Materion Corp (MTRN) 2025 Q1 法說會逐字稿

Good day, everyone. Welcome to the Materion first-quarter 2025 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.

大家好。歡迎參加 Materion 2025 年第一季財報電話會議。（操作員指示）請注意，本次會議正在錄製。

I will now turn the conference over to your host, Kyle Kelleher, Director, Investor Relations and Corporate FP&A. You may begin.

現在，我將會議交給主持人、投資者關係和企業 FP&A 總監 Kyle Kelleher。你可以開始了。

Good morning, and thank you for joining us on our first quarter 2025 earnings conference call. This is Kyle Kelleher, Director, Investor Relations and Corporate FP&A. Before we begin our remarks this morning,

早安，感謝您參加我們的 2025 年第一季財報電話會議。我是投資者關係和企業 FP&A 總監 Kyle Kelleher。在我們今天早上開始發言之前，

I would like to point out that we have posted materials on the company's website that we will reference as part of today's review of the quarterly results. You can also access the materials through the download feature on the earnings call webcast link.

我想指出的是，我們已經在公司網站上發布了一些資料，我們將在今天的季度業績審查中參考這些資料。您也可以透過收益電話會議網路直播連結上的下載功能存取這些資料。

With me today is Jugal Vijayvargiya, President and Chief Executive Officer; and Shelly Chadwick, Vice President and Chief Financial Officer. Our format for today's conference call is as follows. Jugal will provide opening comments on the quarter. Following Jugal, Shelly will review the detailed financial results for the quarter in addition to discussing expectations for the remainder of 2025. We will then open up the call for questions.

今天與我一起的是總裁兼執行長 Jugal Vijayvargiya；以及副總裁兼財務長 Shelly Chadwick。我們今天的電話會議形式如下。Jugal 將對本季發表開場評論。繼 Jugal 之後，Shelly 將回顧本季的詳細財務業績，並討論 2025 年剩餘時間的預期。然後我們將開始提問。

Let me remind investors that any forward-looking statements made in the presentation, including those in the outlook section and during the question and answer portion are based on current expectations. The company's actual performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors. Those factors are listed in the earnings press release we issued this morning.

我要提醒投資者，簡報中所做的任何前瞻性陳述，包括展望部分和問答部分的陳述都是基於當前的預期。由於多種因素，公司的實際業績可能與前瞻性陳述所預期的業績有重大差異。這些因素列在我們今天早上發布的收益新聞稿中。

Additionally, comments regarding earnings before interest, taxes, depreciation, depletion and amortization, net income, and earnings per share reflect the adjusted GAAP numbers shown in attachments four through nine in this morning's press release. The adjustments are made in the prior year period for comparative purposes and remove special items, noncash charges, and certain discrete income tax adjustments.

此外，有關息稅折舊攤銷前利潤、淨收入和每股收益的評論反映了今天上午新聞稿中附件四至九所示的調整後 GAAP 數字。為了進行比較，對上一年期間的財務狀況進行了調整，並刪除了特殊項目、非現金費用和某些單獨所得稅調整。

And now I'll turn the call over to Jugal for his comments.

現在我將把電話轉給 Jugal 來聽取他的意見。

Thank you, Kyle, and welcome, everyone. It's a pleasure to be with you today to discuss our first quarter results and provide an update on our outlook for the remainder of 2025. I am very pleased with our first quarter results. We delivered record first quarter margins led by strong operational performance. Year over year EBITDA margins improved by 130 basis points.

謝謝你，凱爾，歡迎大家。我很高興今天能與大家討論我們的第一季業績，並更新我們對 2025 年剩餘時間的展望。我對我們的第一季業績非常滿意。在強勁的營運表現的推動下，我們第一季的利潤率創下了歷史新高。EBITDA 利潤率年增了 130 個基點。

Sales developed in line with our expectations, up about 4% from prior year, excluding the PMI inventory correction. In total, we were up about 1% with stronger demand from semiconductor, energy, industrial, and aerospace more than offsetting continued softness in automotive and consumer electronics, including the precision clad strip inventory correction.

銷售額的發展符合我們的預期，比上年增長了約 4%，不包括 PMI 庫存調整。總體而言，我們上漲了約 1%，半導體、能源、工業和航空航太的需求強勁，足以抵消汽車和消費性電子產品持續疲軟的影響，包括精密複合帶庫存調整。

Semiconductor market continues to show signs of gradual improvement, led by demand from data storage and advanced logic and memory applications. However, power semiconductor shipments remained sluggish, impacted by slow demand in automotive and industrial applications. Aerospace continues to be a strong growth market for us, up more than 30% in the quarter, led by both commercial aerospace and space applications.

在資料儲存和先進邏輯及記憶體應用需求的推動下，半導體市場持續呈現逐步改善的跡象。然而，受汽車和工業應用需求放緩的影響，功率半導體出貨量仍然低迷。航空航太繼續成為我們強勁的成長市場，本季成長超過 30%，主要由商業航空航太和太空應用推動。

Airplane builds were up almost 20% in the quarter, and we outpaced that rate with our sales up 25% year over year. As we mentioned last quarter, orders have started to come back for our beryllium nickel spring material, which drove above-market growth of 8% in industrial for Q1.

本季飛機製造量成長了近 20%，而我們的銷售額年增了 25%，超過了這一成長速度。正如我們在上個季度所提到的，我們的鈹鎳彈簧材料的訂單已經開始回升，這推動了第一季工業市場 8% 以上的成長。

In the energy market, we delivered materials for a new multiyear agreement with Idaho National Labs to support nuclear energy research and development. We are excited about this partnership and our continued growth in the nuclear energy space. The remainder of our energy business also saw year-over-year growth.

在能源市場，我們與愛達荷州國家實驗室簽訂了一項新的多年協議，為支持核能研究和開發提供了材料。我們對此次合作以及我們在核能領域的持續成長感到非常興奮。我們其餘的能源業務也實現了年成長。

Automotive market continued to pull back as lower customer build rates and inventory destocking led to sales being down 13% year over year. For the quarter, we benefited from structural cost reductions implemented throughout last year and strong plant performance, resulting in record EBITDA margin for the first quarter.

