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Business Wire
2 hours ago
- Business
- Business Wire
Plumbing Manufacturers International's Annual Report Shows That Finding Common Ground is the Smartest Strategy
MCLEAN, Va.--(BUSINESS WIRE)--The 2025 Plumbing Manufacturers International Annual Report once again finds PMI and its members in the position of proactively finding sensible common ground as debates about the critical issues of the day swirl around them. 'Everything we do ultimately leads back to our vision of safe, responsible plumbing—always,' stated PMI CEO/Executive Director Kerry Stackpole. 'PMI always endeavors to find the common ground that balances the concerns of all stakeholders." This role as mediator is not new to PMI or its members. Over the years, the plumbing manufacturing Industry has learned that participating in the debate is more productive than fighting or fleeing it. The industry's responsibility to customers, business partners, and its companies is to stay relevant, trustworthy, and in the room where decisions happen. 'Everything we do ultimately leads back to our vision of safe, responsible plumbing—always,' stated PMI CEO/Executive Director Kerry Stackpole. 'PMI always endeavors to find the common ground that balances the concerns of all stakeholders, whether that's in relation to trade policy, water management, workplace issues, sustainability, or public health and safety. We have found that the best solutions, the ones that stand the test of time, have broad support.' PMI first began establishing this business posture when the debates leading up to the Energy Policy Act (EPAct) of 1994 and the establishment of the WaterSense program in 2006 were occurring. At these key moments in plumbing manufacturing history, PMI and its members realized that, by contributing to solutions rather than by being simply opposed to proposed actions, they would be valuable to the powers that be. By gaining a seat at the table while the EPAct and WaterSense were being developed, PMI and its members helped to establish harmonized federal water-efficiency standards and specifications and mitigated the adverse effects created by the patchwork of state regulations. Today, as those standards and specifications are called into question and our industry grapples with the inflationary effects of tariffs, PMI again finds itself at a crossroads—whether to oppose what is happening or to participate in the process of finding a sensible common ground. PMI chooses to be proactive and find common ground. This year's annual report again demonstrates the ability of PMI and its members to develop sensible and valuable solutions to many of the challenges facing our society, no matter what the government policies are. PMI members continue to build bridges to prosperity through free trade, to make water a sustainable resource, to foster productive and diverse workplaces, to extend innovation into all aspects of business operations, and to fulfill public health and safety responsibilities. By contributing scientific data and common sense to all discussions, the plumbing manufacturing industry has earned a reputation among federal and state policymakers, peer industry groups, and the media as a credible and trustworthy voice. The examples in this report bear this out. Read the 2025 PMI Annual Report: About Plumbing Manufacturers International Plumbing Manufacturers International (PMI) is the trade association of plumbing product manufacturers that produce more than 90% of the United States' plumbing products, represent more than 150 iconic brands, and develop safe, reliable and innovative water-efficient plumbing technologies. PMI members contribute 517,696 jobs and $116.7 billion in economic impact to America's economy, according to the Plumbing Manufacturing Industry Economic Impact Study. With a vision of safe, responsible plumbing – always, PMI advocates for plumbing product performance contributing to water efficiency and savings, sustainability, public health and safety, and consumer satisfaction through its Rethink Water initiative and other programs. PMI members manufacture water-efficient toilets, urinals, faucets, showerheads and other products at more than 70 locations across the country and market them online and in more than 26,000 home improvement stores, hardware stores and showrooms in all 50 states. For more information on PMI, contact the organization at 1750 Tysons Blvd., Ste. 1500, McLean, Va., 22102; tel.: 847-481-5500; fax: 847-481-5501.
