets
Current assets
Cash and cash equivalents$12,591 $16,713 
Accounts receivable, net198,377 193,793 
Inventories, net444,637 441,299 
Prepaid and other current assets79,508 72,419 
Total current assets735,113 724,224 
Deferred income taxes3,055 2,964 
Property, plant, and equipment1,357,772 1,315,586 
Less allowances for depreciation, depletion, and amortization(825,175)(804,781)
Property, plant, and equipment—net532,597 510,805 
Operating lease, right-of-use assets75,363 64,449 
Intangible assets, net107,627 109,312 
Other assets21,757 22,140 
Goodwill265,695 263,738 
Total Assets$1,741,207 $1,697,632 
Liabilities and Shareholders’ Equity
Current liabilities
Short-term debt$19,880 $34,274 
Accounts payable132,338 105,901 
Salaries and wages15,890 20,939 
Other liabilities and accrued items43,658 47,523 
Income taxes3,236 4,906 
Unearned revenue16,899 13,191 
Total current liabilities231,901 226,734 
Other long-term liabilities12,541 12,013 
Operating lease liabilities72,165 62,626 
Finance lease liabilities13,612 12,404 
Retirement and post-employment benefits27,185 26,411 
Unearned income61,642 75,769 
Long-term income taxes2,449 1,818 
Deferred income taxes3,370 3,242 
Long-term debt405,697 407,734 
Shareholders’ equity910,645 868,881 
Total Liabilities and Shareholders’ Equity$1,741,207 $1,697,632 









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Attachment 3

Materion Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended
(Thousands)June 27, 2025June 28, 2024
Cash flows from operating activities:
Net income $42,838 $32,445 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, and amortization34,047 32,698 
Amortization of deferred financing costs in interest expense1,412 857 
Stock-based compensation expense (non-cash)
5,437 5,334 
Deferred income tax expense (benefit)(25)926 
Changes in assets and liabilities:
Accounts receivable
(949)5,274 
Inventory94 (24,312)
Prepaid and other current assets(3,029)(12,494)
Accounts payable and accrued expenses4,193 (20,863)
Unearned revenue(8,525)(10,340)
Interest and taxes payable
(1,230)(3,906)
Other-net(8,821)858 
Net cash provided by operating activities65,442 6,477 
Cash flows from investing activities:
Payments for purchase of property, plant, and equipment(25,003)(38,412)
Payments for mine development(10,175)(10,375)
Proceeds from sale of property, plant, and equipment266 527
Net cash used in investing activities(34,912)(48,260)
Cash flows from financing activities:
Proceeds from borrowings under credit facilities, net(2,219)73,649 
Repayment of long-term debt(15,111)(15,172)
Principal payments under finance lease obligations(306)(382)
Cash dividends paid(5,705)(5,493)
Deferred financing costs(2,856)— 
Repurchase of common stock(7,843)— 
Payments of withholding taxes for stock-based compensation awards(2,337)(6,402)
Net cash provided by/(used in) financing activities(36,377)46,200 
Effects of exchange rate changes1,725 (613)
Net change in cash and cash equivalents(4,122)3,804 
Cash and cash equivalents at beginning of period16,713 13,294 
Cash and cash equivalents at end of period$12,591 $17,098 

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Attachment 4
Materion Corporation and Subsidiaries
Reconciliation of Non-GAAP Measure - Value-added Sales, Operating Profit, and EBITDA
(Unaudited)
Second Quarter EndedSix Months Ended
(Millions)June 27, 2025June 28, 2024June 27, 2025June 28, 2024
Net Sales
Performance Materials$182.8 $187.5 $356.8 $356.2 
Electronic Materials224.4 212.7 449.2 404.7 
Precision Optics24.5 25.7 46.0 50.3 
Other— — — — 
 Total$431.7 $425.9 $852.0 $811.2 
 Less: Pass-through Metal Cost
Performance Materials$14.3 $14.4 $28.3 $27.5 
Electronic Materials148.3 131.6 295.3 245.9 
Precision Optics0.1 0.1 0.1 0.1 
Other— — — — 
 Total$162.7 $146.1 $323.7 $273.5 
 Value-added Sales (non-GAAP)
Performance Materials$168.5 $173.1 $328.5 $328.7 
Electronic Materials76.1 81.1 153.9 158.8 
Precision Optics24.4 25.6 45.9 50.2 
Other— — — — 
 Total$269.0 $279.8 $528.3 $537.7 
Gross Margin
Performance Materials(1)
$48.9 $48.7 $97.1 $88.8 
Electronic Materials(1)
27.2 25.2 51.0 50.2 
Precision Optics (1)
6.5 7.0 10.7 13.1 
Other— — — — 
 Total$82.6 $80.9 $158.8 $152.1 
(1) See reconciliation of gross margin to adjusted gross margin in Attachment 8
Note: Quarterly information presented within this document and previously disclosed quarterly information may not equal the total computed for the year due to rounding


