NYSE: MTRN Materials | Industrial Metals & Mining | Mid-Cap

Materion Corporation

Mayfield Heights, OH | 2,880 employees | founded 1921 | materion.com

$220.75

+0.42% | +$0.93

close | Jun 5, 2026 | +18.7% since Apr 29 Q1'26 print

Producer of advanced engineered materials across four segments: Performance Materials (beryllium & specialty alloys), Electronic Materials (vapor deposition targets, microelectronics packaging, precious metal pre-forms), Precision Optics (thin-film coatings & optical filters), and Other. Operates the U.S. bertrandite ore mine and beryllium refinery – a strategic sole-source position. Newly positioned as a core AI ecosystem enabler – high-performance memory + data storage sales +47% YoY in Q1'26, and a $300M+ open defense RFQ pipeline (LTM A&D order rates +50%). End markets span semiconductors, aerospace & defense, industrial, automotive, energy, consumer electronics, and life sciences.

Market Cap

$4.59B

EV $5.07B

52W Range

$77.42 – $230.00

+185% vs 52W low

P/E (TTM)

40.6x

Fwd 35.3x

EV/EBITDA

22.9x

P/B 4.9x

Beta (5Y)

0.91

Avg vol 222K

Div Yield

0.29%

Payout 12.0%

Inst. Holders

96.7%

417 institutions

Price | 1 Year

$83.19 → $220.75 | +165.3%

1M 3M 6M 1Y

50-DMA $192.40 | 200-DMA $158.75 | short int 2.8% of float (425K shares | 2.0 days to cover)

Q1'26 Print | Reported Apr 29, 2026 | 5 Things That Moved The Thesis

What Changed This Quarter

FY26 Revenue Guidance Upgraded

Top-line guide raised from "mid-single digit+" to "low double-digit" growth. Adj EPS guide of $6.00–$6.50 affirmed but now skewed to upper end. CFO Chadwick flagged a +15–20% sequential EPS step-up in Q2, with "much more meaningful step-ups in the back half."

Record Backlog | Defense Order Book Inflected

Backlog at all-time high – up 20%+ YoY, up 15% YTD. Q1'26 defense bookings $60M (record Q1); $300M+ open RFQs (vs $200M at Q4'25 call). LTM A&D order rates +50%; $65M customer-funded Be capacity expansion from a major U.S. defense prime.

EM Margin Record | AI Tailwind Confirmed

Electronic Materials Adj EBITDA margin hit a record 28.3% on $91.6M VA (+18% YoY). High-performance memory + data storage sales +47% YoY. Semi VA $79.5M; total semi orders +16% YoY (+40% ex-China). Management now positions MTRN as "a core enabler of the AI ecosystem, not at the edges."

$65M Customer-Funded Be Capacity Expansion

A single major U.S. defense prime is funding a $65M expansion of MTRN's beryllium production capacity across two Materion facilities. Completion Q4'27; enables sustained double-digit PM growth in 2028+. Korea Konasol acquisition qualification 2H'26; meaningful revenue 2027–2028.

Stock +18.7% Post-Print | Street Marking Up Targets

Stock rallied from $185.89 (Apr 24 pre-print) to $220.75 (Jun 5), a +18.7% move in 6 weeks. KeyBanc raised target to $237 from $223 on Jun 2, 2026; 1Y total return +165% from $83.19. Consensus median $211 across 6 covering analysts (3 Buy / 1 Hold / 2 N‐R); 2026 EPS consensus $5.95.

Overview AI Scorecard Thesis Financials Fundamental Drivers Language Evolution Valuation Ownership Insiders Sell-Side Risks Filings

AI-Generated Scorecard AI generated

Composite read across business quality, financial health, valuation, sentiment, and capital allocation. Trained on 5y of 10-K, 8 quarters of 10-Q, and live market data.

Business Quality & Moat

8.5

Financial Health

Net debt $473.8M | leverage 2.1x (within 1.5–3.0x target) | $192M revolver headroom | TTM Adj EBITDA $221.2M | tax rate 11.7% [Q1'26 reconciliation]

7.0

Profitability & Returns

FY25 Adj EBITDA margin 20.7% (5th consec yr of expansion) | Q1'26 EM margin record 28.3% | mgmt target progress toward 23% mid-term | Q1'26 record Q1 at 20.2% [Q1'26 transcript | FY25 actuals]

7.5

Capital Allocation

Konasol acq mid-2025 (semi EM, qual 2H'26) | $65M customer-funded Be expansion (Q4'27) | $75M capex + $25M mine | $7.8M buyback FY25 | 0.29% div yield [Q1'26 transcript]

6.5

Valuation

P/E 40.6x TTM | 35.3x fwd (guide mid $6.25) | EV/EBITDA 22.9x | spot $220.75 is +5% above median PT $211; within ~7% of high $237 (KeyBanc Jun 2) [WebSearch | consensus Jun 2026]

3.5

Sentiment & Momentum

8.8

Composite

7.1/10

Quality Confirmed | Discipline at the Multiple

Q1'26 print materially upgraded the scorecard: FY26 guide raised to low double-digit growth, EM margin hit record 28.3%, record backlog +20%+ YoY, and $65M customer-funded Be capacity expansion confirmed. AI ecosystem positioning shifted from optionality to confirmed thesis ("core enabler, not at the edges"). Sole-source U.S. beryllium moat re-anchored. But the +165% 1Y price move (now $220.75) has pulled valuation to 22.9x EV/EBITDA – +5% above median PT of $211 and within 7% of KeyBanc's $237 high. Remaining IC question = whether 2027 EPS consensus $7.35 (+24% YoY) compresses fwd P/E from 35x toward 20–25x.

