MTRN - Earnings call 1 2023 | Materion Corporation

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Operator

Greetings. Welcome to the Materion First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, John Zaranec, Chief Accounting Officer.

You may begin.

John Zaranec

you conference us call. thank quarter our and earnings XXXX morning, for on joining first Good This John is Zaranec, Chief Accounting Officer.

our that materials the quarterly begin to as part that we remarks review I reference morning, Before of today's would we point will out the we on posted results. of have company's website this like

Chief Shelly can access the is on Vice webcast call earnings me Chief also materials today feature Financial and You link. Vijayvargiya, Jugal Executive President and and President the Chadwick, through the Officer; With Officer. download

conference format for as is Our on will Jugal provide an as comments today's key quarter call the as initiatives. follows: on strategic update opening well

for Following the the financial Jugal, in for will XXXX. results detailed review remainder the of our addition Shelly expectations quarter, to discussing

for up then questions. We call will open the

Let on that investors including portion, in the in forward-looking the expectations. section made current are those statements question-and-answer me remind during and outlook based the presentation, any

actual as that The Those listed company's differ press the in of this the result release factors a a forward-looking factors. are morning. earnings from variety by contemplated issued of we performance may materially statements

numbers call charges the per in comments the over discrete and certain amortization, earnings and adjustments depreciation, regarding income taxes, noncash the Jugal through and purposes I'll tax comments. share items, turn in made are And Attachment special in prior year comparative depletion reflect press earnings for period adjusted removed adjustments. now his for and to income Additionally, release. The X net before GAAP X shown morning's interest, this

Jugal Vijayvargiya

for on this that you sales, pleased our EBITDA outstanding EPS. with we to Coming XXXX, report quarter continued details into I'm and value-added record year, welcome, strong share that have off Thanks, everyone. performance. John, a first and great to an be delivering It's first to momentum quarter today

to consistently our initiatives We strong outgrow as leader us a markets. our is execution high-performance strategic on continue end power see global into the advanced enabling to transformation of in materials our

continue us build out healthy pipeline with our partner projects with develop of to solutions to aligned growth customers megatrends. We next-generation as our global

continue In growth to These again double-digit to quarter, with markets. in deliver softness some the partnerships growth strategic organic us enable sales for once the first margin and face today in saw meaningful we expansion. earnings us position of even future

For Led a combination EPS of execution Precision project, to all diligent growth outgrowth more doubling of time that of achieved sales XX%, year-over-year the XX% straight period. our X quarter over of EBITDA and and improvement EBITDA metrics, reflect strong by growth control, of growth volume, Clad than new record cost performance. and initiatives across operational quarterly EPS Strip These value-added our results XXth XX%. contributed our sales, many our we

aerospace, market across We benefit strong diversified market automotive from also continue to end strategy and demand energy. with our

drove expected midterm outgrowth in EBITDA nearly bottom the consumer quarter, semiconductor outpaced slowing our continued electronics. well the that deliver us to enabled since for Our gas for a content driven content increase multiple have XX% our and we XX% these than advances advanced of towards tracking In reaching of XX% increase have top applications with growth growth more total, helped oil XX% initiatives These auto, capabilities more across where expansion, for than margin XXXX. organic and in our XX%. us and more strong line and aerospace markets than target

next year. construction contributing our is of Our facility of Precision production are late to on Class this and as planned, strip meaningfully. facility track begin The expansion new is progressing we

materials supply to produce our our This us total noted to a half semiconductor most support will well as call, worth propulsion been year. of million sophisticated capabilities $XX recently second for for and for of new broaden order electric next $XX site am facility shipping is for report last $XX awarded of we the our fulfill vehicles. this the that million a date. also order the awarded in expand had build-out capacity capabilities production we and systems. first on our materials of come million in space next-generation a online in as Milwaukee track the has product of to to I expect are production to that chips year. to The to began scheduled critical customer pleased We of quarter batteries advanced chemicals On first

missions. are withstand Our the space harsh which travel out demanding designed are of to conditions carrying and critical products, for crucial

