Materion Corporation Reports Fourth Quarter and Full-Year 2025 Results; Provides Strong 2026 Outlook

Materion Corporation Reports Fourth Quarter and Full-Year 2025 Results; Provides Strong 2026 Outlook Announces $65 Million Customer Investment to Support US Defense Initiatives Materion Corporation (NYSE: MTRN) today reported fourth quarter and full-year 2025 financial results, provided strong 2026 earnings guidance and announced a $65 million customer investment to support US defense initiatives. Fourth Quarter 2025 Highlights Net sales were $489.7 million; value-added sales 1 were $253.9 millionNet income of $6.6 million, or $0.31 per share, diluted, versus net loss of $48.8 million, or $2.33 loss per share, in the prior year quarter; adjusted earnings of $1.53 per share versus $1.55 in the prior year quarterOperating profit of $10.8 million versus operating loss of $38.3 million in the prior year quarter; adjusted EBITDA 2 of $57.0 million versus $61.5 million in the prior year quarterSecured $65 million investment from major defense prime to expand beryllium capacity in support of US initiatives to replenish inventory and increase capabilities Full-Year 2025 Highlights Net sales were $1.79 billion; value-added sales were $1.05 billionNet income was $74.8 million, or $3.58 per share, diluted, versus net income of $5.9 million, or $0.28 per share, in the prior year; adjusted earnings of $5.44 per share versus $5.34 in the prior yearDelivered full year adjusted EBITDA margin of 20.7% versus 20.2% in the prior year, marking the fifth consecutive year of margin expansionElectronic Materials delivered 8% organic 3 year over year value-added sales growth with ~300 basis points of margin expansionCompleted semiconductor acquisition to expand footprint and capabilities in AsiaTransformation of Precision Optics delivered 7% year over year value-added sales growth with ~800 basis points of margin expansion “I am very proud of our team for delivering strong results in the fourth quarter despite the intense focus placed on addressing a previously announced quality event that impacted our large precision clad strip customer. While working diligently to resolve the issue, the rest of our business performed very well, with Electronic Materials and Precision Optics driving double digit top and bottom-line growth, fueled by market outgrowth and strong operational execution,” said Jugal Vijayvargiya, President & CEO of Materion. “Our full year results reflect the substantial progress we’ve made, including the meaningful cost structure improvements made in Precision Optics and Electronic Materials that drove strong margin expansion, and the new business initiatives across the company that have strengthened our order book, positioning us well for growth in 2026.” “We expect to continue the momentum by delivering on our organic initiatives, capturing new business and driving operational excellence, resulting in strong top and bottom-line growth while advancing towards our mid-term margin target of 23%.” FOURTH QUARTER 2025 RESULTS Net sales for the quarter were $489.7 million, compared to $436.9 million in the prior year period. Value-added sales were $253.9 million for the quarter, up 7% organic3 excluding precision clad strip from the prior year quarter due to strength in semiconductor, energy and data center growth. Operating profit for the quarter was $10.8 million and net income was $6.6 million, or $0.31 per diluted share, compared to operating loss of $38.3 million and net loss of $48.8 million, or $2.33 loss per share, in the prior year period. Adjusted EBITDA was $57.0 million, or 22.5% of value-added sales, compared to $61.5 million or 20.8% of value-added sales in the prior year period. This decrease was driven primarily