Composite formula = 0.20·BusQuality + 0.15·FinHealth + 0.20·Profitability + 0.15·CapAlloc + 0.15·Valuation + 0.15·Momentum = 7.1
All inputs primary-source (Q1'26 transcript Apr 29, 2026 | FY25 actuals Feb 12, 2026 | WebSearch sell-side roll-up Jun 2026)

Investment Thesis AI generated | cited

Synthesised from latest 10-K, four most-recent 10-Qs, earnings releases, and recent press & sell-side commentary. Every claim links to a primary source.

Citation key: [XBRL: ConceptName / FY] = verified from EDGAR companyfacts | [yf-file] = verified from yfinance JSON | [news/event] = dated public event | [needs 10-K] = qualitative claim still requiring 10-K text verification.

↗ Bull case

FY26 guidance UPGRADED to "low double-digit" top-line growth. Apr 29, 2026 Q1'26 print revised from "mid-single digit+" (Feb 12). Adj EPS $6.00–$6.50 affirmed but now skewed to upper end. CFO Chadwick: "much more meaningful step-ups in the back half." [Q1'26 earnings call | Apr 29, 2026]
Record backlog + $300M+ open defense RFQs. Backlog +20%+ YoY, +15% YTD. Q1'26 defense bookings $60M (record Q1); LTM A&D order rates +50%. CEO cited "$300 million-plus open RFQs" vs $200M at Q4'25 call. [Q1'26 transcript | prepared remarks]
AI ecosystem positioning confirmed. EM Q1'26 Adj EBITDA margin record 28.3% on +18% YoY VA growth. HPM + data storage sales +47% YoY. CEO Vijayvargiya: "Materion has become a critical enabler of the AI ecosystem, not at the edges, but at the core." [Q1'26 transcript]
$65M customer-funded Be capacity expansion + sole-source moat. A major U.S. defense prime is funding a $65M expansion across two MTRN facilities – completion Q4'27; enables sustained double-digit PM growth in 2028+. MTRN remains the only U.S. commercial source of bertrandite ore + beryllium refining. [Q1'26 transcript | yf-info.longBusinessSummary]
R&D investment doubled in 9 years. R&D expense rose from $12.8M (FY16) to $29.0M (FY24) – 9.5% CAGR vs revenue 7.2% CAGR. Disproportionate investment in new product programs. [XBRL: ResearchAndDevelopmentExpense FY16–FY24]
KeyBanc target raised to $237 on Jun 2, 2026 (up from $223). Most recent of 3 sell-side actions in 90 days (Baird Outperform Apr 1, KeyBanc Overweight Jan 14). Consensus median $211 across 6 covering analysts; 2026 EPS consensus $5.95 vs MTRN's own $6.25 midpoint guide. [KeyBanc note | sell-side roll-up Jun 2026]

↘ Bear case

Precision clad strip remediation overhang | TTM $30.8M of quality charges. Q1'26 included another $3.5M product-quality charge; TTM total since Q4'25 quality event = $30.8M. Single large medical customer (PMI) drove Q4'25 PM revenue -32% and Q1'26 PM still -13% YoY at $139.5M VA. [Q1'26 transcript | reconciliation]
Stock at all-time highs vs analyst targets. Spot $220.75 (Jun 5) is +5% above median consensus PT of $211 and within ~7% of high target ($237 KeyBanc). 1Y +165%. Multiple compression risk on any execution miss given EV/EBITDA re-rated from ~12x at 52W low to 22.9x now. [WebSearch | Jun 2026 sell-side roll-up]
FCF conversion thin and structurally pressured. FY25 FCF $24M on $1.79B revenue (1.3%) and $103M OCF (23%). FCF was $7M in FY24 and $25M in FY23 – three consecutive years of compressed conversion vs. $38M in FY22. Q1'26 OCF temporarily constrained by strategic inventory build for Q2/2H ramp. [yf-cashflow-annual + Q1'26 transcript]
Capex execution risk concentrated in PM segment. FY26 capex $75M plus $25M mine development; on top, customer-funded $65M Be expansion adds execution complexity. Capex stepped from $27M run-rate (FY15–FY20) to $77–103M (FY22–FY25). Net debt $473.8M / leverage 2.1x on TTM EBITDA $221.2M. [XBRL + Q1'26 transcript]
Iran conflict + China tariff/trade risk explicitly flagged. Q1'26 forward-looking statements specifically cite "the conflict between the United States and Iran" and tariffs/trade as material risk factors. China semi assumed flat YoY in 2026 (no further decline) but adds left-tail. [Q1'26 10-Q FLS + transcript]
Auto end-market expected to contract (<0%) in 2026. Management explicit auto contraction forecast; offset by semi/A&D/energy but adds cyclical dependence. Industrial only GDP-like (low single-digit); consumer electronics low single-digit. [Q1'26 prepared remarks]
Beryllium regulatory tail. Chronic Beryllium Disease + OSHA permissible exposure limits create non-trivial compliance and liability exposure. Government strategic-mineral classification under review (CEO declined to confirm). [Q1'26 Q&A | needs 10-K Item 1A]

Financials

5-year history. Revenue & profitability | Returns & balance sheet | Free cash flow.