products FLY. of to increasing create space We portfolio of of our to in work are that in the as milestone partnership month well energy and first of opportunities salt major To with as solutions. into we to a for end, molten off energy FLY the salt a This evolving as cost-effective leading-edge the and industry reliable, clean continues a align plant customers us Power meet can properties for customer-funded today many the fantastic to closely start. the is well and purification megatrend our products achieved ideal our continue our safe delivery production. with we completed used is nuclear future. The of Cyrus last requirements open

how and help of customer-funded expertise compelling through confidence most opportunities perhaps are customers what's Our examples to next. customer and are enable existing initiatives new continuously growth we winning deep building them our with the

targeted top deliver third driving results on and With for At bottom that the mind, our uneven positioning and semiconductor in goes success. I'm operational and on full particularly the environment. deliver portfolio performance year in progress exposure, environment year. with record an output XXXX, our and the outgrowth on advance if challenging, with and that proud and market even to and for invest deliver our I electronics initiatives, long-term we're targeted strong confident consumer our in consistent management continue XXXX. same coupled a we to time, remain markets. our that we'll very on the the certain both team's ensure more raising cost the to the are in am actions remain our to as continue global success laser team on in initiatives, remains on With to pace focused growth excellence of share diversified the turning of to excellence line strength we guidance our track operational for results pleased we headwinds initiatives, end increasing Despite areas consecutive we

the turn details me to let financials. Now more Shelly the over cover call to on

Shelly Chadwick

good and Jugal, Thanks, everyone. morning,

on my reference this posted our starting morning, X. on the comments, During website Slide I'll slides

of where saw up EBITDA, costs, quarter, the as for strong were significant in share. well the increase This growth the contribution outlined as by the record a margin precious $XXX.X energy and Precision Jugal first prior sales, for above-market delivered we demand opening Value-added from pass-through per his metal across and As XX% from million value-added Clad we year. which excludes adjusted impact mainly EBITDA earnings was automotive remarks, quarter sales, meaningful end markets, Strip. aerospace, driven

as delivered roughly the of earnings year $X.XX We $X.XX per interest share despite up expense adjusted compared of quarter, headwinds. to in first prior XX% the

offset to and XX of declining the XX, mix $XX.X from in and strong unfavorable year within Slide prior to was Materials, driven some higher in Moving semiconductor volume cost electronic sales, expansion demand. XX.X% adjusted by margin increase was with the inefficiencies EBITDA points. by operational performance value-added This Performance basis of the materials million due XX% up quarter or

me Starting business our let first to Slide Materials by Performance with review business. XX, quarter segment. Moving performance

EBITDA, of precision margin XX.X%, a special increased sales and compared up record to Value-added first volume points items, prior excluding clad as due EBITDA were expansion. year. an up increase from million demand outgrowth volume. $XX.X XXXX, $XX.X compared first automotive $XXX the the Aerospace, million, operational of growth margin was strip quarter drove The with higher XXX to basis our record energy a XX% all-time to quarter high quarter well in of was XX% first and performance. as the primarily initiatives of strong million delivering of

The the during impact first than into also coming Act an be credit. this quarter first production of should credit benefit and potential anticipated determine Reduction the we inflation estimated quarter advanced benefit from year. the studied included larger We the the manufacturing

as to the expect of aerospace, we automotive outlook, strip. and Moving led in clad as year growth outgrowth by well another energy Precision

mix or on record were million higher was the value-added decrease quarter, shipments year, items, of up sales $XXX.X decrease XX.X% was driven of by softening to of of to unfavorable including million, metal from due the The excluding tantalum-based products. the precious items, impact X% $XX.X to XX% turning sales Slide in prior quarter Materials Value-added a cost from XX. and year. first Electronic headwinds prior mainly special few a compared expected Tantalum Next, sales. a EBITDA, the

currently are In decelerated cost through through targeted cost quarter, manufacturing which sales activities. some resulting reduction addition, in being addressed the inefficiencies,

the remainder half of the semiconductor stronger to quarter. and third with expect fourth increasing As orders year, we forward a look in the second we

