MTRN - Earnings call transcript Q3 2024

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Operator

Greetings, and welcome to the Materion Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Kyle Kelleher, Director, Investor Relations and Corporate FP&A. Sir, the floor is yours.

Kyle Kelleher

you conference us call. thank quarter our and earnings XXXX morning, for on joining third Good This and Corporate Kyle FP&A. is Kelleher, Director, Investor Relations

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

and and me the on earnings call the Chadwick, can You today Jugal and Officer. Â Our feature is download Chief also Officer; opening as access conference format the on Jugal Chief Vijayvargiya, President Vice for comments President link. will quarter. provide Shelly call materials With Executive follows: through Financial the webcast is today's

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

questions. open then up for call the will We

and certain call tax his period year the prior for income share adjusted made for amortization, and comparative Let noncash may current any investors those purposes discrete are income, the interest, statements depreciation, release. are outlook the question-and-answer contemplated in adjustments X press statements taxes, The and release we materially the comments. The X expectations. Those before regarding that company's based charges, in press depletion in earnings from special And in made turn portion, variety as presentation, in the GAAP factors during performance this in are Jugal through the morning. Â Additionally, factors. the including section remove and now on reflect earnings a Attachments net of that me earnings remind forward-looking shown issued and per the comments adjustments. to over of I'll numbers differ this result listed a by forward-looking actual morning's items,

Jugal Vijayvargiya

in several see corrections the headwinds, with market expected discuss markets, Thanks, Kyle, delivering clad softness for across nice provide down defense. on slightly continue inventory Sales quarter as in an been team today and update everyone. our be to third the Despite on our market to to outlook of well for laser-focused It's the strength remainder and the end general were our we results you of quarter performance. our strong space strip has and as while year. with these welcome,

For EBITDA the quarter, we of achieved margins XX.X%. record

In improving several been north aligning structure X the our for XX% fact, X last our soft the our the of cost quarters, our been quarters, global company. has of optimizing focused target. Â While have markets margin which we margins, and on megatrends, the the team portfolio footprint have last has overall over delivered EBITDA of to

Let me highlight some each of these details around areas.

Although related overall in in is in capitalize the space aerospace logic as market. have defense major to the was we of memory pleased market has our with in than the recovery We're serve semi-sales. softness we opportunities new and defense quarter technology emerging solutions. global a and semiconductor consumer processing of a this second to that broad builds, growth that of semiconductor electronic of supplier development entered its pave Strength volume able this to automotive announce will steady the support airplane in quarter driving will applications devices. year-over-year way we range next-generation increase, Materion a overall continued XXth than a impact deposition an been demand for agreement portfolio and consecutive of growth in equipment. Â We into demand for of is wide on partner the products that for customer saw to more semiconductor the in offsetting row leading and this and the With the anticipated, year-over-year higher slower materializing for growth material

material our composite example of the aircraft. products space, including with just the our telescope rotor demonstrating uniquely U.S. this another Supremex was NASA our new mirror allows most selected momentum the products, win tilt for how This be to are a test materials. build for tested use to of prototype potential This new by selection in long-range alloy will on AonTex business applications. Â In high-performance wins for defense, continued advanced in full of discovery one next-generation advances space of that cyrogenic of our Materion's facility. leading innovation, is quarter Army's lightweight us We continue the our future for in newest of legacy some suited opportunity on its while to the

steps consolidating construction. year footprint optimize We've facility in North both last a our of efficiency. Â We eliminate number Just used we're over as America. Asia additional in in into businesses. facilities Suzhou, China, production to that scale we taken focus the taking New megatrends, commercial on architectural we're adding Albuquerque, a of are steps closed with driving our of for and mainly to sale Mexico in facility Today, the produces other and support announcing noncore a in glass underperforming coatings portfolio to a

