Materion Corp (MTRN) 2025 Q3 法說會逐字稿

Greetings, and welcome to the Materion third quarter 2025 earnings conference call. (Operator Instructions) And please note, this conference is being recorded.

各位好，歡迎參加 Materion 2025 年第三季財報電話會議。（操作說明）請注意，本次會議正在錄音。

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.

現在我將把會議交給主持人，投資者關係和企業財務規劃與分析總監凱爾凱勒赫先生。先生，請您發言。

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

早安，感謝各位參加我們2025年第三季財報電話會議。這是 Kyle Kelleher，投資者關係和企業財務規劃與分析總監。在今天早上開始發言之前，我想指出，我們已經在公司網站上發布了一些資料，我們將在今天對季度業績進行回顧時參考這些資料。您也可以透過財報電話會議網路直播連結下的下載功能取得相關資料。

With me today are 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.

今天陪同我出席的有總裁兼執行長 Jugal Vijayvargiya，以及副總裁兼財務長 Shelly Chadwick。今天電話會議的形式如下：Jugal 將對本季的情況作開場評論。在 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。接下來我們將開放提問環節。

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.

我想提醒各位投資者，本次演講中所做的任何前瞻性陳述，包括展望部分和問答環節中的陳述，都是基於當前的預期。由於各種因素的影響，公司的實際業績可能與前瞻性聲明中所設想的業績有重大差異。這些因素已列在我們今天早上發布的盈利新聞稿中。

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 eight 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、淨利潤和每股收益的評論反映了今天早上新聞稿附件四至八中所示的調整後 GAAP 數據。為了進行比較，對上一年期間進行了調整，剔除了特殊項目、非現金支出和某些單獨的所得稅調整。

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

現在我將把電話交給尤加爾，請他發表評論。

Thanks, Kyle, and good morning, everyone. I'm pleased to be with you today to discuss our third quarter results and to provide an update on what we are seeing across our businesses and end markets.

謝謝你，凱爾，大家早安。今天很高興能和大家一起討論我們第三季的業績，並向大家介紹我們各項業務和終端市場的最新情況。

We achieved a couple of very important milestones in the quarter, including all-time high EBITDA margins of 27% in Electronic Materials. This reflects the power of our improved cost structure, strong operational performance, and new business initiatives as the semiconductor market continues to recover.

本季我們實現了幾個非常重要的里程碑，包括電子材料業務的 EBITDA 利潤率創歷史新高，達到 27%。這反映了隨著半導體市場持續復甦，我們改進的成本結構、強勁的營運績效和新的業務措施所發揮的作用。

In addition, the transformation of Precision Optics is tracking ahead of our expectations, and we saw a return to double-digit EBITDA margins with a significantly better cost structure and a nice step-up in sales.

此外，精密光學業務的轉型進展超出了我們的預期，我們看到 EBITDA 利潤率恢復到兩位數，成本結構明顯改善，銷售額也大幅成長。

At the company level, our sales were up roughly 1%, with a strong Electronic Materials and Precision Optics results partially muted by some equipment downtime challenges that limited shipments in Performance Materials. These challenges are being addressed, and we anticipate more normalized production levels as we finish out the year.

公司層面，我們的銷售額成長了約 1%，其中電子材料和精密光學產品表現強勁，但高性能材料的出貨量因一些設備停機問題而受到一定程度的抑制。我們正在應對這些挑戰，預計到年底時生產水準將恢復正常。

Despite the shortfall in Performance Materials, we delivered 21% EBITDA margins for only the second time in our company's history. Our team is making great progress towards our new midterm target margins of 23%.

儘管高性能材料供應短缺，但我們公司歷史上第二次實現了 21% 的 EBITDA 利潤率。我們的團隊在實現23%的中期利潤率目標方面取得了巨大進展。

In addition to our strong financial performance in the quarter, we are also pleased with the step-up we're seeing in incoming order rates across the company. Overall, our order rates are up more than 10% sequentially, and with the key markets of semiconductor, defense, space, and energy up 20% year-to-date. These markets are seeing strong secular demand growth, and we are developing products and partnerships to supply the materials that are critical to their performance.

除了本季強勁的財務業績外，我們也對公司各部門訂單量的提升感到滿意。總體而言，我們的訂單率環比增長超過 10%，其中半導體、國防、航太和能源等主要市場的訂單率今年迄今增長了 20%。這些市場正經歷強勁的長期需求成長，我們正在開發產品和建立合作夥伴關係，以供應對其性能至關重要的材料。

Semiconductor has long been a leading market for us, where we have made strategic organic and inorganic investments to develop the right footprint and material set. We are starting to see a cyclical recovery taking shape, led by the proliferation of AI.

半導體一直是我們的主要市場，我們已在該領域進行了策略性的有機和無機投資，以建立合適的業務佈局和材料組合。我們開始看到一種週期性復甦的跡象，而人工智慧的普及正是這種復甦的驅動力。

Excluding China, our semi business is up 7% year-to-date, with sales into high-performance memory applications increasing more than 30%. In our ALD portfolio, we have developed molybdenum-based products that are in high demand given their performance in smaller node chips. We are seeing significant interest in this product set and are working with new and existing customers as our production ramps.

除中國市場外，我們的半導體業務今年迄今成長了 7%，其中高效能記憶體應用領域的銷售額成長超過 30%。在我們的 ALD 產品組合中，我們開發了鉬基產品，由於其在較小節點晶片中的優異性能，這些產品的需求量很大。我們看到市場對這套產品表現出濃厚的興趣，隨著產能的提升，我們正在與新舊客戶合作。

Energy demands are increasing at a rapid pace, and this trend is closely related to the proliferation of AI. The number of data centers is expected to double in the next five years, with each center's energy usage also doubling. Combined with other drivers of energy usage, it is fair to say that energy is going to continue to be a great market for Materion. We continue to have a strong position in traditional energy, and we have exciting opportunities to grow with new energy that will bring about the higher volumes of energy required to supply tomorrow's demand.

能源需求正以驚人的速度成長，而這一趨勢與人工智慧的普及密切相關。預計未來五年資料中心的數量將翻一番，每個資料中心的能源消耗量也將翻倍。結合其他能源使用驅動因素來看，可以說能源將繼續成為 Materion 的重要市場。我們在傳統能源領域仍然擁有強大的地位，我們有機會透過新能源實現成長，從而滿足未來更高的能源需求。

In the past year, there has been a step-up in the market's interest in nuclear solutions. Small modular reactors enable regional energy independence and efficient nuclear space propulsion as well as remote battlefield autonomy for defense applications. We work with a number of customers on these types of applications and expect to see continued growth.

過去一年，市場對核能解決方案的興趣顯著提升。小型模組化反應器能夠實現區域能源獨立和高效的核動力太空推進，以及用於國防應用的遠程戰場自主性。我們與許多客戶合作開發這類應用，並預期業務將持續成長。

We are also partnering with companies that are aggressively developing breakthrough technologies to expand the total energy supply. Our partnership with Kairos Power to supply materials to produce Flibe, a molten salt coolant critical to the performance of safe vision reactors, is progressing well.

我們也與一些積極開發突破性技術的公司合作，以擴大能源供應總量。我們與 Kairos Power 合作，為其提供生產 Flibe 所需的材料。 Flibe 是一種熔鹽冷卻劑，對安全願景反應器的性能至關重要。目前，雙方的合作進展順利。

Additionally, we announced an exciting new supply agreement with Commonwealth Fusion Systems, the leading and largest commercial fusion energy company, to provide beryllium fluoride for their breakthrough fusion energy technology to be used in their ARC power plants. We will begin shipping product this year.

此外，我們也宣布與領先且規模最大的商業聚變能源公司 Commonwealth Fusion Systems 達成一項令人興奮的新供應協議，為其突破性的聚變能源技術提供氟化鈹，用於其 ARC 發電廠。我們將於今年開始出貨。

Defense is another important area for our company, and our materials play a critical role in national security for the U.S. and its allies. The current U.S. administration has put a pronounced focus on defense spending and has outlined its priorities, including the Golden Dome, space, maritime, and nuclear microreactors for portable energy use.

