Financial Analysis

Acquisition On July 9, 2025, the Company completed the acquisition of certain manufacturing assets for tantalum solutions in Dangjin City, South Korea, from Konasol Co., Ltd., a Korean manufacturer serving the semiconductor and adjacent markets. This strategic investment expands the Companys global footprint with a facility in Asia to better serve semiconductor customers in that region. The total purchase price was approximately $19.5 million, which was paid in cash on the date of acquisition. The acquisition and related fees and expenses were funded through available cash and borrowings under the Company's revolving credit facility. Acquisition-related transaction and integration costs totaled $1.8 million in 2025. These costs are included in selling, general, and administrative expenses in the Consolidated Statements of Income. The Company accounted for the transaction as a business combination using the acquisition method of accounting and a third-party valuation appraisal, and included the results of operations of the acquisition in its consolidated financial statements from the effective date of the acquisition. The operating results are included within Materions Electronic Materials segment. Pro forma financial information has not been presented, as revenue and expenses related to the acquisition do not have a material impact on the Companys consolidated financial statements. The total purchase price was allocated to identifiable assets and liabilities based upon the pr …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Contingencies and Commitments Environmental Proceedings The Company has an active program for environmental compliance that includes the identification of environmental projects and estimating the impact on the Companys financial performance and available resources. Environmental expenditures that relate to current operations, such as wastewater treatment and control of airborne emissions, are either expensed or capitalized as appropriate. The Company records reserves for the probable costs for identified environmental remediation projects. The Companys environmental engineers perform routine ongoing analyses of the remediation sites and will use outside consultants to assist in their analyses from time to time. Reserve accruals are based upon their analyses and are established based on the reasonably estimable loss or range of loss. The accruals are revised for the results of ongoing studies, changes in strategies, inflation, and for differences between actual and projected costs. The accruals may also be affected by rulings and negotiations with regulatory agencies. The timing of payments often lags the accrual, as environmental projects typically require a number of years to complete. The environmental reserves recorded represent the Company's best estimate of what is reasonably possible and cover existing or currently foreseen projects based upon current facts and circumstances. For sites where the investigative work and work plan development are substantially complete, t …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Long-term debt in the Consolidated Balance Sheets is summarized as follows: December 31, (Thousands) 2025 2024 Borrowings under Credit Agreement with average interest rate of 5.26% at December 31, 2025 and 6.27% at December 31, 2024 $ 221,125 $ 198,875 Borrowings under the Term Loan Facility 222,188 240,000 Overdraft Sweep Facility 15,659 123 Foreign debt 1,670 4,901 Total long-term debt outstanding 460,642 443,899 Current portion of long-term debt (22,445) (34,274) Gross long-term debt $ 438,197 $ 409,625 Unamortized deferred financing fees (1,849) (1,891) Long-term debt $ 436,348 $ 407,734 Maturities on long-term debt instruments as of December 31, 2025 are as follows: (Thousands) 2026 22,445 2027 8,664 2028 11,476 2029 11,307 2030 406,750 2031 and thereafter Total $ 460,642 In June 2025, the Company entered into a Fifth Amended and Restated Credit Agreement (Credit Agreement). The Credit Agreement refinanced the revolving credit facility and term loan facility provided under Materion's previous Fourth Amended and Restated Credit Agreement, dated October 27, 2021 (as amended). Among other things, the Credit Agreement provides for a $450 million senior secured revolving credit facility (Revolving Credit Facility) and a $225 million senior secured term loan facility (Term Loan Facility and, together with the Revolving Credit Facility, Credit Facilities). The Term Loan Facility was fully drawn on June 26, 2025. The Credit Facilities mature on June 26, 2030. The Credit Agr …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates revenue for each segment by end market for 2025, 2024 and 2023: (Thousands) Performance Materials Electronic Materials Precision Optics Other Total 2025 End Market Semiconductor $ 10,964 $ 852,790 $ 3,893 $ $ 867,647 Industrial 127,724 38,397 26,201 192,322 Aerospace and Defense 174,783 8,535 30,502 213,820 Consumer Electronics 150,275 4,489 14,090 168,854 Automotive 66,740 4,075 6,146 76,961 Energy 56,147 67,578 123,725 Life Sciences 9,405 18,523 18,855 46,783 Other 79,833 15,578 1,027 