turning line prior cost the or Precision attributed sales rebuilt. Optics the prior mainly XXX $XX.X of market to EBITDA, electronics million, by Finally, up spend was year. being and the is softening. value-added This was XX.X% the top items, special driven from decrease $X.X to points while X% were Value-added on consumer sales, XX. million is discontinued year. excluding basis and segment down applications compared the control Slide reduction general This largely actions to

targeted and by the towards space, to line, in with the rates top expect continuation sequential improved of and quarters, improvement cost reduction out activities. supported we next Looking defense bottom the coupled few order

now credit million million company's Slide capacity Moving existing a and to of debt debt liquidity on approximately on with net position XX. We of available $XXX quarter the and cash, ended facility. the $XXX

our Our flow the free leverage despite midpoint $XX down of spend. from improving CapEx by below slightly quarter and to with compared million of higher 'XX at target range first Xx, the year-end, cash

address our transition year to Slide Lastly, XX let me outlook. to full

first to start the The year. a quarter was great

from initiatives. While see see forward, some of outgrowth we pockets healthy going also softness opportunity meaningful areas our growth market we and of

at With our to per share, this, increase representing the $X.XX adjusted we $X are XX% a XXXX EPS to full from year midpoint. raising

concludes Our in shaping of expect modeling 'XX XXXX sustainable to is strong and fund up company. year Materion, and million assumptions closing, been you'll stakeholders. long-term throughout another and remarks. value This exciting execution leading for have outgrowth from expenditures record $XX that capital prepared our meaningful continued see continue results to to opportunities of all to In our we our in growth the creation roughly noted, be

for line the now open questions. will We

Operator

coming And this is Capital [Operator morning Markets. first Instructions] the Gibbs from from Phil KeyBanc question

Philip Gibbs

in it you sounds persist? long you in And anticipated. those were may quarter? the was the given that mentioned larger what color we inflation And think how some had said credits prior guidance your into on materials. you been of benefits baked have some Any Reduction from You than Act like performance the credit benefits should

Shelly Chadwick

sure. Yes,

and it didn't certainly into pleased fully for the the the we're be the we of be but appreciate still know with what So really coming would -- settlement would positive. And Materion. Act. we year, a studying benefit did Reduction it were inflation

margin thinking So we kind Materials that of our on built expansion. into Performance

Now it, had an benefit more year. look looking for to at we're at $X that time million we've the roughly

So that's recorded production. with

so ratable not yes, material. for So pretty get beryllium you you can the through be year. assume for we critical way high-purity about and go materials through written And somewhat goes expect does as a the the at When to would that's least away, it that our critical asked when -- phase year. out you it it's even is that

And so phase a out there. we expect don't

Jugal Vijayvargiya

add to Phil, just Yes. to that.

list. is Shelly government. critical the deemed it U.S. materials by and Beryllium that the As that are definitely is mentioned, on for

other in materials. participate some this. be we There So may

So other Shelly what we're Beryllium see look we looking is but to that's at, study right the continue it to and what now at said. there's if things that's and

Philip Gibbs

get on some about? based how you credit producing So You're how mechanically, and threshold, how work? revenue? or material a does it come a -- that above I does did mean, certain

Shelly Chadwick

Yes.

So these production in U.S. them it's minerals to really U.S. a critical and by sell to encourage of the taxpayer.

us. The and cost. credit applies our it, way purity is percent only production beryllium, it benefits understand And high that above. XX% based so we certainly, a the of So to on

material XX% to of would us as produce a that our cost So roughly to come credit.

Philip Gibbs

talked the think of then slicing about makes between points. in mix Electronic I some terms the sense. that the about? weaker XXX And That down you Any of and color Materials margins were up Okay. panelist operating alignment absorption on year-on-year, basis

Shelly Chadwick

Yes.

into So and last right, We've you've about drivers, late leading the those year. kind starting issue talked Phil. got year of this tantalum

saw And also We sales. have the are target meaningful cost then step metal volumes precious We mix some as down. do we had in March. inefficiencies lower pretty with stepping a down

look are impactful at it really X/X, it. X/X. those through we was I the would So decelerating quarter. say They're kind items way of the really X/X, equally