國防是我們公司的另一個重要領域，我們的材料在美國及其盟國的國家安全中發揮著至關重要的作用。美國現任政府高度重視國防開支，並概述了其優先事項，包括金頂國家紀念地、太空、海上以及用於便攜式能源的核微型反應器。

In addition, as geopolitical tensions persist, the U.S. is looking to replenish and expand its stockpiles and as a result, has increased budgetary spending to almost $1 trillion for next year. Outside the U.S., many allied countries are also increasing their defense budgets and have committed to certain spending in the U.S. as part of trade agreements. As a result, we are seeing record defense bookings this year, up roughly 40%, and we're currently working a total of about $150 million of RFQs that should result in meaningful new orders.

此外，由於地緣政治緊張局勢持續，美國正尋求補充和擴大其儲備，因此，明年的預算支出已增加到近 1 兆美元。在美國以外，許多盟國也在增加國防預算，並根據貿易協定承諾在美國進行一定的支出。因此，我們看到今年的國防訂單創下歷史新高，成長了約 40%，我們目前正在處理總額約 1.5 億美元的詢價單，這些詢價單應該會帶來重要的新訂單。

The commercial space sector represents exciting opportunities for Materion as this market is influenced by a number of the macro trends impacting our other markets, including AI, connectivity and defense technologies.

商業航太領域為 Materion 帶來了令人興奮的機遇，因為該市場受到影響我們其他市場的許多宏觀趨勢的影響，包括人工智慧、互聯互通和國防技術。

The number of satellite launches has increased exponentially with more than 260 launches last year. We have secured meaningful wins with space proposal applications and are winning new applications as well. We have a number of products being introduced at our large space customer, and we have relationships with the smaller players looking to grow in this market. Our sales in the space market have increased fivefold in just three years, and we see strong opportunities as we move forward.

衛星發射數量呈指數級增長，去年發射次數超過 260 次。我們在太空計畫提案申請方面取得了一些重要的勝利，並且還在不斷贏得新的申請。我們正在向大型航太客戶推出多款產品，並與希望在這個市場發展壯大的小型企業建立了合作關係。我們在太空市場的銷售額在短短三年內成長了五倍，我們看到了未來發展的巨大機會。

As we look to the balance of 2025, we expect to finish the year on a positive note, driven by our strong order book and improved operational performance. I would like to thank our global team for their relentless focus on satisfying our customers' needs and driving our company forward.

展望 2025 年剩餘時間，我們預計在強勁的訂單量和不斷改善的營運業績的推動下，將以積極的態勢結束這一年。我要感謝我們的全球團隊，感謝他們始終不懈地專注於滿足客戶需求，並推動公司向前發展。

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

現在我把電話交給雪莉，讓她提供更多關於財務方面的詳細資訊。

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。在我的演講中，我將參考今天早上發佈在我們網站上的幻燈片，從第 10 張幻燈片開始。

In the third quarter, value-added sales, which exclude the impact of pass-through precious metal costs, were $263.9 million, up 1% organically from prior year. Electronic Materials experienced 7% organic growth, led by strength in semiconductor and Precision Optics was up 21% with new business wins. This growth was partially offset by lower volume in Performance Materials, where we experienced some temporary equipment downtime at our largest facility, limiting sales by roughly $10 million in the quarter. When looking at earnings per share, we delivered quarterly adjusted earnings of $1.41, flat with prior year and up 3% sequentially.

第三季度，不計入貴金屬成本轉嫁影響的增值銷售額為 2.639 億美元，比上年同期有機成長 1%。電子材料業務實現了 7% 的有機成長，主要得益於半導體業務的強勁表現；精密光學業務成長了 21%，這得益於新業務的拓展。高性能材料業務的銷售下降部分抵消了這一增長，我們最大的工廠出現了一些暫時的設備停機，導致該季度銷售額減少了約 1000 萬美元。從每股收益來看，我們季度調整後的收益為 1.41 美元，與上年持平，季增 3%。

Moving to slide 11. Adjusted EBITDA was $55.5 million, down 2% year-over-year. This decrease was driven primarily by lower volume related to the equipment downtime within Performance Materials, partially offset by higher volume and favorable price/mix in Electronic Materials, along with the improved performance in Precision Optics. Despite the muted shipments in PM, we achieved 21% EBITDA margins for the second time in the company's history, demonstrating good progress towards our new midterm target of 23%.

切換到第11張投影片。調整後 EBITDA 為 5,550 萬美元，年減 2%。這一下降主要是由於高性能材料領域的設備停機導致產量下降，但電子材料領域的產量增加和有利的價格/組合，以及精密光學領域的性能提升，部分抵消了這一下降。儘管PM的出貨量不高，但我們實現了公司歷史上第二次21%的EBITDA利潤率，這表明我們在實現23%的中期新目標方面取得了良好進展。

Moving to slide 12. Let me review third quarter performance by business segment. Starting with Performance Materials, value-added sales were $157.1 million in the quarter, down 4% year-over-year. This decrease was driven primarily by equipment downtime and shipment timing in Defense and Energy, partially offset by higher hydroxide shipments and growth in space.

切換到第12張投影片。讓我按業務部門回顧一下第三季的業績。以高性能材料為例，該季度增值銷售額為 1.571 億美元，較去年同期下降 4%。這一下降主要是由於國防和能源領域的設備停機和發貨時間延遲造成的，部分被氫氧化物出貨量增加和航太領域的成長所抵消。

Adjusted EBITDA was $38 million or 24.2% of value-added sales, down 18% compared to the prior year. This decrease was driven primarily by lower volume and operational performance, partially offset by cost management.

調整後 EBITDA 為 3,800 萬美元，佔增值銷售額的 24.2%，比上年下降 18%。這一下降主要是由於銷售和營運效率下降所致，部分被成本控制所抵消。

Looking out to the fourth quarter, we expect to see significant top line improvement with more normalized production volumes. We also expect strong sales into Defense and Energy as a result of both market seasonality and new business initiatives. With the higher volume and improved operational performance, we expect to see significant bottom line improvement from the third quarter results.

展望第四季度，我們預計隨著產量恢復正常，營收將顯著成長。受市場季節性因素和新業務措施的雙重推動，我們預期國防和能源領域的銷售也將強勁成長。隨著銷售增加和營運績效提高，我們預計第三季業績將實現顯著的獲利成長。

Next, turning to Electronic Materials on slide 13. Value-added sales were $79.7 million, up 2% from the prior year and up 7% organically. This increase was driven mainly by non-China semiconductor sales as power and data storage device demand continues to improve.

接下來，請翻到第 13 張投影片，了解電子材料。增值銷售額為 7,970 萬美元，較上年成長 2%，有機成長 7%。這一成長主要得益於中國以外地區半導體銷售額的成長，因為電力和資料儲存設備的需求持續改善。

EBITDA, excluding special items, was $21.6 million or a record 27.1% of value-added sales in the quarter, up 38% from the prior year with 700 bps of margin expansion. This record margin and year-over-year increase was driven by higher volume, strong price/mix, improved operational performance and some favorable onetime operating-related items.

不計特殊項目，本季 EBITDA 為 2,160 萬美元，佔本季增值銷售額的 27.1%，創歷史新高，比去年同期成長 38%，利潤率提升 700 個基點。這項創紀錄的利潤率和年成長主要得益於銷售量增加、價格/產品組合優勢明顯、營運績效改善以及一些有利的一次性營運相關項目。

As we look out to the fourth quarter, we expect top line improvement driven by the continued upturn in the semiconductor market as this market continues to recover and benefit from favorable macro trends led by AI and global connectivity.

展望第四季度，我們預計營收將有所改善，這主要得益於半導體市場的持續回暖，該市場將繼續復甦，並受益於人工智慧和全球互聯互通等有利的宏觀趨勢。

Turning to the Precision Optics segment on slide 14. Value-added sales were $27.1 million, up 21% compared to the prior year and up 11% sequentially. This year-over-year increase was driven largely by new business wins, primarily in aerospace and defense.

接下來請看第 14 張投影片上的精密光學部分。增值銷售額為 2,710 萬美元，較上年成長 21%，較上季成長 11%。這一同比增長主要得益於新業務的拓展，主要集中在航空航天和國防領域。

EBITDA, excluding special items, was $3.2 million or 11.8% of value-added sales in the quarter with almost 1,000 basis points of year-over-year margin expansion. The increase was driven by higher volume, favorable price/mix and the impact of the structural cost changes. This quarter marks the third consecutive quarter of improved bottom line results and a return to double-digit EBITDA margins. We expect this trend will continue as new business initiatives advance, and the transformation continues to unfold.

