Materion Reports 2024 Results, 2025 Outlook & New Profitability Target
Materion Corporation (NYSE: MTRN) today reported fourth quarter and full-year 2024 financial results, provided 2025 earnings guidance and announced a new mid-term profitability target.
Fourth Quarter 2024 Financial Summary
- Net sales were $436.9 million; value-added sales1 were $296.1 million
- Net loss of $48.8 million, or $2.33 loss per share, diluted, versus net income of $19.5 million, or $0.93 per share, in the prior year quarter; record quarterly adjusted earnings of $1.55 per share versus $1.41 in the prior year quarter
- Operating loss of $38.3 million versus operating profit of $27.6 million in the prior year quarter; record quarterly adjusted EBITDA2 of $61.5 million versus $53.3 million in the prior year quarter
Full-Year 2024 Highlights
- Net sales were $1.68 billion; value-added sales were $1.10 billion
- Net income was $5.9 million, or $0.28 per share, diluted, versus $95.7 million, or $4.58 per share, in the prior year period; adjusted earnings of $5.34 per share versus $5.64 in the prior year period
- Adjusted EBITDA of $221.2 million, versus $217.7 million in the prior year
- Achieved mid-term target of 20% adjusted EBITDA margin for the year, first time in company history
- Established new mid-term adjusted EBITDA margin target of 23% based on the Company’s prospects and performance expectations
- Secured several significant new business wins and customer partnerships further strengthening the organic pipeline
- Precision Optics transformation underway with appointment of new business president
- Completed sale of non-core large area targets business in Albuquerque, New Mexico
The fourth-quarter and full-year results showcase the significant impact of our initiatives to enhance operational performance, streamline our cost structure, and optimize the Company’s footprint. I am extremely proud of our global team for their relentless efforts to serve our customers and drive improvements across Materion, even in the face of ongoing challenging market conditions,” said Jugal Vijayvargiya, President & CEO of Materion.
2024 was a landmark year for Materion, as we achieved our mid-term target of 20% adjusted EBITDA margin for the first time in the Company’s history. Achieving this level of performance in soft market conditions gives us confidence to look ahead to what’s next, as our end markets strengthen, and we deliver on our organic initiatives while executing further operational improvements. With this in mind, we have established a new mid-term adjusted EBITDA margin target of 23%, delivering an additional 300 basis points of improvement over the next several years. We expect to deliver another year of strong performance in 2025, as a result of our improved operational performance, and strengthening market conditions as we move through the year.”
FOURTH QUARTER 2024 RESULTS
Net sales for the quarter were $436.9 million, compared to $421.0 million in the prior year period. Value-added sales were $296.1 million for the quarter, up 2% from the prior year period primarily driven by strength in space & defense and improvement in semiconductor. This increase was partially offset by continued headwinds across automotive, industrial and energy.
Operating loss for the quarter was $38.3 million and net loss was $48.8 million, or $2.33 loss per diluted share, compared to operating profit of $27.6 million and net income of $19.5 million, or $0.93 per share, in the prior year period.
Excluding special items3 including a non-cash goodwill and intangible impairment in Precision Optics, adjusted EBITDA was a quarterly record $61.5 million, or 20.8% of value-added sales, compared to $53.3 million or 18.4% of value-added sales in the prior year period. This record adjusted EBITDA was driven by higher volume, favorable price/mix, strong cost management and operational performance.
Adjusted net income was $32.4 million excluding acquisition amortization, or $1.55 per diluted share, compared to $1.41 per share in the prior year period.
FULL-YEAR 2024 RESULTS
Net sales for the year were $1.68 billion, compared to $1.67 billion in the prior year. Value-added sales were $1.10 billion for the year, down 3% from the prior year due to weakness in several key end markets including industrial, energy and automotive. This decrease was partially offset by strength in space & defense and precision clad strip.
Operating profit for the year was $47.2 million and net income was $5.9 million, or $0.28 per diluted share, compared to operating profit of $136.4 million and net income of $95.7 million, or $4.58 per diluted share, in the prior year.
Excluding special items, adjusted EBITDA for the year was $221.2 million, compared to $217.7 million in the prior year. The increase was driven primarily by strong operational performance, cost management and improved mix driven by new business.
Adjusted net income was $111.8 million excluding acquisition amortization, or $5.34 per diluted share, compared to $5.64 per diluted share in the prior year.