由於客戶生產力下降和庫存減少，汽車市場持續下滑，銷售額年減 13%。本季度，我們受惠於去年全年實施的結構性成本削減和強勁的工廠業績，導致第一季的 EBITDA 利潤率創下歷史新高。

Cash flow was a highlight for the quarter with $35 million improvement year over year. We are keenly focused on improving cash flow in '25 by structurally driving down working capital and pacing capital investments as the business grows. Our performance in the first quarter would put us on track to achieve our earnings guidance for the full year.

現金流是本季的一大亮點，年增 3500 萬美元。我們非常注重透過結構性地降低營運資本和隨著業務成長調整資本投資來改善 25 年的現金流。我們第一季的業績將使我們有望實現全年獲利預期。

However, we acknowledge that the noise and volatility around tariffs has inserted a level of uncertainty that makes the rest of the year difficult to pinpoint. While we are taking all necessary actions to minimize the impact, we do expect to see an impact in the second quarter, which could continue in the second half if tariff conditions persist.

然而，我們承認，圍繞關稅的噪音和波動帶來了一定程度的不確定性，使得今年剩餘時間的走勢難以確定。雖然我們正在採取一切必要措施將影響降至最低，但我們預計第二季仍將受到影響，如果關稅狀況持續下去，這種影響可能會持續到下半年。

From a sourcing perspective, we have some exposure. But in most cases, we are dual sourced and can shift demand to a non-tariff country. We have a handful of materials that are sourced from China, and we have a healthy quantity of those materials on hand.

從採購角度來看，我們有一些曝光。但在大多數情況下，我們有雙重來源，可以將需求轉移到非關稅國家。我們有大量來自中國的材料，並且我們庫存有大量此類材料。

Where we do incur import tariffs, we expect to recover those costs through surcharges and pricing adjustments. We executed this very well during COVID times, and I would expect us to do the same in this situation. On the sales front, we ship approximately $100 million of product to China from the US annually. And that business is one we're watching very closely.

對於確實產生進口關稅的情況，我們期望透過附加費和價格調整來收回這些成本。在新冠疫情期間，我們做得非常好，我希望我們在這種情況下也能做得同樣好。在銷售方面，我們每年從美國向中國運送約1億美元的產品。我們正在密切關注這項業務。

In many cases, our customers are pausing order activity, waiting to see what the outcome will be. While I don't expect all of that business to be at risk, if tariff conditions persist, we would expect to see an impact. On a more positive note, our substantial US footprint positions us favorably compared to our international competitors. We are actively working with customers to identify opportunities that could provide sales upside in the US.

在許多情況下，我們的客戶會暫停訂單活動，等待結果。雖然我不認為所有這些業務都會面臨風險，但如果關稅條件持續下去，我們預計會看到影響。從積極的一面來看，我們在美國擁有廣泛的業務，與國際競爭對手相比，我們處於有利地位。我們正在積極與客戶合作，尋找可以在美國帶來銷售成長的機會。

As we move through the rest of 2025, we are committed to minimizing tariff impacts, driving operational excellence, staying focused on structural cost improvements, all leading to a 20%-plus EBITDA margin for the year. We will continue working capital improvements and pace capital investments leading to strong cash generation for the year. I would like to thank our global team for their unwavering commitment to improving our company for all of our stakeholders.

在 2025 年剩餘時間裡，我們致力於最大限度地減少關稅影響，推動卓越運營，專注於結構性成本改進，所有這些都將使今年的 EBITDA 利潤率達到 20% 以上。我們將繼續改善營運資本並加快資本投資，從而實現今年強勁的現金產生。我要感謝我們的全球團隊，感謝他們堅定不移地致力於為所有利害關係人改善公司服務。

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

現在，讓我將電話轉給 Shelly，以介紹更多有關財務的詳細資訊。

Thanks, Jugal, and good morning, everyone. During my comments, I will reference the slides posted on our website this morning, starting on slide 10.

謝謝，Jugal，大家早安。在我的評論中，我將參考今天早上我們網站上發布的幻燈片，從第 10 張幻燈片開始。

In the first quarter, value-added sales, which exclude the impact of pass-through precious metal costs were $259.3 million, up 1% from prior year. This year-over-year increase was driven by growth in space, energy, and improving demand in semiconductor partially offset by lower PMI shipments. When looking at earnings per share, we delivered quarterly adjusted earnings of $1.13, up 18% from prior year.

第一季度，不包括轉嫁貴金屬成本影響的增值銷售額為 2.593 億美元，比上年增長 1%。這一同比增長是由航太、能源的增長以及半導體需求的增加所推動的，但被 PMI 出貨量的下降部分抵消。從每股收益來看，我們實現的季度調整後收益為 1.13 美元，比上年增長 18%。

Moving to slide 11. Adjusted EBITDA was $48.7 million or a first quarter record of 18.8% of value-added sales, up 8% with 130 basis points of margin expansion from the prior year. This increase was driven primarily by strong operational performance and structural cost improvements.

移至投影片 11。調整後的 EBITDA 為 4,870 萬美元，創下第一季增值銷售額 18.8% 的記錄，比上年增長 8%，利潤率擴大 130 個基點。這一成長主要得益於強勁的營運績效和結構性成本改善。

Moving to slide 12. Let me review first quarter performance by business segment. Starting with Performance Materials, value-added sales were $160 million, up 3% from the first quarter of '24. This year-over-year increase was driven primarily by strength in space and energy, partially offset by lower PMI shipments and automotive market weakness.

移至投影片 12。讓我按業務部門回顧一下第一季的業績。從性能材料開始，增值銷售額為 1.6 億美元，比 24 年第一季成長 3%。這一同比增長主要得益於航太和能源領域的強勁增長，但被 PMI 出貨量下降和汽車市場疲軟部分抵消。

EBITDA excluding special items was $40.9 million or 25.6% of value-added sales, up 15% compared to the prior year period with 270 basis points of year-over-year margin expansion. This increase was driven by higher volume and stronger operational performance.

不包括特殊項目的 EBITDA 為 4,090 萬美元，佔增值銷售額的 25.6%，比去年同期成長 15%，利潤率年增 270 個基點。這一成長是由更高的銷售和更強勁的營運業績所推動的。

Moving now to the remainder of 2025, we expect to see continued strength across the aerospace and defense and energy end markets. We expect that operational performance and cost improvement initiatives will help deliver another year of strong bottom line results.

