What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-02-19 compared with 2024-02-15 · 46 added, 33 removed, 115 unchanged (41% of the section changed)

1 unchanged sentence

The Company was incorporated in Ohio in 1931.

Our products are sold into numerous end markets, including semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center.

Our products are sold into numerous end markets, including semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and life sciences.

SEGMENT INFORMATION

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Performance Materials

Performance Materials provides advanced engineered solutions comprised of beryllium and non-beryllium containing alloy systems and custom engineered parts in strip, bulk, rod, plate, bar, tube, and other customized shapes produced at manufacturing facilities located throughout the United States and Europe and sold through distribution global hubs.

Performance Materials provides advanced engineered solutions comprised of beryllium and non-beryllium containing alloy systems and custom engineered metal solutions in the forms of strip, bulk, rod, plate, bar, tube, and many specialized custom shapes produced at manufacturing facilities located throughout the United States and Europe and sold through distribution global hubs.

This segment operates the world's largest bertrandite ore mine and refinery, which is located in Utah, providing feedstock hydroxide for our beryllium businesses and external sale.

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Applications for alloyed metals products include oil & gas drilling and production components, bearings, bushings, welding electrodes, plastic injection or metal die casting mold tooling, and electrical or electronic connectors.

Major end markets for alloyed metals include industrial, automotive, aerospace and defense, energy, and telecom and data center.

Major end markets for alloyed metals include industrial, automotive, aerospace and defense, energy, and life sciences.

Alloyed metals competes with companies around the world that produce alloys with similar properties.

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Our precision cladding and plating capabilities allow for precious metal or other base metals to be applied in continuous strip form, only where it is needed, reducing the material cost to our customers as well as providing design flexibility and

Major end markets include consumer electronics, telecom and data center, automotive, aerospace and defense, industrial, and energy.

Major end markets include consumer electronics, life sciences, automotive, aerospace and defense, industrial, and energy.

Key competitors include NGK Insulators, Wieland Electric, Inc., Aurubis Stolberg GmbH, Diehl Metall Stiftung & Co.

KG, Nippon Mining, Wickeder Group, Heraeus Inc., AMI Doduco, Inc., and other North American continuous strip and plating companies.

KG, Nippon Mining, Proterial Ltd.,Wickeder Group, Heraeus Inc., AMI Doduco, Inc., and other North American continuous strip and plating companies.

• Performance Solutions provides engineered end-product technologies to our customers, including near-net shape and finished machined beryllium containing and non-beryllium containing products.

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Our SupremEX TM products offer the industry’s highest quality aluminum silicon carbide metal matrix composite formulation, well suited for a wide range of applications from high performance engine components and aerospace structural components to high-stiffness consumer electronic components.

Direct competitors include IBC Advanced Alloys, NGK Metals, CBL Ceramics Limited, and CoorsTek, Inc.

Direct competitors include IBC Advanced Alloys, NGK Metals, ATI Specialty Metals, CBL Ceramics Limited, and CoorsTek, Inc.

Performance Material's products are primarily sold directly from its facilities throughout the United States, Asia, and Europe, as well as distributed internationally through a network of Company-owned service centers, outside distributors, and agents.

Electronic Materials

Electronic Materials produces advanced chemicals, microelectronics packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal pre-forms, high temperature braze materials, and ultra-pure wire.

These products are used in high-performance logic, advanced memory

high-performance logic, advanced memory, micro-electromechanical systems and power management integrated circuits, radio frequency devices, data storage, display, architectural glass, solar, optical coating, and other applications within the semiconductor, energy, and industrial end markets.

These products are used in high-performance logic, advanced memory, micro-electromechanical systems and power management integrated circuits, radio frequency devices, data storage, display, architectural glass, solar, optical coating, and other applications within the semiconductor, energy, and industrial end markets.

Electronic Materials also has metal recovery operations and in-house refining that allow for the recycling of precious metals.

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Precision Optics

Precision Optics designs and produces precision thin film coatings, optical filters and assemblies.