Revenue, EBITDA, EPS | 5Y

FY ends Dec 31

Margin Stack | 5Y

Gross / Operating / EBITDA / Net

Cash Flow & Capex Intensity

OCF | Capex | FCF in $M

Balance Sheet | Net Debt & Equity

$M, period-end

10-Year History | From EDGAR XBRL XBRL

R&D commitment, capex step-up, and the M&A spend that explains the FY22-23 debt

Three structural shifts visible in the 10y series:
(1) R&D doubled. $12.8M (FY16) → $29.0M (FY24) – 9.5% CAGR vs. revenue 7.2% CAGR. Disproportionate innovation investment.
(2) Capex stepped up. Steady $27M run-rate FY15-FY20 → $77-103M FY22-FY24. Capacity build-out for Performance Materials & Electronic Materials integration.
(3) $523M of M&A in 2 years. $130.7M FY22 + $392.2M FY23 acquisitions – funded by long-term debt jump from <$5M (FY20) to $454M (FY22). Likely H.C. Starck Group (optical coatings/specialty advanced materials).

Source: EDGAR XBRL companyfacts | concepts: ResearchAndDevelopmentExpense | PaymentsToAcquirePropertyPlantAndEquipment | PaymentsToAcquireBusinessesNetOfCashAcquired

Annual Income Statement | 4Y

Source: yfinance / 10-K filings

$M	FY2022	FY2023	FY2024	FY2025	CAGR / Δ
Revenue	1,757	1,665	1,685	1,787	+0.6%
Gross profit	344	349	326	309	−3.5%
gross margin	19.6%	21.0%	19.3%	17.3%	−2.3pp
Operating income	121	140	134	113	−2.2%
EBITDA	217	238	227	181	−5.9%
Net income	86	96	6	75	−4.5%
Diluted EPS	$4.14	$4.58	$0.28	$3.58	−4.6%

FY2024 net income reflected ~$90M of one-time charges (impairment, restructuring); operating income $134M was in line with prior years.

Quarterly Trend | Last 5Q

Q4-2025 was the operating-income outlier

Quarter	Revenue	Op Income	Op Margin	Net Income	Diluted EPS
Q4 2024	$436.9M	$37.0M	8.5%	−$48.9M	−$2.35
Q1 2025	$420.3M	$31.3M	7.5%	$17.7M	$0.85
Q2 2025	$431.7M	$38.4M	8.9%	$25.1M	$1.21
Q3 2025	$444.8M	$38.6M	8.7%	$25.4M	$1.22
Q4 2025	$489.8M	$4.9M	1.0%	$6.6M	$0.31

Fundamental Drivers 5Y | Real

Revenue & cost composition | 5-year P&L walk | YoY and QoQ performance trends. All figures from yfinance + EDGAR XBRL companyfacts (CIK 0001104657).

Revenue Engine Mix | FY25 (~$1.79B)

Four reporting segments per 10-K | end-market split based on disclosed structure

Engine / Segment	% of FY25 Rev	Est. FY25 $M	Growth (YoY)	Trend
Performance Materials (largest segment)
Beryllium & non-Be alloys (defense, aerospace, semi)	~30%	~$536	+MSD	Accelerating
ToughMet, SupremEX, custom engineered metal solutions	~12%	~$214	+LSD	Stable
Electronic Materials
Vapor deposition targets (semiconductor, photonics)	~28%	~$500	+HSD	Recovering
Microelectronics packaging, precious metals, frame lid assemblies	~12%	~$214	+MSD	Steady
Precision Optics
Thin-film coatings, optical filters, assemblies	~10%	~$179	+MSD	Defense ramp
Other
Specialty chemicals, hydroxide, refining services	~8%	~$144	+LSD	Steady
Total revenue	100%	$1,787	+6.0%

Engine percentages illustrative based on 10-K narrative; MTRN reports 4 segments at consolidated level (per XBRL: NumberOfReportableSegments=4). Source: yf-info.longBusinessSummary, 10-K segment narrative.

