Magnera (MAGN) Q1 2026 earnings summary

Executive summary

• Net sales for the quarter were $792 million, with strong performance in wipes, infrastructure, and successful merger integration, supporting sequential earnings improvement and 2026 Adjusted EBITDA guidance of 9% growth.

• Adjusted EBITDA for the quarter was $93 million, up 11% year-over-year, driven by synergy realization, Project Core transformation, and merger benefits.

• Operations are organized into Americas and Rest of World segments, focusing on personal care and consumer solutions across multiple regions.

• Strategic focus on cost structure, innovation, and commercial excellence positions the company for sustained long-term success.

• Fiscal 2026 guidance for adjusted EBITDA of $380–$410 million and free cash flow of $90–$110 million was reaffirmed.

Financial highlights

• Q1 net sales were $792 million, up 13% year-over-year, with $112 million from the merger and $36 million from favorable currency, partially offset by lower selling prices and a 1% organic volume decline.

• Adjusted EBITDA was $93 million, with margin improving to 11.7% and $8 million contribution from the merger.

• Operating income improved to $14 million from a loss of $22 million in the prior year quarter.

• Free cash flow for the quarter was $2 million, with $15 million in capital expenditures.

• Cash and cash equivalents at quarter-end were $264 million.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: adjusted EBITDA of $380–$410 million, free cash flow of $90–$110 million, and cash flow from operations of $170–$190 million.

• 2026 Adjusted EBITDA guidance targets 9% growth, primarily driven by synergy realization and Project Core initiatives.

• Free cash flow for 2026 expected at ~$100 million, assuming flat working capital, $135 million interest, $80 million integration costs, and $80 million CapEx.

• Capex outlook remains at 2–3% of sales, with a focus on deleveraging to a leverage target of ~3.0x.

• Volume growth for 2026 expected to be flat overall, with North America slightly positive, Europe down ~3%, and South America stabilizing.