不計特殊項目，本季 EBITDA 為 320 萬美元，佔本季增值銷售額的 11.8%，年比利潤率成長近 1,000 個基點。銷售成長、價格/產品組合優勢以及結構性成本變化的影響是推動成長的主要因素。本季是公司連續第三個季度獲利成長，EBITDA利潤率重回兩位數。我們預計隨著新的商業計劃推進和轉型繼續展開，這一趨勢將會持續下去。

Moving now to cash debt and liquidity on slide 15. We ended the quarter with a net debt position of approximately $441 million and approximately $214 million of available capacity on the company's existing credit facility, with leverage slightly below the midpoint of our target range at 2x. While no share buyback activity occurred during the quarter, I'm pleased to share that the Board of Directors authorized a new $50 million stock repurchase program during the quarter.

接下來，我們將討論第 15 頁的現金債務和流動性問題。本季末，公司淨債務約為 4.41 億美元，現有信貸額度可用額度約為 2.14 億美元，槓桿率略低於我們目標範圍的中點，為 2 倍。雖然本季沒有進行股票回購活動，但我很高興地宣布，董事會在本季批准了一項新的 5,000 萬美元股票回購計畫。

While organic initiatives remain our top capital allocation priority, it is important we have this tool available to us. As we look out to the remainder of the year, we remain on track to deliver free cash flow of roughly 70% of adjusted net income with strong cash generation year-to-date and fourth quarter cash initiatives on track.

雖然有機成長仍然是我們資本配置的首要任務，但擁有這個工具對我們來說也很重要。展望今年剩餘時間，我們仍有望實現調整後淨收入約 70% 的自由現金流，今年迄今現金流生成強勁，第四季度現金計劃也按計劃進行。

Lastly, let me transition to slide 16 and address the full year 2025. With our strong performance year-to-date, increasing order rates and new business initiatives on track, we remain confident in our ability to deliver $5.30 to $5.70 per share and are affirming our prior full year guide.

最後，讓我轉到第 16 張投影片，談談 2025 年的整體狀況。憑藉今年迄今的強勁業績、不斷增長的訂單率以及正在按計劃推進的新業務舉措，我們仍然有信心實現每股 5.30 至 5.70 美元的業績目標，並重申我們之前的全年業績指引。

This concludes our prepared remarks. We will now open the line for questions.

我們的發言稿到此結束。現在我們將開放提問通道。

Thank you.(Operator Instructions)

謝謝。 （操作說明）

Phil Gibbs, KeyBanc.

Phil Gibbs，KeyBanc。

Hey, good morning.

嘿，早安。

Morning, Phil.

早上好，菲爾。

So with regard to the full year outlook, you've maintained the range. But just curious in terms of now having better visibility with a couple of months left and you've got 10 months effectively behind you. Maybe give us some flavor why you didn't narrow the range? It's pretty wide for the implied fourth quarter results. So just trying to hone in on that a little bit better.

所以，就全年展望而言，你們維持了預期範圍。但我只是好奇，現在距離目標日期只剩幾個月了，情況是否更加明朗，而實際上你已經走過 10 個月了。或許可以解釋為什麼沒有縮小範圍？就第四季業績的預期而言，這個範圍相當廣泛。所以，我只是想在這方面再深入研究一下。

Yes, I'll start, Phil. Thanks for the question. So we're looking forward to a strong Q4. As you know, we always have kind of a nice end to the year with the strong defense orders, and we believe we're on track for that. When we think about why we didn't narrow the range, there's still some uncertainty for us around China. Hopefully, we will see that settle down in the coming days and weeks. But right now, that's not certain. And with the government shutdown, that could impact the timing of some of the orders that we're waiting on. And so when we thought about that, we said, why don't we leave the range where it is, but we are on track for the midpoint.

好的，我先來，菲爾。謝謝你的提問。因此，我們期待第四季能取得強勁的業績。如你所知，我們每年年底都會迎來不錯的國防訂單，我們相信我們正朝著這個方向前進。當我們思考為什麼沒有縮小範圍時，我們仍然對中國市場存在一些不確定性。希望這種情況能在未來幾天或幾週內有所改善。但目前來看，這尚不確定。由於政府停擺，這可能會影響我們正在等待的一些訂單的交付時間。所以當我們思考這個問題時，我們說，為什麼不保持價格區間不變，但我們正朝著中間價位邁進呢？

And then in terms of the new arrangement with Commonwealth, any thoughts you could provide us in terms of what that could mean you all financially and when some of these shipments step up more materially?

那麼，關於與英聯邦的新安排，您能否就此談談這對你們所有人的經濟意義，以及當其中一些貨物的運輸量大幅增加時，您有什麼想法？

Yes. Phil, I mean, we're very, very excited to have this agreement. As you know, a number of years ago, I think it was in 2020, we had signed an agreement with Kairos Power as they were working on new energy initiatives. Now we are excited to announce this agreement with Commonwealth Fusion. We've been working with them actually for a number of years, but we were able to get that into -- an agreement here in the last couple of months. We are going to be supplying material to them starting this quarter in Q4 and then into next year.

是的。菲爾，我的意思是，我們對達成這項協議感到非常非常興奮。如你所知，幾年前，我想應該是在 2020 年，我們與 Kairos Power 簽署了一項協議，當時他們正在進行新能源項目。現在我們很高興地宣布與 Commonwealth Fusion 達成這項協議。實際上我們已經和他們合作好幾年了，但直到最近幾個月我們才達成這項協議。我們將從本季（第四季）開始向他們供應材料，並持續到明年。

We expect it to be a few million this year, and then I would say more of an annualized run rate next year. So this is very exciting for us because now we've got Kairos Power on the vision side, CFS on the Fusion side. So we've got sort of both sides covered. And I think they're clearly the two leading companies in the world on this new energy initiatives.

我們預計今年將達到數百萬美元，然後我認為明年將達到更高的年化運行率。這對我們來說非常令人興奮，因為現在我們在視覺方面有了 Kairos Power，在融合方面有了 CFS。所以我們已經基本上考慮到了兩方面。我認為，在新能源領域，它們顯然是全球領先的兩家公司。

Yes, I think you also hit on what can we expect to see from that Phil. And as Jugal mentioned, we will start shipping on that this year, expect to say maybe a few million to contribute in Q4. And then as we look to next year, you can think about that sort of annualizing. So good sized impact on the next couple of years. As you can read in their release, they're still in development phases. So that could be a very large step-up as you get into kind of 2030 time frame. But right now, it's a nice win for us, and we look forward to working with them.

是的，我認為你也提到了我們可以期待菲爾帶來什麼。正如 Jugal 所提到的，我們今年將開始發貨，預計第四季度可能會貢獻數百萬美元。展望明年，我們可以考慮這種年度化的做法。因此，這將對未來幾年產生相當大的影響。正如您在他們的新聞稿中看到的那樣，他們仍處於開發階段。所以，到 2030 年左右，這可能會是一個非常大的進步。但就目前而言，這對我們來說是一場不錯的勝利，我們期待與他們合作。

Thank you. And then just one more follow-up, if I could. The onetime items that helped margins in EM in the quarter in terms of the timing, maybe just highlight the size of that impact so we can have a better bridge to what maybe more normalized margins there are.

謝謝。如果可以的話，我還想再問一個後續問題。本季新興市場利潤率受到一次性專案的影響，從時間上看，這或許可以凸顯其影響的程度，以便我們更了解更正常的利潤率。

Sure. Sure, Phil. So we were really pleased with the EM performance in the quarter, and it was a strong mix. The volume was good. The cost structure is really contributing in terms of being where we wanted it to be. But yes, we did get a little bit of a bump up from some onetime items that are all operating related. So in our precious metals process, we refined some of the leftover material. And some of that we send out, some of it we do in-house. When we got that material back, it had a higher concentration of precious metals than we were estimating. And so there was a pickup, call it, $1 million or so around that number that we got to record in Q3 that helped, but really should be in our year-to-date results anyway.