We year be conjunction early Electronic in performance New we'll are completed Mexico of the with business earlier. the closing also sale of Many rightsizing focused are on business. improving next and should by the facility actions X a in facilities be Materials in our of which these additional I midst Albuquerque, mentioned Asia, in

on approximately points As this so XX% close XXX to EBITDA this volume. improvement is basis delivering business margins, a result, lower year far now representing

At our on have discretionary for organization the a structure, Regarding the for time, targeted we series remain efficiency. Â Over while reductions us actions cost the and greater have XXX and focused positions we back-office to same future. investing our year, position of through taking optimizing last reduced controlling we streamline decisive spending. been operations

innovations and is softness, Across of and efforts. year our continuous business next-generation partnering early on and a to process improvement to on products President, periods to that future, improving all-time megatrends. our have appointed driving at Moore, in aligning Jason solutions. the are this for of We're meaningful yields we transformation stages business Optics. supported technical Precision through global spend initiatives. Â Turning with by focus high-growth high a lead customers new and investing plants, deliver through to R&D we in an focused as remained the Our Even have and further opportunities the we the market profitability

has While this over strong. long-term fundamentals past couple years, the some speed believe remain experienced of bumps the we business

we As most deliberate future. performance performance.Â As to are setting customersÂ while team's stronger the soft-end sequential and to provide us the components, the of markets overall working Jason of and a year, proud important the the a rest of and number look and despite stage business business to quickly in extensive on opportunities and in growth serve. the number cost also to market the is taking executing technologies improvement footprint actions focus deliver the ahead applications different of prioritizing developing. Â The allowed conditions. maximizing manage unwavering we we delivering ensure to the offering this even to team and of our our value many reminder, enabling this of is performance structure world's we're I'm with have review coatings careful and for deliver we the sales for assemblies, the improve precision we record film cost in many optical of thin the necessary steps expect profitability and are

me the foundation XXXX, deliver cover further Shelly We turn have results call more solid financials. will cementing details built continue to we to disciplined our a the strong focus recover.Â Now the on accelerate as to and over let markets

Shelly Chadwick

morning, and everyone. Jugal, Thanks, good

XX. year. Â Moving Adjusted prior driven or down strip $XXX.X During $XX.X on precious third on We my clad improvement this with adjusted X% year. quarter down per sales, in reference XXX the pleased Slide of of When of from points EBITDA was prior margin XX.X% remain of earnings million expansion from delivered X% general lower year. website another costs, and exclude This the $X.XX, and strength in comments, up third-quarter Slide market XX. continued our value-added morning, above and basis to X% Space lower offset decrease performance, XX. driven year-over-year was million, with combined the metal XX% some precision Defense target by performance, sales.Â Continued margins yet the will management partially sales, cost value-added the prior the midterm I pass-through by decrease. margin share, volume with in slides for This semiconductor Slide which to operational at price/mix. Â Moving delivering increase posted were earnings In quarter. we softness, from our weaker starting was and of looking impact quarter, the offsetting some

and performance Let down with basis. Â Moving me million, of by excluding volume quarter with business unfavorable QX third strip Starting sequential review and as million X% softness, year. to $XX.X precision industrial to clad XX sales, special offset market with compared $XXX.X This by margin year-over-year helped offset XXX combined now expansion. points prior Strong management margin space automotive points Performance performance EBITDA was defense.Â EBITDA, operational and segment. in by basis partially of year strength sales were basis driven to Materials. decline or also year-over-year decrease lower items, a compared the outlook. on value-added XX.X% sales, was improved cost and price/mix. the the flat prior Value-added

in subside. Â Next, defense on basis higher management. the demand million, some special beryllium to quarter, semiconductor items, and prior construction XX.X% by continued driven to driven year-on-year, nickel step-up a versus incremental Slide million and EBITDA, turning of by Materials a sales inventory second seasonality improvement performance, $XX.X volume, or operational with quarter increase EBITDA was by sales year the Electronic of a north strong driven starts space in expect combined row was Value-added were margins with and We strength XX%.Â This sales in excluding the improving XX. $XX.X sales. correction and commercial XXX as in value-added up X% points increase the cost

