ALPHARETTA, Ga. (News release) -- Mativ Holdings, Inc. ( MATV ) reported financial results for the three-months ended March 31, 2026.
Mativ First Quarter 2026 Highlights1
- Sales of $479.6 million decreased 1.1% year over year, and 0.4% on an organic basis
- GAAP loss was $11.7 million, an improvement of 97.3%, compared to $425.5 million in prior year period (which included a $411.9 million goodwill impairment charge); GAAP EPS was $(0.22)
- Adjusted income was $3.9 million; Adjusted EPS was $0.06
- Adjusted EBITDA was $47.5 million, up 28% versus prior year period
- Adjusted EBITDA margin was 9.9%, up 220 basis points versus prior year period
- Cash from operating activities was $1.0 million; Free cash flow was $(7.4) million, both significant improvements versus prior year period
Management Commentary
"Mativ delivered another strong quarter despite a turbulent market with Adjusted EBITDA up 28% and margin up 220 bps versus prior year," said Shruti Singhal, Mativ ( MATV ) President and CEO. "Our continual focus on operational execution produced the fourth consecutive quarter of improved year-over-year profitability and cash flow performance, margin expansion and leverage reduction. These improvements were driven by favorable price versus input costs and manufacturing efficiencies, both of which we expect to continue for the balance of the year.
Despite operating in a turbulent macroeconomic and demand environment, we remain laser focused on aspects we can control: commercial excellence through careful pricing actions and pipeline builds, operational improvements through manufacturing as well as supply chain efficiencies, and strengthening our balance sheet by generating significant cash flow and reducing leverage. We continue making progress on our key priorities: advancing our strategic initiatives, executing with discipline, and driving sustainable long-term value for our customers and shareholders."
|
1Non-GAAP (or "adjusted") measures are reconciled to GAAP measures at the end of this release. Refer to "Non-GAAP Financial Measures" for more information. |
Mativ First Quarter 2026 Financial Results
|
Filtration & Advanced Materials (FAM) |
Three Months Ended March 31, |
||||||||||||||||
|
(in millions; unaudited) |
2026 |
|
2025 |
|
Change |
|
2026 |
|
2025 |
||||||||
|
Net Sales |
$ |
188.3 |
|
$ |
187.6 |
|
$ |
0.7 |
|
|
|
|
|||||
|
GAAP Gross Profit & Margin % |
$ |
39.7 |
|
|
$ |
32.1 |
|
|
$ |
7.6 |
|
|
21.1 |
% |
|
17.1 |
% |
|
Adjusted EBITDA & Margin % |
$ |
27.4 |
|
|
$ |
19.4 |
|
|
$ |
8.0 |
|
|
14.6 |
% |
|
10.3 |
% |
Filtration & Advanced Materials (FAM) segment sales, comprised primarily of filtration media and components, advanced films, coating and converting solutions, and extruded mesh products, were $188.3 million, up 2.2% on an organic basis, and 0.4% on a reported basis versus the prior year period, reflecting favorable currency translation, partially offset by lower volume/mix, including the impact from an exited facility.
Adjusted EBITDA (see non-GAAP reconciliations) and margin increased 41.2% and 430 basis points, respectively, versus prior year as lower manufacturing costs, favorable currency, lower SG&A expenses and favorable price versus cost performance were partially offset by lower volume/mix.
|
Sustainable & Adhesive Solutions (SAS) |
Three Months Ended March 31, |
||||||||||||||||
|
(in millions; unaudited) |
2026 |
|
2025 |
|
Change |
|
2026 |
|
2025 |
||||||||
|
Net Sales |
$ |
291.3 |
|
$ |
297.2 |
|
$ |
(5.9 |
) |
|
|
|
|
||||
|
GAAP Gross Profit & Margin % |
$ |
45.2 |
|
|
$ |
40.5 |
|
|
$ |
4.7 |
|
|
15.5 |
% |
|
13.6 |
% |
|
Adjusted EBITDA & Margin % |
$ |
30.7 |
|
|
$ |
26.5 |
|
|
$ |
4.2 |
|
|
10.5 |
% |
|
8.9 |
% |
Sustainable & Adhesive Solutions (SAS) segment sales, comprised primarily of tapes, labels, liners, specialty paper, packaging and healthcare solutions, of $291.3 million were down 2.0% versus the prior year period. Lower volume/mix was partially offset by favorable currency translation and higher selling prices.
Adjusted EBITDA (see non-GAAP reconciliations) and margin increased 15.8% and 160 basis points, respectively, compared to the prior year period, as favorable price versus cost performance and lower SG&A expenses, were partially offset by lower volume/mix.
|
Unallocated |
Three Months Ended March 31, |
||||||||||||||||
|
(in millions; unaudited) |
2026 |
|
2025 |
|
Change |
|
2026 |
|
2025 |
||||||||
|
GAAP Operating Expense & % of Sales |
$ |
(14.6 |
) |
|
$ |
(22.9 |
) |
|
$ |
8.3 |
|
|
(3.0 |
)% |
|
(4.7 |
)% |
|
Adjusted EBITDA & % of Sales |
$ |
(10.6 |
) |
|
$ |
(8.7 |
) |
|
$ |
(1.9 |
) |
|
(2.2 |
)% |
|
(1.8 |
)% |
GAAP operating expenses decreased $8.3 million year-over-year, primarily due to $9.2 million in organizational realignment costs in the prior year period.
Adjusted unallocated expenses (EBITDA) (see non-GAAP reconciliations) increased $1.9 million versus prior year primarily due to higher advisory expenses.
Interest expense was $17.5 million versus $17.8 million in the prior year period, mainly due to lower average balances on the floating portion of our outstanding debt in 2026.
Other income (expense), net was $1.5 million compared to $(1.8) million the prior year period primarily driven by gains on foreign currency.
Tax rate was negative for the three months ended March 31, 2026, primarily due to the impact from mix of earnings and our inability to benefit from losses in certain jurisdictions with a full valuation allowance.
Non-GAAP Adjustments reflect items included in GAAP gross profit, income, and EPS, but excluded from adjusted results (see non-GAAP reconciliation tables for additional details). The most significant adjustments to the first quarter 2026 results were:
- $0.26 per share of purchase accounting expenses (purchase accounting expenses reflect primarily ongoing non-cash intangible asset amortizations associated with mergers and acquisitions)
- $0.02 per share due to restructuring, restructuring related, and other impairment expenses
Cash Flow & Debt
Year-to-date 2026 cash provided by operating activities was $1.0 million. Capital spending totaled $8.4 million. Working capital was a $28.2 million use of cash due to the impact of an increase in accounts receivable and inventories offset by an increase in accounts payable.
Total debt was $1,035.8 million as of March 31, 2026 and Cash and cash equivalents was $82.3 million resulting in net debt of $953.5 million. Total liquidity was approximately $498.5 million, consisting of $82.3 million of Cash and cash equivalents and $416.2 million of revolver availability. The Company's debt matures on a staggered basis between 2029 and 2033. On April 3, 2026, the Company entered into the previously announced ninth amendment to its credit agreement, extending the maturity of the revolving credit and term loan A facility to 2031, and the term loan B facility to 2033.
Dividends
On May 6, 2026, the Company announced its next quarterly cash dividend of $0.10 per share payable on June 19, 2026 to stockholders of record as of May 29, 2026.