Segment Reporting

9 Months Ended

Sep. 26, 2025

The Company has the following reportable segments: Performance Materials, Electronic Materials, Precision Optics, and Other. The Company’s 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 CODM, in determining how to allocate the Company’s 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) for the third quarter and first nine months of 2025 and 2024:


		Third quarter ended September 26, 2025
		Performance Materials		Electronic Materials		Precision Optics		Other		Consolidated
Net sales (1)		$	170,787	$	246,837	$	27,184	$	—	$	444,808

Less:
	Cost of sales	125,909		213,746		18,892		138		358,685
	Selling, general and administrative expense	14,228		10,731		4,896		8,401		38,256
	Other segment items (2)	4,018		5,878		2,442		(125)		12,213
Plus:
	Segment depreciation, depletion and amortization	10,279		4,443		2,277		505		17,504
Segment EBITDA		$	36,911	$	20,925	$	3,231	$	(7,909)	$	53,158
	Income tax expense									2,698
	Interest expense - net									7,544
	Depreciation, depletion and amortization									17,504
Net Income										$	25,412


		Third quarter ended September 27, 2024
		Performance Materials		Electronic Materials		Precision Optics		Other		Consolidated
Net sales (1)		$	177,376	$	236,906	$	22,433	$	—	$	436,715

Less:
	Cost of sales	125,587		213,503		16,602		85		355,777
	Selling, general and administrative expense	14,046		9,728		4,941		6,294		35,009
	Other segment items (2)	3,655		5,893		3,824		656		14,028
Plus:
	Segment depreciation, depletion and amortization	10,714		4,527		2,895		457		18,593
Segment EBITDA		$	44,802	$	12,309	$	(39)	$	(6,578)	$	50,494
	Income tax expense									768
	Interest expense - net									8,839
	Depreciation, depletion and amortization									18,593
Net Income										$	22,294


		First nine months ended September 26, 2025
		Performance Materials		Electronic Materials		Precision Optics		Other		Consolidated
Net sales (1)		$	527,552	$	696,059	$	73,185	$	—	$	1,296,796

Less:
	Cost of sales	385,435		611,969		54,211		221		1,051,836
	Selling, general and administrative expense	42,451		30,475		13,598		22,216		108,740
	Other segment items (2)	10,889		16,982		8,720		(1,272)		35,319
Plus:
	Segment depreciation, depletion and amortization	29,901		12,971		7,192		1,487		51,551
Segment EBITDA		$	118,678	$	49,604	$	3,848	$	(19,678)	$	152,452
	Income tax expense									9,960
	Interest expense - net									22,691
	Depreciation, depletion and amortization									51,551
Net Income										$	68,250


		First nine months ended September 27, 2024
		Performance Materials		Electronic Materials		Precision Optics		Other		Consolidated
Net sales (1)		$	533,534	$	641,564	$	72,770	$	—	$	1,247,868

Less:
	Cost of sales	392,935		568,010		53,810		104		1,014,859
	Selling, general and administrative expense	41,344		29,443		15,460		18,207		104,454
	Other segment items (2)	10,938		17,634		10,825		1,663		41,060
Plus:
	Segment depreciation, depletion and amortization	27,576		13,641		8,622		1,452		51,291
Segment EBITDA		$	115,893	$	40,118	$	1,297	$	(18,522)	$	138,786
	Income tax expense									6,836
	Interest expense - net									25,920
	Depreciation, depletion and amortization									51,291
Net Income										$	54,739

(1) Excludes inter-segment sales of $1.0 million and $1.6 million for the third quarter of 2025 and 2024, respectively, and $5.6 million and $4.8 million for the first nine months of 2025 and 2024, respectively, for Electronic Materials. There were no material inter-segment sales for Performance Materials or Precision Optics in 2025 or 2024. Inter-segment sales are eliminated in consolidation.

(2) Other segment items for each reportable segment include:

•Research and development expense

•Restructuring expense

•Other operating expense - primarily comprised of metal consignment fees, intangible amortization and foreign currency (gains)/losses as further detailed in Note F

•Non-operating expenses primarily related to pension costs

The following table disaggregates revenue for each segment by end market for the third quarter and first nine months of 2025 and 2024:


(Thousands)	Performance Materials		Electronic Materials		Precision Optics		Other		Total
Third Quarter 2025
End Market
Semiconductor	$	2,005	$	205,821	$	1,120	$	—	$	208,946
Industrial	31,141		9,020		6,656		—		46,817
Aerospace and defense	40,326		2,357		8,298		—		50,981
Consumer electronics	48,206		416		4,027		—		52,649
Automotive	15,206		669		1,628		—		17,503
Energy	8,448		19,619		—		—		28,067
Life sciences	2,465		6,497		5,097		—		14,059
Other	22,990		2,438		358		—		25,786
Total	$	170,787	$	246,837	$	27,184	$	—	$	444,808

Third Quarter 2024
End Market
Semiconductor	$	2,097	$	198,790	$	798	$	—	$	201,685
Industrial	33,494		7,352		6,254		—		47,100
Aerospace and defense	44,940		975		5,126		—		51,041
Consumer electronics	49,131		172		4,006		—		53,309
Automotive	18,123		1,724		1,780		—		21,627
Energy	12,819		20,810		—		—		33,629
Life sciences	2,602		4,780		4,264		—		11,646
Other	14,170		2,303		205		—		16,678
Total	$	177,376	$	236,906	$	22,433	$	—	$	436,715


(Thousands)	Performance Materials		Electronic Materials		Precision Optics		Other		Total
First Nine Months 2025
End Market
Semiconductor	$	7,390	$	579,064	$	2,690	$	—	$	589,144
Industrial	93,424		27,779		18,678		—		139,881
Aerospace and defense	126,382		6,137		21,812		—		154,331
Consumer electronics	149,913		1,682		10,343		—		161,938
Automotive	48,243		3,211		4,774		—		56,228
Energy	37,388		53,002		—		—		90,390
Life sciences	7,323		18,886		14,042		—		40,251
Other	57,489		6,298		846		—		64,633
Total	$	527,552	$	696,059	$	73,185	$	—	$	1,296,796

First Nine Months 2024
End Market
Semiconductor	$	6,059	$	533,312	$	1,877	$	—	$	541,248
Industrial	91,765		25,466		19,399		—		136,630
Aerospace and defense	129,011		4,260		16,980		—		150,251
Consumer electronics	166,797		309		11,272		—		178,378
Automotive	54,190		5,367		5,459		—		65,016
Energy	30,191		53,480		—		—		83,671
Life sciences	8,166		13,071		17,289		—		38,526
Other	47,355		6,299		494		—		54,148
Total	$	533,534	$	641,564	$	72,770	$	—	$	1,247,868

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

MATERION Corp 10-Q