Mativ (MATV) investor relations material

Executive summary

• Q3 net sales increased 3% year-over-year to $513.7 million, with both segments contributing to growth and organic sales up 5.2%.

• Adjusted EBITDA rose 10% to $66.8 million, with margin at 13%, the highest since the merger.

• Net loss for Q3 was $3.2 million (EPS $(0.06)), a significant improvement from the prior year, while adjusted EPS was $0.39.

• Free cash flow for Q3 was $66.7 million, up 179% year-over-year, and year-to-date free cash flow more than doubled.

• Strategic priorities and cost controls are driving margin expansion, deleveraging, and improved cash flow.

Financial highlights

• Gross profit rose 6.2% to $99.4 million, with gross margin at 19.3%.

• Adjusted operating profit was $45.6 million, up from $38.5 million a year ago.

• Interest expense decreased to $17.7 million, and net debt stood at $931.8 million.

• Cash provided by operations for the nine months was $114.5 million, up from $70.7 million in the prior year.

• Capital spending for the nine months was $28.7 million.

Outlook and guidance

• Q4 Adjusted EBITDA expected to increase by at least 10% year-over-year, driven by volume growth and operational improvements.

• Management expects liquidity sources to be sufficient for foreseeable needs and to remain in compliance with debt covenants.

• Capital expenditures targeted at $40 million for 2025; working capital expected to provide $10 million in cash.

• Cost savings initiatives targeting $35–$40 million by year-end 2026, with $15–$20 million realized in 2025.

• Quarterly dividend of $0.10 per share announced, payable December 2025.