decrease offset market look price/mix, order as This EBITDA, XX% levels general Optics X.X% roughly were of unfavorable was fourth $X.X decrease to be expect sequentially lower Value-added down. Â Turning sales.Â The sales customer largely on semiconductor we compared or by excluding management. by XX. Slide As to Precision special driven industrial. cost million, automotive come to slow to by defense timing to volume and value-added million driven have we inventory year-over-year items, was the the year. partially $XX.X and across segment down was prior and been sales weakness quarter, flat

approximately margin of the $XXX management debt QX comparable fourth comparable quarter $XXX of and top-line efforts. Â Moving markets remain liquidity cash, to ended now capacity cost million facility. approximately a a debt, as existing expect continued slight company's to million credit be quarter, on Slide net out on available Looking Despite XX. and through pickup to the we the position the We with we sales, expect to challenged.

X.Xx at Xx to just by Slide our at generate the year-end. Â Lastly, XX quarter fourth target leverage to midpoint company. expect leverage Our approximately with strong the the remains for remains we flow and in transition full-year outlook and of address me cash Cash flow important focus, an let below range. the

a deliver and our in top to end expect quarter the with benefit and continued bottom fourth stronger footprint higher line actions. While and remain portfolio volumes conditions market soft, we the of cost

a share. Â This deliver $X.XX adjusted of range result, $X.XX the our prepared to earnings remarks. As concludes XXXX we full-year to in per expect

We for will line now questions. open the

Operator

is [Operator question Instructions] Mike Our Seaport coming Harrison first with Research from Partners.

Michael Harrison

some we and about potential the savings that sites remarks about optimization timing you referenced that and referenced talking start could would that the little that you Can a of maybe hoping be actions the the in there. was associated the bit portfolio your I Albuquerque off Asia? in actions in talk X with you maybe

Jugal Vijayvargiya

Yes.

little talk savings timing. have bit then Shelly the a portfolio about talk just me and and the the about Let

construction it's architectural we've So indicated, while targets the we for Mike, We've Albuquerque of a is company, else. go-forward it this That's glass, our the for basis. decided primarily. area the it on for business something alignment does we that going had us somebody had. this for in our priorities Obviously, that that large not our as commercial forward make a so to at look facility.Â As looked we've sense we at makes business, and

here We closing action. And week. last we take to so decided did the

on just we've for has the they business. profitable as one such and sales to in, portfolio is the was nearby we've business are is So It not facility other an that action that Electronic for electronic basis. used a with other been true some decided facility us that a space a the And it to in what spaces our allows be close. focused semiconductor transitioned. Â It's of decided related participate annual us. a that on about the is.Â It's more materials goes to that there's business much Materials business second and $XX that areas.Â So then business And automotive that's million facility

on that, with the So, comment me Shelly, timing the of let savings.

Shelly Chadwick

Yes.

will we As go to sales away. if the about that going $XX really, think about you savings million forward, at profitability, think negative little of

materials electronic from about So, modeling in lift I would that. margins see a That's slight the you'll how think it. really

Michael Harrison

actions and Asia, And in closure mentioned consolidations? the the facility other that you

Jugal Vijayvargiya

Yes.

mentioned the the facility look you that that facilities was if at XX So, in over we something Suzhou months. we've the last done actually Asia,

are something completed. we is we've overall over we've that's last the as sure general, been It talked an has this done market so we've been actions the making in So, way, that really year the about softness, this company that by -- that -- stronger that make these company. on had have we focused we've or

has been that other are partially be so completed, so And whereas then done some X underway, completed, but the actions here. will

in QX would then say, time and Some I actions will frame. in be remaining, finished here QX

X So that's the roughly optimizing for additional facilities. those the actions

Michael Harrison

much structural more how how permanent though of helpful, we've temporary. the very much that cost nature That's right. All in think been figure to versus is trying are out actions you've I or taking been

So that's very helpful.