現在進入 2025 年剩餘時間，我們預計航空航太、國防和能源終端市場將繼續保持強勁勢頭。我們預計，營運績效和成本改善措施將有助於實現另一年強勁的獲利業績。

Next, turning to Electronic Materials on slide 13. Value-added sales were $77.8 million, up slightly from the prior year. This increase was driven by improvement in semiconductor, particularly in data storage and logic and memory devices. Excluding the divested Albuquerque large area targets business, the top line was up 5% versus the prior year.

接下來，翻到第 13 張投影片上的電子材料。增值銷售額為 7,780 萬美元，比上年略有成長。這一增長是由半導體的改進所推動的，特別是資料儲存、邏輯和儲存設備的改進。不計剝離的阿爾伯克基大區域目標業務，營業收入較上年同期成長 5%。

EBITDA, excluding special items was $13.3 million or 17.1% of value-added sales in the quarter, down 8% from the prior year, largely due to some nonrecurring onetime items. This decrease was partially offset by continued cost management and operational performance. As we look out to the remainder of the year, we expect the semiconductor market to improve as the year progresses, particularly within the logic and memory devices and data storage applications.

本季度，扣除特殊項目的 EBITDA 為 1,330 萬美元，佔增值銷售額的 17.1%，較上年下降 8%，主要原因是一些非經常性一次性項目。持續的成本管理和營運績效部分抵消了這一下降。展望今年剩餘時間，我們預計半導體市場將隨著時間的推移而改善，特別是在邏輯和儲存設備以及資料儲存應用領域。

We still expect our power semi business to remain challenged with inflated levels of customer inventories and weak underlying demand. We expect strong bottom line results resulting from our cost improvement initiatives and operational performance.

我們仍然預計，我們的電力半導體業務將繼續面臨客戶庫存水準過高和潛在需求疲軟的挑戰。我們期望透過成本改善措施和營運績效帶來強勁的獲利績效。

Turning to the Precision Optics segment on slide 14. Value-added sales were $21.5 million, down 13% compared to the prior year. The lower volume was driven by market weakness in several end markets and order timing, partially offset by strength in defense and semiconductor. EBITDA, excluding special items was a loss of $0.1 million versus income of $0.4 million in the prior year. The decrease was driven primarily by lower volume and unfavorable product mix, partially offset by the impact of cost reduction initiatives.

前往幻燈片 14 上的精密光學部分。增值銷售額為 2,150 萬美元，較上年下降 13%。銷售下降是由於幾個終端市場的疲軟和訂單時機的調整，但國防和半導體市場的強勁表現部分抵消了這一影響。扣除特殊項目後的 EBITDA 虧損 10 萬美元，而去年同期的收入為 40 萬美元。下降的主要原因是銷售下降和產品組合不利，但成本削減措施的影響部分抵消了這種影響。

Looking at the business sequentially, margins improved 460 basis points as we start to see the impact of the business transformation initiatives we announced in the second half of 2024. As we look out to the remainder of 2025, we expect those transformation efforts to result in meaningful year-over-year improvement in both the top and bottom line.

從連續業務來看，利潤率提高了 460 個基點，因為我們開始看到 2024 年下半年宣布的業務轉型舉措的影響。展望 2025 年剩餘時間，我們預計這些轉型努力將使營收和利潤實現年比顯著改善。

Moving now to cash, debt, and liquidity on slide 15. We ended the quarter with a net debt position of approximately $436 million and approximately $172 million of available capacity on the company's existing credit facility. We're pleased to see another quarter where leverage remains below 2 times as cash flow is an important focus.

現在轉到投影片 15 上的現金、債務和流動性。截至本季末，我們的淨債務狀況約為 4.36 億美元，公司現有信貸額度的可用容量約為 1.72 億美元。我們很高興看到另一個季度的槓桿率仍保持在 2 倍以下，因為現金流是一個重要的焦點。

We expect to generate strong free cash flow throughout '25 as we manage working capital levels and pace our capital investments. As Jugal mentioned, free cash flow improved $35 million versus the first quarter of 2024. A significant contributor of this improvement came from inventory, which was $27 million lower than one year ago as a direct result of our inventory improvement initiatives.

我們預計，透過管理營運資本水準和調整資本投資，我們將在 25 年產生強勁的自由現金流。正如 Jugal 所提到的，與 2024 年第一季相比，自由現金流增加了 3,500 萬美元。這項改善的一個重要因素是庫存，由於我們的庫存改進舉措，庫存比一年前減少了 2700 萬美元。

Lastly, let me transition to slide 16 and address the full year 2025 outlook. While our performance expectations for '25 are largely unchanged from our initial guide of $5.30 to $5.70 adjusted earnings per share for the full year, we continue to review and monitor the potential impact from the unresolved global tariff situation.

最後，請允許我轉到第 16 張幻燈片並談談 2025 年全年展望。雖然我們對 25 年的業績預期與最初預期的全年每股 5.30 美元至 5.70 美元的調整後收益基本保持不變，但我們將繼續審查和監控未解決的全球關稅局勢可能帶來的影響。

As of today, we are expecting the second quarter to be slightly better than the first quarter, including a $0.10 to $0.15 earnings per share headwind relating to the current China tariffs, which have customers electing to freeze orders as they await further clarity. When looking out to the back half of the year, if these conditions were to continue, we could expect an additional impact of $0.40 to $0.50 earnings per share.

截至今天，我們預計第二季度的表現將略好於第一季度，其中包括與當前中國關稅相關的每股收益 0.10 美元至 0.15 美元的不利因素，客戶選擇凍結訂單以等待進一步的明確資訊。展望下半年，如果這些情況持續下去，我們預計每股盈餘將額外增加 0.40 美元至 0.50 美元。

We remain focused on taking swift action to adjust supply chains where possible while managing costs and passing on any tariff expenses incurred. And with our focus on cash generation, we have reduced our capital expenditure expectation by $10 million for the full year. This concludes our prepared remarks.

