Magnera (MAGN) investor relations material

Executive summary

• Achieved record third quarter with net sales of $857 million and adjusted EBITDA of $99 million, up 9% year-over-year, driven by organic volume growth, synergy initiatives, and strong performance in wipes and infrastructure segments.

• Transformation initiatives, including Project CORE and merger synergies, delivered significant savings and operational improvements.

• Maintained resilience through a balanced portfolio of essential consumer and personal care products, with operations organized into Americas and Rest of World segments.

• Twelve-month adjusted free cash flow yield exceeded 25% at quarter-end.

• The company continues to pursue acquisitions to enhance market position and product lines.

Financial highlights

• Net sales reached $857 million, up 2% year-over-year from $839 million, with operating income rising to $22 million from $13 million.

• Adjusted EBITDA for the quarter was $99 million, a 9% increase from $91 million year-over-year.

• Americas segment adjusted EBITDA rose 16% to $71 million, while Rest of World adjusted EBITDA declined 7% to $28 million.

• Net loss for the quarter was $20 million, or $(0.56) per share, compared to a net loss of $18 million, or $(0.51) per share, in the prior year.

• Free cash flow for the quarter was $32 million, with year-to-date free cash flow at $32 million.

Outlook and guidance

• Full-year free cash flow guidance reaffirmed at $90–$110 million, with adjusted EBITDA expected at the lower end of the previous range due to inflation and macro uncertainty.

• Fiscal 2026 cash from operations projected between $150–$170 million, assuming $60 million in capital spending.

• CapEx expected to be around $60 million for the year, with flexibility for future growth investments.

• Management expects long-term demand fundamentals to remain strong despite macroeconomic challenges.