Jugal Vijayvargiya

those little bit a devices. Phil, targets, consumer semiconductor again, devices And those metal electronics to add mix a They're used our as precious precious when space bit, And Both on the have just that target our which in impacts you of well. from to as that Yes. a a in are type impacted. used at metal memory better favorable been standpoint. are the result, look quite sales,

So happened we that mentioned in expect this March. deceleration that Shelly

We chip that is would expect here manufacturers it And QX, we company in. has continue I the diversified expect been comes to recovery. when But recovery in markets all that play participate and the we've one the the of by we noted to that very QX. that in to in QX think got things we're a that

of rest to year. markets us other very move have help QX forward we so And are then be to -- the able in and that the for favorable.

Operator

Moore from Securities. question The Daniel CJS is this from next coming morning

Dan Moore

you drivers around cautious just that particularly pointing into as like are of outpace semi growth perhaps incrementally choppiness sort and that does HX out 'XX? those about it electronics. share around sound content continuing fiscal of the just And end two, talk mentioned, Color, to That's Or takeaway? market just you markets? visibility and to Is in gains, your the one. and ongoing more right growth in maybe consumer Jugal, the the

Jugal Vijayvargiya

in there bit. recovery more would I They a and from calls low what be all little bit on cautiousness those a sure a QX, I'm QX monitor than Yes, had a in I various bit to what's months right, industry. been that continuing you've been to right going tend that a is back. to shifting indicate companies. of Yes. reports a with few will chip the We've think QX, perhaps the say in the market perhaps we to to maybe point listening the little

we said, of bit the diversified in couple of chain. compared I certainly a take semiconductor whole content, we months on will though, back. participate have so cautious of a to, I very that a And a as our stress, part

chip our so the anywhere the And about. of content manufacturers level not has have near talked dropped that some

space, in well X, And being us In the at we the X the company, look indicated, strong aerospace, I diversified of gas, many fact, would those within of to and for diversified content guide. in actually very to We market in the our those oil us exactly And entire bit as a it. if auto, expect raise and think a the had markets, and we telecom, you QX, be up. that QX the that little QX. of deliver to anything, that we've if but drivers softer overall for we each have course, in was to to very, think outperform to you last parts then would recovery business our able QX of saw the for expect, flat continue -- the that if portfolio just And positions with years, semiconductor semi. increase the the that's frankly, continue portfolio I the then I -- with some markets are to I able industrial, have and think

Dan Moore

Maybe to Optics. helpful. It gets little shifting Precision a quickly less Very attention. the

low trajectory you about I quarterly of towards maybe growth improvement. sequential expect or the in talk new to some the to -- business? normalized And think back 'XX. of given to fiscal business to margins more We just by return sort that wins a in mentioned HX you getting mid-teens

Jugal Vijayvargiya

Right. would on of we that taken. that Well, some business actions build expect of margin move with to we have continue the here that targeted And in saw the the right, forward as rest I on QX year. you we'll this expansion,

having space defense we good are and line, top for and the auto of the in some particularly success, the that for business. areas As

be, throughout maybe year. year. half in better think expect But this so And top growth actions as this of place, maybe see by line are of would think, taking second half to side, good a the year, bit the improvement, second I it turnaround. line see would QX but the would bottom evidenced and in improvement 'XX set hold, the a start the of to really for I taking on I our I But

Operator

CL is question from coming from next King. Your David Silver

David Silver

be clarification naive nature of it. the sounding going organic question and for it's growth. did First you to its I is one, a apologize about -- But

about that, presented? is organic absolute the that like You the it did or something? I looking detail how missing like I talk just Or double-digit growth. on look segment. is When through number Am really through deck, press I'm the not any when slide release being down by don't breaks what see I

Shelly Chadwick

that take one. me let So

we materials that our remember right end our have that market, I which indicator. an organic is see our everything in now, of to think on so posted important by website acquisitions anniversaried, I list also performance think growth. you is the do all But