Business Wire
5 hours ago
- Business
- Business Wire
Materion Corporation Reports Second-Quarter 2025 Financial Results
MAYFIELD HEIGHTS, Ohio--(BUSINESS WIRE)--Materion Corporation (NYSE: MTRN) today reported second-quarter 2025 financial results and affirmed full year outlook. Financial Summary Net sales were $431.7 million; value-added sales 1 were $269.0 million Net income of $25.1 million, or $1.21 per share, diluted, versus net income of $19.0 million, or $0.91 per share, in the prior year quarter; adjusted earnings of $1.37 per share versus $1.42 in the prior year quarter Operating profit of $36.8 million versus operating profit of $32.1 million in the prior year quarter; adjusted EBITDA 2 of $55.8 million, versus $57.8 million in the prior year quarter Business Highlights Delivered second-quarter record adjusted EBITDA margin of 20.8% Generated ~$36 million free cash flow 3 in the quarter Repurchased 100,000 shares during the quarter at an average of ~$78/share Completed acquisition to expand semiconductor footprint and capabilities in Asia 'Our business performed very well in the quarter, delivering record margins and strong cash flow, despite the anticipated slowdown in demand from our customers in China,' said Jugal Vijayvargiya, President & CEO of Materion. 'These results are a testament to the outstanding work our teams have done to improve the cost profile and operational performance of our company.' 'Looking ahead, we are encouraged by positive signs we are seeing in several of our end markets. As order rates start to improve and we continue to win new business, we feel confident in affirming our full year guide, despite continued uncertainty surrounding the tariff environment.' SECOND-QUARTER 2025 RESULTS Net sales for the quarter were $431.7 million, compared to $425.9 million in the prior year period. Value-added sales were $269.0 million for the quarter, down 2% organic 4 from the prior year period due to lower PMI shipments and sales into China. This decrease was partially offset by strength in aerospace & defense, energy and non-China semiconductor. Operating profit for the quarter was $36.8 million and net income was $25.1 million, or $1.21 per diluted share, compared to operating profit of $32.1 million and net income of $19.0 million, or $0.91 per share, in the prior year period. Excluding special items 5, adjusted EBITDA was $55.8 million, or 20.8% of value-added sales, a second-quarter record, compared to $57.8 million or 20.7% of value-added sales in the prior year period. This decrease was driven by lower volume, partially offset by continued strong operational performance and structural cost improvements. Adjusted net income was $28.5 million excluding acquisition amortization, or $1.37 per diluted share, compared to $1.42 per share in the prior year period. OUTLOOK The business performed well in the first half of the year, driving strong results in a volatile and uncertain macroeconomic environment. As we look to the second half, we remain focused on delivering to our customers, driving above market growth and capturing new business opportunities in several key end markets. With improving market dynamics, we expect to deliver a strong second half. With that, we are affirming our initial guide of $5.30 to $5.70 adjusted earnings per share for the full year. ADJUSTED EARNINGS GUIDANCE It is not possible for the Company to identify the amount or significance of future adjustments associated with potential insurance and litigation claims, legacy environmental costs, acquisition and integration costs, certain income tax items, or other non-routine costs that the Company adjusts in the presentation of adjusted earnings guidance. These items are dependent on future events that are not reasonably estimable at this time. Accordingly, the Company is unable to reconcile without unreasonable effort the forecasted range of adjusted earnings guidance for the full year to a comparable GAAP range. However, items excluded from the Company's adjusted earnings guidance include the historical adjustments noted in Attachments 4 through 9 to this press release. CONFERENCE CALL Materion Corporation will host an investor conference call with analysts at 10:00 a.m. Eastern Time, July 30, 2025. The conference call will be available via webcast through the Company's website at By phone, please dial (888) 506-0062. Calls outside the U.S. can dial (973) 528-0011; please reference participant access code of 928518. A replay of the call will be available until August 13, 2025 by dialing (877) 481-4010 or (919) 882-2331 