當然。當然可以，菲爾。因此，我們對本季新興市場的表現非常滿意，而且產品組合也很強勁。音量很好。成本結構確實對實現我們預期目標起了很大的作用。但確實，我們因為一些與營運相關的一次性項目而獲得了一些成長。因此，在貴金屬加工過程中，我們對一些剩餘材料進行了提煉。有些我們外包出去，有些我們自己做。當我們取回那批材料時，發現其中貴金屬的濃度比我們預想的要高。因此，我們在第三季度獲得了大約 100 萬美元的收入，這對我們有所幫助，但無論如何，這筆收入都應該計入我們年初至今的業績中。

Yes. But I think, Phil, just to add, I think, to what Shelly was talking about, I mean, this business has improved significantly throughout the year with all the improvements that it's driven in the cost structure over the last 18, 24 months. As you know, then [suddenly] market was down. So now for the last two quarters, it's been 20-plus percent EBITDA margins, so I mean, almost 24% in Q2 and now 27% in Q3 from the historical 20% or less margins that it used to deliver. So a really, really nice step-up for this business. And clearly, we have high expectations of this business as we go forward.

是的。但菲爾，我想補充雪莉剛才說的，我的意思是，在過去的 18 到 24 個月裡，由於成本結構的改進，這家公司在過去一年中取得了顯著的進步。如你所知，然後市場突然下跌了。因此，在過去兩個季度，其 EBITDA 利潤率都超過了 20%，也就是說，第二季度接近 24%，第三季度達到 27%，而過去其利潤率通常只有 20% 或更低。所以這對這家公司來說真是一次非常非常好的飛躍。顯然，我們對這項業務未來的發展寄予厚望。

Mike Harrison, Seaport Research Partners.

麥克·哈里森，海港研究夥伴公司。

Hi. I was hoping we could address a handful of questions I had around the equipment downtime that you mentioned in the Performance Materials segment. Can you give us a little bit of additional detail on the nature of the outage or what kind of product line it was affecting? And is the outage or downtime resolved now? Or if not, when do you expect to resolve it?

你好。我希望我們能就您在“高性能材料”部分中提到的設備停機問題，提出一些疑問。您能否提供更多關於此故障性質或受影響產品線的詳細資訊？現在故障或停機問題解決了嗎？如果不能解決，您預計何時能夠解決？

Yes. Mike, we had a couple of pieces of equipment in our largest plant where we process both beryllium and non-beryllium materials. The equipment downtime issues that we had are mainly resolved. We're back up and running. And so we expect to be able to catch up a majority of the sales into Q4 and perhaps a little bit into Q1. But for the most part, we're going to be able to do that here in the Q4 time frame.

是的。麥克，我們最大的工廠裡有幾台設備，我們在那裡加工鈹和非鈹材料。我們遇到的設備停機問題基本上已經解決。我們已經恢復正常運作。因此，我們預計能夠在第四季彌補大部分銷售缺口，或許還能在第一季彌補一部分。但總的來說，我們能夠在第四季實現這一目標。

As you know, we've got a fully vertically integrated value chain all the way from the mine into the finished material. So any type of a hiccup that we have on one or two pieces of equipment ends up resulting in a fairly impactful delivery issue. And it was around $10 million in Q3. I mean, at a company level, it's about four points of growth. I mean, you can look at it that way, that I think that impacted. We are -- to your point, we are back up and running on both as we got that addressed. And like I said, we expect to be able to make up the sales mostly in Q4 and perhaps some in Q1. But it's something that the teams have been able to resolve.

如您所知，我們擁有從礦山到成品的全垂直整合價值鏈。因此，一兩台設備上的任何故障最終都會導致相當嚴重的交付問題。第三季約 1000 萬美元。我的意思是，從公司層級來看，這大約是 4 個百分點的成長。我的意思是，你可以從這個角度來看，我認為這產生了影響。正如您所說，我們已經解決了這個問題，兩項服務都已恢復正常運作。正如我所說，我們預計大部分銷售損失將在第四季度彌補，或許第一季也能彌補一部分。但這是各隊已經能夠解決的問題。

All right. And just to follow up on that. It seems like maybe this disruption was not as impactful as what you guys had happened in the first quarter of 2024. But this is the second time in a couple of years that you've had a disruption or an unplanned outage in your Performance Materials segment. So I'm curious, is this just part of doing business in kind of a mining and conversion type of market that you guys serve? Or are there actions that you think you can take that might help you improve operational reliability?

好的。我再補充一點。看來這次的干擾可能沒有你們在 2024 年第一季遇到的情況那麼嚴重。但這是近幾年來貴公司高性能材料部門第二次出現中斷或計畫外停產的情況了。所以我很好奇，這是否只是你們所服務的那種採礦和轉化型市場中開展業務的一部分？或者，您認為可以採取哪些措施來提高運作可靠性？

Yes. So, to your point, it is a lesser of an impact than the first quarter of '24. Like I mentioned, when we're vertically integrated, smaller equipment issues that we have end up impacting kind of our overall production schedule. So it is something that, because we're fully vertically integrated, I think it tends to impact this business maybe a little bit more than some of the other businesses that we have. At the same time, I can tell you that we are very, very focused on making sure that we're making the type of improvements that we can on the equipment. Some of the equipment is legacy equipment, so that we can minimize these or even eliminate them as we go forward.

是的。所以，正如你所說，它的影響比 2024 年第一季要小。正如我之前提到的，當我們採用垂直整合模式時，一些較小的設備問題最終會影響我們的整體生產計劃。所以，由於我們是完全垂直整合的，我認為這對這項業務的影響可能比對我們其他一些業務的影響更大一些。同時，我可以告訴你們，我們非常非常注重確保我們對設備進行盡可能多的改進。有些設備是老舊設備，因此我們可以在推進過程中盡量減少甚至淘到這些設備。

So it is a focus area for us, both on finding the right type of capital improvements that we can drive into the business, along with just general maintenance and upkeep of the equipment. But it does tend to be a little bit more in this business than clearly our EM business or our optics business.

因此，這是我們關注的重點領域，既包括尋找合適的資本改善措施來推動業務發展，也包括對設備進行一般的維護和保養。但在這個行業，這種情況似乎比我們的電子製造業務或光學業務要多一些。

All right. Very helpful. And then I was hoping to also ask kind of a broader question about 2026 outlook. I know it's a little bit early, but when you talk about the order books that you have and some of the backlog in your key growth markets, presumably, we see some improvement in semiconductor, presumably, we see some improvement from the precision Clad strip customer. And obviously, you've taken a lot of cost actions. It seems like there is really good earnings momentum into next year. And I was hoping you could just give us maybe some initial thoughts on how we should think about the top-line and bottom-line growth in 2026.

好的。很有幫助。然後，我也想問一個關於 2026 年展望的更廣泛的問題。我知道現在說這些還為時過早，但是當你談到你目前的訂單量以及你在主要成長市場的一些積壓訂單時，我們預計半導體領域會有一些改善，預計精密包覆帶材客戶也會有一些改善。顯然，你們已經採取了許多降低成本的措施。看來明年的獲利動能會非常強勁。我希望您能就我們應該如何看待 2026 年的營收和利潤成長給我們一些初步的想法。

Mike, maybe I'll start a little bit, and then Shelly can jump in and talk more as well. We are very excited about some of the key markets, the high-growth markets that we're engaged in, and the portfolio that we have. We've included a slide this time that talks about our activities in semiconductor and energy and defense, and space, and how order rates for those key growth markets are up approximately 20% on a year-to-date basis. We've got the right type of portfolio across those four areas -- of portfolio that goes across all 3 of our businesses.

麥克，或許我可以先說一點，然後雪莉也可以加入進來，繼續說下去。我們對一些關鍵市場、我們正在參與的高成長市場以及我們擁有的投資組合感到非常興奮。這次我們加入了一張投影片，介紹了我們在半導體、能源、國防和航太領域的活動，以及這些關鍵成長市場的訂單率今年迄今成長了約 20%。我們在這四個領域擁有合適的投資組合—這種投資組合涵蓋了我們所有的三個業務領域。

We talked about the Commonwealth Fusion announcement, for example, that goes across energy. We've got over $150 million of open RFQs that we're engaged in on the defense side. You'll recall in the last earnings call, we mentioned it was $100 million. So that's actually increased from $100 million. And by the way, some of that we closed, new RFQs got added in. And now on top of that, we have another $50 million of RFQs that we've added. So we have more than $150 million of open RFQs in defense and so on and so on. So we're very excited about those high-growth markets, I think, as we enter into '26 and into '27, and we look at the sort of the midterm outlook in those areas.

