Magnera (MAGN) Q2 2026 earnings summary

Executive summary

• Net sales for the quarter were $796 million, with adjusted EBITDA of $90 million and free cash flow of $73 million, reflecting stable performance amid macroeconomic and weather-related challenges.

• Operations were impacted by winter storms in North America and supply chain disruptions from the Middle East conflict, but growth in Consumer Solutions and Personal Care, as well as synergy realization, helped offset these effects.

• Strategic investments in sustainability, efficiency projects, and Project CORE restructuring continue to position the business for long-term growth.

• Free cash flow enabled $36 million in debt repayment during the quarter, highlighting a focus on operational excellence and working capital improvements.

Financial highlights

• Quarterly sales were $796 million, down 3% year-over-year, with operating income rising to $17 million from $4 million and net loss narrowing to $18 million.

• Adjusted EBITDA was $90 million, up 1% year-over-year, and free cash flow for the quarter was $73 million, with a trailing 12-month yield exceeding 40%.

• Americas revenue declined to $437 million, with adjusted EBITDA down 9% to $58 million; Rest of World revenue was $359 million, with adjusted EBITDA up 19% to $32 million.

• Gross margin for the quarter was approximately 11.9%.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: adjusted EBITDA $380–$410 million, free cash flow $90–$110 million, and capital spending $80 million.

• Management expects to recoup most weather-related setbacks in the second half and continues to focus on cost optimization and commercial excellence.

• Capex outlook is 2–3% of sales, with no near-term debt maturities and a focus on deleveraging to a leverage target of approximately 3.0x.