if international; please reference replay ID number 51694. The call will also be archived on the Company's website. FOOTNOTES 1 Value-added sales deducts the impact of pass-through metals from net sales 2 EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization 3 See reconciliation of operating cash flow to free cash flow in Attachment 9 4 Excludes value-added sales from the divested Albuquerque, New Mexico large area targets business sold in 2024 5 Details of the special items can be found in Attachments 4 through 9 ABOUT MATERION Materion Corporation is a global leader in advanced materials solutions for high-performance industries including semiconductor, industrial, aerospace & defense, energy and automotive. With nearly 100 years of expertise in specialty engineered alloy systems, inorganic chemicals and powders, precious and non-precious metals, beryllium and beryllium composites, and precision filters and optical coatings, Materion partners with customers to enable breakthrough solutions that move the world forward. Headquartered in Mayfield Heights, Ohio, the Company employs more than 3,000 talented people worldwide, serving customers in more than 60 countries. FORWARD-LOOKING STATEMENTS Portions of the narrative set forth in this document that are not statements of historical or current facts are forward-looking statements. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors. These factors include, in addition to those mentioned elsewhere herein: the global economy, including inflationary pressures, potential future recessionary conditions and the impact of tariffs and trade agreements; the impact of any U.S. Federal Government shutdowns or sequestrations; the condition of the markets which we serve, whether defined geographically or by segment; changes in product mix and the financial condition of customers; our success in developing and introducing new products and new product ramp-up rates; our success in passing through the costs of raw materials to customers or otherwise mitigating fluctuating prices for those materials, including the impact of fluctuating prices on inventory values; our success in identifying acquisition candidates and in acquiring and integrating such businesses; the impact of the results of acquisitions on our ability to fully achieve the strategic and financial objectives related to these acquisitions; our success in implementing our strategic plans and the timely and successful start-up and completion of any capital projects; other financial and economic factors, including the cost and availability of raw materials (both base and precious metals), physical inventory valuations, metal consignment fees, tax rates, exchange rates, interest rates, pension costs and required cash contributions and other employee benefit costs, energy costs, regulatory compliance costs, the cost and availability of insurance, credit availability, and the impact of the Company's stock price on the cost of incentive compensation plans; the uncertainties related to the impact of war, terrorist activities, and acts of God; changes in government regulatory requirements and the enactment of new legislation that impacts our obligations and operations, including changes in tax regulations or guidance promulgated pursuant to the new legislation implemented in the One Big Beautiful Bill Act; the conclusion of pending litigation matters in accordance with our expectation that there will be no material adverse effects; the disruptions in operations from, and other effects of, catastrophic and other extraordinary events including outbreaks of infectious diseases and the conflict between Russia and Ukraine; realization of expected financial benefits expected from the Inflation Reduction Act of 2022; and the risk factors set forth in Part 1, Item 1A of the Company's 2024 Annual Report on Form 10-K. Attachment 2 Materion Corporation and Subsidiaries Consolidated Balance Sheets (Unaudited) (Thousands) June 27, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 12,591 $ 16,713 Accounts receivable, net 198,377 193,793 Inventories, net 444,637 441,299 Prepaid and other current assets 79,508 72,419 Total current assets 735,113 724,224 Deferred income taxes 3,055 2,964 Property, plant, and equipment 1,357,772 1,315,586 Less allowances for depreciation, depletion, and amortization (825,175 ) (804,781 ) Property, plant, and equipment—net 532,597 510,805 Operating lease, right-of-use assets 75,363 64,449 Intangible assets, net 107,627 109,312 Other assets 21,757 22,140 Goodwill 265,695 263,738 Total Assets $ 1,741,207 $ 1,697,632 Liabilities and Shareholders' Equity Current liabilities Short-term debt $ 19,880 $ 34,274 Accounts payable 132,338 105,901 Salaries and wages 15,890 20,939 Other liabilities and accrued items 43,658 47,523 Income taxes 3,236 4,906 Unearned revenue 16,899 13,191 Total current liabilities 231,901 226,734 Other long-term liabilities 12,541 12,013 Operating lease liabilities 72,165 62,626 Finance lease liabilities 13,612 12,404 Retirement and post-employment benefits 27,185 26,411 Unearned income 61,642 75,769 Long-term income taxes 2,449 1,818 Deferred income taxes 3,370 3,242 Long-term debt 405,697 407,734 Shareholders' equity 910,645 868,881 Total Liabilities and Shareholders' Equity $ 1,741,207 $ 1,697,632 Expand Attachment 3 Materion Corporation and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) Six Months Ended (Thousands) June 28, 2024 Cash flows from operating activities: Net income $ 42,838 $ 32,445 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization 34,047 32,698 Amortization of deferred financing costs in interest expense 1,412 857 Stock-based compensation expense (non-cash) 5,437 5,334 Deferred income tax expense (benefit) (25 ) 926 Changes in assets and liabilities: Accounts receivable (949 ) 5,274 Inventory 94 (24,312 ) Prepaid and other current assets (3,029 ) (12,494 ) Accounts payable and accrued expenses 4,193 (20,863 ) Unearned revenue (8,525 ) (10,340 ) Interest and taxes payable (1,230 ) (3,906 ) Other-net (8,821 ) 858 Net cash provided by operating activities 65,442 6,477 Cash flows from investing activities: Payments for purchase of property, plant, and equipment (25,003 ) (38,412 ) Payments for mine development (10,175 ) (10,375 ) Proceeds from sale of property, plant, and equipment 266 527 Net cash used in investing activities (34,912 ) (48,260 ) Cash flows from financing activities: Proceeds from borrowings under credit facilities, net (2,219 ) 73,649 Repayment of long-term debt (15,111 ) (15,172 ) Principal payments under finance lease obligations (306 ) (382 ) Cash dividends paid (5,705 ) (5,493 ) Deferred financing costs (2,856 ) — Repurchase of common stock (7,843 ) — Payments of withholding taxes for stock-based compensation awards (2,337 ) (6,402 ) Net cash provided by/(used in) financing activities (36,377 ) 46,200 Effects of exchange rate changes 1,725 (613 ) Net change in cash and cash equivalents (4,122 ) 3,804 Cash and cash equivalents at beginning of period 16,713 13,294 Cash and cash equivalents at end of period $ 12,591 $ 17,098 Expand Attachment 4 Materion Corporation and Subsidiaries Reconciliation of Non-GAAP Measure - Value-added Sales, Operating Profit, and EBITDA (Unaudited) Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net Sales Performance Materials $ 182.8 $ 187.5 $ 356.8 $ 356.2 Electronic Materials 224.4 212.7 449.2 404.7 Precision Optics 24.5 25.7 46.0 50.3 Other — — — — Total $ 431.7 $ 425.9 $ 852.0 $ 811.2 Less: Pass-through Metal Cost Performance Materials $ 14.3 $ 14.4 $ 28.3 $ 27.5 Electronic Materials 148.3 131.6 295.3 245.9 Precision Optics 0.1 0.1 0.1 0.1 Other — — — — Total $ 162.7 $ 146.1 $ 323.7 $ 273.5 Value-added Sales (non-GAAP) Performance Materials $ 168.5 $ 173.1 $ 328.5 $ 328.7 Electronic Materials 76.1 81.1 153.9 158.8 Precision Optics 24.4 25.6 45.9 50.2 Other — — — — Total $ 269.0 $ 279.8 $ 528.3 $ 537.7 Gross Margin Performance Materials (1) $ 48.9 $ 48.7 $ 97.1 $ 88.8 Electronic Materials (1) 27.2 25.2 51.0 50.2 Precision Optics (1) 6.5 7.0 10.7 13.1 Other — — — — Total $ 82.6 $ 80.9 $ 158.8 $ 152.1 (1) See reconciliation of gross margin to adjusted gross margin in Attachment 8 Note: Quarterly information presented within this document and previously disclosed quarterly information may not equal the total computed for the year due to rounding Expand Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Operating Profit Performance Materials $ 31.0 $ 31.9 $ 62.3 $ 54.5 Electronic Materials 13.3 8.9 20.1 18.7 Precision Optics (0.6 ) (1.4 ) (4.7 ) (4.7 ) Other (6.9 ) (7.3 ) (13.7 ) (14.2 ) Total $ 36.8 $ 32.1 $ 64.0 $ 54.3 Non-Operating (Income)/Expense Performance Materials $ 0.1 $ 0.2 $ 0.1 $ 0.3 Electronic Materials (0.1 ) — (0.1 ) — Precision Optics (0.1 ) (0.2 ) (0.4 ) (0.3 ) Other (0.5 ) (0.6 ) (0.9 ) (1.3 ) Total $ (0.6 ) $ (0.6 ) $ (1.3 ) $ (1.3 ) Depreciation, Depletion, and Amortization Performance Materials $ 10.2 $ 8.7 $ 19.6 $ 16.9 Electronic Materials 4.2 4.5 8.5 9.1 Precision Optics 2.6 2.8 4.9 5.7 Other 0.5 0.5 1.0 1.0 Total $ 17.5 $ 16.5 $ 34.0 $ 32.7 Segment EBITDA Performance Materials $ 41.1 $ 40.4 $ 81.8 $ 71.1 Electronic Materials 17.6 13.4 28.7 27.8 Precision Optics 2.1 1.6 0.6 1.3 Other (5.9 ) (6.2 ) (11.8 ) (11.9 ) Total $ 54.9 $ 49.2 $ 99.3 $ 88.3 Special Items (2) Performance Materials $ 0.4 $ 2.7 $ 0.6 $ 7.7 Electronic Materials 0.2 3.7 2.4 3.8 Precision Optics 0.1 0.5 1.5 1.2 Other 0.2 1.7 0.7 2.0 Total $ 0.9 $ 8.6 $ 5.2 $ 14.7 Adjusted EBITDA Excluding Special Items Performance Materials $ 41.5 $ 43.1 $ 82.4 $ 78.8 Electronic Materials 17.8 17.1 31.1 31.6 Precision Optics 2.2 2.1 2.1 2.5 Other (5.7 ) (4.5 ) (11.1 ) (9.9 ) Total $ 55.8 $ 57.8 $ 104.5 $ 103.0 Expand The cost of gold, silver, platinum, palladium, copper, ruthenium, iridium, rhodium, rhenium, and osmium is passed through to customers and, therefore, the trends and comparisons of net sales are affected by movements in the market price of these metals. Internally, management also reviews net sales on a value-added basis. Value-added sales is a non-GAAP financial measure that deducts the value of the pass-through metals sold from net sales. Value-added sales allows management to assess the impact of differences in net sales between periods or segments and analyze the resulting margins and profitability without the distortion of the movements in pass-through market metal prices. The dollar amount of gross margin and operating profit is not affected by the value-added sales calculation. The Company sells other metals and materials that are not considered direct pass throughs, and these costs are not deducted from net sales to calculate value-added sales. The Company's pricing policy is to pass the cost of these metals on to customers in order to mitigate the impact of price volatility on the Company's results from operations. Value-added information is being presented since changes in metal prices may not directly impact profitability. It is the Company's intent to allow users of the financial statements to review sales with and without the impact of the pass-through metals. Expand Attachment 5 Materion Corporation and Subsidiaries (Unaudited) Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net sales $ 431.7 $ 425.9 $ 852.0 $ 811.2 Pass-through metal cost 162.7 146.1 323.7 273.5 Value-added sales $ 269.0 $ 279.8 $ 528.3 $ 537.7 Net income $ 25.1 $ 19.0 $ 42.8 $ 32.4 Income tax expense 4.0 4.9 7.3 6.1 Interest expense - net 8.3 8.8 15.2 17.1 Depreciation, depletion and amortization 17.5 16.5 34.0 32.7 Consolidated EBITDA $ 54.9 $ 49.2 $ 99.3 $ 88.3 Net Income as a % of Net sales 5.8 % 4.5 % 5.0 % 4.0 % Net Income as a % of Value-added sales 9.3 % 6.8 % 8.1 % 6.0 % EBITDA as a % of Net sales 12.7 % 11.6 % 11.7 % 10.9 % EBITDA as a % of Value-added sales 20.4 % 17.6 % 18.8 % 16.4 % Special items Restructuring and cost reduction $ 0.5 $ 6.7 $ 2.6 $ 9.1 Additional start up resources and scrap — 1.2 — 4.9 Merger, acquisition and divestiture related costs 0.2 0.7 2.3 0.7 Business transformation costs 0.2 — 0.3 — Total special items 0.9 8.6 5.2 14.7 Adjusted EBITDA $ 55.8 $ 57.8 $ 104.5 $ 103.0 Adjusted EBITDA as a % of Net sales 12.9 % 13.6 % 12.3 % 12.7 % Adjusted EBITDA as a % of Value-added sales 20.8 % 20.7 % 19.8 % 19.2 % In addition to presenting financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), this earnings release contains financial measures, including operating profit, segment operating profit, earnings before interest, taxes, depreciation, depletion and amortization (EBITDA), net income, and earnings per share, on a non-GAAP basis. As detailed in the above reconciliation and Attachment 6, we have adjusted the results for certain special items, including the following: Restructuring and cost reduction – Costs include restructuring charges, costs associated with temporarily idled facilities as a result of decreased demand and costs associated with disposal of assets associated with obsolete products. Additional start up resources and scrap – Represents incremental resource, consulting and specialists costs incurred related to the ramp of the precision clad strip facility and scrap related to product qualifications. Merger, acquisition and divestiture related costs – Includes due diligence costs associated with potential merger, acquisition and divestitures as well as loss on asset disposals. Business transformation costs – Represents project management and implementation expenses related to the Company's automation and transformation initiatives. Internally, management reviews the results of operations without the impact of these costs in order to assess the profitability from ongoing activities. We are providing this information