Part I - Financial Information [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) The company reported a Q1 net loss of $425.5 million, driven by a $411.9 million goodwill impairment charge Condensed Consolidated Statements of Income (Loss) (in millions) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Net sales** | $484.8 | $500.2 | | **Gross profit** | $72.6 | $84.0 | | **Goodwill impairment expense** | $411.9 | $— | | **Operating loss** | $(430.6) | $(13.8) | | **Net loss** | $(425.5) | $(28.0) | | **Diluted loss per share** | $(7.82) | $(0.52) | Condensed Consolidated Balance Sheet Highlights (in millions) | | **March 31, 2025** | **December 31, 2024** | | :--- | :--- | :--- | | **Total current assets** | $686.2 | Not Provided | | **Goodwill** | $54.8 | $465.6 | | **Total assets** | $2,052.3 | Not Provided | | **Total current liabilities** | $288.1 | Not Provided | | **Long-term debt** | $1,120.1 | $1,086.7 | | **Total liabilities** | $1,624.1 | Not Provided | | **Total stockholders' equity** | $428.2 | $858.5 | Condensed Consolidated Statements of Cash Flows (in millions) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2025** | **2024** | | **Net cash used in operations** | $(15.9) | $(13.0) | | **Net cash used in investing** | $(10.6) | $(21.1) | | **Net cash provided by financing** | $24.5 | $45.8 | [Note 1: General Business and Segments](index=9&type=section&id=Note%201.%20General) The company operates through two segments, FAM and SAS, with the EP business now a discontinued operation - The company has two reportable segments: **Filtration & Advanced Materials (FAM)** and **Sustainable & Adhesive Solutions (SAS)**[25](index=25&type=chunk) - The Engineered Papers (EP) business, sold in November 2023, is presented as a **discontinued operation**[24](index=24&type=chunk) [Note 2: Revenue Recognition](index=10&type=section&id=Note%202.%20Revenue%20Recognition) Total Q1 2025 net sales were $484.8 million, with the US as the largest market and tapes as the top product Net Sales by Geographic Location (in millions) | Region | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | United States | $275.2 | $268.3 | | Europe | $125.8 | $141.1 | | Asia-Pacific | $47.5 | $53.0 | | Americas (excluding U.S.) | $23.8 | $27.5 | | Other foreign countries | $12.5 | $10.3 | | **Total** | **$484.8** | **$500.2** | Net Sales by Product Category | Product Category | Q1 2025 % | Q1 2024 % | | :--- | :--- | :--- | | Filtration & netting | 25% | 26% | | Advanced films | 14% | 15% | | Tapes, labels & liners | 29% | 30% | | Paper & packaging | 16% | 16% | | Healthcare & other | 16% | 13% | - The company utilizes accounts receivable sales agreements to sell certain trade receivables; in Q1 2025, **$238.0 million of trade accounts receivable were sold** to financial institutions[48](index=48&type=chunk)[55](index=55&type=chunk) [Note 6: Goodwill](index=15&type=section&id=Note%206.%20Goodwill) A $411.9 million goodwill impairment was recorded for the FAM segment, with the SAS segment at future risk - A **full goodwill impairment charge of $411.9 million** was recorded for the FAM segment in Q1 2025, reducing its goodwill balance to zero[66](index=66&type=chunk)[69](index=69&type=chunk) - The impairment test was triggered by a **sustained decline in the company's share price**[67](index=67&type=chunk) - The discount rate for the FAM reporting unit was **increased to 14%** to reflect higher perceived risk in achieving forecasted cash flows[69](index=69&type=chunk) - The fair value of the SAS reporting unit exceeded its carrying value by **only 6%**, indicating a risk of future impairment; a 100bps increase in the discount rate for SAS would result in an impairment of approximately **$15.0 million**[71](index=71&type=chunk)[179](index=179&type=chunk) [Note 8: Restructuring and Other Impairment Activities](index=17&type=section&id=Note%208.%20Restructuring%20and%20Other%20Impairment%20Activities) Q1 2025 restructuring and impairment expenses totaled $6.3 million, mainly from a realignment initiative Restructuring and Other Impairment Expense (in millions) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total restructuring expense | $1.0 | $14.4 | | Other impairment expense (FAM) | $5.3 | $— | | **Total** | **$6.3** | **$14.4** | - In January 2024, the company announced an organizational realignment initiative (the 'Plan') to streamline the organization and reduce costs; charges in Q1 2024 related to this plan were **$12.7 million**[75](index=75&type=chunk) [Note 9: Debt](index=18&type=section&id=Note%209.