Mativ Announces Fourth Quarter and Full Year 2024 Results

"We delivered strong Q4 results in our SAS segment with organic revenue growth of almost 13% and adjusted EBITDA increasing approximately 8%." – Julie Schertell, CEO of Mativ.

Feb. 19, 2025 - Mativ Holdings, Inc. reported earnings results for the three months and year ended December 31, 2024. On November 30, 2023, Mativ completed the sale of its Engineered Papers business. Financial results for continuing operations exclude Engineered Papers in all periods.

Mativ Fourth Quarter 2024 Highlights (Continuing Operations)

• Sales of $458.6 million increased 1.4% year over year, and 4.3% on an organic basis
• GAAP income was $1.5 million in Q4 2024, an improvement of $15.1 million compared to a $13.6 million GAAP loss in the prior year, GAAP EPS was $0.03; the current period included organizational realignment expenses and both periods included purchase accounting expenses
• Adjusted EBITDA was $44.8 million, Adjusted income was $3.0 million, and Adjusted EPS was $0.05, (see non-GAAP reconciliations). Adjusted EBITDA was down 10% versus the prior year, primarily driven by lower volumes in Advanced Films, higher input and manufacturing costs, partially offset by higher volumes in the remainder of our product categories, lower SG&A and distribution expenses

Mativ Full Year 2024 Highlights (Continuing Operations)

• Sales of $1,981.1 million decreased 2.2% year over year, and 1.0% on an organic basis
• GAAP loss was $48.7 million, GAAP EPS was $(0.90); the current period included organizational realignment expenses, and both periods included divestiture and purchase accounting expenses
• Adjusted EBITDA was $218.0 million, Adjusted income was $34.1 million, and Adjusted EPS was $0.62, (see non-GAAP reconciliations). Adjusted EBITDA was up 2% versus the prior year, primarily driven by favorable net price/input costs performance, and lower distribution and SG&A expenses, partially offset by lower volumes and higher manufacturing costs
• GAAP operating profit margin improved materially compared to the prior year (which included a $401.0 million goodwill impairment charge) and adjusted EBITDA margin increased 50 basis points

CEO Comments

Chief Executive Officer Julie Schertell commented, "Our consolidated performance for Q4 was as expected. We delivered strong Q4 results in our SAS segment with organic revenue growth of almost 13% and adjusted EBITDA increasing approximately 8%. The increasing order pace and momentum in SAS is continuing into 2025.

"Our FAM segment had mixed results in Q4 with solid demand in Filtration and challenges, as previously announced, in our Advanced Films category, particularly in paint protection films. Our turnaround activities are well underway, and we are realizing improved cost, quality, lead time, and order delivery. Additionally, we are making good progress in our largest adjacent film product categories of optical and medical films, where combined revenues were up almost 30% in Q4. While we have more work to do, we remain confident these actions will deliver improvements in the second half of the year.

"As we enter 2025, we are focused on the highest profit and cash accretive activities including announced pricing actions, incremental manufacturing and overhead cost reduction initiatives, and a stronger sales pipeline. With sequential improvement in our order books as well, I am confident in our team and the efforts we have underway to position Mativ for 2025 and beyond."

Mativ Fourth Quarter 2024 Financial Results (Continuing Operations)

Filtration & Advanced Materials (FAM) segment sales, comprised primarily of filtration media and components, advanced films, coating and converting solutions, and extruded mesh products, were $167.8 million, down 7.8% versus the prior year period, as stable volumes in filtration were more than offset by lower volumes in advanced films and netting and lower selling prices across the segment.

GAAP Operating Profit in 2024 included $0.4 million of restructuring expenses primarily related to footprint rationalization. Adjusted EBITDA (see non-GAAP reconciliations) decreased 29% versus prior year as stable volumes in filtration were more than offset by lower volumes in advanced films and netting, and lower selling prices and higher manufacturing costs across the segment.

Sustainable & Adhesive Solutions (SAS) segment sales, comprised primarily of tapes, labels, liners, specialty paper, packaging and healthcare solutions, of $290.8 million were up 7.5%, and 12.8% on an organic basis, versus the prior year period, as higher volumes across all product categories and higher selling prices were partially offset by sales associated with closed and divested plants.

GAAP Operating Profit in 2024 included $0.3 million in restructuring expenses primarily related to footprint rationalization. Adjusted EBITDA (see non-GAAP reconciliations) increased $2.7 million (or almost 8%) compared to the prior year period, driven by higher volumes across all product categories and favorable distribution costs, partially offset by unfavorable net price / input cost performance.

Mativ Holdings, Inc. (NYSE: MATV) is a global leader in specialty materials, solving customers' most complex challenges by engineering bold, innovative solutions that connect, protect and purify our world. Headquartered in Alpharetta, Georgia, Mativ manufactures on three continents and generate sales in over 90 countries through our family of business-to-business and consumer product brands.

SOURCE: Mativ Holdings, Inc.