Mativ (MATV) Q4 2024 earnings summary

Executive summary

• SaaS/SAS segment delivered strong Q4 and 2024 growth, with broad-based volume increases and momentum expected to continue into 2025.

• FAM segment faced challenges from weak industrial demand and paint protection film quality issues, but corrective actions and turnaround plans are underway, with improvements expected in H2 2025.

• Q4 2024 sales rose 1.4% year-over-year to $458.6M, with organic growth of 4.3%; full-year sales from continuing operations were $1,981.1M, down 2.2% year-over-year.

• Over $20 million in overhead costs were removed in 2024, with further cost reductions and operational streamlining planned.

• Adjusted EBITDA for Q4 was $44.8M (down 10% year-over-year); full-year Adjusted EBITDA was $218.0M, up 2%.

Financial highlights

• Consolidated net sales for Q4 were $459 million, up 4.3% organically and 1.4% as reported year-over-year.

• Adjusted EBITDA from continuing operations was $44.8 million, down 10% from $50 million in the prior year, impacted by higher input and manufacturing costs.

• SaaS/SAS net sales reached $291 million, up almost 13% organically and 8% as reported; adjusted EBITDA was $36 million, up nearly 8% year-over-year.

• FAM net sales were $168 million, down over 7% year-over-year; adjusted EBITDA was $26 million, down more than $10 million.

• Net debt at quarter/year-end was $995 million, with available liquidity of $451 million and a net leverage ratio of 4.4x.

Outlook and guidance

• Q1 2025 expected to be impacted by higher inventory and input costs, with pricing actions planned to offset inflation over the year.

• Full-year 2025 focus on profit growth, cash generation, margin improvement, and aggressive cost reductions.

• Capital expenditures planned at $50 million, with one-time costs of $15–$20 million and a normalized tax rate of 24%.

• Raw material headwinds of $10–$15 million expected in H1 2025, to be offset by targeted pricing actions.

• Improvements in FAM segment expected in the second half of 2025 as turnaround activities progress.