%20Debt) Total debt increased to $1.123 billion as of March 31, 2025, with the company in covenant compliance Total Debt Summary (in millions) | | **March 31, 2025** | **December 31, 2024** | | :--- | :--- | :--- | | Revolving facility | $269.1 | $237.0 | | Term loans (A, B, Delayed Draw) | $470.0 | $470.0 | | 8.000% Senior unsecured notes | $400.0 | $400.0 | | **Total debt (net of issuance costs)** | **$1,122.8** | **$1,089.3** | - The company was in **compliance with all debt covenants** as of March 31, 2025, including a net debt to EBITDA ratio not greater than 5.50x and an interest coverage ratio not less than 2.50x[91](index=91&type=chunk)[92](index=92&type=chunk) [Note 14: Segment Information](index=25&type=section&id=Note%2014.%20Segment%20Information) The FAM segment's goodwill impairment drove a consolidated operating loss despite SAS segment profitability Segment Results (in millions) | | Three Months Ended March 31, 2025 | | :--- | :--- | :--- | :--- | | | **FAM** | **SAS** | **Consolidated** | | **Net Sales** | $187.6 | $297.2 | $484.8 | | **Operating profit (loss)** | $(410.0) | $13.0 | $(430.6) | Segment Operating Profit (Loss) Comparison (in millions) | | **Q1 2025** | **Q1 2024** | | :--- | :--- | :--- | | **FAM** | $(410.0) | $14.6 | | **SAS** | $13.0 | $4.2 | | **Total Segments** | $(397.0) | $18.8 | | **Unallocated** | $(33.6) | $(32.6) | | **Consolidated** | $(430.6) | $(13.8) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes the Q1 2025 results, focusing on the goodwill impairment's impact and liquidity [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Consolidated net sales decreased 3.1%, with a large operating loss driven by the FAM goodwill impairment Net Sales by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Filtration & Advanced Materials | $187.6 | $202.7 | $(15.1) | (7.4)% | | Sustainable & Adhesive Solutions | $297.2 | $297.5 | $(0.3) | (0.1)% | | **Total** | **$484.8** | **$500.2** | **$(15.4)** | **(3.1)%** | - The FAM segment's operating loss was **$410.0 million**, a $424.6 million decrease from the prior year, primarily due to the **$411.9 million goodwill impairment**[156](index=156&type=chunk) - The SAS segment's operating profit **increased by $8.8 million to $13.0 million**, driven by higher volume and lower SG&A expenses[157](index=157&type=chunk) - The effective tax rate was **5.5% in Q1 2025**, down from 7.9% in Q1 2024, primarily due to the non-deductible goodwill impairment and an increased valuation allowance[161](index=161&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity with $84.0 million in cash and $323.2 million in revolver capacity - As of March 31, 2025, the company had **$84.0 million in cash**, $9.8 million in restricted cash, and **$323.2 million of undrawn revolver capacity**[142](index=142&type=chunk) - **Net leverage was 4.7x** at the end of Q1 2025, versus a maximum covenant ratio of 5.50x[142](index=142&type=chunk) - The total debt to capital ratio **increased to 72.4%** at March 31, 2025, from 55.9% at December 31, 2024, largely due to the reduction in equity from the goodwill impairment[175](index=175&type=chunk) - A cash dividend of **$0.10 per share** was announced on May 7, 2025[172](index=172&type=chunk) [Critical Accounting Policies and Estimates](index=34&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) A material change in goodwill estimates led to a $411.9 million impairment for the FAM reporting unit - An interim goodwill impairment test was performed in Q1 2025 due to a **sustained decline in the Company's share price**[177](index=177&type=chunk) - The test resulted in a **full non-cash impairment of all goodwill for the FAM reporting unit**, amounting to **$411.9 million**, after increasing the discount rate to 14%[178](index=178&type=chunk) - The fair value of the SAS reporting unit was estimated to exceed its carrying value by **only 6%**, indicating a heightened risk of future impairment charges[179](index=179&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk exposure has not materially changed from the 2024 year-end report - There have been **no material changes** to the company's market risk exposure since the 2024 year-end report[186](index=186&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective with no material changes to internal controls - The CEO and CFO concluded that **disclosure controls and procedures were effective** as of March 31, 2025[187](index=187&type=chunk) - **No changes in internal control over financial reporting** occurred in Q1 2025 that have materially affected, or are reasonably likely to materially affect, internal controls[189](index=189&type=chunk) Part II - Other Information [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) Current legal proceedings are not expected to have a material adverse effect on the company's financials - The Company is not currently a party to any legal proceedings that it believes would have a **material adverse effect** on its financial position[191](index=191&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the 2024 Annual Report - **No material changes** to risk factors were reported since the 2024 Annual Report on Form 10-K[192](index=192&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common stock in Q1 2025, with $22.0 million remaining authorized - The company **did not repurchase any shares** during Q1 2025[194](index=194&type=chunk) - The remaining amount authorized for share repurchases is **$22.0 million** as of March 31, 2025[194](index=194&type=chunk) [Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and agreements Signatures