Shelly Chadwick

the the would of little that incentive say would kind done. look lift been give permanent. come want a million about we everybody's getting color question expect range what's things of if okay, volumes. me to look little great a I cost a to really, I extra then on $XX these pick if know Mike, for mind $XX that's seeing say And on comp We're you're million of already it's And that, lot should as margins we're we would to we half cost more because reduction. a at that is takeout, lower I that up? What in from you back. than more with talking is I can

really, the call better little you're million today. in million or incentive it's it, comp half million stick. $X is $XX P&L will seeing So to plus, million $X what $XX the A than

Michael Harrison

don't missile advanced a about other helpful. had. A positive get business know I'm headlines of that One facing right. to questions I missiles. just saying specifically you curious, talk for shortage military we've start I a is your higher U.S. where recent to of All applications. like year? are the But defense used, guys Very next particularly your that seen could is couple we solutions material in defense be production into as some

Jugal Vijayvargiya

than for a market defense at year. you as year the our been half a same market Mike, were stronger for in defense has indicated, the of entire that years. bookings in for for know, Well, as roughly level the last example, other first our us, last call We the as year

So, that It's are right a defense on business up. geopolitical now, a all number in all things of picking I has general, think of result been issues well aware going that we're of. world in the the

also I permitted in the business We work countries push the in. having, defense we are U.S. would are outside more for to that say,

some we're then as well. and opportunities there's capturing So, those of opportunities

the be as But out, much say seasonality defense I been when to, to for general, higher a higher take has is in year.Â Now our tends defense. say in growing business think, would you in So, would us. this business pace that at quarter it a defense comes if a quarterly, know, I general QX you I

the for just could of some factors that. mentioned that you contributing And be things

Michael Harrison

in can you within All the Precision question expectations and last still any and expect Strip I was business? business helpful. plans that some right. rollout then that of plans. there's Clad just kind curious year-over-year Clad Strip Are still the timing that be going be provide for your Or precision the customer should me. to have changed? guess, I their destocking weakness Just rollout Precision in we of would on, QX, And on improvement

Jugal Vijayvargiya

Right.

discussed. would in are we what which that So, It's having. this half here line of we of business with we had back we indicated year, a have the had slowdown that in

in them new discussions that would long I continue quarters. good their with correction about we have more the We we will say past will them that mean I roll on rollover to at to continue QX, continue that through would levels work same inventory with shared that have several sales. we they next not have them Good to say I had good expect to to would year. I to how that. time the discussions may that sales continue much time, the just and QX. how But it sales, the over have I had and with us, would that year. in same we But expect take still be over into

Operator

Our next question from CJS coming is Daniel Securities. Moore with

Dan Moore

thinking the or think flattish little. like outlook are just for what more appreciate about a customers QX, Just turn a color. of in 'XX? to it as When 'XX know second ball, they telling in you are discussions half more sounds half? I grow first meaningful Maybe back maybe starting crystal your regarding a And I you been hearing 'XX, you? are growth kind half we but about from obviously, semi versus to but inflection like it's positive your potential what

Jugal Vijayvargiya

Yes.

levels, like. our the impacts still what the main just of down key rest Wafer are what at sales. one transpired The peak of wafer the not computing market over time the Dan, that's semiconductor quarters. the would As happened, to that 'XX been X we know, approaching the probably Initial forecasting a have that the but high be the market, X that from shipments, recovery nearly challenging has some improved, XX% not indicated industry you thoughts which extremely at only not had of already last all, frame. but is I customers for segments has the the one general back we has chip think of segment have improved us, it all. for But in seems of in and levels peak would shipments were component

monitoring quarters. bit very, this the have the to to all of think, But improvement to push bandwidth frankly, growth of perhaps logic the same side, we're then continue which few have market see, of continue I more to of flattish the to And computing the the continues quarters. think, think, of a is And in couple next half over forecast, would very is out. Â We are here little at by the it high X just tell we'll have quarters a that in as just just experts memory side, here have materialized life part starting we an high-performance the it's month, to now time, last difficult you, not seen so, incremental I increase. led a indicated rest last 'XX, the difficult next of very But the indicated. in month and been to We X of have chip to,Â I I to segment, mean, because the customers really expect quarters. see market quarter-by-quarter that or I by week, week and almost indicated slight markets couple by would what back have a

what is So almost think of monitoring it's in are kind we this just I market. monthly doing

