| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 21 | 59.6x | 17.8x | Bottom tier | |
Growth | 68 | 21.6% | 7.1% | Top tier | |
Quality | 35 | 8.1% | 4.5% | Bottom tier | |
Safety | 58 | 2.5x | 2.6x | Around median | |
Capital Return | 35 | 0.22% | 2.12% | Bottom tier | |
Momentum | 93 | 148.7% | 2.9% | Top tier | |
Sentiment | 24 | 3 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Materion Corporation produces advanced and critical materials used in semiconductor, space, defense, energy, communications, data center, and commercial aerospace applications. The company generates revenue through three segments: Performance Materials, which provides, among other products, beryllium alloys and beryllium- and nickel-based spring materials; Electronic Materials, which serves logic, memory, storage, energy, and communications applications; and Precision Optics, which provides optical filters, mirrors, and coatings. In the space market specifically, Materion’s materials are used in satellites, launch systems, telescopes, laser communications, exploration vehicles, propulsion systems, and space power systems.
In Q2 FY2026, Materion reported record net sales of $613.9 million, compared with $431.7 million a year earlier, and net income rose to $38.8 million from $25.1 million, while diluted earnings per share reached $1.84. Value-added sales, which exclude precious metal costs passed through to customers, were $308.2 million, up 15% year over year, while adjusted earnings per share were $1.90, up 39%. Adjusted EBITDA also reached $71.8 million, or 23.3% of value-added sales, with the margin expanding by 250 basis points year over year.
Performance Materials generated value-added sales of $190 million, representing approximately 62% of total value-added sales, with 13% year-over-year growth and an adjusted EBITDA margin of 25.4%. Electronic Materials reported approximately $87.4 million, growth of 15%, and a record margin of 32%, while Precision Optics generated approximately $30.8 million, growth of 26%, and a margin of 21.4%. Accordingly, all three segments delivered double-digit sales and EBITDA growth in Q2 FY2026.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” but the average price target, highest target, and lowest target are all identical at $161, meaning there is no difference among their published estimates. This target falls within the 52-week range of $107.72–$304.58 but is approximately 47% below the range high; this gap highlights revaluation risk despite the increase in FY2026 adjusted earnings per share guidance to $6.80–$7.20.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Net sales rose to $613.9 million from $431.7 million a year earlier, and value-added sales increased 15% to $308.2 million. Growth came from aerospace and defense, semiconductors, industrial, energy, communications, and data centers, with double-digit growth across all three segments. Volume, price mix, and operational execution lifted adjusted EBITDA 29% to $71.8 million, while adjusted earnings per share reached $1.90, up 39%.
Semiconductor sales rose 23% year over year in Q2 FY2026, while semiconductor orders increased 20% amid higher demand for high-performance memory, advanced logic, and data storage. Communications and data center sales grew approximately 50%, driven by AI infrastructure buildouts and wireless network expansion outside the United States. Electronic Materials generated value-added sales of $87.4 million, with a record adjusted EBITDA margin of 32%, but management said the quarter’s mix was richer than expected for the full year.
The company secured $90 million in defense orders during the first half of FY2026, and open requests for quotation increased to more than $500 million from approximately $300 million in the previous quarter. Space orders doubled year over year, while the space business became approximately six times larger over three to four years and represents approximately one-quarter of the aerospace and defense business. Materion also secured a $15 million commercial space program in Q2 FY2026 for materials related to engine performance, with sales expected to be realized over four to six quarters.
Management expects year-over-year sales growth in the mid-teens range after raising its outlook for the second consecutive time. It also raised adjusted earnings per share guidance to a range of $6.80–$7.20 from $6.00–$6.50. The midpoint of the new range represents an increase of approximately 30% year over year and a 12% increase from the midpoint of the previous guidance, supported by a record backlog that rose approximately 30% year over year.
Precision Optics generated value-added sales of $30.8 million in Q2 FY2026, up 26% year over year, marking the segment’s strongest quarter since 2021. Adjusted EBITDA rose 206% to $6.6 million, and the margin reached 21.4%, exceeding 20% for the first time since 2021. Management attributed the improvement to new programs and growth in semiconductors, defense, space, life sciences, and industrial markets, alongside improvements in manufacturing, productivity, and yields.
The Electronic Materials margin may decline from the 32% level recorded in Q2 FY2026 because management described it as not being a new baseline and cited an exceptionally strong shipment mix. The quarter’s results also included nonrecurring positive benefits of $2 million to $3 million, while net debt was approximately $421 million. In addition, insiders recorded net sales of $9.4 million over the three months through August 7, 2026, although this remains a weak standalone signal because those sales may have been prearranged.