by lower volume, partially offset by strong price/mix and operational performance in Electronic Materials and Precision Optics. Adjusted net income was $32.0 million excluding acquisition amortization, or $1.53 per diluted share, compared to $1.55 per share in the prior year period. FULL-YEAR 2025 RESULTS Net sales for the year were $1.79 billion, compared to $1.68 billion in the prior year. Value-added sales were $1.05 billion for the year, up 4% organic3 excluding precision clad strip from the prior year due to strength in semiconductor, energy and data center growth. Operating profit for the year was $109.8 million and net income was $74.8 million, or $3.58 per diluted share, compared to operating profit of $47.2 million and net income of $5.9 million, or $0.28 per diluted share, in the prior year. Adjusted EBITDA was $217.0 million, or 20.7% of value-added sales, compared to $221.2 million or 20.2% of value-added sales in the prior year period. This decrease was driven primarily by lower volume, partially offset by strong price/mix and operational performance in Electronic Materials and Precision Optics. Adjusted net income was $113.6 million excluding acquisition amortization, or $5.44 per diluted share, compared to $5.34 per diluted share in the prior year. OUTLOOK Moving into 2026, we expect to capture strong sales growth across each of our three businesses from new business wins and strong market conditions while driving performance improvements. With mid-single digit top line growth and continued margin expansion, we are guiding to the range of $6.00 to $6.50 for full year 2026 adjusted earnings per share, an increase of 15% from prior year at the midpoint. We remain focused on driving towards our mid-term adjusted EBITDA margin target of 23%. 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 8 to this press release. CONFERENCE CALL Materion Corporation will host an investor conference call with analysts at 9:00 a.m. Eastern Time, February 12, 2026. 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 365914. A replay of the call will be available until February 26, 2026 by dialing (877) 481-4010 or (919) 882-2331 if international; please reference replay ID number 53270. The call will also be archived on the Company’s website. 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; adjusted EBITDA represents EBITDA excluding special items, the details of which can be found in Attachments 4 through 8 3 Excludes value-added sales from the divested Albuquerque, New Mexico large area targets business sold in 2024 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; the conclusion of pending litigation matters in accordance with our expectation that there will be no material adverse effects; the disruptions in operations from, and other effects of, catastrophic and other extraordinary events including outbreaks from infectious diseases and the conflict between Russia and Ukraine and other hostilities; 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 and in other reports that we file with the SEC. Attachment 1 Materion Corporation and Subsidiaries Consolidated Statements of Income (Unaudited) Fourth Quarter Ended Year Ended (In thousands except per share amounts) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Net sales $ 489,754 $ 436,871 $ 1,786,550 $ 1,684,739 Cost of sales 426,088 343,895 1,477,924 1,358,754 Gross margin 63,666 92,976 308,626 325,985 Selling, general, and administrative expense 34,317 41,134 143,057 145,588 Research and development expense 6,475 6,316 25,941 29,028 Goodwill impairment — 56,067 — 56,067 Long-lived asset impairment — 17,134 — 17,134 Loss on asset disposal — 6,412 — 6,412 Restructuring expense 426 687 3,155 6,848 Other — net 11,609 3,573 26,677 17,685 