MTRN 10-K & 10-Q changes, risk factors and insider trading
MATERION Corp · NYSE · Metal Forgings & Stampings · CIK 1104657 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
Largest changes
As a company conducting business on a global basis with material operations throughout the United States, we are exposed, both directly and indirectly, to the effects of changes in U.S., state, local, and foreign tax laws. Taxes for financial reporting purposes and cash tax liabilities in the future may be adversely affected by changes in such tax laws. Such changes may put us at a competitive disadvantage compared to some of our major competitors, to the extent we are unable to pass the tax costs through to our customers.see in full comparisonSpecifically, the Inflation Reduction Act of 2022 may be subject to change by future presidential administrations, including the Trump administration. It is not possible at this time to determine whether such actions will be taken and the impact they may have on the Company.
Any of these risks could have an adverse effect on our international operations by reducing the demand for our products or reducing the prices at which we can sell our products, which could result in an adverse effect on our business, financial position, results of operations, or cash flows. For example, the Trump administration hassee in full comparisonproposedimposedtoandsignificantlycouldincreasefurther impose broad-based global tariffsonthatforeigncouldimportsadverselyintoimpactthetradeUnited States, particularly from Canada, Chinarelations andMexico.resultOtherin higher costs. The effects of these changes, including impacts on the price of raw materials, responsive actions from governments and the opportunity for competitors to establish a presence in markets where we participate, could also have significant impacts on our financial results. We cannot predict what further action may be taken with respect to tariffs or trade relations between the U.S. and other governments, and any further changes in U.S. or international trade policy could have an adverse impact on our business.
Additionally we, as well as our customers, are subject to laws regulating worker exposure to beryllium.see in full comparisonIn 2018, OHSA issued a final standard for workplace exposure to beryllium. Materion was a participant in the development of the standards, which fundamentally represent our current health and safety operating practices. Other government and standard-setting organizations are also reviewing beryllium-related worker safety rules and standards, and will likely make them more stringent.The development, proposal, or adoption of more stringent standards may affect buying decisions by the users of beryllium-containing products. If the standards are made more stringent and/or our customers or other downstream users decide to reduce their use of beryllium-containing products, our results of operations, liquidity, and financial condition could be materially adversely affected. The impact of this potential adverse effect would depend on the nature and extent of the changes to the standards, the cost and ability to meet the new standards, the extent of any reduction in customer use, and other factors. The magnitude of this potential adverse effect cannot be estimated.
Our business, financial condition, results of operations, and cash flows can be affected by a number of factors, including, but not limited to, those set forth below and elsewhere in this Form 10-K, any one of which could cause our actual results to vary materially from recent results or from our anticipated future results. Therefore, an investment in us involves some risks, including the risks described below. Although the risks are organized by headings, and each risk is discussed separately, many are interrelated.see in full comparisonYou should not interpret the disclosure of any risk factor to imply that the risk has not already materialized.The risks discussed below are not the only risks that we may experience. If any of the following risks occur, our business, results of operations, or financial condition could be negatively impacted.
Insee in full comparison2024,2025,19%20% of our value-added sales were to customers in the aerospace and defense end market. A portion of these customers operate under contracts with the U.S. Government, which are vulnerable to termination at any time, for convenience or default. Some of the reasons for cancellation include, but are not limited to, budgetary constraints or re-appropriation of government funds, timing of contract awards, violations of legal or regulatory requirements, and changes in political agenda. If cancellations were to occur, it would result in a reduction in our revenue. Furthermore, significant reductions to defense spending could occur over the next several years due to government spending cuts, which could have a significant adverse impact on us. For example, high-margin defense application delays and/or push-outs may adversely impact our results of operations, including quarterly earnings. Our business could also be adversely affected by prolonged government shutdowns.
Although the Company serves a diverse customer base, a portion of our sales is concentrated amongst a limited number of customers. If we lost one or more of these major customers, or if one or more major customers significantly decreased its orders for our products, our business, results of operations and financial condition could be materially and adversely impacted. In fiscal year 2025, no customers accounted for more than ten percent of our sales. In fiscal years 2024 and 2023, one Performance Material customer accounted for approximately ten percent of our net sales.see in full comparison
Full comparison: every changed paragraph (10)
Our business, financial condition, results of operations, and cash flows can be affected by a number of factors, including, but not limited to, those set forth below and elsewhere in this Form 10-K, any one of which could cause our actual results to vary materially from recent results or from our anticipated future results. Therefore, an investment in us involves some risks, including the risks described below. Although the risks are organized by headings, and each risk is discussed separately, many are interrelated. You should not interpret the disclosure of any risk factor to imply that the risk has not already materialized. The risks discussed below are not the only risks that we may experience. If any of the following risks occur, our business, results of operations, or financial condition could be negatively impacted.
A substantial number of our customers are in the semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and life sciences end markets. Each of these end markets is cyclical in nature, influenced by a combination of factors which could have a negative impact on our business, including, among other things, periods of economic growth or recession, inflation, tariffs, rising interest rates and the strength or weakness of the U.S. dollar, the strength of the semiconductor, automotive electronics, and oil and gas industries, the rate of construction of telecommunications infrastructure equipment, and government spending on defense.defense, and government shutdowns.
In 2024,2025, 19%20% of our value-added sales were to customers in the aerospace and defense end market. A portion of these customers operate under contracts with the U.S. Government, which are vulnerable to termination at any time, for convenience or default. Some of the reasons for cancellation include, but are not limited to, budgetary constraints or re-appropriation of government funds, timing of contract awards, violations of legal or regulatory requirements, and changes in political agenda. If cancellations were to occur, it would result in a reduction in our revenue. Furthermore, significant reductions to defense spending could occur over the next several years due to government spending cuts, which could have a significant adverse impact on us. For example, high-margin defense application delays and/or push-outs may adversely impact our results of operations, including quarterly earnings. Our business could also be adversely affected by prolonged government shutdowns.
Further, we maintain some precious metals and copper on a consigned inventory basis. The owners of the precious metals and copper charge a fee that fluctuates based on the market price of those metals and other factors. A significant increase in the market price or the consignment fee of precious metals and/or copper would increase our costs, negatively impacting our operating profit.costs.
In the conduct of our business, we collect, use, transmit, store, and report data on information systems owned by the Company or support or hosted by third parties, and interact with customers, vendors, and employees. Increased global information technology (IT) security threats andand, in some instances, more sophisticated and targeted computer crime pose a risk to the security of our systems and networks, as well as those of third parties who we rely on, and risk the confidentiality, availability, and integrity of our data and systems. We protect our sensitive, confidential, or proprietary information as well as personal data, our facilities, and IT systems, but we and third parties upon whom we rely to host or protect our data, facilities, and IT systems may be vulnerable to cybersecurity threats and future cybersecurity incidents. In the conduct of our business, we also are in the process of preparing for a Level 2 Cybersecurity Maturity Model Certification (CMMC), including by engaging an external third party to audit our information security standards against CMMC requirements. Despite our security measures, the IT systems and infrastructure of the Company and third parties who host or secure our data may be vulnerable to customer viruses, cyber-attacks, harmful malware or ransomware, denial-of-services attacks and other attacks, which may affect business continuity and threaten the availability, confidentiality and integrity of our systems and information. Cybersecurity incidents can also include employee or personnel failures, fraud, phishing or other social engineering attempts or other methods to cause confidential information, payments, account access or access credentials, or other data to be transmitted to an unintended recipient. Cybersecurity threat actors also may attempt to exploit vulnerabilities through in software including that is software commonly used by companies in cloud-based services and bundled software. Any such threat or incident could compromise our networks and those of third parties and the information stored there could be accessed, publicly disclosed, lost, or stolen. A cybersecurity incident and any attacks impacting our systems or data could interrupt or damage our operations or harm our reputation, resulting in a loss of sales, operating profits, and assets, including major disruptions to business operations, loss of intellectual property, release of confidential information, alteration or corruption of data or systems, costs related to remediation or the payment of ransom, and litigation including individual claims or consumer class actions, commercial litigation, administrative, and civil or criminal investigations or actions, regulatory intervention and sanctions or fines, investigation and remediation costs and possible prolonged negative publicity. The Company has taken steps to protect our computer systems and data; however, there is always a risk of successful intrusions or attacks, and any intrusions or attacks could pose a risk of undetected data loss or theft that could later be used to harm the Company.
As a company conducting business on a global basis with material operations throughout the United States, we are exposed, both directly and indirectly, to the effects of changes in U.S., state, local, and foreign tax laws. Taxes for financial reporting purposes and cash tax liabilities in the future may be adversely affected by changes in such tax laws. Such changes may put us at a competitive disadvantage compared to some of our major competitors, to the extent we are unable to pass the tax costs through to our customers. Specifically, the Inflation Reduction Act of 2022 may be subject to change by future presidential administrations, including the Trump administration. It is not possible at this time to determine whether such actions will be taken and the impact they may have on the Company.
Although the Company serves a diverse customer base, a portion of our sales is concentrated amongst a limited number of customers. If we lost one or more of these major customers, or if one or more major customers significantly decreased its orders for our products, our business, results of operations and financial condition could be materially and adversely impacted. In fiscal year 2025, no customers accounted for more than ten percent of our sales. In fiscal years 2024 and 2023, one Performance Material customer accounted for approximately ten percent of our net sales.