Financial Data and Key Metrics Changes - Consolidated net sales from continuing operations for Q1 were $485 million, down 3% year over year, and essentially flat on an organic basis [23] - Adjusted EBITDA from continuing operations was $37.2 million, down 19% from $45.8 million in the prior year [23] - Net debt at the end of the quarter was $1.04 billion, with a net leverage ratio of 4.7 times [27][28] Business Line Data and Key Metrics Changes - In the Filtration and Advanced Materials (FAM) segment, net sales were $188 million, down more than 7% year over year, reflecting lower volumes and unfavorable currency translation [24] - The Sustainable and Adhesive Solutions (SaaS) segment saw net sales of $297 million, up almost 6% on an organic basis, with adjusted EBITDA performance of $33 million, up more than 3% year over year [25][26] Market Data and Key Metrics Changes - Demand patterns reflected in Q1 showed sales were flat organically year over year, with SaaS segment growth offset by softness in FAM results, particularly in automotive and construction end markets [16][17] - Less than 7% of annual sales are currently subject to tariff exposure, indicating a strong localized supply chain [19][20] Company Strategy and Development Direction - The company is focusing on three near-term priorities: enhancing commercial execution, deleveraging the balance sheet, and conducting a strategic review of its portfolio [9][34] - A task force is reviewing cost and operating structures to achieve additional cost reductions of $10 million to $15 million in 2025, alongside previously announced reductions [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by a continuously suppressed demand environment and the need for operational improvements [6][8] - There is an expectation for a significant sequential step up in adjusted EBITDA performance in Q2, driven by increased volume and improved pricing [30] Other Important Information - The company plans to reduce capital expenditures to $40 million per year, down from $55 million in 2024, and aims to lower inventory levels by $20 million to $30 million in 2025 [14][29] - A goodwill impairment analysis resulted in a pretax non-cash charge of $412 million due to sustained decline in share price [27] Q&A Session Summary Question: Insights on the portfolio review - Management is evaluating how each product category contributes to the bottom line and overall portfolio diversity, with updates to be provided as progress is made [39][40] Question: Timing for cash flow generation improvements - Significant cash flow increases are expected in Q2, driven by inventory reductions and improved sequential EBITDA [42][43] Question: Margin contraction causes and dividend policy - Management identified that margin suppression is primarily due to the FAM business and is working towards improving margins through cost reductions and pricing actions [49][50] - The decision to continue paying dividends has been discussed with the board, and the current plan is to maintain the dividend [54]

Financial Data and Key Metrics Changes - Consolidated net sales from continuing operations for Q1 2025 were $485 million, down 3% year over year, and essentially flat on an organic basis [24] - Adjusted EBITDA from continuing operations was $37.2 million, down 19% from $45.8 million in the prior year [24] - The net leverage ratio was 4.7 times, with about 0.8 times headroom versus the covenant level of 5.5 times [28] Business Line Data and Key Metrics Changes - In the Filtration and Advanced Materials (FAM) segment, net sales were $188 million, down more than 7% year over year, reflecting lower volumes and unfavorable currency translation [25] - The Sustainable and Adhesive Solutions (SaaS) segment saw net sales of $297 million, up almost 6% on an organic basis, with adjusted EBITDA performance of $33 million, up more than 3% year over year [26] Market Data and Key Metrics Changes - Demand patterns reflected in Q1 showed sales were flat organically year over year, with SaaS segment growth offset by softness in FAM results due to automotive and construction market challenges [16][18] - Less than 7% of annual sales are currently subject to tariff exposure, indicating a strong localized supply chain [20][22] Company Strategy and Development Direction - The company has established three near-term priorities: enhancing commercial execution, deleveraging the balance sheet, and conducting a strategic portfolio review [8][9] - A focus on cross-selling and moving existing products into adjacent applications is part of the strategy to stimulate top-line growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the current demand environment remains suppressed and is not expected to return to pre-pandemic levels soon [31] - A significant sequential increase in adjusted EBITDA performance is anticipated, driven by volume increases and improved pricing relative to input costs [31] Other Important Information - The company plans to reduce capital expenditures to $40 million per year, down from $55 million in 2024, and aims to reduce inventory levels by $20 million to $30 million in 2025 [14][30] - A goodwill impairment analysis resulted in a pretax non-cash charge of $412 million due to sustained decline in share price [28] Q&A Session Summary Question: Insights on the portfolio review and cash flow generation - Management is evaluating the portfolio to maximize value and strengthen the balance sheet, with updates to be provided as progress is made [40] - A significant increase in cash flow is expected in Q2, driven by inventory reductions and improved EBITDA [42] Question: Margin contraction and dividend policy - Management identified that the FAM business has been the primary impact on margins, with expectations for improvement through cost reductions and pricing actions [49][53] - The board has discussed the dividend and plans to continue it for now, despite the focus on deleveraging [54] Question: Impact of tariffs and inflation - The company has minimal exposure to tariffs from China and is actively managing pricing to cover input costs, with expectations for favorable pricing contributions in Q2 [59][61] - Input costs are not expected to rise significantly, allowing for effective management of the price-cost spread [61] Question: Addressing weaknesses in automotive and construction segments - Management is building a robust pipeline in the optical, medical, and dental fields to offset weaknesses in automotive and construction, with expectations for growth in these areas [65]

Financial Performance - The company's Q1 FY25 sales were $484.8 million, essentially flat compared to $500.2 million in Q1 FY24[5] - Organic sales remained nearly unchanged, with $484.8 million in Q1 FY25 versus $483.9 million in Q1 FY24[5] - Adjusted EBITDA decreased by 19%, from $45.8 million in Q1 FY24 to $37.2 million in Q1 FY25[5] - GAAP EPS was $(7.82) in Q1 FY25, which included a non-cash goodwill impairment charge of $411.9 million ($7.57 per share)[5, 7] - Adjusted EPS was $(0.14) in Q1 FY25, compared to $0.02 in Q1 FY24[5] - The company anticipates a material step-up in adjusted EBITDA starting in Q2[5] Segment Results - FAM (Fibers and Additives Materials) sales decreased by 7%, from $202.7 million in Q1 FY24 to $187.6 million in Q1 FY25[11] - FAM Adjusted EBITDA decreased by 30%, from $33.2 million in Q1 FY24 to $23.3 million in Q1 FY25[11] - SAS (Sustainable and Adhesive Solutions) organic sales increased by 6%, from $281.2 million in Q1 FY24 to $297.2 million in Q1 FY25[11] - SAS Adjusted EBITDA increased by 3%, from $32.3 million in Q1 FY24 to $33.3 million in Q1 FY25[11] Strategic Initiatives - The company is targeting $10 million - $15 million of cost reductions in 2025, in addition to the previously announced $20 million wave by year-end 2026[14] - Capital expenditures are targeted at $40 million in 2025, a reduction from $55 million incurred in 2024[14] - The company aims for a $20 million - $30 million inventory reduction by year-end 2025[14]

[Q1 2025 Overview and Management Commentary](index=1&type=section&id=Mativ%20First%20Quarter%202025%20Highlights) Mativ's Q1 2025 performance was mixed, with the new CEO emphasizing urgent operational improvements and strategic priorities [Management Commentary and Strategic Priorities](index=1&type=section&id=Management%20Commentary) The new CEO outlined three key priorities: enhanced commercial execution, balance sheet de-leveraging, and strategic portfolio review - The new CEO highlighted that the company is not where it needs to be operationally and is pivoting to a much higher sense of urgency to restore shareholder value[4](index=4&type=chunk) - The company's top priorities are to accelerate execution with a focus on three key areas: - Driving enhanced commercial execution - Sharpening efforts to de-lever the balance sheet - Conducting a strategic review of the portfolio[5](index=5&type=chunk) - The SAS segment delivered its **fifth consecutive quarter of strong year-over-year results**, with approximately **6% organic revenue growth**, while FAM performance was negatively impacted by higher-priced inventory and slow demand in key markets[6](index=6&type=chunk) [Q1 