Operating profit (loss) 10,839 (38,347 ) 109,796 47,223 Other non-operating (income) expense—net (493 ) (518 ) (2,437 ) (2,443 ) Interest expense — net 8,001 8,844 30,692 34,764 Income (loss) before income taxes 3,331 (46,673 ) 81,541 14,902 Income tax (benefit) expense (3,242 ) 2,177 6,718 9,014 Net income (loss) $ 6,573 $ (48,850 ) $ 74,823 $ 5,888 Basic earnings per share: Net income (loss) per share of common stock $ 0.32 $ (2.35 ) $ 3.61 $ 0.28 Diluted earnings per share: Net income (loss) per share of common stock $ 0.31 $ (2.33 ) $ 3.58 $ 0.28 Weighted-average number of shares of common stock outstanding: Basic 20,734 20,758 20,755 20,732 Diluted 20,953 20,923 20,912 20,928 Attachment 2 Materion Corporation and Subsidiaries Consolidated Balance Sheets (Unaudited) (Thousands) December 31, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 13,681 $ 16,713 Accounts receivable, net 222,916 193,793 Inventories, net 461,231 441,299 Prepaid and other current assets 91,692 72,419 Total current assets 789,520 724,224 Deferred income taxes 7,727 2,964 Property, plant, and equipment 1,376,703 1,315,586 Less allowances for depreciation, depletion, and amortization (841,245 ) (804,781 ) Property, plant, and equipment—net 535,458 510,805 Operating lease, right-of-use assets 62,036 64,449 Intangible assets, net 105,874 109,312 Other assets 21,529 22,140 Goodwill 280,657 263,738 Total Assets $ 1,802,801 $ 1,697,632 Liabilities and Shareholders’ Equity Current liabilities Short-term debt $ 22,445 $ 34,274 Accounts payable 148,642 105,901 Salaries and wages 19,312 20,939 Other liabilities and accrued items 45,445 47,523 Income taxes 5,054 4,906 Unearned revenue 12,685 13,191 Total current liabilities 253,583 226,734 Other long-term liabilities 12,556 12,013 Operating lease liabilities 60,568 62,626 Finance lease liabilities 13,384 12,404 Retirement and post-employment benefits 23,931 26,411 Unearned income 55,862 75,769 Long-term income taxes 532 1,818 Deferred income taxes 2,760 3,242 Long-term debt 436,348 407,734 Shareholders’ equity 943,277 868,881 Total Liabilities and Shareholders’ Equity $ 1,802,801 $ 1,697,632 Attachment 3 Materion Corporation and Subsidiaries Consolidated Statements of Cash Flows (Thousands) December 31, 2025 December 31, 2024 Cash flows from operating activities: Net income $ 74,823 $ 5,888 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization 69,074 68,676 Amortization of deferred financing costs in interest expense 1,887 1,714 Stock-based compensation expense (non-cash) 10,925 10,560 Amortization of pension and post-retirement costs (154 ) (307 ) Loss on sale of property, plant, and equipment 282 1,201 Deferred income tax expense (benefit) (5,103 ) (16,598 ) Impairment charges — 73,201 Loss on asset disposal — 6,412 Net pension curtailments and settlements 230 — Changes in assets and liabilities: Accounts receivable (25,790 ) (3,723 ) Inventory (13,303 ) (468 ) Prepaid and other current assets (15,101 ) (11,345 ) Accounts payable and accrued expenses 33,517 (15,757 ) Unearned revenue (15,204 ) (24,692 ) Interest and taxes payable 663 (2,619 ) Other-net (13,503 ) (4,326 ) Net cash provided by operating activities 103,243 87,817 Cash flows from investing activities: Payments for purchase of property, plant, and equipment (53,279 ) (68,649 ) Payments for mine development (26,288 ) (12,159 ) Proceeds from sale of property, plant, and equipment 932 1,203 Payments for acquisition, net of cash acquired (19,500 ) — Net cash used in investing activities (98,135 ) (79,605 ) Cash flows from financing activities: Proceeds from borrowings under credit facilities, net 33,890 45,692 Repayment of long-term debt (18,177 ) (30,342 ) Principal payments under finance lease obligations (604 ) (683 ) Cash