David Silver

Do All Milwaukee, question, on good. comments discretionary your a or in questions. lines your XXXX noticeable on. of remarks was there about the in and say, the second when some in XQ strip materials, performance in year, I'm projects. and your Very projects Okay. CapEx Massachusetts the I for time completed for, turned do customer-focused step-up was couple certain half line project prepared right. half you clad of phase let's first similar of time I A the a had last following have of startup. recall, up

kind So you customer contracts time remaining whatever. development, we do you are for of that focus can under any lines space and away. the key let or or take it on have funded targets any propulsion that I'll

Jugal Vijayvargiya

look follow-up a can great key No, call, announced certainly, discussions the do talk worth can Phase you $XX then contract a about you'd projects, million. of have now we for the example, X question. we other as I well. and announced as X second at, X, which phase, earnings million. the Yes. When like $XX last space was we We is which a in propulsion, contract announced any

the year, continued is remaining Phase Phase the year year. thought then that of have able this to Our will that, we this X to and able be complete maybe next somewhat we'll I expectation progress to we this be and great had teams that it year. finish our it would but Earlier, think make be on

And year. we would next then expect into X, Phase

bit This was the ship is process We the start year. at out customer funding the investment, also million this and that last get call, in and energy announced may project indicated the of finish a and you place perhaps clean approximately $XX facilities, little by in one project investment that of year funding. where that, to of capacity putting that the of our a recall, then clean end end energy we XXX% We're would in of at of couple done. the in a they're that we'll our the next

as couple Of facility have Cloud both we'll point, about the we implementation We one, in years course, have of at But and up implementation II the other We process. decide on how have a new of the do Phase now had some that going We're And with to we last our that. running. customer we're for facilities. the is producing continue, that that one our but And facility. that. from the Precision talked is there. And demand from our needs II continuing strip. production Phase is legacy

frame, towards look then in sales would start really, year. time the 'XX the end And of meaningful to production in I next for sales time 'XX that frame. expect We the than

hopefully, I of the with, of the projects think, key business. we've side on PM So the about talked that that some helps

Shelly Chadwick

to take had just that first side our of We was spending noted activity capital especially year the for out last of in capital strong, of coming of our you projects. the year QX likely several a on that, these lot And maybe quarter.

bit sort into a So a made range. lot that million came that QX our higher. held guide $XX of We've and our first CapEx quarter at for of

know should off how that come because peg what we but be hard $XX -- done roughly you and It's equivalent. of year. take how really that those in, to the rest have expect work and you it the So of timing gets million invoices

David Silver

capital. have or stick you better last out, just notice various with capital flow what And too I'll CapEx Maybe this working cash somewhat the XXXX consistently. of one. to But contingent of I statement. up, looking kind or it expect been of think of is as up flow that the past you was And on was developments? was progresses? years your Thankyou. pointed free The couple on of maybe was and meaningfully capital but working years release few cash of years, color. Shelly do use I been reverse great where it big the difference the did as a built diminish likely do year, difference couple even That's is just that's part is I over at this though Or working kind

Shelly Chadwick

Yes.

great Now question.

high-growth you couple been where imagine, years the pretty there's significant mode, can last have been we As of added. a capital in working

and more we from about manageable that a certain But that's Strip of with pipeline. finished where inventory kind go a new where amount capital raw to you've goods, of situation getting working Clad this we no then structural expect for us fill got more going fill Precision pipeline you do be year. to to of example the pretty steady-state a for semiconductor, of Some would needing think forward. into when a hold materials for great to projects that, be

that initiatives have capital we making flow. improving right on we've We that got several cash can to of to focus where the and on working we're right sure increase kind going the inventory,

So see positive I a capital year. this going we're working do expect that of to out

the going really on not but it's burn be to last haven't couple. definitely put in it's been We number a the that,

David Silver

in this are has on HCS But locations clarify wanted the do expansions and those me, case? take once commissioned, the Is that but I that orders, there I'm Okay. are orders of just they capacity in get a those I to Can to you loaded firm already. have -- hand and to fair at essentially the unit. one electronic in up you the assuming of -- both I'll In units back base are this in Milwaukee added. Or the orders materials remind hand expansions completed more, just it's at in new real then other with built sorry, would queue. point? but say in amount and anticipation words, like no