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Second Quarter EndedSix Months Ended
(Millions)June 27, 2025June 28, 2024June 27, 2025June 28, 2024
Operating Profit
Performance Materials$31.0 $31.9 $62.3 $54.5 
Electronic Materials13.3 8.9 20.118.7
Precision Optics(0.6)(1.4)(4.7)(4.7)
Other(6.9)(7.3)(13.7)(14.2)
Total$36.8 $32.1 $64.0 $54.3 
Non-Operating (Income)/Expense
Performance Materials$0.1 $0.2 $0.1 $0.3 
Electronic Materials(0.1)— (0.1)— 
Precision Optics(0.1)(0.2)(0.4)(0.3)
Other(0.5)(0.6)(0.9)(1.3)
Total$(0.6)$(0.6)$(1.3)$(1.3)
Depreciation, Depletion, and Amortization
Performance Materials$10.2 $8.7 $19.6 $16.9 
Electronic Materials4.2 4.5 8.5 9.1 
Precision Optics2.6 2.8 4.9 5.7 
Other0.5 0.5 1.0 1.0 
Total$17.5 $16.5 $34.0 $32.7 
Segment EBITDA
Performance Materials$41.1 $40.4 $81.8 $71.1 
Electronic Materials17.6 13.4 28.7 27.8 
Precision Optics2.1 1.6 0.6 1.3 
Other(5.9)(6.2)(11.8)(11.9)
Total$54.9 $49.2 $99.3 $88.3 
Special Items(2)
Performance Materials$0.4 $2.7 $0.6 $7.7 
Electronic Materials0.2 3.7 2.4 3.8 
Precision Optics0.1 0.5 1.5 1.2 
Other0.2 1.7 0.7 2.0 
 Total$0.9 $8.6 $5.2 $14.7 
Adjusted EBITDA Excluding Special Items
Performance Materials$41.5 $43.1 $82.4 $78.8 
Electronic Materials17.8 17.1 31.1 31.6 
Precision Optics2.2 2.1 2.1 2.5 
Other(5.7)(4.5)(11.1)(9.9)
Total$55.8 $57.8 $104.5 $103.0 
The cost of gold, silver, platinum, palladium, copper, ruthenium, iridium, rhodium, rhenium, and osmium is passed through to customers and, therefore, the trends and comparisons of net sales are affected by movements in the market price of these metals. Internally, management also reviews net sales on a value-added basis. Value-added sales is a non-GAAP financial measure that deducts the value of the pass-through metals sold from net sales. Value-added sales allows management to assess the impact of differences in net sales between periods or segments and analyze the resulting margins and profitability without the distortion of the movements in pass-through market metal prices. The dollar amount of gross margin and operating profit is not affected by the value-added sales calculation. The Company sells other metals and materials that are not considered direct pass throughs, and these costs are not deducted from net sales to calculate value-added sales.

The Company’s pricing policy is to pass the cost of these metals on to customers in order to mitigate the impact of price volatility on the Company’s results from operations. Value-added information is being presented since changes in metal prices may not directly impact profitability. It is the Company’s intent to allow users of the financial statements to review sales with and without the impact of the pass-through metals.
(2) See additional details of special items in Attachment 5
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Attachment 5
Materion Corporation and Subsidiaries
Reconciliation of Net Sales to Value-added Sales, Net Income to EBITDA and Adjusted EBITDA
(Unaudited)
Second Quarter EndedSix Months Ended
(Millions)June 27, 2025June 28, 2024June 27, 2025June 28, 2024
Net sales$431.7 $425.9 $852.0 $811.2 
Pass-through metal cost162.7 146.1 323.7 273.5 
Value-added sales$269.0 $279.8 $528.3 $537.7 
Net income$25.1 $19.0 $42.8 $32.4 
Income tax expense4.0 4.9 7.3 6.1 
Interest expense - net8.3 8.8 15.2 17.1 
Depreciation, depletion and amortization17.5 16.5 34.0 32.7 
Consolidated EBITDA$54.9 $49.2 $99.3 $88.3 
Net Income as a % of Net sales5.8 %4.5 %5.0 %4.0 %
Net Income as a % of Value-added sales9.3 %6.8 %8.1 %6.0 %
EBITDA as a % of Net sales12.7 %11.6 %11.7 %10.9 %
EBITDA as a % of Value-added sales20.4 %17.6 %18.8 %16.4 %
Special items
Restructuring and cost reduction$0.5 $6.7 $2.6 $9.1 
Additional start up resources and scrap— 1.2 — 4.9 
Merger, acquisition and divestiture related costs0.2 0.7 2.3 0.7 
Business transformation costs
0.2 — 0.3 — 
Total special items0.9 8.6 5.2 14.7 
Adjusted EBITDA$55.8 $57.8 $104.5 $103.0 
Adjusted EBITDA as a % of Net sales12.9 %13.6 %12.3 %12.7 %
Adjusted EBITDA as a % of Value-added sales20.8 %20.7 %19.8 %19.2 %