5-Year P&L Walk | Revenue → Net Income

Verified line items from EDGAR XBRL (FY20-FY23) + yfinance (FY22-FY25) | YoY % at right

$M	FY20	FY21	FY22	FY23	FY24	FY25	5Y CAGR	FY25 YoY
Revenue	1,176	1,511	1,757	1,665	1,685	1,787	+8.7%	+6.0%
(−) Cost of Revenue	984	1,227	1,413	1,316	1,359	1,478	+8.5%	+8.8%
Gross Profit	193	284	344	349	326	309	+9.9%	−5.3%
Gross margin %	16.4%	18.8%	19.6%	21.0%	19.3%	17.3%	+0.9pp	−200bp
(−) SG&A	134	164	169	158	146	143	+1.3%	−2.1%
SG&A % of revenue	11.4%	10.8%	9.6%	9.5%	8.6%	8.0%	−340bp	−60bp
(−) R&D	20.3	26.6	29.0	27.5	29.0	25.9	+5.0%	−10.7%
R&D % of revenue	1.7%	1.8%	1.7%	1.7%	1.7%	1.5%	−25bp	−24bp
Operating Income	8	77	120	136	134	113	+69.4%	−15.4%
Operating margin %	0.7%	5.1%	6.9%	8.2%	7.9%	6.3%	+560bp	−160bp
(+) D&A	~52	~63	53	62	69	69	+5.8%	+0.5%
EBITDA	~60	~140	178	201	118	181	+24.7%	+53.3%
EBITDA margin %	5.1%	9.3%	10.1%	12.1%	7.0%	10.1%	+5pp	+310bp
Net Income	15.5	72.5	86.0	95.7	5.9	74.8	+37.0%	+1167%
Diluted EPS	$0.74	$3.49	$4.14	$4.58	$0.28	$3.58	+37.1%	+1179%

FY20-FY23 verified from EDGAR XBRL (RevenueFromContractWithCustomerExcludingAssessedTax, CostOfGoodsAndServicesSold, GrossProfit, SellingGeneralAndAdministrativeExpense, ResearchAndDevelopmentExpense, OperatingIncomeLoss, NetIncomeLoss). FY24-FY25 from yfinance income-annual. FY24 NI of $5.9M reflected ~$90M of impairment / restructuring charges.

Cost Ratio Trends | 5Y

SG&A leverage paying off; gross margin compressed in FY25

Cost Composition | FY25 vs FY20

Where every $1 of revenue goes

Quarterly Performance | Last 5 Quarters with QoQ & YoY

Q4-2025 gross margin collapse is the most important quarterly observation

Quarter	Revenue	QoQ	YoY	GP	GM%	SG&A	Op Inc	OpM%	Diluted EPS
Q4 FY24	$436.9	–	–	$93.0	21.3%	$41.1	$37.0	8.5%	−$2.35
Q1 FY25	$420.3	−3.8%	−4.2%	$76.2	18.1%	$35.4	$31.3	7.5%	$0.85
Q2 FY25	$431.7	+2.7%	−4.1%	$82.7	19.2%	$35.0	$38.4	8.9%	$1.21
Q3 FY25	$444.8	+3.0%	+1.5%	$86.1	19.4%	$38.3	$38.6	8.7%	$1.22
Q4 FY25	$489.8	+10.1%	+12.1%	$63.7	13.0%	$34.3	$4.9	1.0%	$0.31
FY25 sum	$1,787	–	+6.0%	$309	17.3%	$143	$113	6.3%	$3.58

The Q4-2025 anomaly: Revenue jumped 10.1% QoQ to $489.8M (highest of FY25), but gross margin collapsed 640bp from 19.4% to 13.0% and operating income fell from $38.6M to $4.9M (−87% QoQ). EPS dropped from $1.22 to $0.31. The combination – strongest revenue with weakest margin – points to either inventory / cost-of-sales true-ups, contract pricing reset, or a major mix shift. This is the headline risk for FY26 base case. Watch the Q1 FY26 print (~Apr 30) commentary closely.

Performance Drivers | 5Y Synthesis

Positive drivers

Revenue +52% over 5 years ($1.18B FY20 → $1.79B FY25), driven by post-Covid aerospace/defense recovery + H.C. Starck acquisition contribution.
Operating income up 14x ($8M FY20 → $113M FY25); operating margin from 0.7% to 6.3% (+560bp).
SG&A discipline – held at 8.0% of revenue in FY25 vs 11.4% in FY20 (−340bp), absorbing scale-up without expense bloat.
R&D commitment – 1.5-1.8% of revenue across the cycle; product innovation pipeline funded.
FY25 EBITDA recovery +53% YoY ($118M FY24 → $181M FY25), driven by D&A normalization post-impairment year.

Drag & watch-points

Q4 FY25 gross margin collapse to 13.0% (vs 17-21% normal) is the single largest risk to FY26 thesis.
FY25 op income −15.4% YoY ($134M → $113M) – first decline in 4 years; trend reversal.
FY25 gross margin compressed 200bp (19.3% → 17.3%) – pricing or input cost pressure.
FY24 NI of $5.9M reflected ~$90M of impairment / restructuring charges – base for $1.1B+ acquisition write-down concern.
FCF persistently thin – only $24M FY25 on $1.79B revenue (1.3% conversion); capex-heavy specialty manufacturing.
R&D spending dipped FY25 ($29M → $26M, −10.7% YoY) – first cut in 5 years; watch for innovation pipeline impact.