dividends paid (11,510 ) (11,087 ) Deferred financing costs (2,935 ) (156 ) Repurchase of common stock (7,843 ) — Payments of withholding taxes for stock-based compensation awards (2,642 ) (7,610 ) Net cash provided by financing activities (9,821 ) (4,186 ) Effects of exchange rate changes 1,681 (607 ) Net change in cash and cash equivalents (3,032 ) 3,419 Cash and cash equivalents at beginning of period 16,713 13,294 Cash and cash equivalents at end of period $ 13,681 $ 16,713 Attachment 4 Materion Corporation and Subsidiaries Reconciliation of Non-GAAP Measure - Value-added Sales, Operating Profit, and EBITDA (Unaudited) Fourth Quarter Ended Year Ended (Millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Net Sales Performance Materials $ 148.3 $ 211.0 $ 675.9 $ 744.5 Electronic Materials 313.9 204.2 1,010.0 845.7 Precision Optics 27.5 21.7 100.7 94.5 Other — — — — Total $ 489.7 $ 436.9 $ 1,786.6 $ 1,684.7 Less: Pass-through Metal Cost Performance Materials $ 15.9 $ 15.2 $ 57.8 $ 56.5 Electronic Materials 219.8 125.6 682.4 530.4 Precision Optics 0.1 — 0.2 0.2 Other — — — — Total $ 235.8 $ 140.8 $ 740.4 $ 587.1 Value-added Sales (non-GAAP) Performance Materials $ 132.4 $ 195.8 $ 618.1 $ 688.0 Electronic Materials 94.1 78.6 327.6 315.3 Precision Optics 27.4 21.7 100.5 94.3 Other — — — — Total $ 253.9 $ 296.1 $ 1,046.2 $ 1,097.6 Gross Margin Performance Materials(1) $ 16.9 $ 62.6 $ 158.7 $ 203.2 Electronic Materials(1) 37.2 26.0 121.3 99.5 Precision Optics(1) 9.6 4.4 28.6 23.3 Other — — — — Total(1) $ 63.7 $ 93.0 $ 308.6 $ 326.0 (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 Fourth Quarter Ended Year Ended (Millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Operating Profit (Loss) Performance Materials $ (1.6 ) $ 43.4 $ 87.5 $ 132.1 Electronic Materials 17.0 2.9 53.4 29.4 Precision Optics 1.7 (77.0 ) (2.3 ) (84.7 ) Other (6.3 ) (7.6 ) (28.8 ) (29.6 ) Total $ 10.8 $ (38.3 ) $ 109.8 $ 47.2 Non-Operating (Income)/Expense Performance Materials $ 0.1 $ 0.1 $ 0.4 $ 0.5 Electronic Materials — — (0.1 ) — Precision Optics — — (0.6 ) (0.4 ) Other (0.7 ) (0.6 ) (2.1 ) (2.5 ) Total $ (0.6 ) $ (0.5 ) $ (2.4 ) $ (2.4 ) Depreciation, Depletion, and Amortization Performance Materials $ 10.2 $ 10.1 $ 40.1 $ 37.7 Electronic Materials 4.6 4.4 17.6 18.0 Precision Optics 2.2 2.4 9.4 11.0 Other 0.5 0.4 2.0 2.0 Total $ 17.5 $ 17.3 $ 69.1 $ 68.7 Segment EBITDA Performance Materials $ 8.5 $ 53.4 $ 127.2 $ 169.3 Electronic Materials 21.6 7.3 71.1 47.4 Precision Optics 3.9 (74.6 ) 7.7 (73.3 ) Other (5.1 ) (6.6 ) (24.7 ) (25.1 ) Total $ 28.9 $ (20.5 ) $ 181.3 $ 118.3 Special Items(2) Performance Materials $ 27.3 $ 0.2 $ 29.0 $ 9.5 Electronic Materials 0.4 7.4 3.6 14.6 Precision Optics 0.4 73.5 1.9 75.2 Other — 0.9 1.2 3.6 Total $ 28.1 $ 82.0 $ 35.7 $ 102.9 Adjusted EBITDA Excluding Special Items Performance Materials $ 35.8 $ 53.6 $ 156.2 $ 178.8 Electronic Materials 22.0 14.7 74.7 62.0 Precision Optics 4.3 (1.1 ) 9.6 1.9 Other (5.1 ) (5.7 ) (23.5 ) (21.5 ) Total $ 57.0 $ 61.5 $ 217.0 $ 221.2 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. Attachment 5 Materion Corporation and Subsidiaries Reconciliation of Net Sales to Value-added Sales, Net Income to EBITDA and Adjusted EBITDA (Unaudited) Fourth Quarter Ended Twelve Months Ended (Millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Net sales $ 489.7 $ 436.9 $ 1,786.6 $ 1,684.7 Pass-through metal cost 235.8 140.8 740.4 587.1 Value-added sales $ 253.9 $ 296.1 $ 1,046.2 $ 1,097.6 Net income (loss) $ 6.6 $ (48.8 ) $ 74.8 $ 5.9 Income tax (benefit) expense (3.2 ) 2.2 6.7 9.0 Interest expense - net 8.0 8.8 30.7 34.7 Depreciation, depletion and amortization 17.5 17.3 69.1 68.7 Consolidated EBITDA $ 28.9 $ (20.5 ) $ 181.3 $ 118.3 Net Income as a % of Net sales 1.3 % (11.2 )% 4.2 % 0.4 % Net Income as a % of Value-added sales 2.6 % (16.5 )% 7.1 % 0.5 % EBITDA as a % of Net sales 5.9 % (4.7 )% 10.1 % 7.0 % EBITDA as a % of Value-added sales 11.4 % (6.9 )% 17.3 % 10.8 % Special items Restructuring and cost reduction $ 0.4 $ 0.7 $ 3.2 $ 11.4 Electronic Materials inventory adjustment — — — 2.8 Environmental remediation — — 0.6 — Business transformation costs — 0.7 0.8 1.3 Pension settlement 0.3 — 0.3 — Product quality issue 27.3 — 27.3 — Additional start up resources and scrap — — — 6.1 Merger, acquisition and divestiture related costs 0.1 7.4 3.5 8.1 Precision Optics impairments — 73.2 — 73.2 Total special items 28.1 82.0 35.7 102.9 Adjusted EBITDA $ 57.0 $ 61.5 $ 217.0 $ 221.2 Adjusted EBITDA as a % of Net sales 11.6 % 14.1 % 12.1 % 13.1 % Adjusted EBITDA as a % of Value-added sales 22.5 % 20.8 % 20.7 % 20.2 % 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: 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.Electronic Materials inventory adjustment – During the third quarter of 2024, the Company determined that material costs from prior years were understated due to unrecognized metal refine expense and other inventory adjustments.Environmental remediation - Cost associated with non-recurring environmental remediationBusiness transformation costs – Represents project management and implementation expenses related to the Company's automation and transformation initiatives.Pension settlement - Represents settlement charges related to the Company's international pension plans.Product quality issue - Represents costs incurred related to a quality issue identified by a large precision clad strip customer which led to temporarily idling production facilities within the Performance Materials segment.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.Merger, acquisition and divestiture related costs – Includes due diligence costs associated with potential merger, acquisition and divestitures as well as loss on asset disposals.Precision Optics impairments - Represents goodwill and long-lived asset impairment charges within the Precision Optics segment taken in the fourth quarter of 2024. 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. 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) Fourth Quarter Ended Twelve Months Ended (Millions) December 31, 2025 Diluted EPS December 31, 2024 Diluted EPS December 31, 2025 Diluted EPS December 31, 2024 Diluted EPS Net income (loss) and EPS $ 6.6 $ 0.31 $ (48.8 ) $ (2.33 ) $ 74.8 $ 3.58 $ 5.9 $ 0.28 Special items Restructuring and cost reduction 0.4 0.7 3.2 11.4 Electronic Materials inventory adjustment — — — 2.8 Environmental remediation — — 0.6 — Business transformation costs — 0.7 0.8 1.3 Debt extinguishment costs(1) — — 0.5 — Pension settlement 0.3 — 0.3 — Product quality issue(2) 28.6 — 28.6 — Additional start up resources and scrap — — — 6.1 Merger, acquisition and divestiture related costs 0.1 7.4 3.5 8.1 Precision Optics impairments — 73.2 — 73.2 Provision for income taxes(3) (6.0 ) (3.0 ) (7.2 ) (6.6 ) Total special items 23.4 1.12 79.0 3.77 30.3 1.45 96.3 4.60 Adjusted net income and adjusted EPS $ 30.0 $ 1.43 $ 30.2 $ 1.44 $ 105.1 $ 5.03 $ 102.2 $ 4.88 Acquisition amortization (net of tax) 2.0 0.10 2.2 0.11 8.5 0.41 9.6 0.46 Adjusted net income and adjusted EPS excl. amortization $ 32.0 $ 1.53 $ 32.4 $ 1.55 $ 113.6 $ 5.44 $ 111.8 $ 5.34 (1) Debt extinguishment costs - Represents debt extinguishment costs incurred in connection with the amendment of the Company's Credit Agreement in June 2025. (2) Product quality issue includes $1.3 million of depreciation expense (3) 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. Attachment 7 Reconciliation of Segment Net sales to Segment Value-added sales and Segment EBITDA