Magnera Reports Third Quarter Results - Provides Updated Outlook



Magnera Reports Third Quarter Results - Provides Updated Outlook | financial, Magnera,

CHARLOTTE, N.C. (News release) -- Magnera, a global leader in specialty materials for the consumer products and personal care markets, reported financial results for its fiscal 2025 third quarter ended June 28, 2025. Curt Begle, Magnera's CEO, commented: "Reflecting on the third quarter, I am pleased with our progress and what we have achieved in these challenging market conditions. We are confirming our original free cash flow guidance as well as the range of adjusted EBITDA communicated in our second quarter earnings call.

I am incredibly proud of our team's continued passion, resilience, and accountability. Their unwavering focus on exceeding customer expectations has been instrumental to our success this quarter and reflects the strength of our business."

Key Financials

June Quarter

June YTD

GAAP results

2025

2024

2025

2024

Net sales

$

839

$

556

$

2,365

$

1,633

Operating income

13

17

(5)

26

June Quarter

Reported

Comparable(1)

June YTD

Reported

Comparable(1)

Adjusted non-GAAP results

2025

2024

Δ %

Δ %

2025

2024

Δ %

Δ %

Net sales

$

839

$

556

51%

(5%)

$

2,365

$

1,633

45%

(4%)

Adjusted EBITDA (1)

91

74

23%

(9%)

264

216

22%

(4%)

(1)

Adjusted non-GAAP results exclude items not considered to be ongoing operations. In addition, comparable change % normalizes the impacts of foreign currency and the recent merger with GLT. Further details related to non-GAAP measures and reconciliations can be found under our "Reconciliation of Non-GAAP Financial Measures and Estimates" section or in reconciliation tables in this release. Dollars in millions

Consolidated Overview

The net sales increase of 51% included revenue from the Glatfelter merger of $320 million that was partially offset by a $7 million decrease in selling prices and a 5% organic volume decline which was attributed to general market softness in Europe and competitive pressures from imports in South America.

The adjusted EBITDA increase of 23% included a contribution from the Glatfelter merger of $23 million partially offset by unfavorable impacts from a $4 million volume decline and $3 million from price/cost spread.

Americas

The net sales increase in the Americas segment included revenue from the Glatfelter merger of $124 million partially offset by decreased selling prices of $8 million, unfavorable foreign currency changes of $9 million, and a 6% organic volume decline, which was primarily attributed to competitive pressures from imports in South America.

Rest of World

The net sales increase in the Rest of World segment included revenue from the Glatfelter merger of $196 million and a $7 million favorable impact from foreign currency changes partially offset by a 3% organic volume decline which was primarily attributed to general market softness in Europe.

The adjusted EBITDA increase included a contribution from the Glatfelter merger of $13 million.

Free Cash Flow and Net Debt

Magnera is committed to strengthening our credit metrics by paying down debt in the near term.

(in millions)

June Quarter

June YTD

Cash flow from operating activities

$

-

$

7

Pre-merger cash flow from operating activities

-

90

Additions to property, plant and equipment, net

(13

)

(52

)

Post-merger adjusted free cash flow (1)

$

(13

)

$

45

(1)

Further details related to non-GAAP measures and reconciliations can be found under our "Reconciliation of Non-GAAP Financial Measures and Estimates" section or in reconciliation tables in this release.

(in millions)

June 28, 2025

Term Loan

$

781

4.75% First Priority Senior Secured Notes

500

7.25% First Priority Senior Secured Notes

800

Debt discount, deferred fees and other (net)

(82

)

Total debt

$

1,999

Cash and cash equivalents

276

Total net debt

$

1,723

Leverage

3.9x

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