Transcript Language Evolution 12 quarters | NLP-assisted

How management's tone has shifted across 8 strategic themes over the trailing 12 earnings calls (Q2 2023 → Q1 2026). Each cell encodes the prevailing tone of that quarter's prepared remarks + Q&A. Hover any cell for the representative verbatim phrase.

Positive | strengthening Positive | steady Mixed | qualified Negative | headwind Not mentioned / de-emphasized

Theme	Q2'23	Q3'23	Q4'23	Q1'24	Q2'24	Q3'24	Q4'24	Q1'25	Q2'25	Q3'25	Q4'25	Q1'26
Defense / Aerospace RFQ pipeline, A&D bookings, DoD relationships
Semiconductor / AI Semi cycle, AI mentions, HPM, data storage
Beryllium Positioning Sole-source U.S. mine, strategic mineral, Be capacity
Precision Clad Strip / PMI Medical customer, FDA approval, quality remediation
Margins / Profitability Adj EBITDA margin trajectory, mid-term target
Backlog / Order Book Explicit backlog metric, growth rates
M&A / Capital Allocation Acquisitions, buybacks, capex framing
Macro / End-Market Headwinds China, tariffs, auto, industrial, geopolitical

Most Positively Trending Theme

Margins / Profitability.

Cleanest uninterrupted upward arc: chasing 20% mid-term (2023) → achieving (Q4'24) → raising target to 23% → EM hitting record 28.3% by Q1'26. Each quarter compounds credibility with quantified records. No setbacks, no walk-backs. Runner-up: Defense. RFQ pipeline grew $100M → $150M → $200M → $300M+ across consecutive quarters; fully customer-funded $65M Be expansion Q4'25.

Most Negatively Trending Theme

Precision Clad Strip / PMI.

The only theme with a genuine deterioration arc: "fully ramped and contributing meaningfully" (Q4'23) → inventory correction (Q4'24) → repeated FDA approval delays through 2025 → "quality event" idling both facilities (Q4'25). Q1'26 has cautious recovery language but single large medical customer concentration is now exposed in mgmt's own framing. Runner-up: Macro / China. Headwinds intensified Q1'25 → Q4'25; not improving, just being absorbed.

New Language First Heard in Q1'26

"Critical enabler of the AI ecosystem, not at the edges, but at the core" – most expansive AI positioning yet
"$300 million+ in open RFQs" defense (vs $200M Q4'25 / $150M Q3'25)
"A&D order rates up 50%" LTM – most quantified A&D claim ever
"HPM + data storage sales up 47% YoY" toward AI applications
"War in Iran" as defense tailwind – first geopolitical-conflict mention
"Highest backlog in our company's history... up more than 20% YoY" – first explicit record-backlog claim

Language That Has Faded Since 2023

"Inventory correction" / "destocking" – dominant 2023–Q1'25 vocabulary, now confined to clad strip / China only
"Mid-term 20% EBITDA margin target" – retired Q4'24, replaced by 23% target
"M&A is not a priority" / "organic focus" – softened after Konasol; capital allocation now multi-tool
"Beryllium nickel sprinkler / commercial construction" headwind – dominated 2023–2024, now nearly absent
"Industrial PMI below 50" – frequent 2023-24 qualifier, fallen out of recent calls
"Phase 2 clad strip ramp" celebratory language – replaced by remediation framing

Methodology. Source = 12 corrected earnings call transcripts (Q2 2023 – Q1 2026). Tone classification applied to both prepared remarks and Q&A on each theme. Verbatim phrases preserved in cell tooltips. Heatmap is qualitative, not sentiment-score-derived – representative of the prevailing direction in management's framing.

Interactive Valuation

Two-stage DCF, relative comps, then a blended fair-value triangulation. Drag any slider to update every cell in real time.

Discounted Cash Flow | seeded from FY2025 actuals

All assumptions editable

Forecast assumptions (Years 1–5)

Revenue growth

8.0%

EBITDA margin

13.0%

Capex / sales

4.5%

Δ WC / sales

1.5%

Tax rate

18.0%

WACC build

Risk-free rate

4.2%

Equity risk premium

5.5%

Beta

0.91

Cost of debt

6.0%

Debt weight

22%

Terminal

Terminal growth

2.5%

WACC

8.4%

Bottom-up CAPM

PV of FCF (Y1–5)

$558M

Explicit forecast

PV of Terminal

$3,182M

Gordon growth

Enterprise Value

$3,740M

PV total

Equity Value

$3,295M

EV − net debt $445M

DCF Fair Value / share

$158

vs. spot $185.89

Sensitivity | Fair Value $/share

WACC across | Terminal growth down

Cells colored vs. spot price $185.89 (green = upside, red = downside).

