ALPHARETTA, Ga. (News release) -- Mativ Holdings, Inc. reported financial results for the three months and year ended December 31, 2025.

Mativ Fourth Quarter 2025 Highlights¹

• Sales of $463.1 million increased 1.0% year over year, and 1.9% on an organic basis
• GAAP income was $100.8 million; GAAP EPS was $1.80
• Adjusted income was $8.5 million; Adjusted EPS was $0.15
• Adjusted EBITDA was $53.5 million, up 19% versus prior year
• Adjusted EBITDA margin was 11.6%, up 180 basis points versus prior year
• Cash from operating activities was $19.3 million; Free cash flow was $8.0 million

Mativ Full Year 2025 Highlights

• Sales of $1,987.0 million increased 0.3% year over year, and 2.5% on an organic basis
• GAAP loss was $337.4 million; GAAP EPS was $(6.19)
• Adjusted income was $42.6 million, and Adjusted EPS was $0.70
• Adjusted EBITDA was $224.7 million, up 3% versus prior year
• Adjusted EBITDA margin was 11.3%, up 30 basis points versus prior year
• Cash from operating activities was $133.8 million, up 41% versus prior year
• Record full-year free cash flow was $93.8 million, up 139% versus prior year

Management Commentary

"Our strong fourth quarter capped a solid, transformational year for Mativ," said Shruti Singhal, Mativ President and CEO. "Q4 and full-year 2025 marked year-over-year improvements in sales, adjusted EBITDA and adjusted EBITDA margin. We also generated record free cash flow in 2025, more than double the amount compared to last year. The main drivers of our performance versus prior year for both the quarter and the fiscal year were disciplined commercial operational execution, prudent inventory management, favorable price versus input cost and steadfast SG&A expense management.

Throughout 2025, we made significant progress improving the performance of our company while simultaneously building a path for future profitable growth. We continue navigating an environment of anemic market demand and dynamic trade and macro-economic policies. However, we remain focused on delivering for our customers, improving our leverage and balance sheet by generating significant cash flow, and capturing volume and share gains that validate our go-to-market strategy. I am excited for our path ahead in 2026, as we continue our increased pace of execution to drive value for Mativ, our customers and our shareholders."

Mativ Fourth Quarter 2025 Financial Results

Filtration & Advanced Materials (FAM) segment sales, comprised primarily of filtration media and components, advanced films, coating and converting solutions, and extruded mesh products, were $177.2 million, up 5.6% versus the prior year period, reflecting higher volume/mix and favorable currency translation partially offset by lower selling prices.

GAAP Operating Profit in 2025 included $1.3 million of restructuring expenses, compared to $0.4 million in 2024. Adjusted EBITDA (see non-GAAP reconciliations) and margin increased 26.2% and 300 basis points, respectively, versus prior year as favorable net selling price versus input cost performance, higher volume/mix and lower SG&A expenses were partially offset by higher manufacturing costs.

Sustainable & Adhesive Solutions (SAS) segment sales, comprised primarily of tapes, labels, liners, specialty paper, packaging and healthcare solutions, of $285.9 million were down 0.3% on an organic basis, and down 1.7%, on a reported basis, versus the prior year period. Favorable currency translation and higher selling prices were more than offset by lower volume/mix.

GAAP Operating Profit in 2025 included $0.2 million in restructuring expenses, compared to $0.3 million of restructuring and other impairment expenses in 2024. Adjusted EBITDA (see non-GAAP reconciliations) and margin increased 8.7% and 130 basis points, respectively, compared to the prior year period, as lower manufacturing costs and favorable net selling price versus input cost performance were partially offset by lower volume/mix and higher distribution costs.

GAAP operating expenses in 2025 included $2.3 million in organizational realignment costs.

Adjusted unallocated expenses (EBITDA) (see non-GAAP reconciliations) increased $1.3 million versus prior year primarily driven by the timing of employee-related expenses.

Interest expense was $17.0 million versus $19.7 million in the prior year period, mainly due to lower average balances on the floating portion of our outstanding debt in 2025.

Other income (expense), net was $(3.3) million and changed $12.2 million compared with the prior year primarily driven by foreign currency, and gains on asset sales in the prior year period.

Tax was a benefit for the three months ended December 31, 2025, primarily due to the impact from a decrease to our valuation allowance.

Non-GAAP Adjustments reflect items included in GAAP operating profit, income, and EPS, but excluded from adjusted results (see non-GAAP reconciliation tables for additional details). The most significant adjustment to the fourth quarter 2025 results were:

• $(1.98) per share due to the impact from a decrease to our valuation allowance
• $0.24 per share of purchase accounting expenses (purchase accounting expenses reflect primarily ongoing non-cash intangible asset amortizations associated with mergers and acquisitions)
• $0.03 per share due to restructuring, restructuring related, and other impairment expenses

Cash Flow & Debt

Year-to-date 2025 cash provided by operating activities was $133.8 million. Capital spending and software costs totaled $40.0 million. Working capital was a $8.4 million source of cash due to the impact of a decrease in inventories and increase in accounts payable and other current liabilities partially offset by an increase in accounts receivable.

Total debt was $1,018.2 million as of December 31, 2025 and Cash and cash equivalents was $84.2 million resulting in net debt of $934.0 million. Total liquidity was approximately $515 million, consisting of $84 million of Cash and cash equivalents and $431 million of revolver availability. The Company's debt matures on a staggered basis between 2027 and 2029.

Dividend & Share Repurchases

On February 18, 2026, the Company announced its next quarterly cash dividend of $0.10 per share payable on March 27, 2026 to stockholders of record as of March 13, 2026.

During the fourth quarter, the Company did not repurchase shares.