Dan Moore

Completely prior up understood. following Cladstrip. the question on That's helpful.Â And then on

milestones bit phase quarters, few incremental waiting Just through look visibility that might visibility current us, up the XX, bit management more a to we a coming we might what more remind for? when are waiting months? out give get ramp sort X terms for of in might give beyond of customer the we when into as and next us little are there revenue? XX And production What's any that start once inventory the you Phase little

Jugal Vijayvargiya

Yes.

all roll countries customer the globally. they the As launching. has out product that this you been good have success to know, having continued in They're

would that them, could additional the but terms very is, 'XX. would are U.S. One mean so know towards able an have another approval which that it that of be to think should when the up they that imagine rollout done. in have that it's demand that be read they then exactly And large I hard enter 'XX. working open applied happens, could I'm have that this goes to that end market market FDA. It for for that they're us the into the product. they getting approval like for I I when They is through sure large to on and you're It of would

that X growth lead U.S. So a the of combination on combined I with, this X to to the think, and next approval of years. they the have, continued global should growth rollout side the over

Dan Moore

structure appreciate over you I outlook businesses then continue the And strategic to there And margin might explore Are time. least the on alternatives that sit color the growth obviously, of Helpful. we or at as where other well improve we portfolio the consider any glass. the as architectural noncore today? overall

Jugal Vijayvargiya

we participating There's opportunity general, continue megatrends we're in. And happy to our that is We markets mean that very like with indicated portfolio. the we've Yes. are our the to like that business. other this portfolio. there we we'll study portfolio. we opportunity execute We to. any that at I we'll here look our we took portfolio aligned in changes, here to our the some, have there targets large minor always on. and are of and on continue And continue if area Certainly,

Operator

Our coming is Markets. KeyBanc from next Gibbs question with Phil Capital

Philip Gibbs

trying about of of I'm just consolidation. in some to think announced today or the that So rationalization things terms you

of number and in in yourself a doing America longer-term materials. you you're portfolio within set target and improvement to Asia, electronic in have North You the things

in you the of terms gain So at moves of of or high some And in lose of some geographies the or these trade-off and products? level, these line top leaving may calculus lose you what profit what improvement? may what's behind margin what's or a terms you

Jugal Vijayvargiya

Yes.

targets great indicated. Phil, impact that top that's area very that I side, question. roughly million the it's can and we tell that are on business very, is the only large the line divesting, you So $XX we Really, the simple.

as efficiencies goal but grow footprint drive support the is more fact, in business. same to continue our really drive with on to customers as even footprint cost-optimized we new level, Our we the a improved at

these think not portfolio making the line footprint on you I qualified that with side make top indicated.Â We've to supplying to making are to. are products leave divestiture we that changes side We're message working that customers changes make want these that these we very said, we're in with getting our leading and are I that the other consolidations as as that and new our the the are them I from reductions general, really made sure we closely. we've the that facilities So than, as part we sure

these the make a a not across So doing are the stronger we as our line company top are that improvements to recover, concern. company actions and company drive markets

Philip Gibbs

relates And any that divestiture to it believe in, you sale? the Mexico. expecting that then was you mentioned to as New I proceeds from get it Are

Shelly Chadwick

the amount, Yes. working footnote that we'll paying that our the cash flow so a next that say. report we'll to quarter But but an unload over us price are some bit receive was through and disclosed, for and in would immaterial we've K. calculation they I business and not that of little out profitable. It's really here on acquisition and of enough for the not capital, a assets unfortunately work give a it's