Relative Valuation | Live Peer Multiples REAL

All peer figures pulled live from yfinance | two clear comparable clusters

Ticker	Company	Mkt Cap	EV/EBITDA	Fwd P/E	P/B	EBITDA Mgn	Rev Growth
Specialty alloy / aerospace peers
ATI	ATI Inc.	$21.1B	27.9x	30.0x	11.6x	17.7%	+0.4%
CRS	Carpenter Technology	$21.3B	30.5x	35.0x	10.7x	24.2%	+7.5%
Cluster median		$21.2B	29.2x	32.5x	11.2x	21.0%	+4.0%
Broader industrial-materials peers
MLI	Mueller Industries	$15.0B	13.1x	15.5x	4.7x	23.9%	+19.3%
KALU	Kaiser Aluminum	$2.9B	10.8x	18.3x	3.5x	9.8%	+42.4%
OLN	Olin Corporation	$3.0B	9.2x	29.9x	1.7x	9.7%	−0.4%
BCC	Boise Cascade	$3.0B	9.0x	15.4x	1.5x	5.3%	−6.8%
CSTM	Constellium SE	$4.3B	7.6x	13.7x	4.5x	9.6%	+27.9%
Cluster median		$3.0B	9.2x	15.5x	3.5x	9.7%	+19.3%
Subject
MTRN	Materion Corporation	$3.9B	23.7x	25.3x	4.1x	10.3%	+12.1%
All-peer median (n=7)		–	10.8x	18.3x	4.5x	9.8%	+7.5%
All-peer mean (n=7)		–	15.4x	22.5x	5.5x	14.3%	+12.9%

Two distinct comparable clusters emerge from real data:

Specialty alloy / aerospace peers (ATI, CRS) trade at 28–30x EV/EBITDA on 18–24% EBITDA margins – they earn their premium structurally through margin profile and aerospace exposure. MTRN at 10.3% EBITDA margin doesn't fully deserve their multiple today, though the 2026E margin recovery thesis would close part of that gap.

Broader industrial-materials peers (MLI, KALU, OLN, BCC, CSTM) trade at 7.6–13.1x EV/EBITDA – MTRN at 23.7x is materially above this cluster, with the premium attributable to the strategic beryllium moat & defense end-market positioning.

Implied fair value at peer mean (15.4x) on FY26E EBITDA ~$245M: EV $3,773M − net debt $445M = equity $3,328M → ~$160/share (implies −14% vs spot $185.89).

Combined Fair Value Triangulation

Blend DCF + Relative; drag the weight slider

DCF (interactive)$158

Relative | all-peer mean 15.4x | FY26E EBITDA $245M$160

Relative | industrial cluster median 9.2x$87

Relative | specialty alloy cluster median 29.2x$322

Sell-side mean target$178

Sell-side median target$180

Sell-side high target$185

52W high (peak optimism)$187.49

Spot price$185.89

Blended fair value | DCF + Relative

$148−20% vs spot

DCF weight 60%

At spot $185.89, the market is pricing MTRN closer to specialty-alloy peers (ATI/CRS at 28-30x) than to broader industrial-materials peers (8-13x). The blended fair value of ~$148-160 implies a −15% gap to spot on base assumptions; closing it requires both 2026E EPS delivery and sustained defense beryllium volume to justify ATI/CRS-style multiple.

Institutional Ownership

96.7% of float held by 417 institutions. Top-10 below from latest comprehensive 13F vintage (Q4 2025, filed Feb 2026). Q1 2026 13Fs filed May 15, 2026 – individual filings on EDGAR.

Holder Mix

% of shares outstanding | as of Q4'25 13F

Institutions	96.74%
Float held by institutions	98.44%
Insiders	1.73%
Retail / other	~1.5%
Total institutional accounts	417
Float	20.5M shares
Shares outstanding	20.8M shares

Top 10 Concentration

Top-10 hold ~58% of shares – mixed passive + active

Top 10 Institutional Holders | Q4 2025 13F

Reported share counts at Dec 31, 2025 | $ Value at Jun 5, 2026 spot ($220.75)

#	Holder	Shares	% Out	$ Value (Jun 5)	YoY Δ	Type
1	BlackRock, Inc.	3,300,636	15.87%	$728.6M	-5.4%	Index/active
2	Vanguard Group Inc	2,344,101	11.27%	$517.5M	-7.1%	Index
3	Capital Research Global Investors	1,893,919	9.11%	$418.1M	+3.0%	Active growth
4	State Street Corporation	1,209,634	5.82%	$267.0M	+25.2%	Index
5	Dimensional Fund Advisors LP	990,694	4.76%	$218.7M	-12.1%	Quant/factor
6	Barrow Hanley Mewhinney & Strauss	563,369	2.71%	$124.4M	+19.0%	Active value
7	American Century Companies Inc	521,376	2.51%	$115.1M	NEW	Active (new pos.)
8	Geode Capital Management, LLC	489,539	2.35%	$108.1M	+5.6%	Index
9	Morgan Stanley	429,482	2.06%	$94.8M	+100%	Wealth/active
10	Segall Bryant & Hamill, LLC	360,495	1.73%	$79.6M	+49.4%	Active value

Notable Q4'25 smart-money moves: American Century built a brand-new 521K-share position (~$115M at spot) from zero a year earlier. Morgan Stanley doubled (+100% YoY, +12% QoQ). Segall Bryant +49% YoY. State Street +25% YoY. Barrow Hanley +19% YoY. Passive trimmed at the margin: BlackRock -5%, Vanguard -7%, Dimensional -12% (rebalancing as price re-rated through Q4'25).