In addition to presenting financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), this earnings release contains financial measures, including operating profit, segment operating profit, earnings before interest, taxes, depreciation, depletion and amortization (EBITDA), net income, and earnings per share, on a non-GAAP basis. As detailed in the above reconciliation and Attachment 6, we have adjusted the results for certain special items, including the following:
1.Restructuring and cost reduction – Costs include restructuring charges, costs associated with temporarily idled facilities as a result of decreased demand and costs associated with disposal of assets associated with obsolete products.
2.Additional start up resources and scrap – Represents incremental resource, consulting and specialists costs incurred related to the ramp of the precision clad strip facility and scrap related to product qualifications.
3.Merger, acquisition and divestiture related costs – Includes due diligence costs associated with potential merger, acquisition and divestitures as well as loss on asset disposals.
4.Business transformation costs – Represents project management and implementation expenses related to the Company's automation and transformation initiatives.

Internally, management reviews the results of operations without the impact of these costs in order to assess the profitability from ongoing activities. We are providing this information because we believe it will assist investors in analyzing our financial results and, when viewed in conjunction with the GAAP results, provide a more comprehensive understanding of the factors and trends affecting our operations.
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Attachment 6
Materion Corporation and Subsidiaries
Reconciliation of Net Income to Adjusted Net Income
and Diluted Earnings per Share to Adjusted Diluted Earnings per Share (Unaudited)
Second Quarter EndedSix Months Ended
(Millions)June 27, 2025Diluted EPSJune 28, 2024Diluted EPSJune 27, 2025Diluted EPSJune 28, 2024Diluted EPS
Net income and EPS$25.1 $1.21 $19.0 $0.91 $42.8 $2.05 $32.4 $1.55 
Special items
Restructuring and cost reduction$0.5 $6.7 $2.6 $9.1 
Additional start up resources and scrap— 1.2 — 4.9 
Merger, acquisition and divestiture related costs0.2 0.7 2.3 0.7 
Business transformation costs0.2 — 0.3 — 
Debt extinguishment costs(1)
0.5 — 0.5 — 
Provision for income taxes(2)
(0.2)(0.3)(0.7)(2.2)
Total special items1.2 0.05 8.3 0.40 5.0 0.24 12.5 0.60 
Adjusted net income and adjusted EPS$26.3 $1.26 $27.3 $1.31 $47.8 $2.29 $44.9 $2.15 
Acquisition amortization (net of tax)2.2 0.11 2.4 0.114.4 0.21 4.9 0.23
Adjusted net income and adjusted EPS excl. amortization$28.5 $1.37 $29.7 $1.42 $52.2 $2.50 $49.8 $2.38 
(1) Debt extinguishment costs - Represents debt extinguishment costs incurred in connection with the amendment of the Company's Credit Agreement in June 2025.
(2) Provision for income taxes includes the net tax impact on pre-tax adjustments (listed above), the impact of certain discrete tax items recorded during the respective periods as well as other adjustments to reflect the use of one overall effective tax rate on adjusted pre-tax income in interim periods.


