MTRNMEDIUM SIGNALFINANCIAL10-K

Materion shows mixed financial performance with declining revenue offset by improved operational cash generation and reduced capital spending.

The company demonstrates operational discipline through strong cash flow improvement and meaningful reduction in capital expenditures, suggesting management is optimizing resource allocation. However, the revenue decline combined with growing accounts receivable and current liabilities indicates potential demand challenges or collection issues that warrant monitoring.

Comparing 2026-02-12 vs 2025-02-19View on EDGAR →
FINANCIAL ANALYSIS

Materion's financial picture reflects operational efficiency gains amid revenue headwinds, with operating cash flow growing notably to $103.2M while capital expenditures declined substantially to $68.6M. The company maintained working capital discipline despite a 16% revenue decline, though rising accounts receivable to $222.9M and increased current liabilities suggest some operational strain. The modest cash position decline to $13.7M, combined with reduced R&D spending, indicates careful capital management during a challenging period.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
-37.9%
$110.5M$68.6M

Capex reduced 37.9% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Cash & Equivalents
Balance Sheet
-18.1%
$16.7M$13.7M

Cash decreased 18.1% — monitor burn rate and upcoming capital needs.

Operating Cash Flow
Cash Flow
+17.6%
$87.8M$103.2M

Operating cash flow grew 17.6% — strong conversion of earnings to cash, healthy business fundamentals.

Revenue
P&L
-16.1%
$6.7M$5.6M

Revenue softened 16.1% — monitor whether this is cyclical or structural.

Accounts Receivable
Balance Sheet
+15%
$193.8M$222.9M

Receivables grew 15% — monitor days sales outstanding for collection efficiency.

Current Liabilities
Balance Sheet
+11.8%
$226.7M$253.6M

Current liabilities rose 11.8% — increased short-term obligations, watch current ratio.

R&D Expense
P&L
-10.6%
$29.0M$25.9M

R&D spending cut 10.6% — could signal cost discipline or concerning reduction in innovation investment.

LANGUAGE CHANGES
NEW — 2026-02-12
PRIOR — 2025-02-19
ADDED
As of January 31, 2026, there were 20,736,213 common shares, no par value, outstanding.
In fiscal year 2025, there were no customers that accounted for greater than ten percent of our net sales.
Backlog The backlog of unshipped orders as of December 31, 2025, 2024, and 2023 was $579.0 million, $537.6 million, and $573.4 million, respectively.
The inhalation of airborne beryllium 4 particulate may present a health hazard to certain individuals, and the U.S.
Occupational Safety and Health Administration (OSHA) has established standards for workplace exposure to beryllium, which fundamentally represent our current health and safety operating practices.
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REMOVED
As of January 31, 2025, there were 20,765,214 common shares, no par value, outstanding.
Backlog The backlog of unshipped orders as of December 31, 2024, 2023, and 2022 was $537.6 million, $573.4 million, and $576.2 million, respectively.
The inhalation of airborne beryllium particulate may present a health hazard to certain individuals.
Occupational Safety and Health Administration (OSHA) published a final standard for workplace exposure to beryllium that, among other things, lowered the permissible exposure by a factor of ten and established new requirements for respiratory protection, personal protective clothing and equipment, medical surveillance, hazard communication, and record-keeping.
Materion was a participant in the development of the new standards, which fundamentally represents our current health and safety operating practices.
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