Overview

• Outdoor apparel retailer Magnera posts Q4 net sales rise of 51% yr/yr, driven by Glatfelter merger and favorable currency impacts

• Adjusted EBITDA for Q4 up 36%

• Company repaid $50 mln term loan, reducing leverage

Outlook

• Magnera targets fiscal 2026 adjusted EBITDA of $380 mln - $410 mln

• Company expects fiscal 2026 free cash flow of $90 mln - $110 mln

Result Drivers

• GLATFELTER MERGER - Merger contributed $328 mln to net sales and $28 mln to adjusted EBITDA

• SELLING PRICE DECREASE - Lower raw material costs led to $35 mln decrease in selling prices

• ORGANIC VOLUME DECLINE - 3% organic volume decline due to market softness in Europe and competitive pressures in South America

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the textiles & leather goods peer group is "buy"

• Wall Street's median 12-month price target for Magnera Corp is $13.00, about 38.8% above its November 19 closing price of $7.96

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNX5y0ZTs

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)