13 Best Magnesium Stocks to Buy Right Now

9. Materion Corporation (NYSE:MTRN)

Number of Hedge Fund Holders: 15

Materion Corporation (NYSE:MTRN) is a global company producing advanced engineered materials, catering to aerospace, defense, semiconductor, automotive, and industrial markets. The company operates through three segments: Performance Materials, Electronic Materials, and Precision Optics. It also produces magnesium alloys, making use of its lightweight properties for high-performance applications in the aerospace and defense sectors.

Materion Corporation (NYSE:MTRN) reported strong financials for Q4 ended December 31, 2024, despite softness in the broader market. The company saw a 2% year-on-year increase in its value-added sales to $296.1 million, a 12% sequential increase. Its adjusted EBITDA increased 15% to $61.5 million, with improved margins of 20.8%. Materion Corporation’s adjusted earnings per share stood at $1.55, a 10% increase, emanating operational efficiency and cost management.

On the other hand, its segment performance was mixed, where its Performance Materials segment observed growth. The segments’ value-added sales rose by 5% to $195.8 million, and EBITDA showed an improvement of 17% to $78.6 million. Materion Corporation’s (NYSE:MTRN) Electronic Materials segment posted a meager 1% increase in sales to $78.6 million, whereas EBITDA surged to 18.7% compared to the previous year. However, Precision Optics segment sales decreased 17% to $21.7 million, while incurring an EBITDA loss of $1.1 million. This was attributed to lower volumes and an unfavorable product mix.

Regardless of challenges in automotive and industrial markets, the company improved its position in the aerospace and semiconductor sectors. It was able to secure a $150 million multiyear space propulsion materials contract and successfully scored a major semiconductor supplier award. Looking forward, it forecasts adjusted EPS between $5.30 and $5.70 per share in 2025, an improvement of 3% at midpoint. However, its precision-clad strip business is facing a 20% decrease, attributed to an ongoing inventory correction.

Despite such challenges, Materion Corporation’s (NYSE:MTRN) semiconductor recovery and ongoing strength in aerospace are expected to drive growth in the latter half of 2025. Such efforts position Materion Corporation among the best magnesium stocks to invest in.