我們將繼續致力於迅速採取行動，盡可能調整供應鏈，同時管理成本並轉嫁任何產生的關稅費用。由於我們注重現金創造，我們將全年資本支出預期降低了 1000 萬美元。我們的準備好的演講到此結束。

We will now open the line for questions.

我們現在開放問答熱線。

(Operator Instructions)

（操作員指示）

Phil Gibbs, KeyBanc.

KeyBanc 的 Phil Gibbs。

Thank you so much. A lot to sift through, but I just wanted to get to the commentary around the fact you pointed out what the tariff impacts could be. You pointed out you're working to minimize the tariff impact. And then you mentioned the comment you wanted to be over 20% EBITDA margin for the year. And I don't know if that includes some of these impacts or exclude some of these impacts. So maybe just take us through that to start.

太感謝了。有很多內容需要篩選，但我只是想了解你指出的關稅影響可能造成的評論。您指出您正在努力將關稅影響降至最低。然後您提到希望今年的 EBITDA 利潤率超過 20%。我不知道這是否包括其中一些影響或排除其中一些影響。所以也許只要帶我們來了解這一點就可以了。

Yeah. So let me start, and then Shelly can jump in and maybe get into more. But our commitment, as you know, is to get to a 23% EBITDA margin for the midterm. We announced that in the last earnings call. We're still committed to that. We want to make sure that on a performance basis, we're driving the actions that are necessary within the company to achieve that.

是的。那麼，讓我先開始，然後 Shelly 可以加入並進一步講解。但如您所知，我們的承諾是實現中期 EBITDA 利潤率達到 23%。我們在上次財報電話會議上宣布了這項消息。我們仍然致力於此。我們希望確保在績效的基礎上，推動公司內部採取必要的行動來實現這一目標。

In order for us to get to that 23% margin target, we have to make improvements each year, right? We can't make the full 23% jump, 20% to 23% is sort of the last year of the journey. And so we're committed. We're going to do everything we can to ensure that if there are tariff impacts, we're driving performance improvement to get to that 20%-plus EBITDA margin. But I will tell you that it's a bit of a tricky situation, right, for the second half of the year.

為了達到 23% 的利潤率目標，我們必須每年都做出改進，對嗎？我們無法實現 23% 的完整成長，從 20% 到 23% 可以說是整個旅程的最後一年。因此我們決心這麼做。我們將竭盡全力確保，如果受到關稅影響，我們將推動業績改善，以達到 20% 以上的 EBITDA 利潤率。但我會告訴你，對於今年下半年來說，情況有點棘手。

It's hard to know what impacts are going to be there. Not sure if there will be some recessionary things that we'll have to deal with in the second half. And so I think there is a bit of uncertainty. But I can tell you that we and our teams are committed to continue this journey that we announced last quarter, which is to get to the 23% for the midterm time frame.

很難知道會產生什麼影響。不確定下半年我們是否需要面對一些經濟衰退的問題。所以我認為存在一些不確定性。但我可以告訴你們，我們和我們的團隊致力於繼續我們上個季度宣布的這一征程，即在中期選舉期間達到 23% 的目標。

Yeah. Well said, Jugal. And I think the only thing I would add, Phil, is, obviously, we're doing a lot of scenario planning, right? So we're kind of taking a look at different scenarios and what the outcome might be, assuming that if the tariffs were to persist, how we would perform and still deliver 20%.

是的。說得好，Jugal。菲爾，我想我唯一要補充的是，顯然我們正在做很多情境規劃，對吧？因此，我們正在研究不同的情境以及可能的結果，假設如果關稅持續存在，我們的表現將如何並且仍能實現 20% 的成長率。

Are there other scenarios if the economy slows way down that may be more challenging? Of course, but kind of what we're working on is how is our business performing, what do we expect from the markets? And then if we've got the tariffs, how do we still see for 20%.

如果經濟大幅放緩，是否還會出現其他更具挑戰性的情況？當然，但我們正在研究的是我們的業務表現如何，我們對市場有何期望？那麼，如果我們徵收關稅，我們怎麼才能看到 20% 的稅率呢？

And Shelly, if I can add one other thing. And I know, Phil, you didn't ask about this, but I think it's important for us to comment on is that we are extremely focused on our cash, regardless of whether there's a tariff situation or not.

雪莉，我還可以補充一點。我知道，菲爾，你沒有問到這個問題，但我認為我們需要評論的是，我們非常關注我們的現金，無論是否存在關稅情況。

I think we had a marked improved first quarter from historical levels. And regardless of what the rest of the year will bring, on some of these uncertainties that we have, we're making sure that we're very well positioned on driving cash improvement initiatives.

我認為第一季我們的表現較歷史水準有明顯改善。無論今年剩餘時間會發生什麼，對於我們所面臨的一些不確定因素，我們都將確保自己能夠很好地推動現金改善計劃。

Thank you so much. And then you mentioned freezing orders from buyers within China. What vertical and what businesses is this touching? Is it largely the semi-business? Or is there some overlap in the other segments?

太感謝了。然後您提到凍結中國境內買家的訂單。這涉及哪些垂直行業和哪些業務？它主要是半商業性質嗎？或其他部分是否有重疊？

Yeah. So we mentioned that we have about $100 million worth of sales from the US into China annually. I would say approximately half of those are for the semi market. The other half are distributed between auto, between consumer electronics, a little bit in the data and telecom area. And so when we look at kind of the situation that we're facing with these customers, I would say it really goes across all of those markets.

是的。我們提到，我們每年從美國到中國的銷售額約為 1 億美元。我想說其中大約一半是針對半導體市場的。另一半分佈在汽車、消費性電子產品以及數據和電信領域。因此，當我們審視這些客戶面臨的情況時，我會說它確實涉及所有這些市場。

You can kind of estimate that, as I said, roughly half of our sales are semi. And so that's clearly an important market where I think customers are pausing and working through inventory and looking at their supply chain, but that's how the business is kind of split up for our sales into China.

正如我所說，你可以估計一下，我們大約一半的銷售量都是半成品。因此，這顯然是一個重要的市場，我認為客戶正在暫停並處理庫存並審視他們的供應鏈，但這就是我們在中國的銷售業務的劃分方式。

And one last question is around the tariffs. When you guys came up with this $0.10 to $0.15 hit and up to $0.50 hit in the second half, was that merely just an impact from your expectation of just lost volume and the overhead absorption associated with that volume?