2025 Financial Highlights](index=1&type=section&id=Q1%202025%20Financial%20Highlights) Mativ reported a significant GAAP loss of $425.5 million due to goodwill impairment, despite nearly flat organic sales Q1 2025 Key Financial Metrics | Metric | Q1 2025 Value | YoY Change | Key Drivers | | :--- | :--- | :--- | :--- | | **Net Sales** | $484.8 million | -3.1% | Organic sales were nearly flat (-0.2%) | | **GAAP Loss** | $(425.5) million | N/A | Includes a $411.9 million non-cash goodwill impairment charge | | **GAAP EPS** | $(7.82) | N/A | Includes $7.57 per share impact from goodwill impairment | | **Adjusted EBITDA** | $37.2 million | -19% | Lower SG&A and higher SAS volume were offset by higher costs and lower FAM volume | | **Adjusted EPS** | $(0.14) | N/A | Down from prior year | [Segment and Financial Performance](index=2&type=section&id=Mativ%20First%20Quarter%202025%20Financial%20Results) Detailed analysis of FAM and SAS segment performance, highlighting the impact of goodwill impairment and operational challenges [Filtration & Advanced Materials (FAM) Segment](index=2&type=section&id=Filtration%20%26%20Advanced%20Materials%20%28FAM%29) FAM segment sales decreased by 7.4% with a substantial GAAP operating loss due to goodwill impairment and higher costs FAM Segment Q1 2025 Performance (in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $187.6 | $202.7 | $(15.1) | | **GAAP Operating Profit** | $(410.0) | $14.6 | $(424.6) | | **Adjusted EBITDA** | $23.3 | $33.2 | $(9.9) | | **Adjusted EBITDA Margin** | 12.4% | 16.4% | -400 bps | - The significant GAAP Operating Loss in Q1 2025 was driven by **$417.9 million in restructuring and impairment expenses**, primarily related to goodwill impairment[9](index=9&type=chunk) - The **30% decrease in Adjusted EBITDA** was caused by lower volume/mix, higher manufacturing and distribution costs, and unfavorable net selling price versus input cost performance, which more than offset lower SG&A expenses[9](index=9&type=chunk) [Sustainable & Adhesive Solutions (SAS) Segment](index=2&type=section&id=Sustainable%20%26%20Adhesive%20Solutions%20%28SAS%29) SAS segment achieved 5.7% organic sales growth and improved Adjusted EBITDA, driven by higher volumes and lower SG&A SAS Segment Q1 2025 Performance (in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $297.2 | $297.5 | $(0.3) | | **GAAP Operating Profit** | $13.0 | $4.2 | $8.8 | | **Adjusted EBITDA** | $33.3 | $32.3 | $1.0 | | **Adjusted EBITDA Margin** | 11.2% | 10.9% | +30 bps | - Organic sales grew **5.7%** due to higher volume across all product categories, which was offset by sales from closed/divested plants and unfavorable currency translation on a reported basis[10](index=10&type=chunk) - Adjusted EBITDA increased by **over 3%**, driven by higher volume and lower SG&A expenses, which were partially offset by higher manufacturing costs and unfavorable price vs input cost performance[11](index=11&type=chunk) [Other Financial Items & Capital Management](index=2&type=section&id=Other%20Financial%20Items%20%26%20Capital%20Management) Interest expense decreased, cash used in operations was $15.9 million, and net debt stood at $1,038.8 million - Interest expense decreased to **$17.8 million** from $18.3 million in the prior year, due to lower average balances and interest rates[13](index=13&type=chunk) - Year-to-date cash used in operating activities was **$15.9 million**, with working capital being a **$22.1 million** use of cash[15](index=15&type=chunk) Debt and Liquidity as of March 31, 2025 (in millions) | Metric | Amount | | :--- | :--- | | **Total Debt** | $1,122.8 | | **Cash and Cash Equivalents** | $84.0 | | **Net Debt** | $1,038.8 | | **Total Liquidity** | ~$407 | - The company announced a quarterly cash dividend of **$0.10 per share**, with no shares repurchased during the first quarter[17](index=17&type=chunk)[18](index=18&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) Presents the company's income, balance sheet, and cash flow statements, reflecting the significant Q1 2025 net loss [Consolidated Statements of Income (Loss)](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20%28LOSS%29) Q1 2025 net sales decreased to $484.8 million, resulting in a $425.5 million net loss primarily due to goodwill impairment Q1 2025 Consolidated Income Statement Highlights (in millions, except per share) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net sales** | $484.8 | $500.2 | | **Gross profit** | $72.6 | $84.0 | | **Goodwill impairment expense** | $411.9 | $— | | **Operating loss** | $(430.6) | $(13.8) | | **Net loss** | $(425.5) | $(28.0) | | **Diluted loss per share** | $(7.82) | $(0.52) | [Consolidated Balance Sheets](index=9&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Total assets decreased to $2,052.3 million due to goodwill impairment, significantly