Headquartered in Westford, Massachusetts, the business has manufacturing facilities in Europe, Asia and the United States and its products are sold directly from these facilities, as well as through direct sales offices and independent sales representatives throughout the world.

Precision Optics is a designer and manufacturer of advanced optical components, including precision thin-film coatings, optical filters, and assemblies.

These critical components are essential for enabling cutting-edge technologies across diverse end markets, including aerospace and defense, automotive, consumer electronics, semiconductor, medical, and industrial applications.

With manufacturing facilities strategically located in Europe, Asia, and the United States, Precision Optics ensures a global reach and efficient delivery of its products.

Distribution channels include direct sales from manufacturing facilities, as well as through direct sales offices and a network of independent sales representatives worldwide.

Precision Optics competes in a dynamic market with larger diversified technology companies, smaller specialized firms, and international competitors.

The Company differentiates itself through a combination of factors:

• Technological Expertise and Innovation:

Continuous investment in R&D drives the development of advanced coatings and optical solutions, maintaining a competitive edge.

• Customer Focus:

Building strong partnerships with customers allows Precision Optics to understand their unique needs and deliver tailored solutions that exceed expectations.

• Manufacturing Excellence:

State-of-the-art manufacturing facilities and rigorous quality control processes ensure consistent product quality and reliability.

While Precision Optics actively pursues new applications and markets, it recognizes the inherent challenges of operating in a rapidly evolving technological landscape.

The Company adapts to changing market demands and proactively addresses potential disruptions to maintain its position as a leading provider of advanced optical components.

Principal competition includes Viavi Corporation, Coherent Corporation, MKS Newport Optics, Alluxa, and a number of smaller regional and national suppliers.

While our product and market development efforts allow us to capture new applications, we may lose existing applications and customers from time to time due to the rapid change in technologies and other factors.

The Other segment is comprised of unallocated corporate costs.

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We believe we are an established leader in our markets.

Approximately 800 customers purchase our products throughout the semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center end markets.

In fiscal year 2023, one customer accounted for approximately ten percent of our net sales.

Approximately 800 customers purchase our products throughout the semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and life sciences end markets.

In fiscal year 2024 and 2023, one customer in our Performance Materials segment accounted for approximately ten percent of our net sales.

Prior to this, no single customer accounted for ten percent or more of our net sales.

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In 2018, the U.S.

Occupational Safety and Health Administration (OSHA) published a final standard for workplace exposure to beryllium that, among other things, lowered the permissible exposure by a factor of ten and established new requirements for respiratory protection, personal protective clothing and equipment, medical surveillance, hazard communication, and record-

Materion was a participant in the development of the new standards, which fundamentally represents our current health and safety operating practices.

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Health and Safety

The health, safety, and well-being of our employees is our highest priority and is a Materion core value.

We have a strong Environmental, Health, and Safety (EHS) program based on the ISO 45000 management system.

Our future focus is the integration of human operating performance concepts into our EHS process which is proven to further reduce the risk of serious injuries.

We will be significantly enhancing our training programs through the implementation of a new learning management system emphasizing increased hazard recognition skills and typical regulatory compliance requirements.

We perform self-audits to ensure sustainability of our processes and systems to create an environment where our colleagues leave their workplace safely, every day.

We continue to invest in safety improvements such as capital improvements, new safety technology, safety controls, and engineering ergonomic solutions.

On an annual basis, our corporate long-range strategies are critically analyzed, reviewed and updated, improvement plans are developed for each global location, progress is tracked, and daily critical safety statistics and metrics are published internally.

The environment, health, safety, and well-being of our employees is our highest priority and is a Materion core value.

We have a strong and mature Environmental, Health, and Safety (EHS) program based on the 45001 standard.

We began a new chapter in Materion’s longstanding effort to reduce the risk of injuries in 2023 with the integration of human operating performance concepts and a concerted focus on identifying and controlling high energy sources such as electrical, hydraulic, steam and chemical energy.