because we believe it will assist investors in analyzing our financial results and, when viewed in conjunction with the GAAP results, provide a more comprehensive understanding of the factors and trends affecting our operations. Expand Attachment 6 Second Quarter Ended Six Months Ended (Millions) June 27, 2025 Diluted EPS June 28, 2024 Diluted EPS June 27, 2025 Diluted EPS June 28, 2024 Diluted EPS Net income and EPS $ 25.1 $ 1.21 $ 19.0 $ 0.91 $ 42.8 $ 2.05 $ 32.4 $ 1.55 Special items Restructuring and cost reduction $ 0.5 $ 6.7 $ 2.6 $ 9.1 Additional start up resources and scrap — 1.2 — 4.9 Merger, acquisition and divestiture related costs 0.2 0.7 2.3 0.7 Business transformation costs 0.2 — 0.3 — Debt extinguishment costs (1) 0.5 — 0.5 — Provision for income taxes (2) (0.2 ) (0.3 ) (0.7 ) (2.2 ) Total special items 1.2 0.05 8.3 0.40 5.0 0.24 12.5 0.60 Adjusted net income and adjusted EPS $ 26.3 $ 1.26 $ 27.3 $ 1.31 $ 47.8 $ 2.29 $ 44.9 $ 2.15 Acquisition amortization (net of tax) 2.2 0.11 2.4 0.11 4.4 0.21 4.9 0.23 Adjusted net income and adjusted EPS excl. amortization $ 28.5 $ 1.37 $ 29.7 $ 1.42 $ 52.2 $ 2.50 $ 49.8 $ 2.38 (1) Debt extinguishment costs - Represents debt extinguishment costs incurred in connection with the amendment of the Company's Credit Agreement in June 2025. (2) Provision for income taxes includes the net tax impact on pre-tax adjustments (listed above), the impact of certain discrete tax items recorded during the respective periods as well as other adjustments to reflect the use of one overall effective tax rate on adjusted pre-tax income in interim periods. Expand Attachment 7 Reconciliation of Segment Net sales to Segment Value-added sales and Segment EBITDA to Adjusted Segment EBITDA (Unaudited) Performance Materials Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net sales $ 182.8 $ 187.5 $ 356.8 $ 356.2 Pass-through metal cost 14.3 14.4 28.3 27.5 Value-added sales $ 168.5 $ 173.1 $ 328.5 $ 328.7 EBITDA $ 41.1 $ 40.4 $ 81.8 $ 71.1 Restructuring and cost reduction 0.3 1.5 0.5 2.8 Business transformation costs 0.1 — 0.1 — Additional start up resources and scrap — 1.2 — 4.9 Adjusted EBITDA $ 41.5 $ 43.1 $ 82.4 $ 78.8 EBITDA as a % of Net sales 22.5 % 21.5 % 22.9 % 20.0 % EBITDA as a % of Value-added sales 24.4 % 23.3 % 24.9 % 21.6 % Adjusted EBITDA as a % of Net sales 22.7 % 23.0 % 23.1 % 22.1 % Adjusted EBITDA as a % of Value-added sales 24.6 % 24.9 % 25.1 % 24.0 % Electronic Materials Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net sales $ 224.4 $ 212.7 $ 449.2 $ 404.7 Pass-through metal cost 148.3 131.6 295.3 245.9 Value-added sales $ 76.1 $ 81.1 $ 153.9 $ 158.8 EBITDA $ 17.6 $ 13.4 $ 28.7 $ 27.8 Restructuring and cost reduction 0.1 3.7 0.6 3.8 Merger, acquisition and divestiture related costs 0.1 — 1.8 — Adjusted EBITDA $ 17.8 $ 17.1 $ 31.1 $ 31.6 EBITDA as a % of Net sales 7.8 % 6.3 % 6.4 % 6.9 % EBITDA as a % of Value-added sales 23.1 % 16.5 % 18.6 % 17.5 % Adjusted EBITDA as a % of Net sales 7.9 % 8.0 % 6.9 % 7.8 % Adjusted EBITDA as a % of Value-added sales 23.4 % 21.1 % 20.2 % 19.9 % Precision Optics Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net sales $ 24.5 $ 25.7 $ 46.0 $ 50.3 Pass-through metal cost 0.1 0.1 0.1 0.1 Value-added sales $ 24.4 $ 25.6 $ 45.9 $ 50.2 EBITDA $ 2.1 $ 1.6 $ 0.6 $ 1.3 Restructuring and cost reduction 0.1 0.5 1.5 1.2 Adjusted EBITDA $ 2.2 $ 2.1 $ 2.1 $ 2.5 EBITDA as a % of Net sales 8.6 % 6.2 % 1.3 % 2.6 % EBITDA as a % of Value-added sales 8.6 % 6.3 % 1.3 % 2.6 % Adjusted EBITDA as a % of Net sales 9.0 % 8.2 % 4.6 % 5.0 % Adjusted EBITDA as a % of Value-added sales 9.0 % 8.2 % 4.6 % 5.0 % Other Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 EBITDA $ (5.9 ) $ (6.2 ) $ (11.8 ) $ (11.9 ) Restructuring and cost reduction — 1.0 — 1.3 Business transformation costs 0.1 — 0.2 — Merger, acquisition and divestiture related costs 0.1 0.7 0.5 0.7 Adjusted EBITDA $ (5.7 ) $ (4.5 ) $ (11.1 ) $ (9.9 ) Expand Attachment 8 Materion Corporation and Subsidiaries Reconciliation of Non-GAAP Measure - Gross Margin to Adjusted Gross Margin (Unaudited) Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Gross Margin Performance Materials $ 48.9 $ 48.7 $ 97.1 $ 88.8 Electronic Materials 27.2 25.2 51.0 50.2 Precision Optics 6.5 7.0 10.7 13.1 Other — — — — Total $ 82.6 $ 80.9 $ 158.8 $ 152.1 Special Items (1) Performance Materials $ — $ 2.0 $ — $ 6.2 Electronic Materials — 2.0 — 2.0 Precision Optics — 0.1 — 0.2 Other — — — — Total $ — $ 4.1 $ — $ 8.4 Adjusted Gross Margin Performance Materials $ 48.9 $ 50.7 $ 97.1 $ 95.0 Electronic Materials 27.2 27.2 