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Jun 30, 2025
Mativ Q2 2025 Earnings Report
Mativ's second quarter 2025 earnings results were reported, showing a slight increase in sales and adjusted EBITDA, alongside strong free cash flow generation.
Key Takeaways
Mativ delivered solid second-quarter results with a slight increase in sales and a 1% rise in Adjusted EBITDA year-over-year. The company achieved its second-highest cash flow quarter since the merger, driven by organic volume growth in the SAS segment and disciplined cost control. Despite some unfavorable pricing and higher manufacturing costs, the company's focus on cash flow and working capital optimization yielded strong results.
Sales increased by 0.3% year-over-year to $525.4 million, with organic growth of 2.6%.
Adjusted EBITDA grew by 1% to $67.2 million, primarily due to lower SG&A expenses and favorable cost mix.
Free cash flow significantly increased by 33% to $48.9 million, marking the second-highest cash flow quarter since the merger.
The Sustainable & Adhesive Solutions (SAS) segment showed strong organic growth of 5.0%, contributing to overall performance.
Revenue by Segment
Forward Guidance
Mativ's management is focused on generating strong year-over-year adjusted EBITDA and free cash flow improvement for the remainder of the year, supported by an ongoing strategic portfolio review to strengthen the balance sheet and reduce leverage.
Positive Outlook
- Continued focus on generating strong year-over-year adjusted EBITDA improvement.
- Commitment to strong year-over-year free cash flow improvement.
- Strategic portfolio review underway to evaluate opportunities.
- Efforts to strengthen the balance sheet.
- Initiatives to reduce the leverage profile.
Challenges Ahead
- Challenging tariff environment.
- Challenging macro-economic environment.
- Higher manufacturing and distribution costs impacting profitability.
- Unfavorable net selling price versus input cost performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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