Magnera Corporation (NYSE:MAGN) shares rose 28.02% in after-hours trading on Wednesday, reaching $10.19.

Check out the current price of MAGN stock here.

Strong Q4 Financial Performance Drives Rally

The Charlotte-based material solutions company reported fourth-quarter net sales of $839 million with operating income of $10 million, according to a company statement released on Wednesday.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $90 million for the quarter.

Record Cash Generation Exceeds Targets

Magnera reported record cash flow from operations of $96 million in the fourth quarter and post-merger adjusted free cash flow of $126 million for fiscal 2025, representing a yield of more than 30%.

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The company exceeded its free cash flow target and reported year-end leverage of 3.8x, with a $50 million term loan repayment completed in the quarter.

Full-Year Results Beat Amid Soft Market

Magnera also reported $3.2 billion in net sales and $362 million in adjusted EBITDA for the 2025 fiscal year.

CEO Curt Begle stated the company “delivered our EBITDA in range of guidance, exceeded our free cash flow target” despite “a soft macroeconomic environment.”

FY2026 Guidance Shows Growth Trajectory

The manufacturer of fiber-based engineered products projects fiscal 2026 adjusted EBITDA of $380-$410 million and free cash flow of $90-$110 million, targeting approximately 9% improvement in reported earnings through cost optimization initiatives.

Stock Performance

Magnera shares have dropped 55.85% so far this year.

The stock has traded in a 52-week range of $7.82 to $23.19 and carries a market capitalization of $283.38 million.

Price Action: According to Benzinga Pro data, MAGN closed Wednesday's regular session at $7.96, down 1.12%.

Benzinga's Edge Stock Rankings indicates MAGN has a negative price trend across all time frames.  Here is how the stock fares on other parameters.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.