96,438 Total $ 675,871 $ 1,009,965 $ 100,714 $ $ 1,786,550 2024 End Market Semiconductor $ 8,342 $ 705,625 $ 2,794 $ $ 716,761 Industrial 127,743 33,521 25,439 186,703 Aerospace and Defense 192,074 5,240 22,643 219,957 Consumer Electronics 227,595 397 14,635 242,627 Automotive 71,471 6,668 6,740 84,879 Energy 41,649 68,830 110,479 Life Sciences 10,243 17,937 21,886 50,066 Other 65,386 7,528 353 73,267 Total $ 744,503 $ 845,746 $ 94,490 $ $ 1,684,739 2023 End Market Semiconductor $ 13,734 $ 645,113 $ 2,529 $ $ 661,376 Industrial 147,321 33,915 29,277 210,513 Aerospace and Defense 144,708 6,198 25,039 175,945 Consumer Electronics 220,898 944 15,296 237,138 Automotive 85,178 6,653 9,189 101,020 Energy 49,055 91,140 140,195 Life Sciences 8,798 15,265 22,199 46,262 Other 85,855 6,523 360 92,738 Total $ 755,547 $ 805,751 $ 103,889 $ $ 1,665,187 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

"Intangible Assets and Goodwill Intangible Assets The cost and accumulated amortization of intangible assets subject to amortization as of December 31, 2025 and 2024, is as follows: 2025 2024 (Thousands) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 98,141 $ (41,435) $ 56,706 $ 97,428 $ (37,960) $ 59,468 Technology 46,200 (20,186) 26,014 43,588 (16,415) $ 27,173 Licenses and other 36,785 (17,231) 19,554 36,234 (15,182) $ 21,052 Total $ 181,126 $ (78,852) $ 102,274 $ 177,250 $ (69,557) $ 107,693 Amortization expense f or 2025, 2024, and 2023 was $11.0 million, $12.1 million, and $12.9 million , respectively. Intangible assets also includes deferred costs relating to the Company's revolving credit and consignments lines of $3.6 million and $1.6 million at December 31, 2025 and 2024, respectively. Estimated amortization e xpense for each of the five succeeding years is as follows: Amortization (Thousands) Expense 2026 10,135 2027 10,033 2028 10,033 2029 10,033 2030 10,033 Goodwill The balance of goodwill at December 31, 2025 and 2024 was $280.7 million and $263.7 million, respectively. A summary of changes in goodwill by reportable segment is as follows: (Thousands) Performance Materials Electronic Materials Precision Optics Total Balance at December 31, 2023 $ 26,157 $ 206,673 $ 88,043 $ 320,873 Acquisition Impairment charge (56,067) (56,067) Currency translation and other (373) (695) (1,068) Balan …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes Income (loss) before income taxes and income tax expense (benefit) are comprised of the following: (Thousands) 2025 2024 2023 Income (loss) before income taxes: Domestic $ 63,872 $ 75,963 $ 94,589 Foreign 17,669 (61,061) 13,242 Total income (loss) before income taxes $ 81,541 $ 14,902 $ 107,831 Income tax expense: Current income tax expense (benefit): Domestic $ 7,667 $ 19,258 $ 12,962 Foreign 4,154 6,354 6,172 Total current $ 11,821 $ 25,612 $ 19,134 Deferred income tax (benefit) expense: Domestic $ (3,968) $ (14,107) $ (4,926) Foreign (1,135) (2,491) (2,079) Total deferred $ (5,103) $ (16,598) $ (7,005) Total income tax expense (benefit) $ 6,718 $ 9,014 $ 12,129 We adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, on a prospective basis beginning with the year ended December 31, 2025. The following table presents required disclosures pursuant to ASU 2023-09 and reconciles the U.S. federal statutory income tax amount and rate to our actual global effective income tax amount and rate for the year ended December 31, 2025: 2025 Amount Percent U.S. federal statutory rate $ 17,124 21.0 % State and local income taxes, net of federal tax effect 1 240 0.3 Foreign tax effects China Changes in valuation allowance (1,009) (1.2) Other (256) (0.3) Germany Trade tax 1,081 1.3 Other (285) (0.3) Other foreign jurisdictions (225) (0.3) Effect of changes in tax laws or rates enacted in the current period Effect of cross-border tax laws Foreign …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leasing Arrangements The Company leases warehouse and manufacturing real estate, and manufacturing and computer equipment under operating leases with lease terms ranging up to 25 years. Several operating lease agreements contain options to extend the lease term and/or options for early termination. The lease term consists of the non-cancelable period of the lease, periods covered by options to extend the lease if the Company is reasonably certain to exercise the option, and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the option. As of December 31, 2025 , we had no material leases that had yet to commence. The discount rate implicit within the leases is generally not determinable, and, therefore, the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for leases is determined based on the lease term over which lease payments are made, adjusted for the impact of collateral. The components of operating and finance lease cost for 2025 and 2024 were as follows: (Thousands) 2025 2024 Components of lease expense Operating lease cost $ 15,173 $ 14,588 Finance lease cost Amortization of right-of-use assets 1,253 1,162 Interest on lease liabilities 742 685 Total lease cost $ 17,168 $ 16,435 The Company straight-lines its expense of fixed payments for operating leases over the lease term and expenses the variable lease payments in the period incurred. These variable leas …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

