Magnera (MAGN) investor relations material

Executive summary

• Net sales reached $839 million in Q3, driven by the Glatfelter merger and ongoing business optimization, with adjusted EBITDA of $91 million and operating income of $13 million.

• Project CORE and capacity rationalizations target $20 million in annual cost savings by FY26, supporting operational efficiency.

• Integration and synergy efforts are progressing, with $55 million in net synergy savings targeted through 2027.

• Management reaffirmed full-year adjusted EBITDA and free cash flow guidance, emphasizing long-term growth through innovation and operational excellence.

• Commercial wins and product innovation, including new business awards and the Sontara EcoRE compostable bag, support portfolio resilience.

Financial highlights

• Q3 sales were $839 million, up 51% year-over-year due to the merger, but organic volume declined 5%.

• Adjusted EBITDA was $91 million, up 23% year-over-year, but GAAP net loss was $18 million, with EPS at $(0.51).

• Americas segment revenue was $473 million, with adjusted EBITDA of $61 million and operating income of $12 million; Rest of World revenue was $366 million, with flat adjusted EBITDA and operating income.

• Cash and cash equivalents stood at $276 million at quarter end, with available liquidity of $570 million.

• Net debt to pro forma adjusted EBITDA was 3.9x, with total net debt at $1,723 million.

Outlook and guidance

• Full-year adjusted EBITDA guidance of $360–$380 million and free cash flow midpoint of $85 million confirmed.

• Q4 EBITDA expected at the lower end of the range, with volumes projected to be down 3–5% sequentially.

• Project CORE aims for $20 million in annual cost savings by FY26, with a one-to-one cost outlay.

• Focus remains on debt repayment and reducing leverage to ~3x.

• Liquidity is expected to be sufficient for short- and long-term needs, except for long-term debt obligations intended to be refinanced.