We sell to customers outside of the United States from our domestic and international operations. Revenue from international operations (principally Europe and Asia) accounted for approximately 64% in 2025, 57% in 2024 and 51% in 2023 and 2022,2023, respectively of Net sales. We anticipate that international shipments will account for a significant portion of our sales for the foreseeable future. There are a number of risks associated with international business activities, including:
Any of these risks could have an adverse effect on our international operations by reducing the demand for our products or reducing the prices at which we can sell our products, which could result in an adverse effect on our business, financial position, results of operations, or cash flows. For example, the Trump administration has proposedimposed toand significantlycould increasefurther impose broad-based global tariffs onthat foreigncould importsadversely intoimpact thetrade United States, particularly from Canada, Chinarelations and Mexico.result Otherin higher costs. The effects of these changes, including impacts on the price of raw materials, responsive actions from governments and the opportunity for competitors to establish a presence in markets where we participate, could also have significant impacts on our financial results. We cannot predict what further action may be taken with respect to tariffs or trade relations between the U.S. and other governments, and any further changes in U.S. or international trade policy could have an adverse impact on our business.
Additionally we, as well as our customers, are subject to laws regulating worker exposure to beryllium. In 2018, OHSA issued a final standard for workplace exposure to beryllium. Materion was a participant in the development of the standards, which fundamentally represent our current health and safety operating practices. Other government and standard-setting organizations are also reviewing beryllium-related worker safety rules and standards, and will likely make them more stringent. The development, proposal, or adoption of more stringent standards may affect buying decisions by the users of beryllium-containing products. If the standards are made more stringent and/or our customers or other downstream users decide to reduce their use of beryllium-containing products, our results of operations, liquidity, and financial condition could be materially adversely affected. The impact of this potential adverse effect would depend on the nature and extent of the changes to the standards, the cost and ability to meet the new standards, the extent of any reduction in customer use, and other factors. The magnitude of this potential adverse effect cannot be estimated.
Management's Discussion & Analysis (MD&A)
Largest changes
“Income tax expense for 2025 was $6.7 million of expense compared to $9.0 million of expense in 2024. The Company's effective tax rate for 2025 and 2024 was 8.2% and 60.5%, respectively. The effective tax rate for 2025 is lower than the statutory tax rate primarily due to percentage depletion, nontaxable credits and the foreign-derived intangible income deduction. The effective tax rate for 2024 was higher than the statutory tax rate primarily due to the impairment of non-deducible goodwill in the Precision Optics reporting unit. …”see in full comparison
“As discussed in Note A, the Company's annual goodwill impairment test indicated the carrying value of the Precision Optics reporting unit exceeded its estimated fair value as of the measurement date of October 1, 2024. As a result, the Company recognized a goodwill impairment charge in the fourth quarter of fiscal 2024 of $56.1 million which was recorded in "Goodwill Impairment" in the accompanying Consolidated Statements of Income in the Precision Optics segment.”see in full comparison
“Goodwill impairment was $56.1 million in 2024. There were no goodwill impairments recorded in 2023. The impairment charges were recorded in the Precision Optics reporting unit in the fourth quarter of 2024 as a result of the Company's annual goodwill impairment testing. Refer to Note A to the Consolidated Financial Statements for additional discussion.”see in full comparison
EBITDA for the Precision Optics segment was $7.7 million in 2025 compared to a loss of $73.3 million insee in full comparison2024 compared to income of $9.9 million in 2023.2024. Thedecreaseincrease in EBITDA was primarily driven by impairments recorded in 2024 for the Precision Optics reporting unitandin Malaysia of $73.2millionmillion.asEBITDAwellwasasalsodecreasedfavorably impacted by increased salesvolumes,volumespartiallyandoffsetoverallbybusinesstargeted cost control initiatives implemented in 2024. See Note A of the Consolidated Financial Statements for further discussion of the impairment charges recorded during 2024.performance.
“Net sales from the Performance Materials segment of $675.9 million in 2025 decreased 9% compared to 2024. The decrease in sales was due to lower sales volumes in the consumer electronics (34%) and aerospace and defense (9%) end markets. These decreases were partially offset by increased volumes in the energy (35%) end market, along with a $6.3 million year over year increase in the volume of raw material beryllium hydroxide. …”see in full comparison
Restructuring expense consists primarily of cost reduction actions taken in order to reduce our fixed cost structure. In 2025, we recorded a combined total of $3.2 million of restructuring charges in our Electronic Materials, Precision Optics, Performance Materials and Other segments. In 2024, we recorded a combined total of $6.8 million of restructuring chargessee in full comparisonacrossprimarilyallinsegmentsourcomparedPrecision Optics, Electronic Materials, Performance Materials and Other segments. Refer to$3.8 million in 2023. SeeNoteDEofto the Consolidated Financial Statements forfurther details of restructuring activities.details.
Full comparison: every changed paragraph (62)
Net sales of $1,786.6 million in 2025 increased $101.9 million from $1,684.7 million in 2024 increased $19.5 million from $1,665.2 million in 2023.2024. An increase in net sales in the Electronic Materials and Precision Optics segments was partially offset by decreased net sales in the Performance Materials and Precision Optics segments.segment. The increase in the Electronic Materials segment was primarily due to higher precious metal pass throughpass-through costs, increasing net sales by approximately $79.5$208.2 million when compared to the prior year. Additionally, volume decreases in the energy (21%), industrial (11%) and automotive (16%) end markets wereyear, partially offset by a volumedecrease increasein precious metal sales of $35.3 million. The decrease in precious metal sales was primarily due to the impact of the divestiture of the target business in Albuquerque, New Mexico that occurred in the aerospacefourth andquarter defenseof (25%)2024, endwhich market.resulted in $23.1 million of lower sales in 2025 compared to 2024.
At the Company level, volume increased in the semiconductor (21%), telecom and data center (24%) and energy (12%) end markets. Additionally, sales of raw material beryllium hydroxide increased by $6.3 million compared to the prior year. The increase was partially offset by a volume decrease in the consumer electronics (30%) end market due to a quality issue with a large precision clad strip customer within Performance Materials segment, causing the Company to temporarily idle production facilities, which limited sales in the fourth quarter. The Company closely collaborated with our customer, implementing targeted modifications to our processes and procedures and enhancing quality control measures designed to reduce the risk of future occurrences. We resumed shipping product from our facilities in December 2025 and continue to ramp production.
Value-added sales is a non-GAAP financial measure that removes the impact of pass-through metal costs and allows for analysis without the distortion of the movement or volatility in metal prices and changes in mix due to customer-supplied material. Internally, we manage our business on this basis, and a reconciliation of net sales, the most directly comparable GAAP financial measure, to value-added sales is included herein. Value-added sales of $1,097.6$1,046.2 million in 20242025 decreased $29.5$51.4 million compared to $1,127.1$1,097.6 million in 2023.2024. VolumeAt decreasesthe Company level, volume increases in the industrialsemiconductor (16%7%), energytelecom and data center (23%14%) and automotiveenergy (19%) end markets werewas partially offset by ana increasevolume decrease in the aerospaceconsumer and defenseelectronics (28%33%) end market. Additionally, the decrease in value-added sales was impacted by a $7.0 million decrease in sales in 2025 compared to 2024 due to the divestiture of the target business in Albuquerque, New Mexico in the fourth quarter of 2024.
Gross margin was $308.6 million in 2025, representing a 5% decrease from $326.0 million in 2024, a 7% decrease from $349.0 million in 2023.2024. Gross margin expressed as a percentage of net sales was 17% in 2025 and 19% in 2024 and 21% in 2023.2024. Gross margin expressed as a percentage of value-added sales was 29% in 2025 and 30% in 2024 and 31% in 2023.2024. Gross margin decreased from the prior year primarily duerelated to impactlower of lowersales volumes and related$25.7 unabsorbedmillion costsof charges in the firstPerformance halfMaterials ofsegment 2024.related Additionally,to grossthe quality issue described above. Gross margin in 2024 was unfavorably impacted by higher costs associated with the production ramp of the precision clad strip facility.
SG&A expense totaled $143.1 million in 2025 as compared to $145.6 million in 2024. The decrease in SG&A expense was primarily due to lower incentive compensation accruals as a result of year-to-date performance. Expressed as a percentage of net sales, SG&A expense was 8% and 9% in 2025 and 2024, respectively. Expressed as a percentage of value-added sales, SG&A expense was 14% and 13% in 2025 and 2024, respectively.
SG&A expense totaled $145.6 million in 2024 as compared to $157.9 million in 2023. The decrease in SG&A expense for 2024 was primarily due to various cost savings initiatives throughout 2024.
R&D expense consists primarily of direct personnel and material costs for product innovation including pre-production evaluationdevelopment, evaluation, and testing of new products, prototypes, and applications.applications to deliver new high performing advanced materials to our customers. R&D expense wasaccounted $29.0for million1% inand 2024, an increase of 5% compared to 2023. R&D costs as a percentage2% of net sales remainedin flat2025 atand 2024, respectively. R&D expense accounted for 2% in 2024 and 2023 but as a percent3% of value-added sales increased from 2% in 20232025 toand 3%2024, in 2024.respectively.
Restructuring expense consists primarily of cost reduction actions taken in order to reduce our fixed cost structure. In 2025, we recorded a combined total of $3.2 million of restructuring charges in our Electronic Materials, Precision Optics, Performance Materials and Other segments. In 2024, we recorded a combined total of $6.8 million of restructuring charges acrossprimarily allin segmentsour comparedPrecision Optics, Electronic Materials, Performance Materials and Other segments. Refer to $3.8 million in 2023. See Note DE ofto the Consolidated Financial Statements for further details of restructuring activities.details.
