ALPHARETTA, Ga. (News release) -- Mativ Holdings, Inc. ("Mativ" or the "Company") (NYSE: MATV) reported earnings results for the three months ended September 30, 2025.

Adjusted measures are reconciled to GAAP at the end of this release. Financial comparisons are versus the prior year period unless stated otherwise. Figures may not sum to total due to rounding.

Mativ Third Quarter 2025 Highlights

• Sales of $513.7 million increased 3.0% year over year, and 5.2% on an organic basis

• GAAP loss was $3.2 million, GAAP EPS was $(0.06)

• Adjusted EBITDA was $66.8 million, Adjusted income was $21.6 million, and Adjusted EPS was $0.39, (see non-GAAP reconciliations). Adjusted EBITDA increased 10% versus the prior year period, as favorable relative price versus input cost performance, higher organic volume across both segments, and lower manufacturing costs were partially offset by higher distribution costs and unfavorable unallocated expenses.

• Strongest adjusted EBITDA margin since the 2022 merger at 13%, and an increase of 80 basis points versus the prior year.

• Cash from operating activities of $72.8 million, and free cash flow of $66.7 million, up 94% and 179%, respectively, versus the prior year period.

• Combined, Q2 and Q3 represent the strongest two consecutive quarters since the merger, for both adjusted EBITDA and free cash flow.

Management Commentary

"We delivered one of our strongest quarters since the formation of Mativ three years ago," said Shruti Singhal, Mativ President and CEO. "With our highest adjusted EBITDA margin and second-highest free cash flow delivery, our third quarter results reflect significant improvements both sequentially and year over year. The main drivers of our performance versus prior year were organic volume increases in both segments and disciplined price versus input cost management.

Our strong results over the last two quarters demonstrate that Mativ is on the right track to deliver on the strategic priorities as well as the commercial and operational goals which we committed to at the start of this year. We continue to operate at an increased pace of execution and a renewed sense of urgency to deliver on commitments to our customers and drive value for our shareholders."

Mativ Third Quarter 2025 Financial Results

Filtration & Advanced Materials (FAM) segment sales, comprised primarily of filtration media and components, advanced films, coating and converting solutions, and extruded mesh products, were $198.3 million, up 4.6% versus the prior year period, reflecting higher volume/mix and favorable currency translation partially offset by lower selling prices.

GAAP Operating Profit in 2025 included $9.6 million of restructuring expenses, compared to $0.8 million in 2024. Adjusted EBITDA (see non-GAAP reconciliations) increased 1.1% versus prior year as higher volume/mix was partially offset by higher manufacturing costs.

Sustainable & Adhesive Solutions (SAS) segment sales, comprised primarily of tapes, labels, liners, specialty paper, packaging and healthcare solutions, of $315.4 million were up 5.6% on an organic basis, and up 2.1%, on a reported basis, versus the prior year period. Higher organic volume, higher selling prices, and favorable currency translation were partially offset by sales associated with closed and divested plants.

GAAP Operating Profit in 2025 included $1.0 million in restructuring expenses, compared to $10.5 million of restructuring and other impairment expenses in 2024. Adjusted EBITDA (see non-GAAP reconciliations) and margin increased 17.8% and 200 basis points, respectively, compared to the prior year period, as favorable net selling price versus input cost performance, lower manufacturing costs and lower SG&A expenses were partially offset by unfavorable mix and higher distribution costs.

GAAP operating expenses in 2025 included $0.3 million in organizational realignment costs.

Adjusted unallocated expenses (EBITDA) (see non-GAAP reconciliations) increased $1.7 million versus prior year primarily driven by the timing of employee-related expenses.

Interest expense was $17.7 million versus $18.3 million in the prior year period.

Other expense, net was $3.9 million and decreased $8.8 million compared with the prior year primarily driven by losses on asset sales and foreign currency in the prior year period.

Tax was a 42.9% benefit for the three months ended September 30, 2025, driven by a one-time adjustment and mix of earnings.

Non-GAAP Adjustments reflect items included in GAAP operating profit, income, and EPS, but excluded from adjusted results (see non-GAAP reconciliation tables for additional details). The most significant adjustment to the third quarter 2025 results were:

• $0.27 per share of purchase accounting expenses (purchase accounting expenses reflect primarily ongoing non-cash intangible asset amortizations associated with mergers and acquisitions)
• $0.18 per share due to restructuring, restructuring related, and other impairment expenses

Cash Flow & Debt

Year-to-date 2025 cash provided by operating activities was $114.5 million. Capital spending and software costs totaled $28.7 million. Working capital was a $22.5 million source of cash due to the impact of a decrease in inventories and increase in accounts payable and other current liabilities partially offset by an increase in accounts receivable.

Total debt was $1,028.9 million as of September 30, 2025 and Cash and cash equivalents was $97.1 million resulting in net debt of $931.8 million. Total liquidity was approximately $517 million, consisting of $97 million of Cash and cash equivalents and $420 million of revolver availability. The Company's debt matures on a staggered basis between 2027 and 2029.

Dividend & Share Repurchases

On November 5, 2025 the Company announced its next quarterly cash dividend of $0.10 per share payable on December 19, 2025 to stockholders of record as of November 28, 2025.

During the third quarter, the Company did not repurchase shares.