Magnera's Q4 net sales, EBITDA rise

Reuters
Nov 20
Magnera's Q4 net sales, EBITDA rise

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

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Operating Income

$10 mln

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.)

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