New Pronouncements Adopted: In December 2023, the Financial Accounting Standards Board (FASB) issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740) . This ASU updates current income tax disclosure requirements to require disclosures of specific categories of information within the effective tax rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. The Company adopted the new guidance on a prospective basis and has included the additional required disclosures in Note H. New Accounting Guidance Issued and Not Yet Adopted: In November 2024, the FASB issued a final ASU to require disaggregated disclosure of income statement expenses. This new standard requires public business entities to provide detailed disclosures in the notes to financial statements disaggregating specific expense categories, including employee compensation, depreciation, and intangible asset amortization, as well as certain other disclosures to provide enhanced transparency into the nature and function of expenses. This guidance is effective for annual periods beginning in the Companys fiscal year 2027 and interim periods following annual adoption, with early adoption permitted. This guidance will be applied on a prospective basis with retrospective application permitted. Management is currently evaluating this ASU to determine its impact on the Companys disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-int …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Pensions and Other Post-Employment Benefits The obligation and funded status of the Companys pension and other post-employment benefit plans are shown below. The Pension Benefits column aggregates defined benefit pension plans in the U.S., Germany, Liechtenstein, England, and the U.S. supplemental retirement plans. The Other Benefits column includes the domestic retiree medical and life insurance plan. Pension Benefits Other Benefits (Thousands) 2025 2024 2025 2024 Change in benefit obligation Benefit obligation at beginning of year $ 176,718 $ 181,588 $ 4,666 $ 4,900 Service cost 1,209 1,077 4 50 Interest cost 7,686 7,631 152 234 Net pension curtailments and settlements (4,447) Actuarial (gain) loss 1,303 (3,976) 62 (113) Benefit payments (7,365) (6,678) (337) (405) Plan amendments (1,555) Foreign currency exchange rate changes and other 7,054 (2,924) Benefit obligation at end of year 182,158 176,718 2,992 4,666 Change in plan assets Fair value of plan assets at beginning of year 161,808 169,679 Plan settlements (3,318) Actual return on plan assets 11,447 (914) Employer contributions 719 697 Employee contributions 769 750 Benefit payments from fund (7,440) (6,724) Foreign currency exchange rate changes and other 4,278 (1,680) Fair value of plan assets at end of year 168,263 161,808 Funded status at end of year $ (13,895) $ (14,910) $ (2,992) $ (4,666) Amounts recognized in the Consolidated Balance Sheets consist of: Other assets $ 7,365 $ 7,258 $ $ Other liabilities and accr …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring Summary of Restructuring Plans . In fiscal years 2025, 2024, and 2023, we announced restructuring plans that were both designed to reduce costs and expenses in response to macroeconomic conditions and current operating performance. These actions impacted all three of our business segments as well as Corporate. The restructuring programs are expected to result in the reduction in annual cost of sales and operating expenses. Fiscal Year 2025 Plan In 2025, the Company continued to implement restructuring actions, primarily in our Precision Optics, Electronic Materials, Performance Materials and Other segments. In connection with these actions, we recorded restructuring expenses of $3.2 million, all of which were associated with workforce reduction, including severance and other personnel-related costs. These actions were substantially completed as of December 31, 2025. Fiscal Year 2024 Plan The 2024 Plan was designed to further reduce costs and expenses in response to current macroeconomic conditions and to right size the cost structure within our business segments as well as eliminate excess corporate costs. In connection with this Plan, the Company recorded restructuring expenses of $6.8 million in fiscal year 2024. Of these charges, $6.7 million were associated with workforce reduction, including severance and other personnel-related costs. While the majority of the workforce reduction was completed in fiscal year 2024, the Company completed the remaining restru …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Revenue Recognition Net sales consist primarily of revenue from the sale of precious and non-precious specialty metals, beryllium and copper-based alloys, beryllium composites, and other products into numerous end markets. The Company requires an agreement with a customer that creates enforceable rights and performance obligations. The Company generally recognizes revenue, in an amount that reflects the consideration to which it