最後一個問題是關於關稅的。當你們得出下半年 0.10 美元到 0.15 美元的衝擊以及高達 0.50 美元的衝擊時，這是否僅僅是你們預期的損失量以及與該損失量相關的間接費用吸收的影響？

And I also know you made some comments that you would work on displacing that or bringing down cost mitigation. So that's sort of a -- it feels to me like almost a maximum impact the way that you framed it, if I'm understanding you correctly. But how do you come up with the numbers, I guess, is what I'm asking.

我還知道您曾表示，您會努力改變這種狀況或降低成本。所以，如果我理解正確的話，這對我來說就像是您所描述方式中幾乎最大的影響。但我想問的是，你是如何得出這些數字的。

Yeah. I think as we noted, and we included a slide on tariffs in our deck, our primary impact that we're looking at for tariffs is China. It's the sales going into China. I think the sales coming from the rest of the world into the US are a minimal number for us as well as I think the raw material side.

是的。我認為，正如我們所指出的，我們在簡報中加入了有關關稅的幻燈片，我們關注的關稅主要影響是中國。這是進入中國的銷售額。我認為來自世界其他地區對美國的銷售量對我們來說是最小的，原材料方面也是如此。

I think we'll be able to manage the raw material impact if there are any. So I would say at this stage, it's primarily China-related, sales going into China. Looking at what type of situation there could be from maybe perhaps continuing where customers are using up inventory, freezing orders, reducing orders, perhaps loss of share, although we're going to do everything we can to make sure that there is not a loss of share as we continue to look at our supply chains.

我認為，如果有任何原材料影響，我們將能夠控制。所以我想說，在現階段，這主要與中國有關，銷售進入中國。看看可能會出現什麼樣的情況，也許會繼續出現，客戶正在用完庫存，凍結訂單，減少訂單，也許會損失份額，儘管我們會盡一切努力確保在繼續關注供應鏈的同時不會損失份額。

And then to your point, you mentioned the absorption issues in our factories. And then offsetting that with operational and cost containment actions that we're making sure are happening across the company. So that's kind of how I would put the -- our assessment of that impact that we shared.

然後回到您的觀點，您提到了我們工廠的吸收問題。然後透過我們確保在整個公司範圍內實施的營運和成本控制措施來抵消這一影響。這就是我對我們所分享的影響的評估。

Thanks so much.

非常感謝。

Dan Moore, CJS Securities.

丹·摩爾（Dan Moore），CJS 證券。

This is Justin on for Dan. Just a question on tariffs, just a bit of a clarification. The $0.50 to $0.65 total impact, is that -- so if there's no change to the tariff environment, would that reduce that $5.30 to $5.70 range? Or does that $5.30 to $5.70 range include that potential impact?

我是賈斯汀，代替丹。這只是關於關稅的一個問題，只是一點澄清。總影響為 0.50 美元至 0.65 美元，如果關稅環境沒有變化，那麼 5.30 美元至 5.70 美元的範圍是否會減少？或者 5.30 美元到 5.70 美元的範圍是否包括了潛在影響？

No. I can tell you that, that's an easy one. Obviously, it does not. That would have to mean that we would be in the $6 range or higher for our business. And clearly, with the current environment, that's not where things are.

不。我可以告訴你，這很簡單。顯然，事實並非如此。那就意味著我們的業務成本將達到 6 美元甚至更高。顯然，在當前環境下，情況並非如此。

And so I think what we're communicating is that operational performance that we have is extremely strong. Our Q1 is off to a great start. And if business conditions continue the way, I'll call it, normal business conditions, we would be very much in line to deliver on our guide that we have noted. However, we have these impacts that are there, and we've identified what those impacts are. And it's hard to know exactly how things will play out in the second half of the year.

所以我認為我們所傳達的是我們的營運績效非常強勁。我們的第一季開局良好。如果商業狀況繼續保持正常狀態，我們將非常順利地實現我們所指出的指導方針。然而，我們已經看到了這些影響，我們已經確定了這些影響是什麼。而且很難確切知道今年下半年的情況將如何發展。

I mean we're more certain about the impact that we've shared for Q2, the $0.10 to $0.15. We've identified what could be the impact in the back half of the year. But I think every day, we're monitoring the situation, and we're working around the clock to minimize the impact.

我的意思是，我們對第二季的影響更加確定，即 0.10 美元到 0.15 美元。我們已經確定了下半年可能造成的影響。但我認為，我們每天都在監測情況，並且晝夜不停地工作以盡量減少影響。

Okay. And then I know you talked about some of the mitigation efforts. Is there any way you can help us triangulate how much of that, like the actual amount that you can mitigate through some of those efforts?

好的。然後我知道您談到了一些緩解措施。您能否幫我們估算一下，透過這些努力，您可以減輕多少實際的負擔？

I would say we're continuing to work those actions, whether it be the raw material sourcing that we have, where we're looking at dual sourcing that we have for a lot of our materials, working with our supply base to ensure that we don't have a tariff impact or we have the least amount of tariff impact because that would mean that we would have the least amount of pricing discussions that we need to have with our customers. And then from a manufacturing standpoint, we're continuing to study it. We're continuing to look at options. So it's work in process every day.

我想說的是，我們將繼續採取這些行動，無論是我們現有的原材料採購，還是我們正在考慮對許多材料進行雙重採購，與我們的供應基地合作，以確保我們不會受到關稅影響或將關稅影響降至最低，因為這意味著我們將與客戶進行最少的定價討論。然後從製造的角度，我們將繼續研究它。我們正在繼續尋找各種選擇。所以這是每天都在進行的工作。

Okay. And then just one last one, if I could. What are you hearing from your semi customers about their CapEx plans, not necessarily for the next one to two quarters, but over the next two to three years? Are plans getting pushed out or put on the shelf given the significant tariff and macro uncertainty? Like what are you hearing in real time, I guess?