Active concentrated capital signal: Capital Research Global Investors (9.11%) remains the largest active position; 5 active managers in the top-10 added meaningfully or initiated in the last 12 months – consistent with the +50% LTM A&D order-rate inflection and EM AI tailwind narrative confirmed at Q1'26.

Insider Activity

Form 4 transactions over the trailing 6 months – including recent director profit-taking at $200+ levels.

Buy txns (incl. RSU)
31

Open-market sells
11

Shares bought / vested
92,823

Shares sold
59,913

Net trailing-6m
+32,910

Last-60d open-market
-9,500

Total insider holdings
~351,000

Recent Form 4 Filings | Last 90 days

Director profit-taking at all-time highs – consistent with stock at $220+

Date	Insider	Title	Transaction	Shares	Price / Value ($)
2026-06-01	Phillippy, Robert J.	Director	Open-market sell	3,500	$218.61 avg \| $765,145
2026-05-29	Phillippy, Robert J.	Director	Open-market sell	3,500	$217.35 - $220.48 \| ~$767K
2026-05-13	Khilnani, Vinod M.	Director	Open-market sell	2,500	$205.14 - $209.21 \| $517,498
2026-05-08	Shular, Craig S.	Director	RSU grant	758	$0.00 (award)
2026-05-07	Shular, Craig S.	Director	RSU vest	2,006	$0.00 (vest)
2026-04-07	Shular, Craig S.	Director	Stock award	163	$24,264
2026-04-07	Prevost, Patrick M.	Director	Stock award	138	$20,543
2026-03-09	Chemnitz, Gregory R.	VP, GC & Secretary	Tax withholding	5	$144.19
2026-03-06	Chemnitz, Gregory R.	VP, GC & Secretary	RSU + stock award	9	$0.00 (award)
+ prior trailing-12m transactions on EDGAR – view full Form 4 history

Read-through: Two directors (Phillippy, Khilnani) sold a combined ~9,500 shares for ~$2.05M across May 13 – Jun 1 at price levels of $205–$220. Pattern is profit-taking at all-time highs, not a thesis shift – both retain meaningful long positions including deferred-compensation shares. No open-market BUY by any insider in the trailing 6 months – the +shares net figure is dominated by routine RSU vests and director equity awards, not conviction buys.

Insider Net Activity | 6-month buys vs sells (shares)

Sell-Side

Recommendations distribution, price-target spread, and last 8 rating changes.

Consensus

6 analysts, post-Q1'26 print

BUY

3 Buy | 1 Hold | 0 Sell | 2 N–R

Fair Value Spread

Spot above mean, below KeyBanc high

High target (KeyBanc, Jun 2)$237

Mean target$211

Median target$211

Low target$170

Spot price (Jun 5)$220.75

Spot vs mean+4.6% above

Forward Estimates

Consensus vs MTRN guide (Apr 29 revised)

Period	Revenue	EPS	Growth
Q1 2026A	$261.8M VA	$1.27 adj	+1% / +12%
Q2 2026E	+15–20% QoQ EPS	~$1.50	guide step-up
FY2026E (guide)	+low-DD	$6.00–$6.50	tilt upper end
FY2026E (consensus)	$2.02B	$5.95	below guide
FY2027E	$2.17B	$7.35	+7.6% / +16%

Last 8 Rating Changes

All changes from last 9 months – bullish skew

Date	Firm	Action	From	To
2026-06-02	KeyBanc	PT raise	$223 / OW	$237 / OW
2026-05-02	Baird	Maintain (post Q1'26)	Outperform	Outperform
2026-05-01	KeyBanc	Maintain (post Q1'26)	Overweight	Overweight
2026-04-01	Baird	Initiation	–	Outperform
2026-02-13	KeyBanc	Maintain	Overweight	Overweight
2026-01-23	Seaport Global	Downgrade	Buy	Neutral
2026-01-14	KeyBanc	Upgrade	Sector Weight	Overweight
2025-10-30	KeyBanc	Downgrade	Overweight	Sector Weight

Catalysts & Recent News

Upcoming earnings + last 8 headlines from major financial press.

Calendar Catalysts

DONE Q1 2026 Earnings	Apr 29, 2026 \| +18.7% YTD
Q2 2026 Earnings	~Jul 29, 2026
Q3 2026 Earnings	~Oct 28, 2026
Konasol (Korea) qualification	2H 2026
FY26 Q4 / Full Year	~Feb 11, 2027

Operational Catalysts

$300M+ open defense RFQ conversion – LTM A&D order rates +50%; $60M Q1'26 record bookings
$65M customer-funded Be capacity expansion – execution underway; completion Q4'27; PM growth re-acceleration 2028+
HPM / data storage AI ramp – Q1'26 sales +47% YoY; EM record 28.3% margin
Konasol (Korea) qualification – 2H'26; meaningful semi EM revenue 2027–2028
Q2 EPS step-up +15–20% sequential – then "much more meaningful" 2H ramp per CFO