Philip Gibbs

of there believe head Do I a X.X comment slide your been gas the business? probably adjusted. the we made slow we kind quarter. the deck, third you then It's down we've easier pick XXXX as started can you bottom some in slide point in for counts up And think the passed last get for had comparisons that years and rig that and to oil have into as of

Jugal Vijayvargiya

below count. in the more the year, were XXXs I seemed range. mean, I XXXs. to seemed that they look couple When year, mid-XXXs, I it throughout at back a right you years rig counts be XXX in all seem like of When even rig look Yes. for there tend the the counts count, ago, rig Xs. to or the year, higher the towards latest more rig mean, at be Last XXX, around the This a it number like XXXs, lot is

that a but we would hard at the in where we're counts So kind and I a to may things think out have going are better think, the point perhaps how like comps It's that I bottom point. gauge play would low would approaching towards rig 'XX. 'XX, to into Phil, like are to of

Philip Gibbs

to first the I through was construction material of several beryllium pick commercial starting that And all me, then you as destocking mentioned year. you mean months nickel impact lastly subsides.Â I up for a the for the know pretty

have quarter things that point going telling it's you are what You to to clearly fourth those relative into improve that visibility high-level third. conversations that is to Is your backlog the indications you're or in persist say this tracking? enough and at that to going XXXX? customer And the

Jugal Vijayvargiya

comp Yes, tough us for year. that's been business this a really

I I'd improved QX sales getting be forecasted I our there therefore, think like has not area years. have out, should with you to the bit that to this play lift little better, that's there very good In going now year, zero, yes, would our us. QX. It's here bit more business mean, is to a of half I'd see mix we're able in few that call on a is then, a first to the for As are last a a be But is a business like in been over QX.Â I practically I mean, think, of know, also higher the for issue close to say I initial that. only of positive terms indications 'XX. sales into that and little zero, lift at and inventory in And the data business

I we'll prepared the are think indications And be at that so comment the think I initial better to favorable. the beginning on year. of But

Operator

is King Our from & Silver CL Associates. David with next coming question

Unknown Analyst

on for I your this Holder current on Electronic expansion want underway Materials Kevin the first business. is David focus morning. you projects in that have This to

change on of been across varied Has the has there this markets in your expansions? year. completion end demand thinking your how the for new timing Given a and facility Milwaukee

Jugal Vijayvargiya

Yes.

on the level drive got to we're products next to we've the that will our putting continue that projects a to for of for this cost-competitive So more to materials right that the X- we're number we think capacity have working I customers. electronic efficiency ensure on that we projects different of well X-year in we market as work more that as growth these see in and

space. to ALD So in project, Layer which proceeding big a very contributor think, Deposition is, I It's growth the or our Milwaukee well. there's the Atomic

that to next years. continue business expect X do over to We the X well to

We capacity we a for not those years. a we're the growth and slowing on make large in then our place in doing we all of projects. down as at that of we sites. second to the is well right project the we right we're where number we're with smaller facility because and that sure have our proceeding. Â And place. the That have track have projected staying in that those, we have next as efficiencies we e-beam Newton that can We're And are X is furnace markets in a projects want the that to recover support X involved and putting

Unknown Analyst

That's helpful. on I I to Great. next touch underlying guess your margin targets. very want

you accelerated that have next heading How updated an into EBITDA EBITDA margin an XXXX margin on Given be adjusted should we might what achieved target goal adjusted be timetable. about XX% year? thinking your

Jugal Vijayvargiya

all Yes. basis. that I that to progress think, a on delivering But the we've mean on we do we're pleased our can with, consistent that we said made along margin we've I profile. sure want that make

of would would having been I that four different in we we remarks, our that indicated it's out six, on. that discussion. wish of the that said six think we done have have have last then perhaps out think quarters a and I I six I

continue we're discussions I in perhaps that have of to future. XX% to to allow consistent the and margin. business north will going delivery continue and us continue to for think the that manage other then So EBITDA And to of look deliver