51.0 52.2 Precision Optics 6.5 7.1 10.7 13.3 Other — — — — Total $ 82.6 $ 85.0 $ 158.8 $ 160.5 (1) Special items impacting gross margin represent restructuring and cost reduction and additional start up resources and scrap in 2024. Expand Attachment 9 Materion Corporation and Subsidiaries Reconciliation of Non-GAAP Measure - Operating Cash Flow to Free Cash Flow (Unaudited) Second Quarter Ended Six Months Ended (Millions) June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net cash provided by (used in) operating activities $ 49.9 $ 20.3 $ 65.4 $ 6.5 Payments for purchase of property, plant and equipment (12.7 ) (17.1 ) (25.0 ) (38.4 ) Payments for mine development (1.5 ) (5.1 ) (10.2 ) (10.4 ) Free cash flow (FCF) $ 35.7 $ (1.9 ) $ 30.2 $ (42.3 ) Free cash flow (FCF) represents operating cash flow adjusted for capital expenditures and mine development costs. Management believes FCF is an important performance measure of the business. FCF is not a measure calculated in accordance with GAAP, and it should not be considered a substitute for operating cash flow or any other measure of financial performance presented in accordance with GAAP. Expand
Business Times
6 hours ago
- Business
- Business Times
Eurozone GDP growth holds up better than feared in Q2
[FRANKFURT] Eurozone economic growth held up better than feared last quarter, suggesting that businesses are adapting to trade uncertainty, potentially reducing the need for more European Central Bank interest rate cuts to stimulate the bloc. GDP in the 20 nations sharing the euro currency expanded by 0.1 per cent on the quarter against expectations for an unchanged reading, as Spain, France and Ireland continued to perform above expectations, offsetting weakness in Germany and Italy, data from Eurostat indicated on Wednesday (Jul 30). Compared to the second quarter a year earlier, the bloc's economy expanded by 1.4 per cent, ahead of expectations for 1.2 per cent. While the data still indicate a big slowdown compared with a 0.6 per cent expansion in the first quarter, that figure was skewed by US firms frontloading imports before new tariffs kicked in and did not reflect actual economic strength. When examined together, however, the first two quarters suggest resilience, supported by the most recent PMI reading, which showed that business activity accelerated faster than forecast, supported by a solid improvement in services and the continued recovery in manufacturing. Spain continued to shine, expanding by 0.7 per cent on the quarter, while French growth at 0.3 per cent was also above average. Meanwhile Italy and Germany both shrunk by 0.1 per cent, Eurostat figures showed. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The US has now also struck a trade deal with the European Union, further reducing uncertainty and brightening growth prospects, especially as trade deals with other major powers, including Japan and the UK, have also been agreed. Although these deals mean higher tariffs, which could ultimately reduce eurozone growth by 0.2 to 0.4 percentage points on an annual basis, according to economist estimates, such an impact has already been factored into most projections. Uncertainty far from over Moreover, Germany plans to sharply increase budget spending from next year to fund infrastructure and defence, a boost to growth that will offset much of the tariffs' impact, economists argue. This economic resilience is a key factor why financial investors think the ECB is close to done easing borrowing costs after halving its key rate to 2 per cent in the past 13 months. Markets see just a 50 per cent chance of another cut by December and a small chance that rates will actually start rising towards the end of 2026 as the economy gathers speed and price pressure starts rising again. Uncertainty is far from over, however. The EU has yet to sign its trade deal with the US and plenty of detail remains to be worked out, indicating that it could take months for businesses to gain the confidence to make investment decisions. China has also yet to strike a deal with the US, raising fears that Beijing will be forced to dump surplus goods on the rest of the world, depressing prices elsewhere. Such dumping could then lower eurozone inflation and force the ECB into cutting interest rates on fears that below-target inflation, its main worry in the pre-pandemic decade, is returning. REUTERS
Asharq Al-Awsat
10 hours ago
- Business
- Asharq Al-Awsat
Saudi Economic Council Reviews Progress in Vision 2030 Implementation