reducing stockholders' equity Balance Sheet Highlights (in millions) | Metric | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $686.2 | $658.1 | | **Goodwill** | $54.8 | $465.6 | | **Total assets** | $2,052.3 | $2,447.9 | | **Total current liabilities** | $288.1 | $274.5 | | **Long-term debt** | $1,120.1 | $1,086.7 | | **Total liabilities** | $1,624.1 | $1,589.4 | | **Total stockholders' equity** | $428.2 | $858.5 | [Consolidated Statements of Cash Flow](index=10&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOW) Q1 2025 saw a net cash outflow from operations of $15.9 million, with financing activities providing $24.5 million Q1 2025 Cash Flow Highlights (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash used in operations** | $(15.9) | $(13.0) | | **Net cash used in investing** | $(10.6) | $(21.1) | | **Net cash provided by financing** | $24.5 | $45.8 | | **Cash at end of period** | $93.8 | $128.9 | [Non-GAAP Reconciliations and Supplemental Data](index=11&type=section&id=Non-GAAP%20Reconciliations%20and%20Supplemental%20Data) Provides detailed reconciliations of GAAP to non-GAAP financial measures, including segment reporting and organic sales growth [Business Segment Reporting & Reconciliations](index=11&type=section&id=BUSINESS%20SEGMENT%20REPORTING) Reconciles GAAP operating loss to adjusted EBITDA, highlighting significant non-GAAP adjustments, primarily from FAM segment impairment Q1 2025 Reconciliation from GAAP Operating Loss to Adjusted EBITDA (in millions) | Metric | FAM | SAS | Unallocated | Consolidated | | :--- | :--- | :--- | :--- | :--- | | **GAAP Operating Profit (Loss)** | $(410.0) | $13.0 | $(33.6) | $(430.6) | | **Adjusted Operating Profit** | $16.4 | $20.2 | $(21.4) | $15.2 | | **Adjusted EBITDA** | $23.3 | $33.3 | $(19.4) | $37.2 | - Total non-GAAP adjustments to operating profit were **$445.8 million** in Q1 2025, dominated by the **$417.9 million** in restructuring and impairment expenses within the FAM segment[36](index=36&type=chunk) [Organic Net Sales Growth Reconciliation](index=13&type=section&id=Non-GAAP%20Reconciliation%20of%20Organic%20Net%20Sales%20Growth) Consolidated organic sales grew 0.2%, driven by strong SAS segment performance offset by FAM segment decline Q1 2025 Organic Net Sales Growth vs. Q1 2024 | Segment | Reported Growth | Organic Growth | Organic Constant Currency Growth | | :--- | :--- | :--- | :--- | | **FAM** | -7.4% | -7.4% | -6.4% | | **SAS** | -0.1% | 5.7% | 6.6% | | **Consolidated** | -3.1% | 0.2% | 1.2% | [Reconciliation of Net Loss to Adjusted Measures](index=14&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20FINANCIAL%20MEASURES%20AND%20SUPPLEMENTAL%20DATA) Reconciles GAAP net loss and EPS to adjusted figures, showing a $6.0 million adjusted loss and a $29.8 million free cash flow outflow Q1 2025 Reconciliation of GAAP to Adjusted Net Loss and EPS | Metric | GAAP Value | Adjustments | Adjusted Value | | :--- | :--- | :--- | :--- | | **Net Loss (millions)** | $(425.5) | $419.5 | $(6.0) | | **Diluted EPS** | $(7.82) | $7.68 | $(0.14) | - The largest adjustments to diluted EPS were for goodwill impairment (**+$6.35**) and a change of valuation allowance on tax attributes (**+$0.88**)[41](index=41&type=chunk) Q1 2025 Free Cash Flow and Net Debt (in millions) | Metric | Value | | :--- | :--- | | **Cash used in operating activities** | $(15.9) | | **Free cash flow** | $(29.8) | | **Net debt** | $1,038.8 |

Financial Data and Key Metrics Changes - The meeting focused on formal actions and voting on various proposals, but specific financial data and key metrics changes were not disclosed during the meeting [4][24]. Business Line Data and Key Metrics Changes - No specific data or key metrics changes for individual business lines were provided in the meeting [24]. Market Data and Key Metrics Changes - There were no updates or changes regarding market data or key metrics mentioned during the meeting [24]. Company Strategy and Development Direction and Industry Competition - The company ratified the selection of Deloitte and Touche as the independent registered public accounting firm, indicating a commitment to maintaining strong governance and oversight [15][16]. - The approval of the amendment to the 2024 equity and incentive plan suggests a focus on aligning executive compensation with company performance and shareholder interests [22][23]. Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting [24][25]. Other Important Information - The meeting included the election of a director and the approval of various proposals, including executive compensation and the equity incentive plan, reflecting ongoing governance activities [12][18][22]. Q&A Session Summary - There were no pertinent questions submitted during the webcast, leading to the conclusion of the Q&A session without any discussions [25].