Unknown Analyst

last then Great. maybe And one one.

or in share do space to You discuss space maybe what grow your broadening your customers? to your in its to And Can private business? date business. the you success maintain then government versus your to strengthen your market in doesÂ MaterionÂ need customer base continue

Jugal Vijayvargiya

growth important for market government traditionally very more XX last us on a the side. been XX in been to has and Space months. the We've Yes.

really us been, of We growth the government-sponsored various have working I critical space that space really programs our the our a also our commercial them, and to into it's would added by other key we the materials emerged has products, supply area ToughMet as activities related Europe products say, as well for provider on led government. Â We the portfolio Commercial whether of products as are to both for different space and government number space. really, has Asia or activities. a outside good and U.S. beryllium on on

to to we're going continue So that. do

we're we've look of good a this as this. portfolio we And that well as areas, working new have. think that continue to so will on on course, one we the being of the as focus existing megatrend we as, area got programs pipeline of of at I type

Operator

question is with next Our Dave from Stonegate. coming Storms

David Storms

$XX million had just on $XX reduction call. worth cost you to the reductions in I I of million some earlier there's conversations know been Shelly, that done. already back to circle cost that mentioned wanted about you the of

for internal targets the here sizable willing curious that or left you're how Just with cost any if should that's runway we more think about there's to share us maybe takeouts?

Shelly Chadwick

Yes. the Thanks for question.

that So at taken the look very deliberate. way we all that I the actions we've thoughtful and think is that have been

we business, different program, different So a It's it really say cost obviously left, same growth. bite. hasn't taking or for structure big of going of investing up, kind before been We results time, into cost parts digesting not is running and there let's pieces those our time answer. that's be easy it's that the an We a also, today. to one at to look we in opportunities how are of at continue a structure to at and isn't for on.Â So that, more putting go we're evaluating actions our big and and our move of kind that like like take more step the

think that and something thoughtful a So pragmatic it taking balance to. a we're approach is we

David Storms

know then optimism cloud gives have of to clad some turning end seeing you precision that that talked anything consumer of markets. and you've consumer And I electronics outside destocking of a Are a kind precision the about your stuff of might a you there. lot electronics, just In turnaround? bit

Jugal Vijayvargiya

I and of applications. things that Yes. at or time, the even typical on, household consumer appliances say handheld number I would think are going devices whether just it's this the other

just I of for a think a choppy it continues to bit be us. market

indicate the would precision I nothing so outside meaningful cloud. that of And

David Storms

just more then for And not XXXX guidance one you're giving I yet. know here.

there look that of can of would make seasonal anything standpoint XXXX analysts, As your off from we're you unusual? the head as XXXX looking into is think a that top

Jugal Vijayvargiya

semi then I But, then quarter for Well, to therefore, typically to be to that QX as strong defense QX defense. a we consumer be of QX, side a QX, tends know, and be quarter think side, stronger. because I And bit little typically then time slowdown electronics tends a also then but from buildups there's happen QX. weaker, one overall bit the and mean, a tends a in frame in

nothing think seasonality. our abnormal experiences would would I I year say what I So every business that general to indicate, seasonality is our general

Operator

Kelleher any I to no this over in at time, As we the have like it hand back Mr. to for remarks. questions closing further queue would

Kyle Kelleher

Thank our be and call number call Recorded I'll you Thank follow-up any is like to of Earnings Third for inÂ Materion. Call. company's for My playback available interest XXXX on I'd you be thank concludes XXX-XXXX. website,Â materion.com. available This you. Quarter your participating on this again. this (XXX) questions. the will

Operator

we today's for may ladies and conference, at your does your disconnect time, Thank you, lines gentlemen. you This thank and you and conclude this participation.

Materion (MTRN) 30 Oct 242024 Q3 Earnings call transcript