Goodwill impairment was $56.1 million in 2024. There were no goodwill impairments recorded in 2023. The impairment charges were recorded in the Precision Optics reporting unit in the fourth quarter of 2024 as a result of the Company's annual goodwill impairment testing. Refer to Note A to the Consolidated Financial Statements for additional discussion.
Long-lived asset impairment was $17.1 million in 2024 related to the Company’s Malaysia facility in the Precision Optics segment. There were no long-lived asset impairments recorded in 2023. Refer to Note A to the Consolidated Financial Statements for additional discussion.
Loss on asset disposal was $6.4 million in 2024 due to the sale of the Company's Large Area Target business at its Albuquerque, New Mexico facility and wind-down of the related refinery in the fourth quarter of 2024. There were no material asset disposals in 2023.
Other-net totaled expense of $17.7$26.7 million and $23.3$17.7 million in 20242025 and 2023,2024, respectively. The decreaseincrease in Other-net was primarily driven by aan decreaseincrease in metal consignment fees. Refer to Note EF to the Consolidated Financial Statements for the major components within Other-net.
Other non-operating (income) expense-netincome-net includes components of pension and post-retirement income other than service costs. Refer to Note OP of the Consolidated Financial Statements for details of the components of net periodic benefit costs.
Interest expense - net was $30.7 million in 2025 and $34.8 million in 2024 and $31.3 million in 2023.2024. The increasedecrease in interest expense in 20242025 compared to 20232024 wasis primarily due to ana increasedecrease in interest rates and borrowings compared to the prior year.
Income tax expense for 2025 was $6.7 million of expense compared to $9.0 million of expense in 2024. The Company's effective tax rate for 2025 and 2024 was 8.2% and 60.5%, respectively. The effective tax rate for 2025 is lower than the statutory tax rate primarily due to percentage depletion, nontaxable credits and the foreign-derived intangible income deduction. The effective tax rate for 2024 was higher than the statutory tax rate primarily due to the impairment of non-deducible goodwill in the Precision Optics reporting unit. See Note H to the Consolidated Financial Statements for additional discussion.
Income tax expense (benefit) for 2024 was $9.0 million of expense compared to $12.1 million of expense in 2023. The decrease in income tax expense in 2024 compared to 2023 was primarily due to lower pre-tax income and more favorable impacts of the production credit and depletion in 2024. Refer to Note G to the Consolidated Financial Statements for further details on income taxes.
Net sales from the Performance Materials segment of $675.9 million in 2025 decreased 9% compared to 2024. The decrease in sales was due to lower sales volumes in the consumer electronics (34%) and aerospace and defense (9%) end markets. These decreases were partially offset by increased volumes in the energy (35%) end market, along with a $6.3 million year over year increase in the volume of raw material beryllium hydroxide. The decrease in the consumer electronics end market reflects the impact of a quality issue with a large precision clad strip customer within the Performance Materials segment, causing the Company to temporarily idle production facilities, which limited sales in the fourth quarter. The Company closely collaborated with our customer, implementing targeted modifications to our processes and procedures and enhancing quality control measures designed to reduce the risk of future occurrences. We resumed shipping product from our facilities in December 2025 and continue to ramp production.
Net sales from the Performance Materials segment of $744.5 million in 2024 decreased 1% compared to 2023. The decrease in sales was due to lower sales volumes in the industrial (13%) and automotive (16%) end markets. These decreases were partially offset by increased volumes in the aerospace and defense (33%) end market.
Value-added sales of $618.1 million in 2025 decreased 10% compared to $688.0 million in 2024 decreased slightly from value-added sales of $688.6 million in 2023,2024, consistent with the decrease in net sales. The decrease in value-added sales was driven by the same factors driving the decrease in net sales.
EBITDA for the Performance Materials segment was $127.2 million in 2025 compared to $169.3 million in 2024. The unfavorable impacts of lower sales volumes and $27.3 million of additional costs incurred related to the quality issue described above, which consisted of a quality claim, material scrap expenses, and temporary plant idling costs, were partially offset by manufacturing efficiencies and improved margins along with lower incentive compensation expense in 2025 compared to 2024. Additionally, there were higher costs associated with the production ramp of the precision clad strip facility in 2024 that did not recur in 2025, offsetting the decrease in EBITDA.
EBITDA for the Performance Materials segment was $169.3 million in 2024 compared to $174.5 million in 2023. The decrease in EBITDA was primarily driven by the impact unfavorable price/mix as well as the impact of lower volumes and related unabsorbed costs in the first half of 2024. Additionally, EBITDA was unfavorably impacted in 2024 by higher costs associated with the production ramp of the precision clad strip facility. This was partially offset by incremental benefit from the Advanced Manufacturing Production Credit (production credit) recorded in 2024 compared to 2023. See Note G of the Consolidated Financial Statements for further discussion regarding the accounting for the production credit.
Net sales from the Electronic Materials segment of $845.7$1,010.0 million in 20242025 was 5%19% higher than net sales of $805.8$845.7 million in 2023.2024. The increase in net sales was primarily due to higher precious metal pass throughpass-through costs, increasing net sales by approximately $79.5$208.2 million when compared to the prior year. This increase wasyear, partially offset by a decrease in precious metal sales volumes of $35.3 million. The decrease in precious metal sales was primarily due to the impact of the divestiture of the target business in Albuquerque, New Mexico that occurred in the fourth quarter of 2024, which resulted in lower sales of $23.1 million in 2025 compared to 2024. Excluding sales from the Albuquerque target business, net sales would have been 23% higher in 2025 compared to 2024. Additionally, there were higher sales volumes in the energysemiconductor (21%) end market (24%).market.
Value-added sales of $315.3$327.6 million decreasedincreased 6%4% compared to value-added sales of $334.7$315.3 million in 2023.2024. The decrease in value-addedValue-added sales waswere negatively impacted by an $11.2 million decrease due to the divestiture of the target business in Albuquerque, New Mexico in the fourth quarter of 2024. Excluding value-added sales volumefrom decreasethe notedAlbuquerque above.target business, sales would have been 8% higher in 2025 compared to 2024.
EBITDA for the Electronic Materials segment was $71.1 million in 2025 compared to $47.4 million in 2024. EBITDA was impacted by favorable price/mix and production efficiencies in 2025, compared to 2024.
EBITDA for the Electronic Materials segment was $47.4 million in 2024 compared to $45.7 million in 2023. Despite the decrease in value-added sales and the $6.4 million loss on disposal recorded in 2024 related to the sale of the Target business at the Company's Albuquerque facility, EBITDA increased due to the impact of various targeted cost control initiatives implemented in 2023 and throughout 2024. See Note A of the Consolidated Financial Statements for further discussion of the sale of the Target business.
Net sales from the Precision Optics segment were $94.5$100.7 million in 2024,2025, aan decreaseincrease of 9%7% compared to net sales of $103.9$94.5 million in 2023.2024. The decreaseincrease was primarily due to lowerhigher sales volumes in the industrial (13%), automotive (27%) and aerospace and defense (10%35%) end markets.market.
Value-added sales of $100.5 million in 2025 increased 7% compared to value-added sales of $94.3 million in 2024 decreased 9% compared to value-added sales of $103.8 million in 2023.2024. The decreaseincrease in value-added sales was due to the same factors driving the decreaseincrease in net sales.
EBITDA for the Precision Optics segment was $7.7 million in 2025 compared to a loss of $73.3 million in 2024 compared to income of $9.9 million in 2023.2024. The decreaseincrease in EBITDA was primarily driven by impairments recorded in 2024 for the Precision Optics reporting unit andin Malaysia of $73.2 millionmillion. asEBITDA wellwas asalso decreasedfavorably impacted by increased sales volumes,volumes partiallyand offsetoverall bybusiness targeted cost control initiatives implemented in 2024. See Note A of the Consolidated Financial Statements for further discussion of the impairment charges recorded during 2024.performance.
The Other reportable segment in total includes unallocated corporate costs. Corporate costs of $24.7 million in 2025 decreased from $25.1 million in 2024 decreasedprimarily fromdue $29.3to millionlower inincentive 2023.compensation as a result of year-to-date performance. Corporate costs were 2 and 3%2% of total Company value-added sales in 20242025 and 2023, respectively.2024.
The cost of gold, silver, platinum, palladium, copper, ruthenium, iridium, rhodium, rhenium, and osmium can be quite volatile. Our pricing policy is to directly pass the cost of these metals on to the customer in order to mitigate the impact of metal price volatility on our results from operations. Trends and comparisons of net sales are affected by movements in the market prices of these metals, but changes in net sales due to metal price movements may not have a proportionate impact on our profitability.
Internally, managementManagement 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 metal costs from net sales. Value-added sales allow management to assess the impact of differences in net sales between periods, segments, or markets, and analyze the resulting margins and profitability without the distortion of movements in pass-through metal costs. The dollar amount of gross margin and operating profit is not affected by the value-added sales calculation. We sell other metals and materials that are not considered direct pass-throughs, and these costs are not deducted from net sales when calculating value-added sales. Non-GAAP financial measures, such as value-added sales, have inherent limitations and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.
The cost of gold, silver, platinum, palladium, copper, ruthenium, iridium, rhodium, rhenium, and osmium can be quite volatile. Our pricing policy is to directly pass the market cost of these metals on to the customer in order to mitigate the impact of metal price volatility on our results from operations. Trends and comparisons of net sales are affected by movements in the market prices of these metals, but changes in net sales due to metal price movements may not have a proportionate impact on our profitability.