All factory leadership received detailed training on the model as well as the operations staff receiving basic training on the concepts last year.

In 2024, we experienced a 20 percent improvement in our injury frequency rate and lowered our severity rate to one of the lowest in the primary nonferrous industry.

A new interactive learning management system increasing operator hazard recognition skills was deployed as well.

Performance improvement was also due in part to a large increase in safety conversations between operators and supervision as well as a campaign to dramatically increase near miss reporting.

To ensure sustainability we conduct self-audits of our processes and systems to create an environment where our colleagues leave their workplace safely, every day.

Capital investments to reduce the risk of injury, chemical exposure, business interruption and property loss are integrated into the annual capital plan.

On an annual basis, our corporate long-range strategies are critically analyzed, reviewed and updated and then improvement plans are developed.

Progress of improvement plans is tracked, and daily critical safety statistics and metrics are published internally.

Our corporate intranet site is visible to all global employees, where we share detailed descriptions of serious injuries and near misses and their corrective actions, as well as other proactive measures to promote lessons learned and ensure worker safety.

Safety awareness and employee engagement programs have been implemented at all global facilities.

We also have onsite medical teams at two key manufacturing sites to provide medical testing for employees to determine any potential exposure to beryllium, of which Materion is a leading global supplier.

We also have onsite medical staff at three key manufacturing sites to provide medical testing for employees to determine any potential exposure to beryllium, of which Materion is a leading global supplier.

Diversity and Inclusion

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To attract a global workforce, we strive to create and embed a culture where employees can bring their authentic selves to work and feel a genuine sense of belonging.

Our employee resource groups (ERGs) are Company-sponsored groups of global employees that support and promote the specific mutual objectives of both the employees and the Company, with emphasis on the inclusion, diversity, and professional

development of employees.

The ERGs provide opportunities for employees to connect, develop, and grow together in a supportive environment.

Our employee resource groups (ERGs) are Company-sponsored groups of global employees that support and promote the specific mutual objectives of both the employees and the Company.

The ERGs serve as platforms for employees to network, learn, develop, and grow in a supportive environment that emphasizes our commitment to diversity and inclusion.

As of December 31, 2024, we had four ERGs:

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and United Voices of Materion (all ethnic backgrounds).

Our focus continues to be on the recruitment of diverse candidates as well as the development of our internal cadres of diverse leaders so that they can advance their careers and move into leadership positions throughout the Company.

Talent Development

We continue to prioritize professional development and training for all global employees.

By providing employees with wide-ranging development programs, opportunities, and paths to success, we empower them to realize their full potential.

Our development activities provide further opportunities to retain employees and build upon critical capabilities.

We continue to provide professional development and training for all global employees.

By providing employees with wide-ranging development opportunities and paths to success, we empower them to realize their full potential.

Our development activities support our goal to develop and retain employees while building a strong foundation on their critical capabilities.

We strongly encourage employees to build development plans in partnership with their managers and supervisors, providing both ongoing and specific opportunities for two-way communication and corresponding action.

Apprenticeship programs have been implemented in some of our large plant sites, and we continue to introduce similar programs throughout the Company.

Likewise, we have implemented career development programs in other key professional functional areas.

We offer formalized mentoring, development plans, and stretch assignments for employees who are engaged in career development programs.

Apprenticeship programs have been implemented in some of our largest plant sites, and we continue to develop a path for apprenticeship program expansion throughout the Company.

Likewise, we have implemented career development programs and tools in other key professional functional areas.

We are committed to identifying and developing the talents of our next generation of leaders.

Our robust and fully integrated talent and succession-planning process supports the development of our talent pipeline for critical roles in operations management, commercial excellence, and engineering.

We have continued to grow our campus recruitment initiatives while building programs that develop and grow our early career talent.

We have maintained our campus recruitment initiatives to ensure a strong pipeline of talent into the organization.

Additionally, Company development programs have been designed to target and accelerate key leadership and functional skill sets.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business