Company Overview - Mativ Holdings, Inc. (MATV) is currently experiencing significant activity in the options market, particularly with the June 20, 2025 $20 Call option showing high implied volatility, indicating expectations of a substantial price movement [1] Implied Volatility Insights - Implied volatility reflects market expectations for future price movements, suggesting that investors anticipate a major event that could lead to either a rally or a sell-off [2] - High implied volatility in options often attracts traders looking to sell premium, aiming to benefit from the decay of options value if the stock does not move as much as anticipated [4] Analyst Sentiment - Mativ Holdings holds a Zacks Rank of 5 (Strong Sell) within the Chemical – Specialty industry, which is positioned in the bottom 41% of the Zacks Industry Rank [3] - Over the past 60 days, there have been no increases in earnings estimates for the current quarter, with one analyst reducing their estimate, leading to a decrease in the Zacks Consensus Estimate from 17 cents per share to 11 cents [3]

Part I [Business](index=4&type=section&id=Item%201.%20Business) Mativ is a global specialty materials manufacturer operating through two realigned segments after divesting its tobacco-related paper business - Mativ Holdings, Inc. was formed through the merger of Schweitzer-Mauduit International, Inc. (SWM) and Neenah, Inc. on July 6, 2022[16](index=16&type=chunk) - The company completed the sale of its Engineered Papers (EP) business on November 30, 2023, ceasing its participation in tobacco-based product markets and reporting this business as a discontinued operation[17](index=17&type=chunk)[18](index=18&type=chunk) - Effective in Q1 2024, Mativ reorganized into two new reportable segments: **Filtration & Advanced Materials (FAM)** and **Sustainable & Adhesive Solutions (SAS)**[39](index=39&type=chunk) - As of December 31, 2024, the company had approximately **5,100 full-time employees** and operated 35 production locations worldwide[59](index=59&type=chunk)[174](index=174&type=chunk) [Strategic Overview](index=5&type=section&id=Item%201.%20Business%23Strategic%20Overview) The company's strategy focuses on growth trends, merger synergies, and portfolio transformation through divestitures and debt reduction - The company is focused on growth trends such as demand for cleaner air and water, modern building practices, increased use of adhesives, health and wellness advancements, and sustainable alternatives[23](index=23&type=chunk) - Mativ has realized the majority of the **$65.0 million in synergies** from the SWM-Neenah merger and is pursuing further value through cross-selling and geographic expansion[24](index=24&type=chunk) - The company is actively transforming its portfolio, highlighted by the **$620.0 million divestiture** of the Engineered Papers business in November 2023, with capital redeployed to repay debt and invest in growth areas[25](index=25&type=chunk) - Since the merger, Mativ has reduced its manufacturing footprint from 48 to 35 facilities (over 20% reduction) and **net debt by approximately 35%**; an organizational realignment is expected to deliver **$20.0 million in run-rate savings**[26](index=26&type=chunk) [Description of Business by Segment](index=9&type=section&id=Item%201.%20Business%23Description%20of%20Business) The company realigned into two segments in Q1 2024: Filtration & Advanced Materials (FAM) and Sustainable & Adhesive Solutions (SAS) 2024 Revenue Breakdown by Segment | Segment | 2024 Revenue % | | :--- | :--- | | Filtration & Advanced Materials (FAM) | 39% | | Sustainable & Adhesive Solutions (SAS) | 61% | FAM Segment 2024 Net Sales by Application | Application | % of FAM Net Sales | | :--- | :--- | | Filtration & netting | 64% | | Advanced films | 36% | SAS Segment 2024 Net Sales by Application | Application | % of SAS Net Sales | | :--- | :--- | | Tape, labels & liners | 50% | | Paper & packaging | 27% | | Healthcare & other | 23% | [Raw Materials and Energy](index=10&type=section&id=Item%201.%20Business%23Raw%20Materials%20and%20Energy) The company relies on various raw materials like resins and pulp with fluctuating prices and faces potential supply risks for specialty inputs - Key raw materials include various resins (polypropylene, polyethylene, thermoplastic polyurethane), synthetic fibers, and wood pulp[52](index=52&type=chunk) - The loss of a single supplier for certain specialty resins, mercerized pulp, or synthetic fibers could materially affect results due to limited sourcing options[53](index=53&type=chunk) - Energy, mainly electricity and natural gas in the U.S. and Europe, is a significant cost, with geopolitical events leading to more volatile energy prices in Europe[54](index=54&type=chunk)[55](index=55&type=chunk) [Human Capital and ESG](index=11&type=section&id=Item%201.