A global leader in advanced engineered materials and composites serving aerospace, automotive, and electronics industries with a proven track record of generating substantial operating cash flow.
Investors may favor MTRN for its high-quality free cash flow generation of $103.2M which supports debt reduction and shareholder returns via dividends and buybacks. The company's pivot toward higher-margin electronic materials and aerospace composites offers growth potential as defense spending increases. Its strong balance sheet with $1.8B in total assets provides a solid foundation to weather industry cycles.
The massive retained earnings deficit of $912.4M signals historical profitability challenges that could linger if market conditions worsen. Significant investing cash outflows of $98.1M suggest heavy capital expenditure or acquisitions that may strain liquidity in the short term. High levels of long-term debt at $436.3M combined with interest rate sensitivity pose leverage risks during economic contractions.
Materion Corp (MTRN) is a leading global materials science solutions provider specializing in engineered composites, metal alloys, and advanced coatings. Serving aerospace, automotive, electronics, and energy sectors, the company delivers high-performance materials critical for next-generation technologies. With recent strong operational cash flow of $103.2M and revenue growth to $1.79B, Materion positions itself as a resilient industrial play.
Despite a volatile net income trajectory ranging from $5.9M in 2024 to $74.8M recently, Materion demonstrated robust operational health with operating cash flow of $103.2M significantly exceeding its $74.8M profit before tax. The company successfully navigated recent market headwinds, evidenced by revenue expansion to $1.79B and a healthy working capital position supported by $789.5M in current assets.
The advanced materials industry is transitioning toward lighter, more durable solutions to meet stringent emissions regulations and electrification demands in transportation. Consolidation among specialty chemical and composite manufacturers is ongoing as companies seek scale efficiencies against volatile commodity markets. Demand remains robust in aerospace due to fleet modernization programs and commercial air travel recovery.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.76B | $1.67B | $1.68B | $1.79B |
| Cost of Revenue | $1.41B | $1.32B | $1.36B | $1.48B |
| Gross Profit | $343.9M | $349.0M | $326.0M | $308.6M |
| Operating Expenses | $224.1M | $212.6M | $278.8M | $198.8M |
| Operating Income | $119.8M | $136.4M | $47.2M | $109.8M |
| R&D | $29.0M | $27.5M | $29.0M | $25.9M |
| G&A | $169.3M | $157.9M | $145.6M | $143.1M |
| Stock-Based Comp | $8.8M | $10.1M | $10.6M | $10.9M |
| D&A | $53.4M | $61.6M | $68.7M | $69.1M |
| Depreciation | $35.2M | $41.6M | $45.1M | $45.2M |
| Amortization | $12.4M | $12.9M | $12.1M | $11.0M |
| Other OpEx | $25.8M | $27.1M | $104.1M | $29.8M |
| Non-Operating Income | $-16.7M | $-28.6M | $-32.3M | $-28.3M |
| Pre-Tax Income | $103.1M | $107.8M | $14.9M | $81.5M |
| Income Tax | $17.1M | $12.1M | $9.0M | $6.7M |
| Continuing Ops | $86.0M | $95.7M | $5.9M | $74.8M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $86.0M | $95.7M | $5.9M | $74.8M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $86.0M | $95.7M | $5.9M | $74.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $690.4M | $709.4M | $724.2M | $789.5M |
| Cash & Equivalents | $13.1M | $13.3M | $16.7M | $13.7M |
| Accounts Receivable | $215.2M | $192.7M | $193.8M | $222.9M |
| Inventory | $423.1M | $441.6M | $441.3M | $461.2M |
| Prepaid Expenses | $39.1M | $61.7M | $72.4M | $91.7M |
| Other Current Assets | $0 | $0 | $0 | $0 |
| Long-Term Assets | $1.00B | $1.05B | $973.4M | $1.01B |
| PP&E (Net) | $448.8M | $514.7M | $510.8M | $535.5M |
| Intangibles | — | — | $109.3M | $105.9M |
| Goodwill | $319.5M | $320.9M | $263.7M | $280.7M |
| Operating Leases | $64.2M | $57.6M | $64.4M | $62.0M |
| Other LT Assets | $169.0M | $160.1M | $25.1M | $29.3M |
| Total Assets | $1.69B | $1.76B | $1.70B | $1.80B |
| Current Liabilities | $239.0M | $255.0M | $226.7M | $253.6M |
| Accounts Payable | $107.9M | $125.7M | $105.9M | $148.6M |
| Current Debt | $21.1M | $38.6M | $34.3M | $22.4M |
| Current Leases | $8.4M | $6.9M | $7.2M | $7.0M |
| Taxes Payable | $3.9M | $5.2M | $4.9M | $5.1M |
| Other Current Liab | $42.6M | $32.8M | $26.9M | $25.0M |
| Long-Term Liabilities | $653.0M | $622.7M | $602.0M | $605.9M |
| Long-Term Debt | $410.9M | $387.6M | $407.7M | $436.3M |
| LT Operating Leases | $59.1M | $53.8M | $62.6M | $60.6M |
| Other LT Liab | $39.2M | $28.2M | $-69.0M | $-112.6M |
| Total Liabilities | $892.0M | $877.7M | $828.8M | $859.5M |
| Shareholders' Equity | $800.0M | $885.1M | $868.9M | $943.3M |
| Retained Earnings | $769.4M | $854.3M | $849.1M | $912.4M |
| AOCI | $-41.9M | $-46.9M | $-61.0M | $-50.6M |
| Treasury Stock | $220.9M | $237.7M | $261.9M | $277.5M |
| Total L&E | $1.69B | $1.76B | $1.70B | $1.80B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $86.0M | $95.7M | $5.9M | $74.8M |
| Non-Cash Adjustments | $-75.0M | $24.7M | $106.8M | $-44.1M |
| Working Capital Changes | $105.0M | $24.0M | $-24.9M | $72.5M |
| Cash from Operations | $116.0M | $144.4M | $87.8M | $103.2M |
| Capital Expenditures | $77.6M | $110.5M | $68.6M | — |
| Cash from Investing | $-79.7M | $-119.2M | $-79.6M | $-98.1M |
| Share Buybacks | $0 | — | — | $7.8M |
| Dividends Paid | $10.2M | $10.6M | $11.1M | $11.5M |
| Cash from Financing | $-35.6M | $-24.9M | $-4.2M | $-9.8M |
| FX Effect | $-2.0M | $-149.0K | $-607.0K | $1.7M |
| Net Change in Cash | $-1.4M | $193.0K | $3.4M | $-3.0M |
| Beginning Cash | $14.5M | $13.1M | $13.3M | $16.7M |
| Ending Cash | $13.1M | $13.3M | $16.7M | $13.7M |
The company's revenue is driven by four primary segments: Aerospace (high-performance composites for aircraft structures), Automotive (lightweighting solutions and battery components), Electronics (substrates and thermal management materials), and Industrial/Coatings (protective coatings and specialty alloys).
1. Cyclical downturns in the aerospace and automotive sectors could lead to order cancellations and pricing pressure. 2. Escalating raw material costs for aluminum, copper, and rare earth elements impacting gross margins. 3. Potential supply chain disruptions affecting the availability of critical inputs for composite production.
1. Proprietary manufacturing capabilities for complex composite geometries that competitors struggle to replicate. 2. Deep, long-standing customer relationships within cyclical aerospace and defense supply chains providing revenue stability. 3. A diversified global footprint reducing reliance on any single geographic market or end-use industry.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.