Net cash provided by operating activities totaled $103.2 million in 2025 versus $87.8 million in 2024. The increase of $15.4 million was primarily driven by a $33.5 million increase in accounts payable and accrued expenses, compared to a $15.8 million decrease in the prior year, resulting in a favorable cash inflow impact of $49.3 million. This improvement was mainly due to the timing of year-end payments and ongoing working capital management initiatives. This increase was partially offset by higher inventory levels, which increased by $13.3 million compared to the prior year, reflecting operational and quality challenges experienced in the fourth quarter of 2025. Additionally, accounts receivable increased by $22.1 million relative to the prior year, driven by timing differences in collections and reduced accounts receivable factoring in the current year.
Net cash provided by operating activities totaled $87.8 million in 2024 versus $144.4 million in 2023. The decrease in net cash provided by operating activities was primarily driven by working capital outflows in 2024 compared to 2023. Continued focus on working capital resulted in flat inventory and relatively flat accounts receivable balances as of December 31, 2024 compared to the December 31, 2023, as opposed to a net cash inflow in 2023 of $4.7 million in the prior year when these efforts began. Additionally, in line with the Company's cost savings initiatives, accounts payable and accruals decreased in 2024 compared to an increase in accounts payable in 2023, creating an unfavorable impact to operating cash flows of $22.4 million. In addition, there was a $16.7 million decrease in operating cash flow due to lower unearned income for customer prepayments related to the agreements with a customer as discussed in Note K. Lastly, the decrease in unearned revenue due to an increase in shipments for customers which prepaid had an unfavorable impact to operating cash flow $7.3 million when compared to the prior year.
Net cash used in investing activities was $98.1 million in 2025 compared to $79.6 million in 2024 compared to $119.2 million in 2023.2024. The decreaseincrease in cash used in investing activities is due to the business acquisition and mine development costs, offset by decreased capital expenditures concurrent with the decrease in cash flow provided by operating activities.expenditures.
Net cash used in financing activities decreasedincreased $20.7$5.6 million from 2023.2024. The decreaseincrease in 20242025 compared to 20232024 is a result of ana increaserepurchase inof drawscommon onstock ourand creditdeferred facilities,financing costs, offset by increasedlower repaymentswithholding oftaxes ourfor long-termstock-based debtcompensation in 2024.awards.
We believe that cash flow from operations plus available borrowing capacity and our current cash balance are adequate to support operating requirements, capital expenditures, projected pension plan contributions, the current dividend and selective share repurchase programs,repurchases, environmental remediation projects, and strategic acquisitions for at least the next 12 months and the foreseeable future thereafter. At December 31, 2024,2025, cash and cash equivalents held by our foreign operations totaled $15.7$13.0 million. We do not expect restrictions on repatriation of cash held outside of the United States to have a material effect on our overall liquidity, financial condition, or the results of operations for the foreseeable future.
Net (debt) cash is a non-GAAP financial measure. We are providing this information because we believe it is more indicative of our overall financial position. It is also a measure our management uses to assess financing and other decisions. We believe that based on our typical cash flow generated from operations, we can support a higher leverage ratio in future periods.
The available borrowing capacity in the table above represents the additional amounts that could be borrowed under our revolving credit facility and other secured lines existing as of the end of each yearperiod depicted. The applicable debt covenants have been taken into account when determining the available borrowing capacity, including the covenant that restricts the borrowing capacity to a multiple of the twelve-month trailing adjusted earnings before interest, income taxes, depreciationdepreciation, depletion and amortization, and other adjustments.
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.
In January 2023, we amended the agreement governing our $375.0 million revolving credit facility and term loan facility (Credit Agreement).
Pursuant to the amendment, we transitioned U.S. dollar denominated borrowings from LIBOR to SOFR for both the revolving credit agreement and the term loan and increased the cap on precious metals consignment line from $550 million to $615 million.
The Company had previously amended and restated the Credit Agreement in connection with the HCS-Electronic Materials acquisition in November 2021. A $300 million delayed draw term loan facility was added to the Credit Agreement and the maturity date of the Credit Agreement was extended from 2024 to 2026. Moreover, the Credit Agreement also provides for an uncommitted incremental facility whereby, undersubject to the satisfaction of certain conditions, the Company may be able to borrow additional term loans in an aggregate amount not to exceed $150.0$250 million. The Credit Agreement provides the Company and its subsidiaries with additional capacity to enter into facilities for the consignment of precious metalsmetals, copper, nickel and copper,tantalum, and provides enhanced flexibility to finance acquisitions and other strategic initiatives. Borrowings under the Credit Agreement are secured by substantially all of the assets of the Company and its direct subsidiaries, with the exception of non-mining real property, precious metal, coppermetal and certain other assets.
The Credit Agreement allows the Company to borrow money at a premium over SOFR, following the January 2023 amendment,SOFR or prime rate and at varying maturities. The premium resets quarterly according to the terms and conditions stipulated in the credit agreement. The Credit Agreement includes restrictive covenants relating to restrictions on additional indebtedness, acquisitions, dividends, and stock repurchases. In addition, the Credit Agreement includes covenants that limit the Company to a maximum leverage ratio and a minimum interest coverage ratio. We were in compliance with all of our debt covenants as of December 31, 20242025 and December 31, 2023.2024. Cash on hand up to $25$35.0 million can benefit the covenants and may benefit the borrowing capacity under the Credit Agreement.
In November 2021, we completed the acquisition of HCS-Electronic Materials. The Company financed the purchase price for the HCS-Electronic Materials acquisition with a new $300 million five-year term loan pursuant to its delayed draw term loan facility under the Credit Agreement and $103 million of borrowings under its amended revolving credit facility. The interest rate for the term loan is based on SOFR, following the January 2023 amendment, plus a tiered rate determined by the Company's quarterly leverage ratio.
In January 2014, our Board of Directors approved a plan to repurchase up to $50.0 million of our common stock. We repurchased 100,000 shares under this program in the second quarter of 2025, for a total cost of $7.8 million. Since the approval of the repurchase plan, we have purchased 1,354,264 shares at a total cost of $49.5 million. In October 2025, we announced that our Board of Directors had approved a new plan to repurchase up to $50.0 million of our common stock, replacing the plan approved in 2014. The timing of the share repurchases will depend on several factors, including market and business conditions, our cash flow, debt levels, and other investment opportunities. There is no minimum numberquantity ofrequirement to repurchase our common sharesstock required to be repurchased infor a given year, and the repurchases may be discontinued at any time. We did not repurchase any shares in 2023 or 2024. Since the approval of the repurchase plan, we have purchased 1,254,264 shares at a total cost of $41.7 million, or an average of $33.23 per share.
The following table summarizes our material future obligations with respect to debt and associated interest as of December 31, 2024.2025. In addition to the amounts below, the Company anticipates incurring costs related to its finance lease obligations and non-cancelable lease payments for operating leases with an initial lease term in excess of one year. These obligations are further detailed in Note L.M to the Consolidated Financial Statements.
(1) Refer to Note NO to the Consolidated Financial Statements.
We maintain the majority of the precious metals and copper we use in production on a consignment basis in order to reduce our exposure to metal price movements and to reduce our working capital investment. Refer to Item 7A “Quantitative and Qualitative Disclosures about Market Risk.” The notional value of off-balance sheet precious metals and copper was $526.2 million as of December 31, 2025 versus $381.6 million as of December 31, 2024 versus $351.5 million as of December 31, 2023.2024. We were in compliance with all of the covenants contained in the consignment agreements as of December 31, 20242025 and December 31, 2023.2024. Refer to Note IJ for additional information.
The following information concerning our mining properties has been prepared in accordance with the requirements of subpart 1300 of Regulation S-K.
The following information concerning our mining properties has been prepared in accordance with the requirements of subpart 1300 of Regulation S-K, which first became applicable to us for the year ended December 31, 2021. These requirements differ significantly from the previously applicable disclosure requirements of SEC Industry Guide 7. Among other differences, subpart 1300 of Regulation S-K requires us to disclose our mineral resources, in addition to our mineral reserves, as of the end of our most recently completed fiscal year.
The information that follows relating to the Spor Mountain Mine is derived, for the most part, from the TRS, which was prepared in compliance with Item 601(b)(96) and subpart 1300 of Regulation S-K. Portions of the following information are based on assumptions, qualifications and procedures that are not fully described herein. Reference should be made to the full text of the TRS, which was filed as Exhibit 96 to our Annual Report on Form 10-K for the year-endedyear ended December 31, 20212025, and is incorporated by reference herein.
Certain of the Company’sWhen contracts with customers may contain multiple performance obligations. As a result,obligations, management utilizes judgment to determine the appropriate accounting, including whether multiple promised products or services in a contract should be accounted for separately or as a group, how the consideration should be allocated among the performance obligations, and when to recognize revenue upon satisfaction of the performance obligations.
Unearned revenue is recorded cash consideration from customers in advance of the shipment of the goods, which is a liability on our Consolidated Balance Sheets. This contract liability is subsequently reversed and the revenue, cost of sales, and gross margin are recorded when the Company has transferred control of the product to the customer. The related inventory also remains on our balance sheet until the revenue recognition criteria are met. Advanced billings are typically made in association with products with long manufacturing times and/or products relating to contracts with the government. Billings in advance of the shipments allow us to collect cash earlier than billing at the time of the shipment and, therefore, the collected cash can be used to reduce our investment in working capital. Refer to Note CD of the Consolidated Financial Statements for additional details on our contract balances.
