ALPHARETTA, Ga. (News release) -- Mativ Holdings, Inc. reported financial results for the three-months ended June 30, 2026.

Mativ Second Quarter 2026 Highlights¹

• Sales of $531.8 million increased 1.2% year over year, and 1.7% on an organic basis
• GAAP income of $3.6 million versus GAAP loss of $9.5 million in prior year period; GAAP EPS was $0.06
• Adjusted income was $28.2 million; Adjusted EPS was $0.50
• Adjusted EBITDA was $75.0 million, up 12% versus prior year period
• Adjusted EBITDA margin was 14.1%, up 130 basis points versus prior year period
• Cash from operating activities was $67.9 million, up 18% versus prior year period
• Free cash flow was $60.4 million, up 24% versus prior year period

Management Commentary

"We delivered our strongest financial quarter since becoming Mativ four years ago, combining modest organic sales growth with strong cost discipline to drive record adjusted EBITDA and margins," said Shruti Singhal, Mativ President and CEO. "Our disciplined execution generated exceptional free cash flow allowing us to materially improve our leverage.

This strong performance is yet another proof point that our business continues to transform, further compounding on our record prior year results. We have implemented changes to our new business development process, operating cadence, and cost structure which are advancing our momentum as we navigate through 2026.

We continue to identify and execute on new initiatives that will further accelerate progress toward our long-term objectives for sustainable, profitable growth, increased shareholder value, and an attractive leverage profile."

Mativ Second Quarter 2026 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 $201.7 million, down 0.1% on an organic basis, and 1.3% on a reported basis versus the prior year period, reflecting lower volume/mix in our Filtration & Netting business, including the impact from an exited facility, partially offset by higher selling prices and favorable currency.

Adjusted EBITDA (see non-GAAP reconciliations) and margin increased 1.4% and 50 basis points, respectively, versus prior year as proactive pricing actions and lower SG&A expenses offset higher manufacturing costs and lower volume/mix.

Sustainable & Adhesive Solutions (SAS) segment sales, comprised primarily of tapes, labels, liners, specialty paper, packaging and healthcare solutions, of $330.1 million were up 2.8% versus the prior year period. Higher selling prices and favorable currency were partially offset by lower volume/mix as strong growth in our Tapes, Labels & Liners business was offset by lower volume/mix across other categories.

Adjusted EBITDA (see non-GAAP reconciliations) and margin increased 18.8% and 210 basis points, respectively, compared to the prior year period, as proactive pricing actions offset general cost increases including higher manufacturing and distribution costs and SG&A expenses.

GAAP operating expenses decreased $1.9 million year-over-year, primarily due to $1.9 million in organizational realignment costs in the prior year period.

Adjusted unallocated expenses (EBITDA) (see non-GAAP reconciliations) increased $0.7 million versus prior year primarily due to higher advisory expenses.

Interest expense was $19.3 million versus $18.6 million in the prior year period, mainly due to higher average rates on the floating portion of our outstanding debt in 2026.

Other expense, net was $0.5 million and compared to other income of $1.5 million in the prior year period. The decrease was primarily attributed to gains on asset disposals in 2025.

Tax rate was 47% for the three months ended June 30, 2026, primarily driven by our geographical earnings mix and our inability to benefit from losses in certain jurisdictions that have 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 second quarter 2026 results were:

• $0.25 per share of purchase accounting expenses (purchase accounting expenses reflect primarily ongoing non-cash intangible asset amortizations associated with mergers and acquisitions)
• $0.16 per share of loss on debt extinguishment

Cash Flow & Debt

Year-to-date 2026 cash provided by operating activities was $68.9 million. Capital spending totaled $15.9 million. Working capital was a $2.6 million use of cash due to the impact of an increase in accounts receivable and inventories offset by an increase in accounts payable and accrued income taxes. This disciplined investment in working capital aligns with our strategic growth initiatives and positions us to serve customers in high-growth, high-return end markets.

Total debt was $974.5 million as of June 30, 2026 and Cash and cash equivalents was $66.3 million resulting in net debt of $908.2 million. Total liquidity was approximately $345.5 million, consisting of $66.3 million of Cash and cash equivalents and $279.2 million of revolver availability. The Company's debt is expected to mature on a staggered basis through 2033.

Dividends

On August 5, 2026, the Company announced its next quarterly cash dividend of $0.10 per share payable on September 25, 2026 to stockholders of record as of August 28, 2026.