to Adjusted Segment EBITDA (Unaudited) Performance Materials Fourth Quarter Ended Twelve Months Ended (Millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Net sales $ 148.3 $ 211.0 $ 675.9 $ 744.5 Pass-through metal cost 15.9 15.2 57.8 56.5 Value-added sales $ 132.4 $ 195.8 $ 618.1 $ 688.0 EBITDA $ 8.5 $ 53.4 $ 127.2 $ 169.3 Restructuring and cost reduction — 0.1 0.5 2.9 Additional start up resources and scrap — — — 6.1 Product quality issue 27.3 — 27.3 — Environmental remediation — — 0.6 — Business transformation costs — 0.1 0.6 0.5 Adjusted EBITDA $ 35.8 $ 53.6 $ 156.2 $ 178.8 EBITDA as a % of Net sales 5.7 % 25.3 % 18.8 % 22.7 % EBITDA as a % of Value-added sales 6.4 % 27.3 % 20.6 % 24.6 % Adjusted EBITDA as a % of Net sales 24.1 % 25.4 % 23.1 % 24.0 % Adjusted EBITDA as a % of Value-added sales 27.0 % 27.4 % 25.3 % 26.0 % Electronic Materials Fourth Quarter Ended Twelve Months Ended (Millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Net sales $ 313.9 $ 204.2 $ 1,010.0 $ 845.7 Pass-through metal cost 219.8 125.6 682.4 530.4 Value-added sales $ 94.1 $ 78.6 $ 327.6 $ 315.3 EBITDA $ 21.6 $ 7.3 $ 71.1 $ 47.4 Restructuring and cost reduction 0.3 0.2 1.1 4.5 Electronic Materials inventory adjustment — — — 2.8 Business transformation costs — 0.2 — 0.3 Merger, acquisition and divestiture related costs 0.1 7.0 2.5 7.0 Adjusted EBITDA $ 22.0 $ 14.7 $ 74.7 $ 62.0 EBITDA as a % of Net sales 6.9 % 3.6 % 7.0 % 5.6 % EBITDA as a % of Value-added sales 23.0 % 9.3 % 21.7 % 15.0 % Adjusted EBITDA as a % of Net sales 7.0 % 7.2 % 7.4 % 7.3 % Adjusted EBITDA as a % of Value-added sales 23.4 % 18.7 % 22.8 % 19.7 % Precision Optics Fourth Quarter Ended Twelve Months Ended (Millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Net sales $ 27.5 $ 21.7 $ 100.7 $ 94.5 Pass-through metal cost 0.1 — 0.2 0.2 Value-added sales $ 27.4 $ 21.7 $ 100.5 $ 94.3 EBITDA $ 3.9 $ (74.6 ) $ 7.7 $ (73.3 ) Restructuring and cost reduction 0.1 0.3 1.6 2.0 Pension settlement 0.3 — 0.3 — Precision Optics impairments — 73.2 — 73.2 Adjusted EBITDA $ 4.3 $ (1.1 ) $ 9.6 $ 1.9 EBITDA as a % of Net sales 14.2 % (343.8 )% 7.6 % (77.6 )% EBITDA as a % of Value-added sales 14.2 % (343.8 )% 7.7 % (77.7 )% Adjusted EBITDA as a % of Net sales 15.6 % (5.1 )% 9.5 % 2.0 % Adjusted EBITDA as a % of Value-added sales 15.7 % (5.1 )% 9.6 % 2.0 % Other Fourth Quarter Ended Twelve Months Ended (Millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 EBITDA $ (5.1 ) $ (6.6 ) $ (24.7 ) $ (25.1 ) Restructuring and cost reduction — 0.1 — 2.0 Business transformation costs — 0.4 0.2 0.5 Merger, acquisition and divestiture related costs — 0.4 1.0 1.1 Adjusted EBITDA $ (5.1 ) $ (5.7 ) $ (23.5 ) $ (21.5 ) Attachment 8 Materion Corporation and Subsidiaries Reconciliation of Non-GAAP Measure - Gross Margin to Adjusted Gross Margin (Unaudited) Fourth Quarter Ended Twelve Months Ended (Millions) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Gross Margin Performance Materials $ 16.9 $ 62.6 $ 158.7 $ 203.2 Electronic Materials 37.2 26.0 121.3 99.5 Precision Optics 9.6 4.4 28.6 23.3 Other — — — — Total $ 63.7 $ 93.0 $ 308.6 $ 326.0 Special Items(1) Performance Materials $ 25.7 $ — $ 26.4 $ 7.5 Electronic Materials — — — 4.7 Precision Optics — — — 0.2 Other — — — — Total $ 25.7 $ — $ 26.4 $ 12.4 Adjusted Gross Margin Performance Materials 42.6 62.6 $ 185.1 $ 210.7 Electronic Materials 37.2 26.0 121.3 104.2 Precision Optics 9.6 4.4 28.6 23.5 Other — — — — Total $ 89.4 $ 93.0 $ 335.0 $ 338.4 (1) Special items impacting gross margin represent the product quality issue and environmental remediation in 2025 and restructuring and cost reduction, the Electronic Materials inventory adjustment, and additional start up resources and scrap in 2024. Source: Materion Corporation