Magnera Q3 Sales Up 51%, Reaffirms Full-Year Guidance

Magnera (NYSE: MAGN), a global leader in specialty materials for consumer products and personal care markets, has reported its financial results for the fiscal third quarter ended June 28, 2025. The company posted GAAP net sales of $839 million and operating income of $13 million, with non-GAAP adjusted EBITDA at $91 million. CEO Curt Begle expressed satisfaction with the company’s performance amid challenging market conditions, reaffirming the original post-merger adjusted free cash flow and adjusted EBITDA guidance shared in the second quarter.

Begle noted that Magnera’s growth strategy focuses on accelerating revenue through sales and innovation pipelines, executing its Capacity Optimization and Resource Efficiency program (Project CORE), and delivering on synergy commitments from its merger with Glatfelter. He credited the company’s team for their passion, resilience, and customer focus, which have been instrumental to its success.

Financial Highlights

GAAP Results (June Quarter 2025): Net sales rose 51% to $839 million from $556 million in 2024, with operating income at $13 million versus $17 million last year.
Non-GAAP Adjusted Results: Adjusted EBITDA increased 23% to $91 million, driven by a $23 million contribution from the Glatfelter merger, partially offset by volume declines and price/cost pressures.
Revenue Drivers: The Glatfelter merger added $320 million to sales, offset by lower selling prices ($7 million) and a 5% organic volume decline due to European market softness and import competition in South America.

Regional Performance

Americas: Net sales increased by $124 million from the merger, offset by lower selling prices ($8 million), unfavorable foreign currency impact ($9 million), and a 6% volume decline from import competition in South America. Adjusted EBITDA rose with a $10 million merger contribution but was offset by a $5 million price/cost spread and $3 million volume decline.
Rest of World: Net sales grew by $196 million from the merger and $7 million from favorable currency exchange, partially offset by a 3% volume decline due to European market softness. Adjusted EBITDA saw a $13 million contribution from the merger.

Cash Flow and Debt
Post-merger adjusted free cash flow for the quarter was negative $13 million, with $45 million for the year-to-date. Magnera ended the quarter with $276 million in cash and total net debt of $1.723 billion, aiming to improve credit metrics by paying down debt.

Outlook and Commitment
The company reaffirmed its full-year post-merger adjusted free cash flow and adjusted EBITDA targets, emphasizing its commitment to long-term growth through innovation, operational efficiency, and strong customer relationships.

Magnera operates 46 facilities worldwide with over 9,000 employees, serving more than 1,000 customers across multiple industries, including hygiene products, protective apparel, wipes, construction, food, and beverages.