Mativ Holdings Stock Earnings Reports

Mativ reported a solid start to 2026 with Q1 net sales of $480 million (nearly flat YoY) and adjusted EBITDA of $47.5 million, a 28% increase versus prior year. Adjusted EBITDA margin expanded to 9.9% (up 220 bps), described as the strongest Q1 margin since the mid-2022 merger. Both operating segments (FAM and SAS) showed margin improvement driven by favorable price-to-input cost ratios, lower manufacturing costs, favorable currency, and reduced SG&A, though volumes were mixed with notable near-term weakness in the health care vertical (customer destocking and a temporary Knoxville plant outage). The company realized nearly $20 million of cost savings in 2025 and is targeting $15–20 million of additional savings for 2026. Management refinanced and simplified the capital structure in April, reducing lender count and maturities risk; net debt was ~$954 million with liquidity of ~$499 million and net leverage of 4.1x, while the company continues to prioritize debt reduction toward a 2.5–3.5x goal. Free cash flow improved (Q1 use of $7 million, a ~$22 million YoY improvement) and Mativ reiterated its focus on cash generation. Management expects Q2 adjusted EBITDA to be down mid-single-digits YoY due to near-term health care volume weakness, but believes pricing actions will offset forecasted input cost inflation. Input cost inflation for 2026 was revised higher to an estimated $40–50 million; the company said it has taken incremental pricing actions to recover these costs. A new specialty films aerospace commitment starts ramping in Q2, and the company has formalized a strategic blueprint to focus investments on high-growth, high-return markets while continuing portfolio optimization and operational improvements.