The Saudi Council of Economic and Development Affairs (CEDA) held a virtual meeting to evaluate the Kingdom's economic performance and monitor the progress of programs driving the country's ambitious Vision 2030 strategy. The meeting began with a presentation of the July 2025 Economic Report, submitted by the Ministry of Economy and Planning. The report provided a detailed overview of global economic developments, including key risks and challenges, as well as forecasts for Saudi Arabia's domestic economy through the second half of 2025 and into 2026. It highlighted continued growth in the Kingdom's economy for the fourth consecutive quarter, largely driven by robust performance in non-oil sectors. Notably, the Purchasing Managers' Index (PMI) rose to its highest level in three months, signaling strong business confidence and expansion. The council also reviewed the quarterly performance report on Vision 2030 realization programs and national strategies, presented by the Strategic Management Office. This assessment detailed the progress of implementation efforts, the degree to which strategic goals are being met, and the level of execution across various initiatives. It also evaluated the impact of national and sectoral strategies, spotlighted key achievements, and outlined ongoing efforts and future expectations. These findings underscore the Kingdom's continued progress toward the Vision's three core pillars: building a vibrant society, fostering a thriving economy, and nurturing an ambitious nation. In its broader oversight role, the council examined the first-quarter performance of public sector institutions, based on a report from the National Center for Performance Measurement (Adaa). The report highlighted improvements across key performance indicators, the result of concerted efforts to support and empower government entities in meeting their objectives. Additionally, the council reviewed a separate update from its Project Management Office, which tracked the implementation of decisions and recommendations issued during the second quarter. This included a detailed breakdown of outcomes, implementation statuses across relevant government agencies, and updated statistics on progress levels. The council also considered a wide range of additional topic, namely proposed organizational arrangements for the National Events Committee, the structural and operational framework of the Ministry of Economy and Planning, and a development strategy for the Asir region. Furthermore, members reviewed a report focused on streamlining and accelerating the process for launching capital projects, along with the executive summary of the quarterly GDP bulletin and national accounts. The meeting also included briefings on the monthly consumer and wholesale price indices.
Russia Today
a day ago
- Entertainment
- Russia Today
JLo backtracks on Moscow concert
American pop singer Jennifer Lopez has cancelled a planned concert in Moscow set for August, according to media reports. Lopez, also known as JLo, and her management reportedly reached an agreement to perform in the Russian capital roughly three months ago. A fee of at least $1 million was agreed, and a date was set, Mash Telegram channel reported on Tuesday. Discussions reportedly began after Russian promoters inquired about Lopez during her regional tour through Kazakhstan, Uzbekistan and Armenia in August. The parties signed a letter of intent, but the singer's team later backed out. While citing reputational risks associated with the Ukraine conflict as a reason for refusal, sources said Lopez herself is open to performing once the conflict is over. Evgeny Finkelstein of leading Russian concert agency PMI, who is believed to have led the negotiations, did not deny the reports when questioned but declined to comment further. Jennifer Lopez last performed in Moscow in August 2019 as part of her 'It's My Party' tour. Several Western artists have cancelled previously scheduled Russia appearances in the wake of the Ukraine conflict and ensuing cultural boycotts. Last year, Ye, formerly known as Kanye West, was reportedly offered a staggering $8 million to play a concert in Moscow but, despite agreeing to the sum, eventually turned down the proposal. He came to Moscow, however, on a private visit in June 2024. A handful of other Western public figures, have also visited Russia since 2022, including American actor Steven Seagal, and filmmaker Oliver Stone. In 2024, Jennifer Lopez appeared on the cover of her new studio album 'This Is Me… Now,' her first in ten years, wearing a jumpsuit designed by the Russian fashion label Yanina Couture.