expects to be entitled, upon satisfaction of a performance obligation by transferring control over a product to the customer. Control over the product is generally transferred to the customer when the Company has a present right to payment, the customer has legal title, the customer has physical possession, the customer has the significant risks and rewards of ownership, and/or the customer has accepted the product. Shipping and Handling Costs : The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill its promise to transfer the associated products. Accordingly, customer payments for shipping and handling costs are recorded as a component of net sales, and related costs are recorded as a component of cost of sales. Taxes Collected from Customers and Remitted to Governmental Authorities : Revenue is recorded net of taxes collected from customers that are remitted to governmental authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authori …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Reporting and Geographic Information The Company has the following operating segments: Performance Materials, Electronic Materials, Precision Optics, and Other. The Companys operating segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer, the Company's Chief Operating Decision Maker (CODM), in determining how to allocate the Companys resources and evaluate performance. The segments are determined based on several factors, including the availability of discrete financial information and the Companys organizational and management structure. Performance Materials provides advanced engineered solutions comprised of beryllium and non-beryllium containing alloy systems and custom engineered parts in strip, bulk, rod, plate, bar, tube, and other customized shapes. Electronic Materials produces advanced chemicals, microelectronics packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal preforms, and high temperature braze materials. Precision Optics produces thin film coatings, optical filter materials, sputter-coated, and precision-converted thin film materials. The Other reportable segment includes unallocated corporate costs and assets. The primary measure used by the CODM in evaluating segment performance is EBITDA. The table below presents financial informatio …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Acquisition On July 9, 2025, the Company completed the acquisition of certain manufacturing assets for tantalum solutions in Dangjin City, South Korea, from Konasol Co., Ltd., a Korean manufacturer serving the semiconductor and adjacent markets. This strategic investment expands the Companys global footprint with a facility in Asia to better serve semiconductor customers in that region. The total purchase price was approximately $19.5 million, which was paid in cash on the date of acquisition. The acquisition and related fees and expenses were funded through available cash and borrowings under the Company's revolving credit facility. Acquisition-related transaction and integration costs totaled $1.8 million in 2025 with no material costs incurred in 2026. These costs are included in selling, general, and administrative expenses in the Consolidated Statements of Income. The Company accounted for the transaction as a business combination using the acquisition method of accounting and a third-party valuation appraisal, and included the results of operations of the acquisition in its consolidated financial statements from the effective date of the acquisition. The operating results are included within the Company's Electronic Materials segment. Pro forma financial information has not been presented, as revenue and expenses related to the acquisition do not have a material impact on the Companys consolidated financial statements. The total purchase price was allocated to identifia …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Contingencies Legal Proceedings . The Company is party to several pending legal proceedings and claims arising in the normal course of business. The Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. In the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosure related to such matters. To the extent there is a reasonable possibility that the losses could exceed any amounts accrued, the Company will adjust the accrual in the period the determination is made, disclose an estimate of the additional loss or range of loss, indicate that the estimate is immaterial with respect to its financial statements as a whole or, if the amount of such adjustment cannot be reasonably estimated, disclose that an estimate cannot be made. Environmental Proceedings. The Company has an active environmental compliance program and records reserves for the probable cost of identified environmental remediation projects. The reserves are established based upon analyses conducted by the Companys engineers and outside consultants and are adjusted from time to time based upon ongoing studies, the difference between actual and estimated costs, and other factors. The reserves may also be affected by rulings and negotiations with regulatory agen …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt (Thousands) April 3, 2026 December 31, 2025 Borrowings under Credit Agreement $ 253,125 $ 221,125 Borrowings under the Term Loan Facility 220,781 222,188 Overdraft Sweep Facility 8,780 15,659 Foreign debt 8,981 1,670 Total debt outstanding 491,667 460,642 Current portion of long-term debt (23,050) (22,445) Gross long-term debt 468,617 438,197 Unamortized deferred financing fees (1,746) (1,849) Long-term debt $ 466,871 $ 436,348 As of April 3, 2026 and December 31, 2025, the Company had $253.1 million outstanding at an average interest rate of 5.17% and $221.1 million outstanding at an average interest rate of 5.26% respectively, under its revolving credit facility. The available borrowing capacity under the revolving credit facility as of April 3, 2026 was $191.7 million. The Company has the option to repay or borrow additional funds under the revolving credit facility until the maturity date in 2030. In connection with the revolving credit facility, the administrative agent provides the Company with an overdraft sweep facility that the Company uses on a daily basis for short-term cash needs. As of April 3, 2026, the overdraft sweep facility had a balance of $8.8 million. The overdraft sweep facility allows for an additional $30.0 million of liquidity. The amended and restated credit agreement governing the revolving credit facility (Credit Agreement) includes covenants subject to a maximum leverage ratio and a minimum fixed charge coverage ratio. We were in compliance w …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table disaggregates revenue for each segment by end market for the first quarter of 2026 and 2025: (Thousands) Performance Materials Electronic Materials Precision Optics Other Total First Quarter 2026 End Market Semiconductor $ 2,306 $ 314,258 $ 1,798 $ $ 318,362 Industrial 33,199 10,980 7,678 51,857 Aerospace and defense 43,552 5,424 10,030 59,006 Consumer electronics 23,254 3,640 4,076 30,970 Automotive 17,046 240 1,944 19,230 Energy 13,317 33,336 46,653 Life sciences 1,859 (8,596) 5,206 (1,531) Other 21,132 4,082 63 25,277 Total $ 155,665 $ 363,364 $ 30,795 $ $ 549,824 First Quarter 2025 End Market Semiconductor $ 3,628 $ 183,749 $ 775 $ $ 188,152 Industrial 31,277 9,755 6,273 47,305 Aerospace and defense 42,090 1,702 6,241 50,033 Consumer electronics 45,035 1,108 3,093 49,236 Automotive 16,202 726 1,335 18,263 Energy 16,420 20,230 36,650 Life sciences 2,575 5,874 3,692 12,141 Other 16,760 1,651 139 18,550 Total $ 173,987 $ 224,795 $ 21,548 $ $ 420,330 …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock-based Compensation Expense Stock-based compensation expense, which includes awards settled in shares was $3.4 million and $3.0 million in the first quarter of 2026 and 2025, respectively. The Company granted 47,436 SARs to certain employees during the first quarter of 2026. The weighted-average exercise price per share and weighted-average fair value per share of the SARs granted during the three months ended April 3, 2026 were $166.59 and $56.70, respectively. The Company estimated the fair value of the SARs using the following weighted-average assumptions in the Black-Scholes model: Risk-free interest rate 3.62 % Dividend yield 0.34 % Volatility 34.0 % Expected term (in years) 4.8 The Company granted 75,870 stock-settled RSUs to certain employees during the first quarter of 2026. The Company measures the fair value of stock-settled RSUs based on the closing market price of a share of Materion common stock on the date of the grant. The weighted-average fair value per share was $156.21 for stock-settled RSUs granted to employees during the three months ended April 3, 2026. RSUs are generally expensed over the vesting period of three years for employees. The Company granted stock-settled performance-based restricted stock units (PRSUs) to certain employees in the first quarter of 2026. The weighted-average fair value of the stock-settled PRSUs was $206.28 per share and will be expensed over the vesting period of three years. The final payout to the employees for all PRSU …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value of Financial Instruments The Company measures and records financial instruments at fair value. A hierarchy is used for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Companys assumptions (unobservable inputs). The hierarchy consists of three levels: Level 1 Quoted market prices in active markets for identical assets and liabilities; Level 2 Inputs other than Level 1 inputs that are either directly or indirectly observable; and Level 3 Unobservable inputs developed using estimates and assumptions developed by the Company, which reflect those that a market participant would use. The following table summarizes the financial instruments measured at fair value in the Consolidated Balance Sheets as of April 3, 2026 and December 31, 2025: (Thousands) Total Carrying Value in the Consolidated Balance Sheets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 2026 2025 2026 2025 2026 2025 2026 2025 Financial Assets Deferred compensation investments $ 7,213 $ 7,175 $ 7,213 $ 7,175 $ $ $ $ Foreign currency