Mativ (MATV) Q4 2025 earnings summary

Executive summary

• Achieved strong year-over-year improvements in sales, Adjusted EBITDA, and margins for both Q4 and full year 2025, despite challenging macroeconomic and industry conditions.

• Organic sales grew 2.5% year-over-year, with full year 2025 sales just under $2 billion.

• Adjusted EBITDA increased 3% year-over-year to $224.7 million, with Q4 Adjusted EBITDA up 19% to $53.5 million.

• Record free cash flow of $94 million, more than doubling the prior year, driven by disciplined execution, inventory management, and expense control.

• Transformation focused on commercial excellence, balance sheet strengthening, and portfolio optimization, with significant cultural and operational changes.

Financial highlights

• FY25 sales reached $1,987.0 million, up 2.5% organically year-over-year.

• Adjusted EBITDA for 2025 was $224.7 million, up 3% versus prior year; Q4 Adjusted EBITDA grew 19% to $53.5 million.

• Adjusted EPS was $0.70, up from $0.62 in the prior year; full year GAAP net loss was $337.4 million (GAAP EPS $(6.19)).

• Free cash flow reached $93.8 million, nearly 140% higher year-over-year.

• Net debt reduced by $61 million to $934 million; total liquidity $515 million at year-end 2025.

Outlook and guidance

• Q1 2026 Adjusted EBITDA expected to increase 15%-20% year-over-year, despite soft demand.

• 2026 capital expenditures planned at $45 million, split evenly between growth and efficiency/safety projects.

• Additional $15-$20 million in cost savings targeted for 2026.

• Raw material cost headwinds of $20-$25 million anticipated, mainly in the second half of 2026.

• Progress toward leverage target of 2.5-3.5x expected by year-end 2026.