例如，我們討論了聯邦聚變計劃的公告，該計劃涉及能源領域。我們在國防領域有超過 1.5 億美元的未決詢價項目正在進行中。您可能還記得，在上次財報電話會議上，我們提到過是 1 億美元。所以實際上比1億美元增加。順便說一下，我們關閉了一些項目，同時也新增了一些詢價單。現在，除此之外，我們又新增了價值 5,000 萬美元的詢價單。因此，我們在國防等領域有超過 1.5 億美元的未決詢價，等等等等。因此，我認為，隨著我們進入 2026 年和 2027 年，我們對這些高成長市場感到非常興奮，並且我們展望了這些地區的中期前景。

We certainly have challenges that we need to be addressing. China, as a market for us, is a challenge. We've highlighted that, I think, in the last couple of calls that we have. Our sales into China are down on a year-over-year basis, just based on all the geopolitical issues that are going on. We expect to continue to see pressure on our China business. But what our goal is, is to offset those pressures with these high-growth markets that we're focused on in the U.S. and the rest of the world.

我們當然面臨一些需要解決的挑戰。中國市場對我們來說是一個挑戰。我認為，我們在最近幾次通話中都強調了這一點。受當前地緣政治局勢的影響，我們對中國的銷售額年減。我們預計中國業務將繼續面臨壓力。但我們的目標是，透過我們在美國和世界其他地區重點關注的高成長市場來抵消這些壓力。

So I think in total, our business is moving forward. We've demonstrated that, I think, throughout this year. Our expectation is to move it forward again in Q4 and then continue to do that over the next two, three years with the portfolio set that we put in place. So in general, I mean, I'm not going to address '26, of course, in particular, just because there will be a time when we do address '26. But I think when we look at the overall midterm time frame, we're very excited about where the business is.

所以總的來說，我認為我們的業務正在向前發展。我認為，我們今年已經證明了這一點。我們預計在第四季度再次推進該項目，然後在接下來的兩三年內，利用我們制定的投資組合繼續推進該項目。所以總的來說，我的意思是，我當然不會專門討論 2026 年，因為將來某個時候我們會討論 2026 年。但我認為，從中期整體來看，我們對公司的發展前景感到非常興奮。

You mentioned Philip Morris. We're actively engaged with them on understanding what's going to happen next year. And as we get a better understanding of that this quarter, we'll be able to model that into our '26 and go forward. We are, of course, monitoring with them what the FDA approval is. So far, they have not announced the FDA approval. So we don't know if they have received it or have not received it yet, and we'll obviously have to wait and see what they say about that. But certainly, the later that goes, of course, it would impact the sales into '26 and perhaps push those out into '27. Of course, the sooner they're able to get that, then that could have a potential sales uptick in '26.

你提到了菲利普莫里斯公司。我們正積極與他們溝通，了解明年會發生什麼。隨著我們本季對這種情況有了更深入的了解，我們將能夠將其納入我們的 2026 年計劃並繼續推進。我們當然會和他們一起關注FDA的批准情況。截至目前，他們尚未宣布獲得美國食品藥物管理局（FDA）的批准。所以我們不知道他們是否已經收到，或者還沒有收到，顯然我們得等等看他們對此作何回應。當然，時間越晚，肯定會影響到 2026 年的銷售，甚至可能推遲到 2027 年。當然，他們越早獲得這種能力，2026 年的銷售額就有可能成長。

So we'll have to see kind of where that -- the Philip Morris business settles out at. But I think in total, when you put everything together, we've got a lot of upside opportunities that can help address some of the challenges that we have, whether it's China or some other areas that are going on.

所以，我們得看看菲利普·莫里斯的業務最終會走向何方。但我認為總的來說，綜合所有因素來看，我們有很多有利的機會可以幫助我們應對一些挑戰，無論是中國還是其他一些正在發生的領域。

So, I think we've got good momentum in the business this year that we've demonstrated, and I expect that momentum to continue into '26, '27 and into our midterm outlook of 23% EBITDA margins.

所以，我認為我們今年的業務發展勢頭良好，這一點已經得到了證明，我預計這種勢頭將持續到 2026 年、2027 年，並實現我們 23% 的 EBITDA 利潤率的中期目標。

Daniel Moore, CJS Securities.

Daniel Moore，CJS Securities。

Good morning, Jugal. Good morning, Shelly. Thanks for taking questions. Start with similar to Phil's question, but on Precision Optics. You're back to double-digit adjusted EBITDA margins, a big jump year-on-year. Can you just give a little more granularity on cost and operating improvements that have been made? And are double-digit margins sustainable as we look to '26 and beyond?

早上好，朱加爾。早安，雪莉。謝謝回答問題。先從類似 Phil 的問題入手，但這次是關於精密光學的。你們的調整後 EBITDA 利潤率又回到了兩位數，比去年同期大幅成長。能否更詳細地說明已經進行的成本和營運方面的改進？展望 2026 年及以後，兩位數的利潤率是否可持續？

Yes. We are very pleased, I think, with the progress that, that team has made in a very short time. I would say our results are tracking sort of ahead of the expectations and sort of the time line that we had established for ourselves. So very pleased with that. We're seeing a good uptick in a number of different markets, the more traditional markets that this business operates in, such as aerospace and defense and industrial, life sciences, et cetera.

是的。我認為，我們對團隊在很短的時間內所取得的進步感到非常滿意。我認為我們的結果比預期好，也比我們自己設定的時間表好。對此我非常滿意。我們看到許多不同市場都出現了良好的成長，包括該業務所處的較為傳統的市場，例如航空航太和國防、工業、生命科學等。

But also, we've entered and are making a bigger progress, I think, in some markets that perhaps we weren't focused on in the past, such as semiconductor. We've made inroads into that market. And so, I think from a top line standpoint, we're making good progress. We've made really good progress from the cost structure side with a number of different actions that we've taken over the last 12 months. And I would say, still are looking at actions that we can be taking here in Q4 and into next year.

但同時，我認為，我們也進入了一些我們過去可能沒有關注的市場，例如半導體市場，並且正在取得更大的進展。我們已經打入那個市場了。所以，從整體來看，我認為我們取得了良好的進展。在過去的 12 個月裡，我們採取了一系列不同的措施，在成本結構方面取得了非常好的進展。而且我認為，我們仍在研究在第四季以及明年可以採取的行動。

We've made sequential progress this year, all three quarters. Our goal is to continue to make sequential progress in this business. So having double-digit EBITDA margin is a good start. And I think it's tracking ahead of expectations, but that is not where we just need this business to be. We need this business to contribute to our 23% midterm EBITDA margin target. And so, we're going to continue to focus on that, Dan, and continue to push forward.

今年前三個季度，我們都取得了持續進展。我們的目標是繼續在這個行業取得穩步進展。因此，實現兩位數的 EBITDA 利潤率是一個好的開始。我認為它的發展速度超過了預期，但這並不是我們希望這家公司達到的高度。我們需要這項業務為我們實現23%的中期EBITDA利潤率目標做出貢獻。所以，丹，我們會繼續專注於此，並繼續前進。

Very helpful. Following up on Mike's question, obviously, great detail on the areas, semi, defense, others where you're seeing nice pickup in orders, nice strength, little uncertainty in China. Are there any pockets where you could see maybe detractors in terms of year-on-year growth being negative in terms of difficult comps or pieces of the business? Just trying to kind of conceptualize a lot of the arrows pointing toward anything that could be a drag on that growth as opposed to more neutral as we think about next year?

很有幫助。接續 Mike 的問題，顯然，你對半導體、國防以及其他訂單成長良好、實力強勁的領域進行了非常詳細的分析，而中國市場則幾乎沒有不確定性。是否存在某些領域，由於比較基數較大或業務部分有問題，導致年比成長負成長？我們只是想大致了解一下，有哪些因素可能阻礙成長，而不是像展望明年那樣保持中立？

Yes. Well, I think the auto market, we've talked about this, I think, in the last call as well, right, continues to be a very challenging market for us. In general, I think it's a challenging market. I mean the EV rollout has slowed down quite a bit. I think the growth in China OEMs has been substantial. The Western OEMs have had a very challenging environment in the last one or two years. So, we continue to look at the auto market as perhaps a bit more challenging market for us as we move forward and a bit more opportunistic, I would say, as we put a lot more focus on these key high-growth markets.

