Magnera (MAGN) Q4 2025 earnings summary

Executive summary

• Achieved $839 million in Q4 sales and $3.2 billion full-year revenue, with adjusted EBITDA of $362 million and $126 million free cash flow, exceeding 30% yield; record cash flow from operations and significant debt repayment were also reported.

• Strategy to lead in advanced specialty materials and business optimization through Project CORE and post-merger integration delivered market share gains, product mix improvements, and synergy execution.

• Completed stabilization phase post-merger, now entering optimization with integrated commercial teams and standardized processes, with continued innovation in sustainable products.

Financial highlights

• Q4 adjusted EBITDA was $90 million, flat sequentially but up 36% year-over-year, with strong cash flow exceeding guidance.

• FY 2025 revenue was $3,204 million, adjusted EBITDA $354 million, and free cash flow $126 million, representing over 30% yield at year-end.

• Year-end leverage stood at 3.8x, with $600 million in available liquidity and $305 million in cash and equivalents.

Outlook and guidance

• Fiscal 2026 guidance: adjusted EBITDA of $380–$410 million, free cash flow of $90–$110 million, and capital expenditures of $80 million, including $10 million for IT.

• Targeting ~9% earnings improvement in 2026, driven by synergy realization, Project CORE, and cost/capacity optimization.

• Volume expected to be flat overall, with margin expansion from synergies and cost initiatives; South America and Europe softness to impact early quarters.