Mativ (MATV) Q1 2026 earnings summary

Executive summary

• Achieved strongest Q1 consolidated margin and cash flow performance since the merger, with adjusted EBITDA up 28% to $47.5 million and margin up 220 basis points to 9.9%.

• Net sales for Q1 2026 were $479.6 million, down 1.1% year-over-year, with organic sales nearly flat; gross profit rose 16.9% to $84.9 million.

• Net loss narrowed to $11.7 million ($0.22 per share) from $425.5 million in the prior year, mainly due to the absence of a large goodwill impairment.

• Strategic focus shifted from transformation to accelerating growth, leveraging a diverse portfolio and targeting high-growth markets.

• Closed underperforming Wilson, NC plant, rationalized SKUs, and introduced a new Strategic Blueprint for sustainable, profitable growth.

Financial highlights

• Net sales were $479.6 million, nearly flat organically year-over-year, down 1.1% as reported.

• Adjusted EBITDA was $47.5 million, up 28% year-over-year; adjusted EBITDA margin rose to 9.9%.

• Gross profit increased by $12.3 million year-over-year to $84.9 million, with gross margin up to 17.7%.

• Free cash flow was a use of $7 million, improving by over $22 million year-over-year, marking best Q1 since the merger.

• Net debt at quarter end was $953.5 million; liquidity stood at $498.5 million; net leverage at 4.1x.

Outlook and guidance

• Q2 adjusted EBITDA expected to decline mid-single digits year-over-year due to healthcare demand weakness, partially offset by growth in films and filtration.

• Full-year input cost inflation forecast at $40–$50 million, with pricing actions expected to fully offset increases.

• Continued focus on deleveraging, targeting net leverage of 2.5x–3.5x by end of 2026.

• Management expects to remain in compliance with amended credit agreement covenants and believes liquidity sources are sufficient for foreseeable funding needs.

• Strong free cash flow generation expected for 2026, with normal seasonality: strongest in Q2/Q3, positive year-end.