是的。嗯，我認為汽車市場，我們上次電話會議也討論過這個問題，對吧，對我們來說仍然是一個極具挑戰性的市場。總的來說，我認為這是一個充滿挑戰的市場。我的意思是，電動車的推廣速度已經大幅放緩。我認為中國整車製造商的成長非常顯著。過去一兩年，西方原始設備製造商 (OEM) 面臨著非常嚴峻的經營環境。因此，我們繼續將汽車市場視為一個更具挑戰性的市場，同時也認為它更具機會性，因為我們將更加關注這些關鍵的高成長市場。

So, our portfolio adjustments are real time and our customer adjustments are real time. And so, we're going to do everything we can to make sure that we're capturing these high-growth markets. And in some cases, if we have to go and be a bit more opportunistic in other markets, then we'll do that accordingly.

因此，我們的投資組合調整是即時進行的，我們的客戶調整也是即時進行的。因此，我們將竭盡所能，確保拿下這些高成長市場。在某些情況下，如果我們需要在其他市場採取更具機會主義的做法，那麼我們也會相應地採取行動。

Helpful. Appreciate the color on the Commonwealth acquisition. Just going back to Konasol, just talk a little bit about what you're seeing since it's been a few months since you closed that acquisition. And just remind us kind of the timeline in terms of what the incremental contribution could like either '26 or over the next two to three years?

很有幫助。欣賞聯邦收購案中的色彩。回到 Konasol 的話題，自從你們完成收購以來已經過去幾個月了，請你談談你目前的情況。請您大致提醒一下，從 2026 年到未來兩到三年，逐步增加的貢獻金額大概是多少？

Yes. No, that's been a very good pickup for us. Our teams have fully gotten involved, integrated the business into our Materion family. We are working with our customers and being able to talk to them about the capability that we bring forward. We have a number of different qualifications that we are involved in with the customers. Our expectation is to go through those qualifications here the rest of this year and into '26 with the objective of being able to start to see some sales in '26 and then into '27 and beyond. So we are, I would say, on track and in some cases, perhaps even a little bit ahead of track on that acquisition.

是的。不，這對我們來說是一筆非常好的收購。我們的團隊已全面參與，將這項業務融入我們的 Materion 大家庭中。我們正在與客戶合作，並能夠與他們討論我們所具備的能力。我們與客戶之間有許多不同的資格認證關係。我們預計今年剩餘時間以及到 2026 年將完成這些資格認證，目標是在 2026 年開始看到一些銷售，然後到 2027 年及以後。所以，我認為，我們在收購方面進展順利，在某些情況下，甚至可能略微超前於預期。

And then lastly would be just in terms of capital allocation, nice to see the authorization. Just how do we think about where buybacks potentially could fall in terms of rank ordering priorities? Growth has always been a key priority. Balance sheet is down to 2x and generating strong cash. So, you've got flexibility. But just help us think about how you're kind of rank ordering that as we look out to '26 and beyond?

最後，就資金分配而言，很高興看到這項授權。我們應該如何考慮股票回購在優先排序中可能的位置？成長一直是我們的首要任務。資產負債表規模已縮減至原來的2倍，現金流強勁。所以，你有很大的靈活性。但請您幫我們想想，在展望2026年及以後的時候，您是如何對這些因素進行排名排序的？

Yes. Thanks. I'll take that one. So, I think our priorities remain the same. We've been very focused on growth and organic growth. We continue to be very focused on organic growth. The areas that Jugal highlighted will continue to need some investment and provide, as you know, very, very good returns. When we think about the share buyback, it is a very opportunistic tool for us. We had not done share buyback in a number of years. But when we kind of looked at where the stock was in Q2, it was the right time to go ahead and buy a little bit back, and that proved to be a worthy use of our capital at that time. And we had run the current authorization down to a very small amount. So, it was just the right time to re-up with our Board of Directors. So, we have that tool in our tool belt, but it is not one that we are actively pursuing.

是的。謝謝。我選那個。所以，我認為我們的工作重點依然不變。我們一直非常注重成長和內生成長。我們將繼續非常注重內生成長。Jugal 指出的這些領域仍需要一些投資，而且如你所知，這些領域會帶來非常非常好的回報。當我們考慮股票回購時，它對我們來說是一個非常具有機會主義意義的工具。我們已經很多年沒有進行股票回購了。但當我們觀察第二季股票的走勢時，發現時機剛好，應該買回一些股票，事實證明，當時我們對資金的運用是值得的。而且我們已經將目前的授權額度削減到非常低的水平。所以，現在正是我們重新組成董事會的合適時機。所以，我們工具箱裡有這個工具，但我們並沒有積極地去使用它。

David Silver, Freedom Capital Markets.

David Silver，自由資本市場。

So I have a scatter of questions. I'll just warn you. But first, I'd like to hone in a little bit on your comment about sequential order growth of double digits or better, I believe, in all 3 of your segments. And I was just wondering from your perspective or would you characterize this sequential -- kind of across-the-board sequential growth. Would this be reflective of maybe some, I don't know, some deferred activity on the part of your customers, maybe over the last quarter or two in response to the tariff issues and some other things. Or would you characterize the bulk of the new orders as reflective of kind of pure organic growth? I mean, how do you think about the kind of broad-based trend of significant sequential pickup in your order book?

我有一些零散的問題。我先提醒你一下。但首先，我想重點談談您關於您的三個業務板塊均實現了兩位數或更高連續增長的評論。我只是想知道，從你的角度來看，你會如何描述這種循序漸進的增長——一種全面而循序漸進的增長。這是否反映出您的客戶在過去一兩個季度中，由於關稅問題和其他一些原因，採取了一些延遲交易的措施？或者您會把大部分新訂單描述為某種純粹的有機成長？我的意思是，您如何看待訂單簿中出現的這種大範圍的、顯著的連續成長趨勢？

Yes. I think I would look at this as primarily, I think, good organic growth that our teams are driving, new business activities that our teams are driving as well as, I think, the overall market growth and market trends that are there. Certainly, there could be some, David, as you mentioned, of some orders that perhaps have been held back and that got released. But in general, we see continued uptick and improvement in our order rates in most of our markets, and in particularly in the high-growth markets that we've indicated.

是的。我認為這主要歸功於我們團隊推動的良好內生成長、我們團隊推動的新業務活動，以及整體市場成長和市場趨勢。當然，正如你所提到的，David，可能有一些訂單被延遲發貨，後來又被放行了。但總的來說，我們看到大多數市場的訂單率持續上升和改善，尤其是在我們指出的高成長市場。

Next question would be kind of your take on tariff impacts on your financial results. So if I recall correctly, I mean, you highlighted maybe a $0.10 to $0.15 per share negative impact in the second quarter and then up to $0.50 or more for the back half of the year. And I know that, that initial forecast has been tempered a bit, but we're kind of six months into it now. How do you assess the overall effect on your financial results or operations, however you look at it of the of the tariff issues to date? I mean, how much of that has flown through what might be remaining, what that might not be offset by price or other actions? And what should we think about, maybe heading into 2026 on a year-over-year basis?

下一個問題是關於您如何看待關稅對貴公司財務表現的影響。如果我沒記錯的話，你當時指出第二季每股盈餘可能會受到 0.10 至 0.15 美元的負面影響，而下半年可能會受到 0.50 美元或更多的負面影響。我知道，最初的預測已經有所調整，但現在已經過去六個月了。無論從哪個角度來看，您如何評估迄今為止關稅問題對您的財務表現或營運的整體影響？我的意思是，有多少資金已經流失？還剩下多少？有多少資金可能無法透過價格或其他措施來抵銷？那麼，展望 2026 年，我們應該從逐年比較的角度來考慮哪些問題呢？

Yes, David, as you know, what we've been talking about the most has really been the impact to our China business. And so we think about that more commercially, and what is that doing both with customers reserving orders, but also maybe looking for suppliers that are outside the U.S., right? There's a bit of sort of a tone that, hey, we would rather have suppliers that are outside the U.S., given the volatility and the tone of how things are going in negotiations there.