好的。如果可以的話，我再問最後一個問題。您從半導體客戶那裡了解到了什麼有關資本支出計劃的信息，不一定是針對未來一到兩個季度，而是針對未來兩到三年？鑑於關稅和宏觀不確定性，這些計劃是否會被推遲或擱置？我猜，就像你即時聽到的是什麼？

Yes. I think in general, I would say that it's a relatively new situation. I think our semi customers are looking at it as perhaps more of a shorter-term impact here and then perhaps continuing the business as usual as they move forward, although they may need to make some manufacturing decisions on regions. I think overall, we're not seeing a significant change in their CapEx planning. I mean there are some announcements.

是的。我認為總的來說，這是一個相對較新的情況。我認為我們的半導體客戶可能會將其視為短期影響，然後可能會繼續照常開展業務，儘管他們可能需要根據地區做出一些製造決策。我認為總體而言，我們沒有看到他們的資本支出計劃發生重大變化。我的意思是有一些公告。

I mean, for example, one large semi manufacturer announced some decrease. There are some that have talked about perhaps a slight delay. But I would say, in general, I think the semiconductor market for the longer term is positioned to deliver the mid-single digits, higher single digits type of growth that it has delivered over the last 20, 30 years.

我的意思是，例如，一家大型半導體製造商宣布了降價。有些人談到可能會有輕微的延遲。但我想說，總的來說，我認為半導體市場長期來看將實現過去 20 至 30 年間中位數個位數或高個位數的成長。

That's very helpful. I appreciate you taking the questions. Thank you.

這非常有幫助。感謝您回答這些問題。謝謝。

David Silver, CL King.

大衛·西爾弗、CL·金。

Yeah, hi, thank you. Hey, good morning. So I have a couple of questions, I guess, regarding kind of knock-on effects from the tariffs, so not direct, but maybe -- or not near term, but maybe a little bit over the horizon. But in particular, I guess, you do have R&D and you do a lot of product development work, I would say, in close collaboration with a lot of your customers.

是的，你好，謝謝你。嘿，早安。所以我想我有幾個問題是關於關稅的連鎖反應，雖然不是直接的，但也許——或者不是短期的，但也許有點遠。但具體來說，我想，你們確實有研發部門，而且你們做了很多產品開發工作，我想說，你們與許多客戶密切合作。

And ultimately, that leads to contract wins and things that develop over a period of time. Can you just comment, I mean, in the current environment of high near-term uncertainty, would you say your product development efforts or your collaborative work with key customers for projects that may develop, let's say, over the next year or two, has your customers' behavior shift extended to maybe pausing on some of those multiyear development plans? Or alternatively, are you still seeing a lot of incoming requests for bids and opportunities to begin new collaborations? Thank you.

最終，這將導致合約的勝利以及一段時間內事態的發展。您能否評論一下，我的意思是，在當前短期不確定性很高的環境下，您是否認為您的產品開發工作或與主要客戶在未來一兩年內可能開發的項目的合作，是否已經延伸到可能暫停一些多年開發計劃？或者，您仍然看到大量投標請求和開始新合作的機會？謝謝。

Yeah. David, no, I would say the short answer is no impact. We have very, very strong relationships with our customers, really in all the verticals that we operate in globally. We have a number of initiatives that we're involved in each of those verticals, and our discussions are continuing with the customers.

是的。大衛，不，我想說簡短的回答是沒有影響。我們與客戶保持著非常非常牢固的關係，實際上涵蓋了我們在全球經營的所有垂直領域。我們在每個垂直領域都參與了多項計劃，我們正在繼續與客戶進行討論。

They recognize, obviously, that there's this uncertainty. But at the end of the day, they're still going to need product, right? They're still going to need product a year from now, two years from now, three years from now. And so that product development cycle has to continue.

他們顯然認識到存在這種不確定性。但最終他們仍然需要產品，對嗎？一年後、兩年後、三年後他們仍然需要產品。因此產品開發週期必須持續。

Now, the manufacturing or some of the supply chain things that may need to evolve over time, that's something that, of course, we'll work with our customers on. But I think product development, R&D activities continuing.

現在，製造或一些供應鏈可能需要隨著時間的推移而發展，當然，我們會與客戶合作解決這些問題。但我認為產品開發和研發活動仍在繼續。

I mean, we have a number of large activities, for example, that we're doing on clean energy, and that is continuing. In fact, I would say the additional energy generation sort of actions are accelerating even because of the increased use of energy around data centers and other areas. So I think in general, I don't see any change. Customers are working with us in close collaboration and developing products.

我的意思是，我們在清潔能源方面開展了許多大型活動，而且這些活動仍在繼續。事實上，我想說，由於資料中心和其他區域的能源使用增加，額外的能源生產行動正在加速。所以我認為總體而言，我沒有看到任何變化。客戶正在與我們密切合作並開發產品。

Okay, great. Thank you for that. I appreciate it. Just a question about, I guess, your comments on aerospace and defense. So historically, in terms of end market performance, that's been one of your very strongest end markets, let's say, over the last couple of years.

好的，太好了。謝謝你。我很感激。我想，這只是一個關於您對航空航天和國防的評論的問題。因此，從歷史上看，就終端市場表現而言，在過去幾年裡，這是最強大的終端市場之一。

And I guess it was kind of a tale of two cities this time, right, where aerospace continues very strong and defense. I mean, you cited timing, but anyway, I'm just wondering on the defense side, is your one- to two-year projection kind of for more continued trend line demand growth on the defense side?

我想這次有點像是兩個城市的故事，對吧，航空航天和國防繼續保持強勁。我的意思是，您提到了時間，但無論如何，我只是想知道在國防方面，您對一到兩年的預測是否代表國防方面的需求將持續增長趨勢？

Or in contrast, might that be something where there was a bump up over the last year or two, maybe related to geopolitical drivers that -- and then maybe that portion of your business is due to moderate on a multi-year period. So if you could separate aerospace from defense, I mean, how does the defense side of that portion of your end market profile look, let's say, on a one- to two-year basis?