Jugal Vijayvargiya

Yes.

indicated, Newton our continue is making start facility. side. investments introduced. confident let increase tantalum our So the we're as smaller designs see We're are content ACS, that in facility on are you node that We being with smaller in semiconductor to happening that and which that the because all me will the that taking place, the chips

defense also We in the good and of side see growth business, aerospace that industrial our side of that business.

put David, so we're have initiatives going to that Part is of of place involved have going is confident is with And And that of and that orders the customers. that that just part continued development projects we good, we on that in new based and in. we're are capacity demand. discussions meaningful to new

we that on business we're doing in in we've expand. a that But us putting capacity what customer Milwaukee can gives capacity and building opportunity when it us targeted that based think to in is in indicated, When the putting we 'XX comes frame. I for place feeling So time as the about we to -- we're of it, do the facility, good first we're capacity 'XX, opportunities. is announced new what it putting what contracts, think I customers very discussions, the we're think, terms got 'XX,

a node in customers. based are investments type again, the of that growth targeted really we're ALD sure on well that on doing semiconductor materials number with on a basis we we we on as programs very are different as announced of So smaller working making next-generation battery space,

us. the of investment customers actually And made with one an

joint them. with that a so And we're investment, activity doing

that, I as well. good about so one think, is that we're very feeling And

over And locations, so X impact we're those in say place general, about That's have capacity very the we putting and both next the in to years. in to I good expect X great. we're would excited meaningful

Operator

is Dave Markets. from Your from Stonegate next question Storms Capital coming

David Joseph Storms

the bit by cost that start you actions could targeted hoping little a mentioned. reduction about Just you've speaking

couple to trying some seeing Just the of a through short-term softness get of markets. you're in

Jugal Vijayvargiya

question. good Dave, Yes.

we know, of a operational you excellence. very As have good track had record

looked the just do needed company, that as I we years. feel we business. driven something that during we've it years, that several a last over was at needed, that's and that look think part we've of at normal within the there's that and the them. Whenever over our pandemic we our We did last several actions, as time

So softening areas, we as the action. we some take some sure of that see we in make appropriate

I one making don't and we we're where have focused focused on think we things the very capacity. of take lose that that on been action sure is very

support in sure way. to make our We that want we customers can meaningful a

we're And so ramp-ups for there's sure positioned will to discussion to a lot of and on well second half ramp-ups. happen the that want in make side, we about capitalize the semiconductor the those

impact our our that So required thought out point. well don't may don't impact any ramp-up, capacity at type of sure they're reduction some and making is that we do and We're put in be very that place.

at just, just would it's it's say, just I of we'll look something continue based that So course and forward. action as a move on market we conditions, normal to

David Joseph Storms

That's One for great me. more color.

just second for potential if bit wondering rate on what -- the you little that in are and was I seeing mentioned you're your a shed the could acquisitions anniversaried. market? You hikes all M&A of more give or could hike clarity little rate us year pause the still the in given you are and market's if anything certainty there? pre-elevated, just multiples half the is a

Jugal Vijayvargiya

Yes.

good for be the the say properties there to a side would get M&A to think think, price they the side, I I are still is from seller that what have. expectations, able the I

just And in have diligent to so very our we be evaluations.

fill understanding offering it We gap is. areas continue of for like for some us the on And seen sense very give But some and it done seen. have has returns. to does we've M&A look type at that diligent over And for not us? couple say last a then other M&A, bit would Does the general, what in in it's and have the us, thing is we the acquisitions? elevated it based I probably it be evaluate certain drop to Does portfolio of probably of just make the us? the adjacency if right maybe side we'll the still that a pricing

Operator

question follow-up Capital a have KeyBanc We from Gibbs Markets. of Phil

Philip Gibbs

development II. million, And then been have a credits And plan The those yet? that year, the expect customer mine for this you'd in What's those been have spent? size similar realized 'XX? pre-funded the cost secondarily, question $XX with the Phase line

Shelly Chadwick

Yes.

the that opening that Not development know, talked side, been year. we $XX amortize on put pit of an cost a sold. as that roughly spent capture really of balance kind goods of the yet. spend has And mine another So sheet over we million on as and that lot this about to you production with

really you still So will that see of it next most quarters. in few the come would

In last year. received the some that terms prepayments, we of of

We more expect portion good receive year, we that 'XX. but did come little of this a in to a bit

Philip Gibbs

So is that, much the... for left how Shelly, on

Shelly Chadwick

or Yes, $X million roughly $X million.