是的，大衛，正如你所知，我們一直在討論的主要是這對我們中國業務的影響。因此，我們從商業角度考慮這個問題，既要滿足客戶的預訂需求，也要尋找美國以外的供應商，對吧？某種程度上，我們傾向於選擇美國以外的供應商，因為美國的談判情勢動盪不安，而且談判進展緩慢。

So right now, when we look at our China business, it's down about 20% year-on-year, year-to-date, and that's meaningful to us. The other side of that, of course, would be raw materials that we are incurring on material being brought in. That's a smaller number, call it, $3 million, $2 million, $3 million in that range. Some of that we're able to bill out through price. Others takes a little bit of time to settle in with customers and work through contracts. But the part that gets most of our attention is China and how that will shake out if some agreements are reached.

所以現在，當我們審視我們在中國的業務時，它比去年同期下降了約 20%，這對我們來說意義重大。當然，另一方面，我們也需要承擔進口原料的成本。那是一個較小的數字，姑且稱之為 300 萬美元、200 萬美元或 300 萬美元吧。其中一些成本我們可以透過價格轉嫁出去。有些人需要花點時間與客戶建立聯繫，並敲定合約。但我們最關注的部分是中國，以及如果達成一些協議，局勢將如何發展。

I would like to ask a question about the margin progression, in particular in Electronic Materials. So 27% is -- the high—not only is it, well, whatever -- it's the highest I have in my model going back as many years as it does. And I know that in general, Electronic Materials can often be a very high incremental margin business on incremental sales. But I don't know, I'm not thinking that, that's the case at least just yet. So, whether it's product mix or cost savings or whatever, but what went into this record margin performance this particular quarter? And should I assume that it can continue to go higher, maybe as sales growth continues to progress?

我想問一個關於邊際效益發展的問題，特別是關於電子材料領域的邊際效益發展的問題。所以 27% 是——最高值——它不僅是，好吧，不管怎樣——這是我的模型追溯這麼多年以來得到的最高值。我知道，一般來說，電子材料業務的增量銷售額往往能帶來非常高的增量利潤率。但我不知道，我還沒往那方面想，至少目前還沒到那一步。所以，無論是產品組合、成本節約還是其他因素，究竟是什麼促成了本季創紀錄的利潤率表現？我是否應該假設它還會繼續上漲，也許隨著銷售成長的持續推進？

Yes. Maybe I can start on this, and then Shelly can jump in as needed. This business, as you know, has gone through a downturn for the whole semiconductor market over the last couple of years. The recovery has now started, particularly in the data center business, the high-performance computing memory business, high-performance logic business, et cetera, those have been recovering at a very good rate, and some of the other areas are starting to now catch up.

是的。或許我可以先做這件事，然後雪莉可以根據需要加入。如您所知，過去幾年整個半導體市場都經歷了低迷期。復甦已經開始，尤其是在資料中心業務、高效能運算記憶體業務、高效能邏輯業務等領域，這些領域的復甦速度非常快，其他一些領域也開始迎頭趕上。

We took the time over the last year, 1.5 years, 2 years to really make the adjustments to our cost structure and to the business so that as the recovery happens, we can make sure that the margins are improving. We've talked about making those adjustments. I think when the volumes were at a peak level, it was hard to get some of those adjustments done. But now, having done those adjustments, I think, has allowed us to deliver the type of margins that we're delivering.

在過去一年、一年半、兩年的時間裡，我們真正對成本結構和業務進行了調整，以便在經濟復甦時，確保利潤率能夠提高。我們已經討論過要做出這些調整。我認為當音量達到峰值時，很難進行一些調整。但現在，經過這些調整，我認為，這使我們能夠實現目前這種利潤率。

In addition to that, of course, our mix is much stronger than the mix that we've had in the past. Certainly, the power segment and the data storage segment gives us a lot more of what we call precious metals mix business, which is a great business for us. The fact that the China business is a little bit lower, I mean, certainly, those margins were not as good as some of the other businesses that we have. So, the mix is certainly a helpful item. But in total, I think we've really made the right type of changes for this business so that it can be a much stronger business going forward.

當然，除此之外，我們的配方也比以往的配方好得多。當然，電力領域和資料儲存領域為我們帶來了更多我們所謂的貴金屬混合業務，這對我們來說是一項很棒的業務。中國業務的利潤率略低，我的意思是，當然，這些利潤率不如我們其他一些業務那麼好。所以，這種混合物確實很有用。但總的來說，我認為我們已經為這家企業做出了正確的改變，使其在未來發展得更強大。

If you take the 27% that we have here in the quarter that we delivered, I mean, even if you adjust for the sort of that $1 million or so that Shelly talked about earlier, I mean, you're looking at about a 25% type of EBITDA margin compared to the 24% EBITDA margins that this business delivered in Q2.

如果以我們本季實現的 27% 的利潤率來看，即使考慮到 Shelly 之前提到的大約 100 萬美元的調整，EBITDA 利潤率也只有 25% 左右，而該業務在第二季度的 EBITDA 利潤率為 24%。

So we think that it's the right type of margin profile. Our goal is going to continue to be able to deliver those types of margins as we move forward and to contribute positively to our midterm target of 23%. I believe we're well-positioned to deliver these good margins.

所以我們認為這是合適的利潤率結構。我們的目標是繼續維持這樣的利潤率，並為我們實現 23% 的中期目標做出積極貢獻。我相信我們完全有能力實現這些好的利潤率。

And then maybe just the last one, but you did mention your efforts in molybdenum very much kind of a leading-edge material for thin films and whatnot. I was just thinking, and I don't recall exactly your wording, so I apologize. But is this the type of product where maybe you've developed it in close collaboration with a single customer, and therefore, maybe that customer might have an exclusive access to your technology? Or is it more something that Materion has developed on their own or proprietary basis, and therefore, it could be ultimately available to a large number of your semiconductor-based customers. Just – if qualitatively, if you could just discuss the nature of that development, and I guess, by extension, the marketing potential down the road?

還有，也許只有最後一個問題，但你確實提到了你在鉬方面的努力，鉬是一種用於薄膜等領域的尖端材料。我剛剛在想事情，我記不清你當時的原話了，所以我很抱歉。但是，這種產品是否屬於那種你與單一客戶密切合作開發的，因此，該客戶可能擁有你技術的獨家使用權？或者，這是否是 Materion 自行開發或專有的技術，因此，最終可能會被眾多半導體客戶所採用。就定性而言，如果您能討論一下這種發展的性質，以及由此延伸出的未來的市場潛力，那就太好了？

Yes. So in some cases, you're right. I mean, we develop our products with collaboration with the customer and perhaps have some sort of a arrangement with the customer. I think in this particular case, ALD in general is a product set that we started working on seven, eight years ago. We started to do organic development of that. We have a number of different materials that we have developed in this area. Molybdenum is one of those materials. We've done that with our investments and, of course, in working with a number of different customers.

是的。所以有些情況下，你是對的。我的意思是，我們與客戶合作開發產品，並且可能與客戶達成某種協議。我認為就這個具體案例而言，ALD 總體來說是我們七、八年前就開始研發的一系列產品。我們開始進行有機發展。我們在這個領域開發了多種不同的材料。鉬就是其中一種材料。我們已經透過投資實現了這一點，當然，也透過與許多不同的客戶合作實現了這一點。

So we are selling this product to our customers. We will be marketing it more so as we continue to go forward. We think this is an exciting, exciting product set as we move forward, as it replaces some of the tungsten use that's in the semiconductor market. So we're well-positioned, I think, to take advantage of this across a number of different customers and as we continue to get the pull and as we continue to, of course, push.

所以我們正在向客戶銷售這款產品。隨著業務的推進，我們將加大市場推廣。我們認為，隨著我們不斷向前發展，這套產品組合將取代半導體市場中部分鎢的使用，因此令人振奮。所以我認為，我們已經做好了充分的準備，可以利用這一點服務許多不同的客戶，而且隨著我們不斷獲得市場需求，當然，我們也會繼續努力推動市場發展。

[Dave] Storms, Stonegate.

