Magnera Q1 net sales rise on merger impact

Reuters
Feb 05
Magnera Q1 net sales rise on merger impact

Overview

  • Materials solutions provider's Q1 net sales rose 13%, driven by merger and currency impacts

  • Q1 adjusted EBITDA rose 11%, aided by merger contributions

Outlook

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

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

Result Drivers

  • MERGER IMPACT - Merger contributed $112 mln to net sales and $8 mln to adjusted EBITDA

  • CURRENCY IMPACT - Favorable foreign currency changes added $36 mln to net sales

  • PRICE DECLINE - Selling prices decreased by $52 mln due to lower raw material costs

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Operating Income

$14 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "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 $17.00, about 25.9% above its February 3 closing price of $13.50

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX7yH0w3

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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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