Mativ (MATV) Q2 2026 earnings summary

Executive summary

• Achieved strongest quarterly performance since company inception, with sales up 1.2% year-over-year to $531.8 million and GAAP net income of $3.6 million, reversing a prior-year loss.

• Adjusted EBITDA rose 12% to $75.0 million, with margin up 130 basis points to 14.1%.

• Free cash flow increased 24% year-over-year to $60.4 million, reflecting robust operational performance.

• Strategic focus on innovation, customer partnerships, and operational excellence driving results.

• Net income for the quarter was $3.6 million, reversing a net loss of $9.5 million in Q2 2025; diluted EPS was $0.06.

Financial highlights

• Net sales reached $531.8 million, up from $525.4 million year-over-year; gross profit was $113.3 million, up 9.3%.

• Adjusted EPS was $0.50, up from $0.33; GAAP EPS was $0.06, up from $(0.18).

• Operating profit for Q2 was $35.3 million, up from $20.1 million in Q2 2025.

• Cash from operating activities was $67.9 million, up 18% year-over-year.

• Net debt reduced to $908.2 million, down from $934.0 million at year-end; total liquidity was $345.5 million.

Outlook and guidance

• Expect modest volume growth in Q3, led by advanced films, despite tornado-related headwinds.

• Full-year inflation impact projected at $40–$50 million, with cost increases weighted to the second half.

• Net leverage targeted in the mid-to-high 3x range by year-end, aiming for 2.5x–3.5x by mid-2027.

• Management expects continued benefits from pricing actions and cost optimization, with sufficient liquidity to support operations and growth.

• No material impact from recent U.S. tariff changes or tax legislation is anticipated for 2026.