We take and record the results of a physical inventory count of our precious metals on a periodic basis. Our precious metal operations include a refinery that processes precious metal-containing scrap and other materials from our customers, as well as our own internally generated scrap. We also outsource portions of our refining requirements to other vendors, particularly for those materials with longer processing times. The precious metal content within these various refine streams may be in solutions, sludges, and other non-homogeneous forms and can vary over time based upon the input materials, yield rates, and other process parameters. The determination of the weight of the precious metal content within the refine streams as part of a physical inventory count requires the use of estimates and calculations based upon assays, assumed recovery percentages developed from actual historical data and other analyses, the total estimated volumes of solutions and other materials within the refinery, data from our refine vendors, and other factors. The resulting calculated weight of the precious metals in our refine operations may differ, in either direction, from what our records indicate that we should have on hand, which would then result in an adjustment to our pre-tax income in the period when the physical inventory was taken, and the related estimates were made.
Intangible assets other than goodwill are recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the intangible asset can be sold, transferred, licensed or exchanged, regardless of the Company’s intent to do so. Goodwill represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in a business combination and is reviewed annually for impairment or more frequently if impairment indicators arise. Finite-lived intangible assets are reviewed for impairment if facts and circumstances warrant. There were no indicators during interim periods that required the performance of an interim impairment assessment. The Company conducted its annual impairment assessment as of the first day of the fourth quarter.
The Company conducted its annual impairment assessment as of the first day of the fourth quarter. For the purpose of the annual goodwill impairment assessment, we have the option to perform a qualitative assessment (commonly referred to as "step zero") to determine whether further quantitative analysis for impairment of goodwill is necessary. In performing step zero for our impairment test, we are required to make assumptions and judgments including, but not limited to, macroeconomic conditions as related to our business, current and future financial performance of our reporting units, industry and market considerations, and cost factors such as changes in raw materials, labor, or other costs. If the step zero analysis indicates that it is more likely than not that the fair value of a reporting unit is less than its respective carrying value including goodwill, then we would perform an additional quantitative analysis. The next step compares the fair value of the reporting unit to its carrying value, including goodwill. An impairment charge is recognized for the amount the carrying value of the reporting unit exceeds its fair value.
Due to thehistorical slowerresults thancombined expected semiconductor market recovery impactingwith the Electronicpartial Materialsimpairment reportingcharge unitrecognized andin recent results2024 for the Precision Optics reporting unit, the Company elected to perform a quantitative annual impairment assessment for the Electronic Materials and Precision Optics reporting units'unit's goodwill as of October 1, 20242025 and a qualitative impairment test for the Electronic Materials and Performance Materials reporting unit.units.
The market approach requires several assumptions including sales and EBITDA multiples for comparable companies that operate in the same markets as the reporting unit. During the fourth quarter of 2024,2025, the Company considered sales multiples in the low single digits and EBITDA multiples in the range high singlehigh-single digits to mid doublemid-double digits.
As discussed in Note A, the Company's annual goodwill impairment test indicated the carrying value of the Precision Optics reporting unit exceeded its estimated fair value as of the measurement date of October 1, 2024. As a result, the Company recognized a goodwill impairment charge in the fourth quarter of fiscal 2024 of $56.1 million which was recorded in "Goodwill Impairment" in the accompanying Consolidated Statements of Income in the Precision Optics segment.
What changed in the latest 10-Q
Risk Factors
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Management's Discussion & Analysis (MD&A)
Largest changes
Corporate costs weresee in full comparison$7.1$11.5 million in thefirstsecond quarter of 2026 compared to $5.9 million in thefirstsecond quarter of 2025. Corporate costs were 2% and 1% of Company-wide net sales in thefirst quarter of 2026 and 2025. Corporate costs were 3% and 2% of Company-wide value-added sales in the firstsecond quarter of 2026 and 2025, respectively. Corporate costs were 4% of Company-wide value-added sales in both the second quarter of 2026 and 2025. The increase in corporate costs were primarily due to$0.4 million ofhigher stock compensation and incentive compensation expenseand $0.4 million of higher restructuring costs in the first quarter of 2026 compareddue totheincreasedsameCompanyperiod in 2025.performance.
“Restructuring expense consists primarily of cost reduction actions taken in order to reduce our fixed cost structure. In the first six months of 2026, we recorded a combined total of $2.6 million of restructuring charges across all segments, compared to $2.5 million of restructuring charges across all segments in the first six months of 2025. Refer to Note F to the Consolidated Financial Statements for details.”see in full comparison
“Net sales from the Performance Materials segment of $363.6 million in the first six months of 2026 increased 2% compared to net sales of $356.8 million in the first six months of 2025. The increase in sales was due to higher sales volumes in the aerospace and defense (22%) end market. Additionally, there was a $8.8 million year over year increase in the volume of raw material beryllium hydroxide sales compared to the first six months of 2025. This was partially offset by lower sales volumes in the consumer electronics (31%) end market. …”see in full comparison
Restructuring expense consists primarily of cost reduction actions taken in order to reduce our fixed cost structure.see in full comparisonIn the first quarter of 2026, weWe recorded a combined total of$2.3$0.3 millionofandrestructuring charges across all segments, compared to $2.0$0.5 million of restructuring charges across all segments in thefirstsecond quarter of2025.2026 and 2025, respectively. Refer to Note F to the Consolidated Financial Statements for details.
Net sales from the Performance Materials segment ofsee in full comparison$155.7$207.9 million in thefirstsecond quarter of 2026decreasedincreased11%14% compared to net sales of$174.0$182.8 million in thefirstsecond quarter of 2025. Thedecreaseincrease in sales was due tolowerhigher sales volumes in theconsumeraerospaceelectronicsand defense (48%40%) end market.ThisAdditionally,decreasethere waspartially offset bya year over year increase in the volume of raw material beryllium hydroxide sales totaling$2.9$5.9 million. This was partially offset by lower sales volumes in the consumer electronics (18%) end market. The decrease in the consumer electronics end market reflects lower volumesdueresultingtofrom a controlled production rampof productionduring thefirstsecond quarter of 2026fromasthe quality issue that occurred in the fourth quarterpart of2025ongoing operational alignment with a large precision clad stripcustomer within the Performance Materials segment.customer. The Company continues toworkcollaborate closely withourthiscustomer,customerensuringtoprocessesensure stable andproceduresreliableimplementedproductionin the fourth quarter of 2025 reduce the risk of future occurrences.performance.
“Net sales of $1,163.7 million in the first six months of 2026 increased $311.7 million from $852.0 million in the first six months of 2025. The increase in net sales was primarily attributable to the Electronic Materials segment. The increase in the Electronic Materials segment was primarily due to higher precious metal pass through costs, increasing net sales by approximately $227.3 million when compared to the prior year period. …”see in full comparison
Full comparison: every changed paragraph (57)
We are an integrated producer of high-performance advanced engineered materials used in a variety of electrical, electronic, thermal, and structural applications. Our products are sold into numerous end markets, including semiconductor, industrial, aerospace and defense, automotive, consumer electronics, energy, and telecom and data center.
NM = Not Meaningful
Net sales of $549.8$613.9 million in the firstsecond quarter of 2026 increased $129.5$182.2 million from $420.3$431.7 million in the firstsecond quarter of 2025. AnThe increase in net sales inwas primarily attributable to the Electronic Materials and Precision Optics segments were partially offset by decreased net sales in the Performance Materials segment. The increase in net sales in the Electronic Materials segment was primarily due to higher precious metal pass through costs, increasing net sales by approximately $132.6$94.6 million when compared to the prior year period. At the Company level, this was driven by volume increases in the energy (106%), semiconductor (69%59%), and energyaerospace and defense (27%40%) end markets were partially offset by a decrease in the consumer electronics (37%) and life sciences (113%) end markets, primarily driven by the increases in precious metal pricing.markets. Additionally, there was a $2.9$5.9 million year over year increase in the volume of raw material beryllium hydroxide sales compared to the firstsecond quarter of 2025. See Note C to the Consolidated Financial Statements for additional details on the year over year changes in our net sales by segment and market.
Value-added sales is a non-GAAP financial measure that removes the impact of pass-through precious metal market costs and allows for analysis without the distortion of the movement or volatility in precious metal market prices and changes in mix due to customer-supplied material. Internally, we manage our business on this basis, and a reconciliation of net sales, the most directly comparable GAAP financial measure, to value-added sales is included herein. Value-added sales of $261.8$308.2 million in the firstsecond quarter of 2026 increased $2.4$39.2 million, or 1%,15%, compared to the firstsecond quarter of 2025. TheVolume increase was driven by volume increaseincreases in the aerospace and defense (12%39%) and semiconductor (7%23%) end markets were partially offset by a sales volume decreasedecreases in the consumer electronics (44%17%) end market. Additionally, there was a $2.9$5.9 million year over year increase in the volume of raw material beryllium hydroxide sales compared to the firstsecond quarter of 2025.