或者相反，這可能是因為過去一兩年出現了增長，可能與地緣政治驅動因素有關 - 然後也許您的這部分業務在多年期間內會趨於緩和。因此，如果您可以將航空航太與國防分開，我的意思是，您的終端市場概況中國防方面的情況在一到兩年內會如何？

Yeah. Let me just start, I think, with the overall comment on aerospace and defense. That's been really, really a strong market for us. I think this quarter, we reported the 16th consecutive quarter of year-over-year growth in that market. It's been led by really all three parts of it, which is the commercial aerospace, commercial space, and then defense.

是的。我想，首先讓我對航空航天和國防發表一下總體評論。對我們來說，這確實是一個非常強大的市場。我認為本季我們報告該市場連續第 16 個季度實現同比增長。它實際上由三個部分主導，即商業航空航天、商業太空和國防。

All three have contributed meaningfully to that. I would say probably a little bit less so on the commercial aerospace over the last couple of years just because of the build rate challenges that OEs have had, both the European OE and the North American OE, some of the build rate challenges that they've had over the last couple of years have certainly been an issue.

三人都為此做出了有意義的貢獻。我想說，過去幾年商業航空航天業的情況可能稍微好一些，因為原始設備製造商（OE）面臨著建造率挑戰，無論是歐洲 OE 還是北美 OE，過去幾年他們面臨的一些建造率挑戰肯定是一個問題。

But I would say, overall, it's been a very, very strong market for us. For us, defense has been a strong market, not only for North America, but I think one of the things that we've really focused on in the defense side, and we talked about this in our earlier calls, is our global activity. We've spent a lot of time on understanding the markets and the possibilities in Europe and Asia.

但我想說，總的來說，這對我們來說是一個非常非常強大的市場。對我們來說，國防一直是一個強大的市場，不僅在北美，而且我認為我們在國防方面真正關注的事情之一，我們在之前的電話會議中談到了這一點，就是我們的全球活動。我們花了很多時間來了解歐洲和亞洲的市場和可能性。

We've been working with the primes here in the US for those applications, but then also customers directly in those regions. So I think defense in general over the next several years, I would continue to see as a good growth market for us. This quarter, it's strictly timing. I think we've talked about it a number of times that defense is a choppy market with orders.

我們一直在與美國的主要供應商合作開發這些應用，同時也直接與這些地區的客戶合作。因此我認為，未來幾年國防總體上仍將是我們一個良好的成長市場。本季度，時間安排非常嚴格。我想我們已經多次討論過這個問題，國防市場是一個充滿訂單的波動市場。

A lot of them end up being shipments at the end of the year so that creates some lumpiness on the defense market. But overall, I see defense as a good, strong market for us, particularly for global defense. So I think the overall aerospace and defense will continue to be a good market.

其中許多最終都是在年底發貨，因此給國防市場帶來了一些波動。但總體而言，我認為國防對我們來說是一個良好且強勁的市場，尤其是全球國防市場。因此我認為整體航空航太和國防市場將繼續保持良好勢頭。

Okay thank you. And then I did want to maybe ask a question, I guess, about -- I think Shelley used the term scenario planning, and in the current environment, and that certainly makes sense. Different aspects of that. But it's not a perfect playbook, but I think you've had to do some scenario planning over the past couple of years due to the pandemic. And I'm just wondering if maybe a couple of those pages apply in the current environment.

好的，謝謝。然後我確實想問一個問題，我想，關於——我認為雪萊使用了情景規劃這個術語，在當前環境下，這當然是有道理的。這方面有不同的觀點。但這並不是一個完美的劇本，但我認為由於疫情，過去幾年你必須做一些情境規劃。我只是想知道其中的幾頁是否適用於當前環境。

So in particular, you talked about inventory reductions this quarter. And I'm just wondering about whether due to the tariff impacts and potential retaliation from different countries or maybe just extended negotiations. Did you consider increasing inventory selectively in maybe some strategic areas, or areas where there might be, under scenario planning, you could imagine some vulnerabilities?

您特別談到了本季的庫存減少。我只是想知道這是否是由於關稅的影響和不同國家的潛在報復，或者可能只是延長的談判。您是否考慮過在某些策略領域或可能存在情境規劃的領域有選擇地增加庫存，您能想像一些弱點嗎？

And then I'm also wondering, would it have been prudent or had you considered increasing, I guess, your borrowing capability from banks, either for defense or for offense to take advantage of opportunities. But maybe just a finer point on steps you've maybe taken in the current environment to just enhance your positioning to respond to different types of uncertainty that may or may not develop over the next quarter or two?

然後我還想知道，這樣做是否明智，或者您是否考慮過增加從銀行借款的能力，無論是為了防禦還是進攻，以利用機會。但也許您只是在當前環境下採取了一些措施來增強自己的定位，以應對未來一兩個季度可能出現或可能不出現的不同類型的不確定性？

Yeah. David, let me comment on a couple of things, and then I'll turn it over to Shelly to talk about borrowing in particular and any other comments that she would have. Clearly, the playbook that we employed -- developed and employed during the COVID times is a playbook that we've looked at. I guess it's a coincidence that the timing of that was right around the March of 2020 time frame, so right at the end of Q1. And here we are, kind of Q1, Q2.

是的。大衛，請允許我評論幾件事，然後我會把時間交給雪莉來談談具體的借貸問題以及她可能有的任何其他評論。顯然，我們在 COVID 期間制定和採用的劇本是經過我們研究的劇本。我想這只是一個巧合，時間恰好是在 2020 年 3 月左右，也就是第一季末。現在我們處於 Q1、Q2 階段。

And if you recall, the biggest impact, I think, not only on us, but on many companies was in Q2 with the immediate changes that happened as a result of COVID. And so I guess, similar timing in a way, during the year. But certainly, we have a lot of lessons that we learned at that time, including how to manage pricing, how to work with our supply chains, logistics. And I think each of those things, we're making sure that we're leveraging those lessons learned in this environment.

如果你還記得的話，我認為最大的影響不僅對我們，而且對許多公司都是在第二季度，由於 COVID 而發生的直接變化。因此我想，從某種程度上來說，一年中的時間安排是相似的。但可以肯定的是，我們當時學到了很多教訓，包括如何管理定價、如何與我們的供應鏈和物流合作。我認為，在處理每一件事時，我們都在確保利用在這種環境下獲得的經驗教訓。

We have looked at the inventory. I mean, we mentioned, for example, that for the materials that we procure from China, we have good healthy levels of inventory on hand so that we can continue to work with our customers, support our customers in a meaningful way. And so I think where it makes sense, we've made sure that we're making the right moves on inventory.