Date	Source	Headline
2026-04-24	Simply Wall St.	Why The Materion (MTRN) Story Is Shifting As Higher Fair Values Meet Execution Risks
2026-04-03	Simply Wall St.	Why Materion (MTRN) Is Up 6.0% After Bullish Analyst Calls On Defense Beryllium Demand
2026-04-03	Simply Wall St.	Is Materion (MTRN) Still Attractive After A 99% One Year Share Price Surge?
2026-04-02	Insider Monkey	Analysts Bullish on Materion (MTRN) Amid Robust Share Price Momentum
2026-04-23	Zacks	DOW Q1 Earnings and Sales Beat Estimates Amid Pricing Weakness
2026-04-22	Zacks	Cleveland-Cliffs Q1 Earnings and Revenues Outpace Estimates
2026-04-21	Zacks	Steel Dynamics Q1 Earnings Miss, Revenues Top Estimates
2026-04-20	Zacks	Are Basic Materials Stocks Lagging Aura Minerals This Year?

Risk Register AI summarised

From 10-K Risk Factors + financial-statement red flags + market structure.

Risk	Severity	Verified source	Mitigant / observation
Q4-2025 operating-income collapse Op income $4.9M (1.0% margin) on $489.8M revenue vs. 7.5-8.9% margin in Q1-Q3 2025.	High	yf-income-quarter [Q4-2025]	Watch Q1-2026 commentary for specifics; if isolated to inventory/PPV/year-end true-ups the recovery thesis holds. [needs 10-K MD&A]
Stock above every sell-side target Spot $185.89 vs. high target $185.00, mean $178.33, low $170.00.	High	yf-analyst-price-targets \| 5 analysts	Recent Baird init Outperform (Apr-1) and KeyBanc upgrade (Jan-14) – targets may migrate higher post-Q1 print. [yf-upgrades-downgrades]
FCF compression (3 years running) FY23 $25M, FY24 $7M, FY25 $24M on $1.7-1.8B revenue. Capex absorbing OCF.	High	yf-cashflow-annual + XBRL: PaymentsToAcquirePropertyPlantAndEquipment	If capex normalizes from $80M to $50-60M run-rate (maintenance level), FCF could double to $50M+. Awaiting capacity completion.
$523M acquisition integration overhang $130.7M FY22 + $392.2M FY23 acquisitions; long-term debt $454M (was $36M FY20). FY24 GAAP NI only $5.9M.	Medium	XBRL: PaymentsToAcquireBusinessesNetOfCashAcquired \| LongTermDebt	Operating income rose through the integration period (FY22 $120M → FY25 $113M). Synergy realization is happening at OP line; GAAP NI hit by amortization/impairment.
EBITDA margin gap to specialty-alloy peers MTRN 10.3% vs. ATI 17.7% / CRS 24.2% / MLI 23.9%. Doesn't currently earn 23.7x EV/EBITDA structurally.	Medium	peers.json (yfinance live)	FY26E EPS recovery (+77%) implies margin expansion to ~12-13% EBITDA, narrowing but not closing the gap.
Beryllium / CBD regulatory tail Chronic Beryllium Disease + OSHA permissible exposure limit risks. Specific quantification requires 10-K reading.	Medium	[needs 10-K Item 1A verification]	Industry-known risk; Materion has decades of operating history with this material. Specific reserve level and litigation status to verify.
Customer concentration in defense / semi Performance Materials & Electronic Materials are ~70% of revenue (4-segment structure). End-market lumpiness risk.	Medium	XBRL: NumberOfReportableSegments=4 \| yf-info.longBusinessSummary	Diversified across semiconductor / aerospace / industrial / automotive / energy / consumer / life sciences – single-cycle exposure dampened.
Cyclicality of semiconductor capex Vapor deposition target volumes track WFE / fab utilization.	Medium	[industry observation]	Defense exposure offsets; semi cycle currently inflecting positively into 2026.
FX & commodity input volatility	Low	[needs 10-K hedge disclosure verification]	Standard industry practice for specialty materials: pass-through pricing + programmatic hedging.

Risk register methodology | v2: Each risk is now tagged with a primary-source citation. Items marked [needs 10-K verification] reflect industry-known concerns we have flagged but cannot yet confirm against the actual 10-K text – those are next on the verification queue.

SEC Filings | Last 12 months

CIK 0001104657 | 1,008 lifetime filings on EDGAR

Date	Form	Description	Link
2026-04-09	4	Insider transaction (Form 4)	EDGAR ↗
2026-03-27	SCHEDULE 13G/A	Institutional ownership amendment (5%+ holder)	EDGAR ↗
2026-03-26	DEF 14A	Definitive Proxy Statement	EDGAR ↗
2026-03-12	PRE 14A	Preliminary Proxy	EDGAR ↗
2026-02 (est.)	10-K	Annual Report FY2025	EDGAR ↗
2025-10 / 2025-07 / 2025-04	10-Q	Q3, Q2, Q1 2025	EDGAR ↗
various	8-K	Material event reports (earnings, board changes)	EDGAR ↗
various	SC 13G	5%+ beneficial owner reports (BLK / VOO / others)	EDGAR ↗

Browse all filings: SEC EDGAR – MTRN full filing history