[Dave]斯托姆斯，斯通蓋特。

Just want to start by maybe getting a little more commentary around the timing impacts on defense. With the quarter closing on 9/30, were any of these timing issues related to the government shutdown? And one way or another, how much more impact could we see here from the government shutdown?

首先我想就時機選擇對防守的影響做一些評論。本季於 9 月 30 日結束，這些時間安排問題是否與政府停擺有關？無論如何，政府停擺還會對我們造成多大的影響？

Yes. So in our case, for the third quarter, we didn't have any, I would say, government shutdown related impacts for defense in the third quarter, but we certainly could have impacts of that here in the fourth quarter. We do have a number of contracts that we're working on with the government. We have a process where we actually work on projects well in advance of actually receiving the contracts. That's a normal process that we have in our defense market. And then, as we receive the contract, we make the shipment or we do some sort of recognition.

是的。所以就我們而言，第三季國防方面並沒有受到政府停擺的影響，但第四季肯定會受到影響。我們目前正在與政府洽談一些合約。我們的流程是，在實際收到合約之前，我們會提前很長時間開始著手專案工作。這是我們國防市場的正常流程。然後，當我們收到合約時，我們會進行出貨或進行某種形式的確認。

In this case, we are waiting on a few of those agreements. And we will have to see how those things play out over the next couple of months. But no impact in Q3, could have impact in Q4. Again, from our operational side, we're fully ready. It's just a matter of being able to get those contracts and closing them out.

在這種情況下，我們正在等待其中幾項協議的達成。接下來幾個月，我們將拭​​目以待這些事情的發展。但第三季沒有影響，第四季可能會有影響。再次強調，從營運方面來看，我們已經做好了充分準備。關鍵在於能否拿到這些合約並完成交易。

That's very helpful. Thank you. Turning, maybe, to the impact of China. I know this may be hard to estimate, especially without a deal being reached. It was mentioned earlier that China may be impacted by 20%. Is there any sense of how much of that would be recoverable, given some resolution here that removes some of the uncertainty?

那很有幫助。謝謝。或許，我們可以轉而探討中國的影響。我知道這可能很難估計，尤其是在沒有達成協議的情況下。前面提到過，中國可能會受到 20% 的影響。如果能找到某種解決方案，消除一些不確定性，那麼有多少損失是可以挽回的呢？

Yes. And like you said, I mean, it's hard to know, right, what the customers are thinking for the out years, '26, '27, midterm time frame. But I think in general, I mean, what we are hearing and seeing from our customers is that they want to make sure that they're able to purchase from locations where they have more reliability or more stability. And so if there are some temporary measures that are reached, I mean, we don't know if it's going to be permanent, temporary, some sort of pause. It's hard to know, right? And hard to know what the customers are going to do as a result of that.

是的。正如你所說，我的意思是，很難知道客戶對未來幾年（2026 年、2027 年，中期）的想法，對吧。但總的來說，我們從客戶那裡聽到和看到的是，他們希望確保能夠從那些更可靠或更穩定的地方購買商品。因此，如果達成一些臨時措施，我的意思是，我們不知道這些措施是永久性的、暫時的，還是某種暫停。很難知道，對吧？很難預料顧客會因此採取什麼行動。

But I think in general, I would say our business in China has seen pressure this year. And we are planning as if the pressures will continue as customers look for ways to purchase outside of the U.S. Now we are actively involved in a number of ways that we can actually be that supplier, though outside the U.S. We announced this Konasol acquisition last quarter. And so we're looking at any and all ways that we can continue to supply these materials, just do it from outside the U.S. if that's what's necessary.

但總的來說，我認為今年我們在中國的業務面臨壓力。我們正按計劃應對客戶尋求在美國以外地區採購的持續壓力。目前，我們正積極透過多種方式成為美國以外的供應商。上個季度，我們宣布了對 Konasol 的收購。因此，我們正在考慮一切可能的辦法，以便繼續供應這些材料，如果需要的話，甚至可以從美國境外供應。

Understood. That's great commentary. One more for me, if I could. I would just love to hear your thoughts on maybe the volume of opportunities in the energy sector, similar to the Commonwealth agreement. Is this an opportunistic one-off that we'll continue to see once every couple of years? Or do you expect to see more opportunities like this come into the market?

明白了。這是很棒的評論。如果可以的話，我還要再來一個。我很想聽聽您對能源領域（類似英聯邦協議）蘊藏的巨大機會有何看法。這是否只是一個投機取巧的個別事件，我們以後每隔幾年還會看到一次？或者您預期市場上會出現更多類似的投資機會？

Well, like we've indicated, we've got the agreement with Kairos Power. We've had that for a while. And now we have announced the agreement with CFS. We are working with a number of different partners in all types of new energy areas. So certainly, if there is additional announcements or additional agreements that we reach, we will certainly talk about that. But we're very excited about having agreements on both vision and fusion for new energy applications.

正如我們之前提到的，我們已經與 Kairos Power 達成了協議。我們已經有一段時間了。現在我們已經宣布與CFS達成協議。我們正與眾多不同的合作夥伴在各種新能源領域合作。所以，如果之後有其他公告或達成其他協議，我們一定會討論的。但我們很高興能夠就新能源應用領域的視覺和聚變技術達成協議。

Phil Gibbs, KeyBanc.

Phil Gibbs，KeyBanc。

Hey thanks. You had mentioned in your prepared remarks about the government potentially looking to stockpile certain resources. Do you think beryllium will be one of those materials? I'm just trying to think of whether or not you expect any pickup in that dynamic. I know that's something that tends to happen to the company from my experience, maybe once a decade, but I know it does happen from certain cycle to certain cycle. So curious to hear your thoughts on that.

謝謝。您在事先準備好的發言稿中提到，政府可能會考慮儲備某些資源。你認為鈹會是其中一種材料嗎？我只是想弄清楚，在這種情況下，你是否預期會有任何進展。根據我的經驗，我知道這種情況在公司裡經常發生，大概十年一次，但我知道它確實會在特定的周期內發生。很想聽聽你的看法。

Well, I think when we look at the overall defense market with the U.S. defense spending approaching $1 trillion for next year, the NATO countries increasing their spending to 5% of their GDP by the end of the decade, and then Japan and Korea increasing on an annual basis. I think that drives, I would say, an increased usage of beryllium. I mean many of the defense applications are beryllium-based applications. And so we are actively involved in a number of discussions with various groups on making sure that we have the right level of beryllium and we can produce that and be able to provide that to them.

我認為，當我們縱觀整個國防市場時，美國明年的國防開支將接近 1 兆美元，北約國家到本十年末將把國防開支提高到其 GDP 的 5%，而日本和韓國的國防開支也在逐年增長。我認為，這推動了鈹的使用量增加。我的意思是，許多國防應用都是基於鈹的應用。因此，我們積極參與與各個團體的討論，以確保我們擁有適量的鈹，並且能夠生產並向他們提供鈹。

Now, whether that's done in some sort of a stockpile form or whether that's done in actual materials that are used in various applications, like we indicated the different things that I think the defense department is involved in, we're prepared and ready to do that. So we do have a lot of active discussions, I would say, underway with different entities about how to support in the right way, all the defense needs, which, of course, a big part of that is beryllium-based materials.

現在，無論是以某種儲備形式進行，還是以實際材料形式用於各種用途（就像我們指出的國防部參與的不同領域一樣），我們都已做好準備。因此，我認為，我們正在與不同的實體積極討論如何以正確的方式支持所有國防需求，而這其中很大一部分當然是鈹基材料。

Thank you. As we have no further questions on the lines at this time, I'd like to turn the call back over to Mr. Kelleher for any closing remarks.

謝謝。目前電話線上沒有其他問題，我想把電話轉回給凱萊赫先生，請他作總結發言。

Thank you. This concludes our third 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 in this call and for your interest in Materion. I will be available for any follow-up questions. My number is (216) 383-4931. Thank you again.

謝謝。本次2025年第三季財報電話會議到此結束。本次電話會議的錄音回放將在公司網站 materion.com 上提供。感謝您參加本次電話會議，也感謝您對 Materion 的關注。如有任何後續問題，歡迎隨時與我聯絡。我的電話號碼是（216）383-4931。再次感謝。

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

謝謝各位女士、先生。今天的電話會議到此結束。現在您可以斷開線路了，感謝您的配合。