Gross margin in the firstsecond quarter of 2026 was $81.8$104.3 million, an increase of 7%26% compared to the firstsecond quarter of 2025. Gross margin expressed as a percentage of net sales was 15%17% in the firstsecond quarter of 2026 and 18%19% in the firstsecond quarter of 2025. Gross margin expressed as a percentage of value-added sales increasedwas 34% in second quarter of 2026, compared to 31% in the first quarter of 2026 from 29% in the firstsecond quarter of 2025. Gross margin as a percentage of value-added sales increased due to product mix, manufacturing efficiencies and the increase in hydroxide sales, which favorably impacted margins in the firstsecond quarter of 2026 compared to the same period in 2025.
SG&A expense was $36.2$42.3 million in the firstsecond quarter of 2026, compared to $35.4$35.0 million in the firstsecond quarter of 2025. The increase in SG&A expense was primarily due to higher stock compensation expense and the timing of the incentive compensation accruals due to year to date performance. Expressed as a percentage of net sales, SG&A expense decreasedwas from7% of net sales in the second quarter of 2026 and 8% in the firstsecond quarter of 2025 to 7% in the first quarter of 2026, primarily due to the impact of precious metal pricing on net sales.2025. Expressed as a percentage of value-added sales, SG&A expense was 14% and 13% in both the firstsecond quarter of 2026 and 2025.2025, respectively.
R&D expense consists primarily of direct personnel costs for product innovation including pre-production evaluationdevelopment, evaluation, and testing of new products, prototypes, and applications.applications to deliver new high performing advanced materials to our customers. R&D spendexpense wasaccounted for 1% and 2% of net sales in both the firstsecond quarter of 2026 and 2025, respectively.2025. R&D spendexpense wasaccounted for 2% and 3% of value-added sales in both the firstsecond quarter of 2026 and 2025, respectively.2025.
Restructuring expense consists primarily of cost reduction actions taken in order to reduce our fixed cost structure. In the first quarter of 2026, weWe recorded a combined total of $2.3$0.3 million ofand restructuring charges across all segments, compared to $2.0$0.5 million of restructuring charges across all segments in the firstsecond quarter of 2025.2026 and 2025, respectively. Refer to Note F to the Consolidated Financial Statements for details.
Other-net was $9.0$3.4 million of expense in the firstsecond quarter of 2026, or a $4.0decrease of $0.5 million increase from the firstsecond quarter of 2025, impacted by a $3.9 million increase in metal consignment fees due to the increase in precious metal prices.2025. Refer to Note FE to the Consolidated Financial Statements for details of the major components within Other-net.
Other non-operating (income) expense-net-net includes components of pension and post-retirement expense other than service costs. Refer to Note K to the Consolidated Financial Statements for details of the components.
Interest expense-net was $7.6$7.5 million and $6.9$8.2 million in the firstsecond quarter of 2026 and 2025, respectively. The increasedecrease in interest expense iswas primarily due to ana increasedecrease in borrowingsinterest rates compared to the prior year period.
Income tax expense for the firstsecond quarter of 2026 was expense of $1.5$5.7 million, compared to $3.2$4.0 million in the firstsecond quarter of 2025. The Company's effective tax rate for the firstsecond quarter of 2026 and 2025 was 7.3%12.9% and 15.5%,13.8%, respectively. The effective tax rate for the firstsecond quarter of 2026 is lower than the statutory tax rate primarily due to the impact of the foreign-derived deduction eligible income, and excess tax benefits from stock-based compensation awards and percentage depletion.awards. The effective tax rate for the firstsecond quarter of 2025 wasis lower than the statutory tax rate primarily due to the impact of percentage depletion, the foreign-derived intangible income deduction,depletion and the advanced manufacturing production credit. The effective tax rate for the first three months of 2026 included a net discrete income tax benefit of $1.6 million primarily from stock-based compensation awards. The effective tax rate for the first three months of 2025 included a net discrete income tax expense of $0.1 million. See Note G to the Consolidated Financial Statements for additional discussion.
Net sales of $1,163.7 million in the first six months of 2026 increased $311.7 million from $852.0 million in the first six months of 2025. The increase in net sales was primarily attributable to the Electronic Materials segment. The increase in the Electronic Materials segment was primarily due to higher precious metal pass through costs, increasing net sales by approximately $227.3 million when compared to the prior year period. At the Company level, a volume increase in the semiconductor (64%), energy (60%) and aerospace and defense (29%) end markets were partially offset by a volume decrease in the consumer electronics (17%) end market. Additionally, there was a $8.8 million year over year increase in the volume of raw material beryllium hydroxide sales compared to the same period in the prior year. See Note C to the Consolidated Financial Statements for additional details on the year over year changes in our net sales by segment and market.
Value-added sales of $570.0 million in the first six months of 2026 increased $41.7 million, or 8%, compared to the first six months of 2025. Volume increases in the aerospace and defense (26%) and semiconductor (20%) end markets were partially offset by a volume decreases in the consumer electronics (29%) end market. Additionally, there was a $8.8 million year over year increase in the volume of raw material beryllium hydroxide sales compared to the same period in the prior year.
Gross margin in the first six months of 2026 was $186.2 million, an increase of 17% compared to the first six months of 2025. Gross margin expressed as a percentage of net sales was 16% in the first six months of 2026 and 19% in the first six months of 2025. Gross margin expressed as a percentage of value-added sales increased to 33% in the first six months of 2026 from 30% in the first six months of 2025. Gross margin as a percentage of value-added sales increased due to product mix, manufacturing efficiencies and the increase in hydroxide sales, which favorably impacted margins in the first six months of 2026 compared to the same period in 2025.
SG&A expense was $78.5 million in the first six months of 2026, compared to $70.5 million in the first six months of 2025. The increase in SG&A expense was primarily due to timing of incentive compensation accruals due to year to date performance. Expressed as a percentage of net sales, SG&A expense was 7% and 8% in the first six months of 2026 and 2025, respectively. Expressed as a percentage of value-added sales, SG&A expense was 14% in the first six months of 2026 and 13% in the first six months of 2025.
R&D expense consists primarily of direct personnel costs for product innovation including pre-production development, evaluation, and testing of new products, prototypes, and applications to deliver new high performing advanced materials to our customers. R&D expense accounted for 1% of net sales in the first six months of 2026 and 2% in the first six months of 2025. R&D expense accounted for 2% of value-added sales in both the first six months of 2026 and 2025.
Restructuring expense consists primarily of cost reduction actions taken in order to reduce our fixed cost structure. In the first six months of 2026, we recorded a combined total of $2.6 million of restructuring charges across all segments, compared to $2.5 million of restructuring charges across all segments in the first six months of 2025. Refer to Note F to the Consolidated Financial Statements for details.
Other-net was $12.4 million of expense in the first six months of 2026, or a $3.5 million increase from the first six months of 2025. Refer to Note E to the Consolidated Financial Statements for details of the major components within Other-net.
Other non-operating (income)-net includes components of pension and post-retirement expense other than service costs. Refer to Note K to the Consolidated Financial Statements for details of the components.
Interest expense-net was $15.1 million in both the first six months of 2026 and 2025, respectively.
Income tax expense was $7.3 million for both the first half of 2025 and 2026. The Company's effective tax rate for the first six months of 2026 and 2025 was 11.1% and 14.5%, respectively. The effective tax rate for the first six months of 2026 is lower than the statutory tax rate primarily due to the impact of the foreign-derived deduction eligible income and excess tax benefits from stock-based compensation awards. The effective tax rate for the first six months of 2025 is lower than the statutory tax rate primarily due to the impact of percentage depletion and the advanced manufacturing production credit. See Note G to the Consolidated Financial Statements for additional discussion.
A reconciliation of net sales to value-added sales, a non-GAAP financial measure, for each reportable segment and for the total Company for the second quarter and first quartersix months of 2026 and 2025 is as follows:
The primary measurement used by management to measure the financial performance of each segment is EBITDA. Refer to Note C to the Consolidated Financial Statements for the reconciliation of EBITDA by segment to consolidated net income.
Net sales from the Performance Materials segment of $155.7$207.9 million in the firstsecond quarter of 2026 decreasedincreased 11%14% compared to net sales of $174.0$182.8 million in the firstsecond quarter of 2025. The decreaseincrease in sales was due to lowerhigher sales volumes in the consumeraerospace electronicsand defense (48%40%) end market. ThisAdditionally, decreasethere was partially offset by a year over year increase in the volume of raw material beryllium hydroxide sales totaling $2.9$5.9 million. This was partially offset by lower sales volumes in the consumer electronics (18%) end market. The decrease in the consumer electronics end market reflects lower volumes dueresulting tofrom a controlled production ramp of production during the firstsecond quarter of 2026 fromas the quality issue that occurred in the fourth quarterpart of 2025ongoing operational alignment with a large precision clad strip customer within the Performance Materials segment.customer. The Company continues to workcollaborate closely with ourthis customer,customer ensuringto processesensure stable and proceduresreliable implementedproduction in the fourth quarter of 2025 reduce the risk of future occurrences.performance.
Value-added sales of $139.5$190.0 million in the firstsecond quarter of 2026 were 13% lowerhigher than value-added sales of $160.0$168.5 million in the firstsecond quarter of 2025. The decreaseincrease in value-added sales was due to the same factors driving the decreaseincrease in net sales.
EBITDA for the Performance Materials segment was $48.3 million in the second quarter of 2026 compared to $41.1 million in the second quarter of 2025. The increase was primarily driven by incremental margin from higher sales volumes and strong price/mix. This was offset by lower margins resulting from reduced sales volumes during the controlled production ramp described above.
