Press Release: Magnera Reports Fourth Quarter and Fiscal Year Results

Dow Jones
Nov 20

CHARLOTTE, N.C., Nov. 19, 2025 (GLOBE NEWSWIRE) --

Fourth Quarter Highlights

   -- GAAP: Net sales of $839 million, Operating income of $10 million 
 
   -- Non-GAAP: Adjusted EBITDA of $90 million 
 
   -- Record cash flow with cash from operations of $96 million 
 
   -- $50 million term loan repayment 

Fiscal Year Highlights

   -- GAAP: Net sales of $3.2 billion, Operating income of $5 million 
 
   -- Non-GAAP: Adjusted EBITDA of $362 million ($354 million reported and 
      pre-merger $8 million October) 
 
   -- Post-merger adjusted free cash flow $126 million represents a yield of 
      over 30% as of year-end 
 
   -- Year-end leverage of 3.8x 

Curt Begle, Magnera's CEO, commented: "I am very proud of what our team has accomplished not only this quarter but over the entire year. More than a year ago, we launched Magnera with a bold vision and a deep belief in what we could build together as an industry leader positioned for growth. I'm inspired by our team's relentless pursuit to perform and deliver results, exemplified by the stability of our cash flows.

We delivered our EBITDA in range of guidance, exceeded our free cash flow target, and took steps to reduce our leverage in the quarter. We accomplished this amidst a soft macroeconomic environment proving the mission critical importance of our products. As we look forward to 2026, we are targeting to improve reported earnings by 9% by delivering on our cost improvement and capacity optimization actions while working closely with our customers to provide solutions valued by the consumer."

Key Financials

 
                             September Quarter       Fiscal Year 
GAAP results                   2025       2024     2025     2024 
----------------------       ---------  --------  -------  ------- 
Net sales                        $ 839     $ 554  $ 3,204  $ 2,187 
Operating income                    10     (167)        5    (141) 
 
 
 
              September 
               Quarter      Reported   Comparable(1)   Fiscal Year    Reported    Comparable(1) 
Adjusted 
non-GAAP 
results     2025    2024    <DELTA> %    <DELTA> %     2025    2024   <DELTA> %    <DELTA>% 
 
Net sales   $839      $554        51%           (6%)  $3,204  $2,187        47%           (4%) 
Adjusted 
 EBITDA(1)    90        66        36%           (1%)     354     282        26%           (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 Glatfelter. Further details 
            related to non-GAAP measures and reconciliations can 
            be found under "Reconciliation of Non-GAAP Financial 
            Measures and Estimates" section or in reconciliation 
            tables in this release. Dollars in millions 
 
 

Financial Results -- Fourth Quarter 2025

Consolidated Overview

The net sales increase of 51% included revenue from the Glatfelter merger of $328 million and favorable foreign currency changes of $10 million that were partially offset by a $35 million decrease in selling prices primarily due to the pass-through of lower raw material costs and a 3% 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 36% included a contribution from the Glatfelter merger of $28 million partially offset by unfavorable impacts from a $3 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 $122 million partially offset by decreased selling prices of $28 million due to the pass-through of lower raw material cost and product mix and a 3% organic volume decline, which was primarily attributed to competitive pressures from imports in South America.

The adjusted EBITDA increase included a contribution from the Glatfelter merger of $14 million partially offset by unfavorable impacts from price cost spread of $6 million and volume decline of $2 million.

Rest of World

The net sales increase in the Rest of World segment included revenue from the Glatfelter merger of $206 million and a $9 million favorable impact from foreign currency changes partially offset by a 4% 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 $14 million and favorable impacts from price cost spread of $3 million.

Free Cash Flow and Net Debt - Fiscal Year 2025

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

 
  (in millions)                                           Fiscal Year 
---------------------------------------------------- 
  Cash flow from operating activities                          $ 103 
  Pre-merger cash flow from operating activities                  90 
  Additions to property, plant and equipment, net                (67) 
---------------------------------------------------- 
  Post-merger adjusted free cash flow(1)                       $ 126 
  Post-merger adjusted free cash flow yield(1)                  > 30% 
  (1) FCF yield as of 9/26 close of business market 
   cap. Further details related to non-GAAP measures 
   and reconciliations can be found under "Reconciliation 
   of Non-GAAP Financial Measures and Estimates" section 
   or in reconciliation tables in this release. 
 
  (in millions)                                         September 27, 2025 
  Term Loan                                                    $ 731 
  4.75% First Priority Senior Secured Notes                      500 
  7.25% First Priority Senior Secured Notes                      800 
  Debt discount, deferred fees and other (net)                   (79) 
  Total debt                                                 $ 1,952 
----------------------------------------------------  --------------  ---- 
  Cash and cash equivalents                                      305 
----------------------------------------------------  --------------  ---- 
  Total net debt                                             $ 1,647 
  Leverage                                            3.8             x 
 
 

Fiscal Year 2026 Guidance

   -- Adjusted EBITDA of $380 - $410 million 
 
   -- Free cash flow of $90 - $110 million; cash flow from operation of $170 - 
      $190 million 

Investor Conference Call

The Company will host a conference call tomorrow, November 20, 2025, at 10:00 AM U.S. Eastern Time to discuss the September 2025 quarter results. The webcast can be accessed here. A replay of the webcast will be available via the same link on the Company's website after the completion of the call.

By Telephone

Participants may register for the call here now or any time up to and during the time of the call and will immediately receive the dial-in number and a unique pin to access the call. While you may register at any time up to and during the time of the call, you are encouraged to join the call 15 minutes prior to the start of the event.

About Magnera

Magnera Corporation $(MAGN)$ serves 1,000+ customers worldwide, offering a wide range of material solutions, including components for absorbent hygiene products, protective apparel, wipes, specialty building and construction products, and products serving the food and beverage industry. Operating across 45 global facilities, Magnera is supported by approximately 8,500 employees. Magnera's purpose is to better the world with new possibilities made real. For more than 160 years, the Company has delivered the material solutions their partners need to thrive. Through economic upheaval, global pandemics and changing end-user needs, we have consistently found ways to solve problems and exceed expectations. The distinct scale and comprehensive portfolio of products brings customers more materials and choices. Magnera builds personal partnerships that withstand an ever-changing world.

Visit Magnera.com for more information and follow @MagneraCorporation on social platforms.

Non-GAAP Financial Measures and Estimates

This press release includes non-GAAP financial measures including, but not limited to, Adjusted EBITDA, free cash flow, and comparable basis net sales and adjusted EBITDA. A reconciliation of these non-GAAP financial measures to comparable measures determined in accordance with accounting principles generally accepted in the United States of America (GAAP) is set forth at the end of this press release. Information reconciling forward-looking adjusted EBITDA and adjusted free cash flow are not provided because such information is not available without unreasonable effort due to high variability, complexity, and low visibility with respect to certain items, including debt refinancing activity or other non-comparable items. These items are uncertain, depend on various factors, and could be material to our results computed in accordance with U.S. GAAP.

Forward Looking Statements

(MORE TO FOLLOW) Dow Jones Newswires

November 19, 2025 18:34 ET (23:34 GMT)

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