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Attachment 7
Reconciliation of Segment Net sales to Segment Value-added sales and Segment EBITDA to Adjusted Segment EBITDA (Unaudited)
Performance Materials
Second Quarter EndedSix Months Ended
(Millions)June 27, 2025June 28, 2024June 27, 2025June 28, 2024
Net sales$182.8 $187.5 $356.8 $356.2 
Pass-through metal cost14.3 14.4 28.3 27.5 
Value-added sales$168.5 $173.1 $328.5 $328.7 
EBITDA$41.1 $40.4 $81.8 $71.1 
Restructuring and cost reduction0.3 1.5 0.5 2.8 
Business transformation costs0.1 — 0.1 — 
Additional start up resources and scrap— 1.2 — 4.9 
Adjusted EBITDA$41.5 $43.1 $82.4 $78.8 
EBITDA as a % of Net sales22.5 %21.5 %22.9 %20.0 %
EBITDA as a % of Value-added sales24.4 %23.3 %24.9 %21.6 %
Adjusted EBITDA as a % of Net sales22.7 %23.0 %23.1 %22.1 %
Adjusted EBITDA as a % of Value-added sales24.6 %24.9 %25.1 %24.0 %
Electronic Materials
Second Quarter EndedSix Months Ended
(Millions)June 27, 2025June 28, 2024June 27, 2025June 28, 2024
Net sales$224.4 $212.7 $449.2 $404.7 
Pass-through metal cost148.3 131.6 295.3 245.9 
Value-added sales$76.1 $81.1 $153.9 $158.8 
EBITDA$17.6 $13.4 $28.7 $27.8 
Restructuring and cost reduction0.1 3.7 0.6 3.8 
Merger, acquisition and divestiture related costs0.1 — 1.8 — 
Adjusted EBITDA$17.8 $17.1 $31.1 $31.6 
EBITDA as a % of Net sales7.8 %6.3 %6.4 %6.9 %
EBITDA as a % of Value-added sales23.1 %16.5 %18.6 %17.5 %
Adjusted EBITDA as a % of Net sales7.9 %8.0 %6.9 %7.8 %
Adjusted EBITDA as a % of Value-added sales23.4 %21.1 %20.2 %19.9 %
Precision Optics
Second Quarter EndedSix Months Ended
(Millions)June 27, 2025June 28, 2024June 27, 2025June 28, 2024
Net sales$24.5 $25.7 $46.0 $50.3 
Pass-through metal cost0.1 0.1 0.1 0.1 
Value-added sales$24.4 $25.6 $45.9 $50.2 
EBITDA$2.1 $1.6 $0.6 $1.3 
Restructuring and cost reduction0.1 0.5 1.5 1.2 
Adjusted EBITDA$2.2 $2.1 $2.1 $2.5 
EBITDA as a % of Net sales8.6 %6.2 %1.3 %2.6 %
EBITDA as a % of Value-added sales8.6 %6.3 %1.3 %2.6 %
Adjusted EBITDA as a % of Net sales9.0 %8.2 %4.6 %5.0 %
Adjusted EBITDA as a % of Value-added sales9.0 %8.2 %4.6 %5.0 %
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Other
Second Quarter EndedSix Months Ended
(Millions)June 27, 2025June 28, 2024June 27, 2025June 28, 2024
EBITDA$(5.9)$(6.2)$(11.8)$(11.9)
Restructuring and cost reduction— 1.0 — 1.3 
Business transformation costs0.1 — 0.2 — 
Merger, acquisition and divestiture related costs
0.1 0.7 0.5 0.7 
Adjusted EBITDA$(5.7)$(4.5)$(11.1)$(9.9)


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Attachment 8
Materion Corporation and Subsidiaries
Reconciliation of Non-GAAP Measure - Gross Margin to Adjusted Gross Margin
(Unaudited)
Second Quarter EndedSix Months Ended
(Millions)June 27, 2025June 28, 2024June 27, 2025June 28, 2024
Gross Margin
Performance Materials$48.9 $48.7 $97.1 $88.8 
Electronic Materials27.2 25.2 51.0 50.2 
Precision Optics6.5 7.0 10.7 13.1 
Other— — — — 
Total$82.6 $80.9 $158.8 $152.1 
Special Items (1)
Performance Materials$— $2.0 $— $6.2 
Electronic Materials— 2.0 — 2.0 
Precision Optics— 0.1 — 0.2 
Other— — — — 
Total$— $4.1 $— $8.4 
Adjusted Gross Margin
Performance Materials$48.9 $50.7 $97.1 $95.0 
Electronic Materials27.2 27.2 51.0 52.2 
Precision Optics6.5 7.1 10.7 13.3 
Other— — — — 
Total$82.6 $85.0 $158.8 $160.5 
(1) Special items impacting gross margin represent restructuring and cost reduction and additional start up resources and scrap in 2024.
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Attachment 9
Materion Corporation and Subsidiaries
Reconciliation of Non-GAAP Measure - Operating Cash Flow to Free Cash Flow
(Unaudited)

Second Quarter EndedSix Months Ended
(Millions)June 27, 2025June 28, 2024June 27, 2025June 28, 2024
Net cash provided by (used in) operating activities$49.9 $20.3 $65.4 $6.5 
Payments for purchase of property, plant and equipment(12.7)(17.1)(25.0)(38.4)
Payments for mine development(1.5)(5.1)(10.2)(10.4)
Free cash flow (FCF)$35.7 $(1.9)$30.2 $(42.3)

Free cash flow (FCF) represents operating cash flow adjusted for capital expenditures and mine development costs. Management believes FCF is an important performance measure of the business. FCF is not a measure calculated in accordance with GAAP, and it should not be considered a substitute for operating cash flow or any other measure of financial performance presented in accordance with GAAP.
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