我們已經查看了庫存。我的意思是，例如，我們提到，對於我們從中國採購的材料，我們擁有良好的庫存水平，以便我們能夠繼續與客戶合作，以有意義的方式為客戶提供支援。因此，我認為，只要合理，我們就會確保在庫存方面採取正確的措施。

And of course, where we can continue to improve on our inventory levels, we have. I mean, Q1 was really a good quarter for us on a year over year basis. As we indicated, $27 million less inventory in Q1 of this year than we had in Q1 of last year.

當然，我們可以繼續提高庫存水準。我的意思是，與去年同期相比，第一季對我們來說確實是一個好季度。正如我們所指出的，今年第一季的庫存比去年第一季減少了 2700 萬美元。

So I think the lessons that we've learned and the work that our teams are doing is a balance of making sure we can continue to support our customers, but at the same time, driving the important metric of cash preservation, conservation, generation within our company.

因此，我認為，我們所學到的經驗教訓和我們團隊正在進行的工作是確保我們能夠繼續支持我們的客戶，但同時推動公司內部現金保全、節約和創造的重要指標的平衡。

Yes. And just to address the borrowing side, certainly, we keep a close eye on liquidity, and we talk about that in our releases and in our 10-Q. I'm pretty happy with what we have for liquidity today. It just so happens that our revolver does come up for renewal this year. And so we're taking a look at where do we want optionality as our terms improve and what kind of needs we could foresee. So we're definitely taking that into account.

是的。為了解決借貸方面的問題，我們當然密切關注流動性，並在新聞稿和 10-Q 中討論這個問題。我對我們今天的流動性感到非常滿意。碰巧的是，我們的左輪手槍今年確實需要更新。因此，我們正在研究隨著條款的改善，我們需要在哪裡實現可選性，以及我們可以預見哪些類型的需求。所以我們肯定會考慮到這一點。

Okay, great. I appreciate all the color. Thank you very much.

好的，太好了。我欣賞所有的色彩。非常感謝。

Thank you, David.

謝謝你，大衛。

Dave Storms, Stonegate.

戴夫‧斯托姆斯 (Dave Storms)，Stonegate。

Good morning, everyone, and thank my questions. You mentioned on the inventory that you did a strategic build in some parts yourself. I know Performance Materials had a strong quarter, in part thanks to volumes. Any sense of how much of this maybe your customers are having a bit of a demand pull forward to try for the same reasons?

大家早安，感謝我提問。您在清單中提到，您自己在某些部分進行了策略建立。我知道性能材料本季表現強勁，部分原因在於銷售量。您是否知道，您的客戶有多少出於同樣的原因而提前嘗試這種產品？

Yeah. I mean, clearly, just like we've looked at things, I'm sure there are some customers that have looked at that as well. But I think I would say that there is the opposite side where customers have also paused and have really questioned whether that's something that they want to take on.

是的。我的意思是，顯然，就像我們所看到的事物一樣，我相信有些客戶也看到了這一點。但我想說的是，還有相反的情況，那就是客戶也猶豫了，並且真的質疑這是否是他們想要接受的事情。

So although there may be some level of inventory that they have pulled. I think there's probably an equal number of customers that probably have paused. And so on a whole, I'm not sure I would credit much of the Q1 performance to a net pull from our customers.

因此，儘管他們可能已經撤走了一定程度的庫存。我認為可能有同樣多的顧客暫停了購物。因此，從整體來看，我不確定是否將第一季的業績很大程度上歸功於客戶的淨拉動。

Understood. Very helpful. And then should some of the macro uncertainties clear up in the next quarter or two, which would be fantastic. Is there any sense of how much of the $0.10 to $0.15 loss that you expected in Q2, the impact that you're expecting in Q2? Any sense of how much of that could be made up through the balance of 2025? Or is that structurally gone?

明白了。非常有幫助。然後，如果一些宏觀不確定性在接下來的一兩個季度內消失，那將是極好的。您預計第二季的損失為 0.10 美元到 0.15 美元，您能確定這會對第二季造成多大影響嗎？您知道到 2025 年可以彌補多少損失嗎？或者說從結構上來說已經消失了？

No. I mean, we're very much focused on figuring out how we could possibly recover that. If the tariff issues were resolved to sort of a satisfaction where customers would start putting the orders back in, and we could start shipping. Our goal and objective would be to get that in as much as possible this year. I think it just depends on the timing, right, I mean, here we are on today's May 1, right?

不。我的意思是，我們非常專注於弄清楚如何才能恢復這一點。如果關稅問題解決，客戶就會開始下訂單，我們就可以開始出貨。我們的目標和目的是今年盡可能實現這一目標。我認為這取決於時間，對吧，我的意思是，今天是 5 月 1 日，對吧？

So we just got to wait and see how things proceed. But again, our goal would be to certainly get that in this year. But if things have to move forward into the next year based on negotiations, then that's where we'll take it.

所以我們只能拭目以待，看看事情如何發展。但再次強調，我們的目標是在今年實現這一目標。但如果事情必須透過談判才能進入明年，那麼我們就會這麼做。

That's a great color. Thank you.

顏色真棒。謝謝。

We have reached the end of our question-and-answer session, and I will now turn the call back over to Kyle Kelleher for closing remarks.

我們的問答環節已經結束，現在我將把電話轉回給凱爾·凱萊赫 (Kyle Kelleher) 作結束語。

Thank you. This concludes our first quarter 2025 earnings call. Recorded playback of this call will be available on the company's website, materion.com. I'd like to thank you for participating on this call and your interest in Materion. I'll be available for any follow-up questions. My number is 216-383-4931. Thank you again.

謝謝。我們的 2025 年第一季財報電話會議到此結束。此通話的錄音重播將在公司網站 materion.com 上提供。感謝您參加本次電話會議以及對 Materion 的關注。我將隨時回答任何後續問題。我的電話號碼是 216-383-4931。再次感謝您。

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

今天的會議到此結束，大家可以斷開連線了。感謝您的參與。