Mativ (MATV) Q4 2024 earnings summary

Executive summary

• SaaS/SAS segment delivered strong Q4 and 2024 results, with sales pipeline over 50% larger than last year and robust momentum across all categories.

• FAM segment faced challenges from sluggish industrial demand and late-2023 paint protection film quality issues, but quality has improved and turnaround efforts are underway.

• Over $20 million in overhead costs were removed in 2024, with further cost reductions and operational streamlining planned.

• Portfolio repositioned through divestitures, debt reduced by over 35%, and plant footprint streamlined by over 25% in the last 18 months.

• Q4 2024 sales rose 1.4% year-over-year to $458.6M; GAAP net income was $1.5M, reversing a $13.6M loss last year.

Financial highlights

• Consolidated net sales for the quarter were $459 million, up 4.3% organically and 1.4% as reported year-over-year.

• Adjusted EBITDA from continuing operations was $44.8 million, down 10% from the prior year, impacted by higher input and manufacturing costs.

• SaaS/SAS net sales reached $291 million, up almost 13% organically and 8% as reported, with adjusted EBITDA of $36 million, up nearly 8% year-over-year.

• FAM net sales were $168 million, down over 7% year-over-year, with adjusted EBITDA of $26 million, down more than $10 million.

• Net debt at quarter/year-end was $995 million, with available liquidity of $451 million and a net leverage ratio of 4.4x.

Outlook and guidance

• Q1 2025 expected to be impacted by higher inventory and input costs, with pricing actions planned to offset these over the year.

• Full-year 2025 focus on profit growth, cash generation, margin improvement, and aggressive cost reductions.

• Capital expenditures planned at $50 million, with one-time costs of $15–$20 million and a normalized tax rate of 24%.

• Raw material headwinds of $10–$15 million expected in the first half of 2025, to be offset by pricing.

• Improvements in FAM segment expected in the second half of 2025 as turnaround activities progress.