forward contracts 492 80 492 80 Interest rate swaps 1,176 1,491 1,176 1,491 Precious metal swaps Total $ 8,881 $ 8,746 $ 7,213 $ 7,175 $ 1,668 $ 1,571 $ $ Financial Liabilities Deferred compensation liability $ 7,213 $ 7,175 $ 7,213 $ 7,175 $ $ $ $ Foreign currency forward contracts 80 490 80 490 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The Company's effective tax rate for the first quarter of 2026 and 2025 was 7.3% and 15.5%, respectively. The effective tax rate for the first quarter of 2026 is lower than the statutory tax rate primarily due to the impact of the foreign-derived deduction eligible income, excess tax benefits from stock-based compensation awards and percentage depletion. The effective tax rate for the first quarter of 2025 was lower than the statutory tax rate primarily due to the impact of percentage depletion, the foreign-derived intangible income deduction, and the advanced manufacturing production credit. The effective tax rate for the first quarter of 2026 and 2025 included a net discrete income tax effect of $1.6 million benefit and $0.1 million expense, respectively, primarily related to stock-based compensation awards. Government Tax Credits Pursuant to The Inflation Reduction Act of 2022 (IRA), the Company is eligible for the Advanced Manufacturing Production Credit (production credit). The production credit provides an annual cash benefit for a portion of the production costs for the sale of certain critical minerals produced in the U.S. and sold during the year. The Company records the production credit as a reduction in cost of goods sold as the applicable items are produced and sold. U.S. GAAP does not address the accounting for government grants received by a business entity that are outside the scope of ASC 740. Our accounting policy is to analogize to IAS 20, Acco …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

New Accounting Guidance Issued and Not Yet Adopted: In November 2024, the Financial Accounting Standards Board (FASB) issued a final ASU to require disaggregated disclosure of income statement expenses. This new standard requires public business entities to provide detailed disclosures in the notes to financial statements disaggregating specific expense categories, including employee compensation, depreciation, and intangible asset amortization, as well as certain other disclosures to provide enhanced transparency into the nature and function of expenses. This guidance is effective for annual periods beginning in the Companys fiscal year 2027 and interim periods following annual adoption, with early adoption permitted. This guidance will be applied on a prospective basis with retrospective application permitted. Management is currently evaluating this ASU to determine its impact on the Companys disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles-Goodwill and Other-internal-use software (Subtopic 350-40): Targeted Improvements to the Accounting for internal-use software . The amendments in this ASU make targeted improvements to Subtopic 350-40, Intangibles-Goodwill and Other-internal-use software, to increase the operability of the recognition guidance considering different methods of software development. This ASU is effective for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods, with early adoption …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Pensions and Other Post-employment Benefits The following is a summary of the net periodic benefit (income)/cost for the first quarter of 2026 and 2025 for the pension plans as shown below. The Pension Benefits columns aggregate defined benefit pension plans in the U.S., Germany, Liechtenstein, England, and the U.S. supplemental retirement plans. The Other Benefits columns include the domestic retiree medical and life insurance plan. Pension Benefits Other Benefits First Quarter Ended First Quarter Ended April 3, March 28, April 3, March 28, (Thousands) 2026 2025 2026 2025 Components of net periodic benefit (income) cost Service cost $ 292 $ 286 $ $ 11 Interest cost 1,841 1,910 31 58 Expected return on plan assets (2,374) (2,504) Amortization of prior service cost (benefit) (22) (21) Amortization of net loss (gain) 258 89 (104) (87) Total net benefit (income) cost $ (5) $ (240) $ (73) $ (18) The Company did not make any contributions to its defined benefit plan in the first quarter of 2026 or 2025. The Company reports the service cost component of net periodic benefit cost in the same line item as other compensation costs in operating expenses and the non-service cost components of net periodic benefit cost in Other non-operating (income) expense. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring In fiscal years 2025 and 2024, we announced restructuring plans that were both designed to reduce costs and expenses in response to macroeconomic conditions and current operating performance. These actions impacted all three of our business segments as well as Corporate. The restructuring programs are expected to result in the reduction in annual cost of sales and operating expenses. In 2026, the Company continued to implement restructuring actions, across all segments. In connection with these actions, we recorded restructuring expenses of $2.3 million in the three months ended April 3, 2026, compared to $2.0 million in the three months ended March 28, 2025. All of these charges were associated with workforce reduction, including severance and other personnel-related costs. We expect to substantially complete the remaining restructuring activities by the end of the second quarter of fiscal year 2026. The activity in the accrued balances incurred in relation to restructuring during the three months ended April 3, 2026 and March 28, 2025, were as follows: Reduction in Force (Thousands) Performance Materials Electronic Materials Precision Optics Other Consolidated Balance at December 31, 2025 $ $ 83 $ 59 $ 9 $ 151 Additional Charges 615 409 839 432 2,295 Cash Payments (365) (370) (425) (337) (1,497) Balance at April 3, 2026 $ 250 $ 122 $ 473 $ 104 $ 949 Reduction in Force (Thousands) Performance Materials Electronic Materials Precision Optics Other Consolidated Ba …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Revenue Recognition Net sales consist primarily of revenue from the sale of precious and non-precious specialty metals, beryllium and copper-based alloys, beryllium composites, and other products into numerous end markets. The Company requires an agreement with a customer that creates enforceable rights and performance obligations. The Company generally recognizes revenue in an amount that reflects the consideration to which it expects to be entitled upon satisfaction of a performance obligation by transferring control over a product to the customer. Control over a product is generally transferred to the customer when the Company has a present right to payment, the customer has legal title, the customer has physical possession, the customer has the significant risks and rewards of ownership, and/or the customer has accepted the product. Transaction Price Allocated to Future Performance Obligations: Accounting Standards Codification 606, Revenue from Contracts with Customers, requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied at April 3, 2026. Remaining performance obligations include non-cancelable purchase orders and customer contracts. The guidance provides certain practical expedients that limit this requirement. As such, the Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Afte …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Reporting The Company has the following reportable segments: Performance Materials, Electronic Materials, Precision Optics, and Other. The Companys reportable segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer, the Company's chief operating decision maker, in determining how to allocate the Companys resources and evaluate performance. Performance Materials provides advanced engineered solutions comprised of beryllium and non-beryllium containing alloy systems and custom engineered parts in strip, bulk, rod, plate, bar, tube, and other customized shapes. Electronic Materials produces advanced chemicals, microelectric packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal preforms and high temperature braze materials. Precision Optics produces thin film coatings, optical filter materials, sputter-coated, and precision-converted thin film materials. The Other reportable segment includes unallocated corporate costs and assets. The primary measurement used by management to measure the financial performance of each segment is earnings before interest, taxes, depreciation and amortization (EBITDA). The below table presents financial information for each segment and a reconciliation of EBITDA to Net Income (the most directly comparable GAAP financial measure) f …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Accounting Policies Basis of Presentation: The accompanying consolidated financial statements of Materion Corporation and its subsidiaries (referred to herein as the Company, our, we, or us) contain all of the adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods reported. All adjustments were of a normal and recurring nature. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's 2025 Annual Report on Form 10-K. The interim period results are not necessarily indicative of the results to be expected for the full year. New Accounting Guidance Issued and Not Yet Adopted: In November 2024, the Financial Accounting Standards Board (FASB) issued a final ASU to require disaggregated disclosure of income statement expenses. This new standard requires public business entities to provide detailed disclosures in the notes to financial statements disaggregating specific expense categories, including employee compensation, depreciation, and intangible asset amortization, as well as certain other disclosures to provide enhanced transparency into the nature and function of expenses. This guidance is effective for annual periods beginning in the Companys fiscal year 2027 and interim periods following annual adoption, with early adoption permitted. This guidance will be applied on a prospective basis with retrospective a …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing