Mativ (MATV) Q4 2025 earnings summary

Executive summary

• Achieved year-over-year improvements in sales, Adjusted EBITDA, and margins for both Q4 and full year 2025, with organic sales growth of 2.5% and record free cash flow of $93.8 million, despite challenging macroeconomic and industry conditions.

• Adjusted EBITDA increased 3% year-over-year to $224.7 million, with margin up 30 basis points to 11.3%.

• Strategic focus on commercial excellence, balance sheet strengthening, and portfolio optimization, including facility closures, SKU rationalization, and a comprehensive portfolio review.

• Transformation initiatives and disciplined execution fostered agility, speed, and accountability, positioning for sustainable, profitable growth.

• Management highlighted disciplined execution, inventory management, and cost control as key drivers.

Financial highlights

• Full year 2025 net sales were $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 increased to $0.70 from $0.62 year-over-year; GAAP net loss for FY25 was $337.4 million (GAAP EPS $(6.19)).

• Free cash flow reached a record $93.8 million, up 139% year-over-year.

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

Outlook and guidance

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

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

• Additional $15-$20 million in cost savings targeted for 2026; free cash flow expected to remain strong but slightly below 2025 due to growth investments.

• 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.