Operator

a have we King. CL from from And follow-up coming Silver David

David Silver

of aligning ones issues guess, opportunities the is But issued at with products. I North technology say, in yourself guess Shelly environment to enough And only other Jugal, newer think to their were bright on yourself any trade projects. U.S. trade that to of a might about that the shift you as there new restrictions maybe comments in kind U.S. goes of X- of from In into, last and time to But labor, opportunity mean, customers of this much United research or have the your technology some to if skilled So growth for number late of a might part customer-focused is involved supplies, the various going and not I'm bottlenecks try States in reason. you're think currently earlier avail or there or the factor way made them. to benefits capabilities. you outside to possible? America in you've other projects the your and big the any prospects China and hitting as just maybe the in talked I term, on, or the are not you're words, a there And reason other one when long-term able think X-year I longer as getting same let's Or going spurring Asia get kind is incremental, top ecosystem? the you. reshoring impediment? that talked be I Does do integrate Act the quite is is be Reduction in of fact ecosystem But of with any feed that talked for picture wondering due the Asia, an comment of the But maybe I you question. outlook? could the some objectives. inflation Or about how you've you that year, developed maybe that maybe on I'm some your just that. on IRA onshoring restrictions doesn't look things

Jugal Vijayvargiya

been of couple a have Well, our that focused stress making on globally. business sure we I Yes. things. that to One, to grow continue want we

approximately, point, the I'm certainly, been coming a is the been XX%, and in and bit a to a down our of the about you going sales XX% But -- north had So in factor, talk I'll that's U.S. XX%. activity we that's little we're then actually U.S. data of say, around now give And to that. just going on

our on So basis. increased share by a we've actually year-over-year the just points X outside U.S. of

I focused that, in capturing in And our to speaks make that on that to that doing growing are and going to on we're to so our that. we're sure sure business work the teams great continue We're to globally. think, to Asia, make continue going share we're Europe, absolutely

the centers electronic one U.S. on for I Precision the R&D that we things Now have think the locator pleased for capability R&D that area with is great the Performance this here regard have is R&D main with to really Optics, your of we our I'm question, Materials, and for and in in U.S. centers materials our the capability U.S. really lot of A manufacturing side,

Our manufacturing, Performance of with all the mean, Materials U.S. I located in here manufacturing legacy our is our

in David, the that Milwaukee the when in place, talked in about putting we're acquired U.S. As investment you we U.S. HCS in the the facility, business, that's that's that the know, we and Newton just then

the and to So so in we're what able office on then in and we work U.S. is Europe. the U.S. the can outside and support, support to that's other manufacturing we're R&D be And our and the I same at continue front. that necessary think the going necessary between our the have capture making well on, investments the our and sales I Asia time, side business grow really we to side back positioned believe

here U.S. X the advantage able take be the initiatives next be our is years, well-diversified to expect good to to to in onshoring and able be to do company. X the grow be of on Europe that's activity in working U.S., over So I a involved able the that I us expect government also to to I global just the continue us both. us Asia to and but business expect or

Operator

the of John and call I to the for remarks. Zaranec will over end now the question-and-answer reached have closing We turn session,

John Zaranec

Thank number in XXXX you your be the I'd call. call to participating follow-up available will available Materion. company's again. A you. on for website, morning this of materion.com. our call (XXX) concludes for and first My questions. on like is recorded thank earnings the XXX-XXXX. This this will Thanks quarter interest playback be any I

Operator

conference, today's concludes your Thank you time. participation. for this lines you your This disconnect may and at

Materion (MTRN) 3 May 232023 Q1 Earnings call transcript