Net sales from the Performance Materials segment of $363.6 million in the first six months of 2026 increased 2% compared to net sales of $356.8 million in the first six months of 2025. The increase in sales was due to higher sales volumes in the aerospace and defense (22%) end market. Additionally, there was a $8.8 million year over year increase in the volume of raw material beryllium hydroxide sales compared to the first six months of 2025. This was partially offset by lower sales volumes in the consumer electronics (31%) end market. The decrease in the consumer electronics end market over the first six months reflects lower volumes resulting from a controlled production ramp during the second quarter of 2026 as part of ongoing operational alignment with a large precision clad strip customer. The Company continues to collaborate closely with this customer to ensure stable and reliable production performance.
Value-added sales of $329.5 million in the first six months of 2026 were flat year over year.
EBITDA for the Performance Materials segment was $23.8$72.1 million in the first quartersix months of 2026 compared to $40.7$81.8 million in the first quartersix months of 2025. The decrease was primarily driven by lower sales volumes to our large precision clad customer and an incremental $3.5 million of additional net costs related to the qualitycontrolled issueproduction ramp described above. These incremental costs included capacity-related charges and expenses incurred to reimburse customers for incremental shipping and related tariff costs associated with procuring substitute materials necessary to meet their demand requirements. Additionally, there were higher raw material costs and manufacturing inefficiencies that further increased cost in the period. Partially offsetting these impacts were the reversal of previously reserved material costs, and lower SG&A expenses in the first quarter of 2026 compared to the same period in 2025. In addition, the increaseincreases in hydroxide sales that favorably impacted margins.
Net sales from the Electronic Materials segment of $363.4$375.2 million in the firstsecond quarter of 2026 increased 62%by from67% compared to net sales of $224.8$224.4 million in the firstsecond quarter of 2025. The increase in net sales was due to higher pass-through metal pricing,pricing accountingand forsales anvolumes increasein ofthe $132.6semiconductor and energy end markets. Higher pass-through metal pricing contributed $94.6 million compared to the firstsecond quarter of 2025. These increases were partially offset by a decrease in sales volumes in the life sciences end market (246%) due to the exit of low margin business.
Value-added sales of $91.6$87.4 million in the firstsecond quarter of 2026 wereincreased 18%15% highercompared thanto value-added sales of $77.8$76.0 million in the firstsecond quarter of 2025. The increase in value-added sales was primarily driven by a volume increasesincrease in the semiconductor (18%) end market noted above.market.
EBITDA for the Electronic Materials segment was $25.5$27.8 million in the firstsecond quarter of 2026 compared to $11.1$17.6 million in the firstsecond quarter of 2025. EBITDA in the firstsecond quarter of 2026 wasbenefited favorably impacted by $9.7 million offrom incremental margin fromdriven by higher sales volumes, strong price/mix, as well as the favorable impact of operational and manufacturing efficiencies. This was partially offset by $3.1 million of higher consignment fees due to the increases in the price of precious metals.
Net sales from the Electronic Materials segment of $738.5 million in the first six months of 2026 increased by 64% compared to net sales of $449.2 million in the first six months of 2025. The increase in net sales was due to higher pass-through metal pricing and sales volumes in the semiconductor and energy end markets. Higher pass-through metal pricing contributed $227.3 million compared to the first six months of 2025.
Value-added sales of $179.0 million in the first half of 2026 increased 16% compared to value-added sales of $153.9 million in the first half of 2025. The increase in value-added sales was primarily driven by volume increases in the semiconductor (18%) end market.
EBITDA for the Electronic Materials segment was $53.4 million in the first six months of 2026 compared to $28.7 million in the first six months of 2025. EBITDA in the first six months of 2026 benefited from incremental margin driven by higher sales volumes, strong price/mix, as well as favorable operational and manufacturing efficiencies.
Net sales from the Precision Optics segment of $30.8 million in the firstsecond quarter of 2026 increased 43%26% compared to net sales of $21.5$24.5 million in the firstsecond quarter of 2025. The increase was primarily due to higher sales volumes in the semiconductor (206%), industrial (37%) and aerospace and defense (61%), life sciences (41%) and industrial (22%34%) end markets.
Value-added sales of $30.7 million in the firstsecond quarter of 2026 increased 43%26% compared to value-added sales of $21.5$24.4 million in the firstsecond quarter of 2025. The increase in value-added sales was due to the same factors driving the increase in net sales.
EBITDA for the Precision Optics segment was $4.7$6.6 million in the firstsecond quarter of 2026,2026 compared to a loss of $1.5$2.1 million in the firstsecond quarter of 2025. The increase in EBITDA was primarily driven by favorable impacts of volumehigher volume, strong price/mix of $5.4 million and manufacturing efficiencies, partially offset by an increase in incentive compensation expense due to year to date performance.
Net sales from the Precision Optics segment of $61.6 million in the first half of 2026 increased 34% compared to net sales of $46.0 million in the first half of 2025. The increase was primarily due to higher sales volumes in the semiconductor (169%), aerospace and defense (46%), and industrial (29%) end markets.
Value-added sales of $61.5 million in the first half of 2026 increased 34% compared to value-added sales of $45.9 million in the first half of 2025. The increase in value-added sales was due to the same factors driving the increase in net sales.
EBITDA for the Precision Optics segment was $11.3 million in the first six months of 2026 compared to $0.6 million in the first six months of 2025. The increase in EBITDA was primarily driven by favorable of higher volume, strong price/mix and manufacturing efficiencies, partially offset by an increase in incentive compensation expense due to year to date performance.
Corporate costs were $7.1$11.5 million in the firstsecond quarter of 2026 compared to $5.9 million in the firstsecond quarter of 2025. Corporate costs were 2% and 1% of Company-wide net sales in the first quarter of 2026 and 2025. Corporate costs were 3% and 2% of Company-wide value-added sales in the firstsecond quarter of 2026 and 2025, respectively. Corporate costs were 4% of Company-wide value-added sales in both the second quarter of 2026 and 2025. The increase in corporate costs were primarily due to $0.4 million of higher stock compensation and incentive compensation expense and $0.4 million of higher restructuring costs in the first quarter of 2026 compareddue to theincreased sameCompany period in 2025.performance.
Corporate costs were $18.6 million in the first half of 2026 compared to $11.8 million in the first half of 2025. Corporate costs were 2% and 1% of Company-wide net sales in the first six months of 2026 and 2025, respectively. Corporate costs were 3% and 2% of Company-wide value-added sales in the first six months of 2026 and 2025, respectively. The increase in corporate costs were primarily due to higher stock compensation and incentive compensation expense due to increased Company performance.
Net cash provided by operating activities totaled $70.5 million in the first six months of 2026 versus $65.4 million in the prior-year period. The $5.1 million increase was primarily driven by an increase in accounts payable and accrued expenses of $41.4 million, due to continued working capital management and timing of payments. These cash inflows were offset by an increase in inventory of $22.0 million to support sales growth, in addition to an increase in accounts receivable of $38.2 million, due to timing of cash collections and higher sales when compared to prior year.
Net cash (used in) provided by operating activities was a usage of $4.3 million in the first three months of 2026 compared to net cash provided by operating activities of $15.3 million in the prior-year period. The unfavorable change in cash use in operating activities was primarily driven by an increase in accounts receivables and accounts payables due to timing and the increase in the price of precious metal, resulting in a net use of cash of $8.7 million in the first quarter of 2026 compared a net use of cash of $5.7 million in the same period in the prior year. Increases in inventory to support business growth resulted in a use of cash of $28.9 million in the first quarter of 2026 compared to cash provided by the sale of inventory of $0.4 million in the same period in the prior year.
Net cash used in investing activities was $15.3 million in the first quarter of 2026 compared to $20.7 million in the prior-year period. The decrease in cash used in investing activities is due to lower mine development costs offset by higher capital expenditures in the first quarter of 2026 compared to the first quarter of 2025.
Net cash used in investing activities was $31.5 million in the first six months of 2026 compared to $34.9 million in the prior-year period. The decrease in cash used in investing activities is due to a decrease in mine development costs offset by higher capital expenditures. Capital expenditures are made primarily for new product development, replacing and upgrading equipment, infrastructure investments, and implementing information technology initiatives. For the full year 2026, the Company expects payments for property, plant, and equipment to be approximately $100 million.
Net cash used in financing activities totaled $32.1 million in the first six months of 2026 and compared to $36.4 million in the comparable prior-year period. The net financing cash outflow in the first six months of 2026 was primarily driven by debt repayments, made possible by increased cash levels resulting from the Company's ongoing working capital initiatives.
Net cash provided by financing activities totaled $22.4 million in the first three months of 2026 compared to net cash provided by financing activities of $3.5 million in the prior-year period. The increase in borrowings in the first three months of 2026 from the same period in the prior year was a result of an increase in accounts receivables and accounts payables due to a significant increase in the price of precious metals and an increase in inventory to support business growth.
We believe cash flow from operations plus the available borrowing capacity and our current cash balance are adequate to support operating requirements, capital expenditures, projected pension plan contributions, the current dividend program, environmental remediation projects, and strategic acquisitions for at least the next twelve months and for the foreseeable future thereafter. At AprilJuly 3, 2026, cash and cash equivalents held by our foreign operations totaled $15.4$19.0 million. We do not expect restrictions on repatriation of cash held outside of the United States to have a material effect on our overall liquidity, financial condition, or results of operations for the foreseeable future.
A summary of key data relative to our liquidity, including outstanding debt, cash, and available borrowing capacity, as of AprilJuly 3, 2026 and December 31, 2025 is as follows:
The Credit Agreement allows the Company to borrow money at a premium over SOFR or prime rate and at varying maturities. The premium resets quarterly according to the terms and conditions stipulated in the credit agreement. The Credit Agreement includes restrictive covenants relating to restrictions on additional indebtedness, acquisitions, dividends, and stock repurchases. In addition, the Credit Agreement includes covenants that limit the Company to a maximum leverage ratio and a minimum interest coverage ratio. We were in compliance with all of our debt covenants as of AprilJuly 3, 2026 and December 31, 2025. Cash on hand up to $35.0 million can benefit the covenants and may benefit the borrowing capacity under the Credit Agreement.
Portions of our business utilize off-balance sheet consignment arrangements allowing us to use metal owned by precious metal consignors as we manufacture product for our customers. Metal is purchased from the precious metal consignor and sold to our customer at the time of product shipment. Expansion of business volumes and/or higher metal prices can put pressure on the consignment line limitations from time to time. In August 2025, we entered into a precious metals consignment agreement, maturing on August 31, 2028, which replaced the consignment agreements that would have matured on August 31, 2025. The available and unused capacity under the metal consignment agreements expiring in August 2028 totaled approximately $270.3$344.4 million as of AprilJuly 3, 2026, compared to $173.8 million as of December 31, 2025.
We paid cash dividends of $2.9$3.0 million and $5.9 million on our common stock in the firstsecond quarter and first six months of 2026.2026, respectively. We intend to pay a quarterly dividend on an ongoing basis, subject to a determination that the dividend remains in the best interest of our shareholders.
OFF-BALANCE SHEET ARRANGEMENTS AND CONTRACTUALCASH OBLIGATIONS
We maintain the majority of the precious metals and portions of the copper and nickel we use in production on a consignment basis in order to reduce our exposure to metal price movements and to reduce our working capital investment. The notional value of off-balance sheet precious metals, copper and nickel was $579.7$505.6 million and $526.2 million as of AprilJuly 3, 2026 and December 31, 2025, respectively. We were in compliance with all of the covenants contained in the consignment agreements as of AprilJuly 3, 2026. For additional information on our contractual and other obligations, refer to our 2025 Annual Report on Form 10-K.
MTRN insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 8 filings (6 insiders, 6 trade dates, 39,950 shares, about $10.9M). Net open-market shares: -39,950 (purchases minus sales); net value about -$10.9M.Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-09-04 | Liggett Emily M |
Grant/award | 1 | — | — |
| 2026-09-04 | Khilnani Vinod M |
Grant/award | 12 | — | — |
| 2026-09-04 | Shular Craig S |
Grant/award | 31 | — | — |
| 2026-09-04 | Prevost Patrick M. |
Grant/award | 10 | — | — |
| 2026-09-04 | Phillippy Robert J |
Grant/award | 7 | — | — |
| 2026-09-01 | Liggett Emily M |
Open-market sale | 1,012 | $232.42 | $235.2K |
| 2026-08-31 | Khilnani Vinod M |
Open-market sale | 2,000 | $235.16 | $470.3K |
| 2026-08-31 | Toth Robert B |
Gift | 28,832 | — | — |
| 2026-08-31 | Toth Robert B |
Gift | 28,832 | — | — |
| 2026-08-21 | Liggett Emily M |
Gift | 1,609 | — | — |
| 2026-08-10 | Toth Robert B |
Gift | 28,832 | — | — |
| 2026-08-10 | Toth Robert B |
Gift | 28,832 | — | — |
| 2026-08-07 | Vijayvargiya Jugal K. |
Open-market sale | 2,337 | $293.65 | $686.3K |
| 2026-08-07 | Vijayvargiya Jugal K. |
Open-market sale | 4,865 | $294.45 | $1.4M |
| 2026-08-07 | Vijayvargiya Jugal K. |
Shares withheld for tax | 13,146 | $296.00 | $3.9M |
| 2026-08-07 | Vijayvargiya Jugal K. |
Open-market sale | 267 | $293.24 | $78.3K |
| 2026-08-07 | Vijayvargiya Jugal K. |
Open-market sale | 1,375 | $287.67 | $395.5K |
| 2026-08-07 | Vijayvargiya Jugal K. |
Option exercise | 24,594 | $68.82 | $1.7M |
| 2026-08-07 | Vijayvargiya Jugal K. |
Open-market sale | 3,745 | $292.46 | $1.1M |
| 2026-08-07 | Vijayvargiya Jugal K. |
Open-market sale | 11,174 | $290.12 | $3.2M |
| 2026-08-07 | Vijayvargiya Jugal K. |
Open-market sale | 287 | $288.29 | $82.7K |
| 2026-08-07 | Vijayvargiya Jugal K. |
Open-market sale | 286 | $295.17 | $84.4K |
| 2026-08-07 | Solomon Darlene J. S. |
Open-market sale | 3,705 | $292.22 | $1.1M |
| 2026-08-07 | Chadwick Shelly Marie |
Option exercise | 2,800 | $135.58 | $379.6K |
| 2026-08-07 | Chadwick Shelly Marie |
Option exercise | 2,172 | $87.36 | $189.7K |
| 2026-08-07 | Chadwick Shelly Marie |
Shares withheld for tax | 3,267 | $293.40 | $958.5K |
| 2026-08-07 | Chadwick Shelly Marie |
Open-market sale | 1,705 | $293.00 | $499.6K |
| 2026-07-15 | Prevost Patrick M. |
Grant/award | 81 | $253.27 | $20.5K |
| 2026-07-15 | Shular Craig S |
Grant/award | 96 | $253.27 | $24.3K |
| 2026-06-12 | Prevost Patrick M. |
Grant/award | 10 | — | — |
| 2026-06-12 | Liggett Emily M |
Grant/award | 1 | — | — |
| 2026-06-12 | Phillippy Robert J |
Grant/award | 7 | — | — |
| 2026-06-12 | Khilnani Vinod M |
Grant/award | 12 | — | — |
| 2026-06-12 | Shular Craig S |
Grant/award | 31 | — | — |
| 2026-05-29 | Phillippy Robert J |
Open-market sale | 1,320 | $217.67 | $287.3K |
| 2026-05-29 | Phillippy Robert J |
Open-market sale | 1,084 | $218.59 | $237.0K |
| 2026-05-29 | Phillippy Robert J |
Open-market sale | 740 | $219.54 | $162.5K |
| 2026-05-29 | Phillippy Robert J |
Open-market sale | 356 | $220.30 | $78.4K |
| 2026-05-13 | Khilnani Vinod M |
Open-market sale | 603 | $208.74 | $125.9K |
| 2026-05-13 | Khilnani Vinod M |
Open-market sale | 410 | $208.04 | $85.3K |
| 2026-05-13 | Khilnani Vinod M |
Open-market sale | 752 | $206.68 | $155.4K |
| 2026-05-13 | Khilnani Vinod M |
Open-market sale | 735 | $205.33 | $150.9K |
| 2026-05-13 | Vijayvargiya Jugal K. |
Option exercise | 28,071 | $50.95 | $1.4M |
| 2026-05-13 | Vijayvargiya Jugal K. |
Shares withheld for tax | 15,183 | $209.70 | $3.2M |
| 2026-05-08 | Chadwick Shelly Marie |
Option exercise | 4,912 | $113.28 | $556.4K |
| 2026-05-08 | Chadwick Shelly Marie |
Open-market sale | 1,192 | $198.88 | $237.1K |
| 2026-05-08 | Chadwick Shelly Marie |
Shares withheld for tax | 3,720 | $199.14 | $740.8K |
| 2026-05-07 | Liggett Emily M |
Option exercise | 2,006 | — | — |
| 2026-05-07 | Khilnani Vinod M |
Option exercise | 2,006 | — | — |
| 2026-05-07 | Toth Robert B |
Option exercise | 2,006 | — | — |
| 2026-05-07 | Solomon Darlene J. S. |
Option exercise | 2,006 | — | — |
| 2026-05-07 | Prevost Patrick M. |
Option exercise | 2,006 | — | — |
| 2026-05-07 | Shular Craig S |
Option exercise | 2,006 | — | — |
| 2026-05-07 | Phillippy Robert J |
Option exercise | 2,006 | — | — |
| 2026-05-07 | Reddy N Mohan |
Option exercise | 2,006 | — | — |
Well-known investors holding MTRN (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| First Eagle Investment Management | 2026-06-30 | 119,300 | $35.5M | 0.06% | Added 17% |
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 69,840 | $20.8M | 0.01% | Added 56% |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 64,753 | $19.3M | 0.01% | Added 70% |
| Millennium Management (Israel Englander) | 2026-06-30 | 12,224 | $3.6M | 0.0% | Reduced 16% |
| D. E. Shaw & Co. | 2026-06-30 | 8,210 | $2.4M | 0.0% | No change |
| Bridgewater Associates | 2026-06-30 | 3,213 | $955.5K | 0.0% | Reduced 12% |
| Two Sigma Investments | 2026-06-30 | 6,000 | $867.9K | — | Sold out |
| Gotham Asset Management (Joel Greenblatt) | 2026-06-30 | 2,778 | $826.1K | 0.0% | No change |
| Soros Fund Management | 2026-06-30 | 1,437 | $427.3K | 0.01% | Reduced 93% |
| ARK Investment Management (Cathie Wood) | 2026-06-30 | 455 | $135.3K | 0.0% | Reduced 20% |