%20Business%23Human%20Capital%20and%20ESG) Mativ employs approximately 5,100 people and integrates an ESG strategy focused on environmental, product, social, and governance dimensions - As of December 31, 2024, Mativ had approximately **5,100 full-time employees**, with 3,100 in North America, 1,700 in Europe, and 300 in Asia Pacific[59](index=59&type=chunk) - The company's ESG approach is guided by its five core values and focuses on Environmental, Product Stewardship, Social, and Governance dimensions[71](index=71&type=chunk)[72](index=72&type=chunk) - In 2024, **11 facilities achieved ISO 14001** (environmental management) and four achieved ISO 50001 (energy management) certification; 32 facilities were ISO 9001 (quality management) certified[75](index=75&type=chunk)[77](index=77&type=chunk) - ESG oversight is delegated to the Nominating & Governance Committee at the Board level, with the Audit Committee overseeing ESG-related risks through the enterprise risk management (ERM) system[84](index=84&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from intellectual property challenges, international operations, acquisition integration, and cybersecurity threats - The company's technological advantages may not be indefinite as patents expire and trade secrets risk exposure, potentially reducing sales and margins[100](index=100&type=chunk) - Operating in over 90 countries exposes the company to international risks, including adverse legal or regulatory changes, political instability, and trade sanctions[107](index=107&type=chunk)[109](index=109&type=chunk) - The integration of Neenah following the 2022 merger presents challenges, and failure to realize anticipated benefits could adversely affect results[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk) - The cost and availability of raw materials (like wood pulp and resins) and energy are significant risks, as price increases may not be fully passable to customers[142](index=142&type=chunk)[143](index=143&type=chunk) - A failure or security breach of key IT systems could compromise sensitive data and expose the company to liability, with increasing complexity from data privacy laws like GDPR and CCPA[145](index=145&type=chunk)[147](index=147&type=chunk) - Increasing scrutiny on ESG issues could affect customer purchasing decisions, access to capital, and reputation if the company fails to meet evolving expectations or its own goals[158](index=158&type=chunk) [Cybersecurity](index=32&type=section&id=Item%201C.%20Cybersecurity) Mativ manages cybersecurity risk via a NIST-aligned program with Board and Audit Committee oversight, and disclosed a 2022 cyberattack - The company's cybersecurity risk management and strategy is based on the **National Institute of Standards and Technology (NIST) framework** and includes annual third-party penetration testing[168](index=168&type=chunk) - Oversight is handled by the Board of Directors and the Audit Committee, with the CIO providing quarterly updates and a CISO managing daily risks[171](index=171&type=chunk)[172](index=172&type=chunk) - The company experienced a cyberattack in Q3 2022 that temporarily affected operations, incurred remediation costs, and involved the exfiltration of company data[170](index=170&type=chunk) [Properties](index=34&type=section&id=Item%202.%20Properties) As of year-end 2024, Mativ operates 35 production facilities globally, primarily in the U.S. and Europe, across its two segments Production Facilities by Segment and Region (as of Dec 31, 2024) | Geographic Region | FAM | SAS | Total | | :--- | :--- | :--- | :--- | | U.S. | 10 | 10 | 20 | | Europe | 3 | 7 | 10 | | Asia/Pacific | 1 | 2 | 3 | | Americas (ex-U.S.) | 0 | 2 | 2 | | **Total** | **14** | **21** | **35** | [Legal Proceedings](index=34&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings not expected to be material and holds indemnification obligations from past transactions - The company is involved in various legal proceedings from time to time but does not expect them to have a material effect on its financial condition or results of operations[176](index=176&type=chunk) - In connection with the EP Divestiture, Mativ agreed to indemnify the buyer for certain liabilities up to a maximum of **$10 million**, with no material claims pending as of December 31, 2024[179](index=179&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=36&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Mativ's stock (MATV) trades on the NYSE; the company paid $0.40 per share in dividends in 2024 and has a share repurchase program - The company's common stock trades on the New York Stock Exchange under the ticker symbol **"MATV"**[183](index=183&type=chunk) - As of December 31, 2024, **$22.0 million remained available** for share repurchases under the current authorization, with no shares repurchased during 2024[190](index=190&type=chunk)[191](index=191&type=chunk) Dividends Per Share | Year | Dividend per Share | | :--- | :--- | | 2024 | $0.40 | | 2023 | $1.00 | | 2022 | $1.68 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net sales decreased 2.2% to $1.98 billion in 2024, but net loss improved significantly due to the absence of a prior-year goodwill impairment - All financial discussion is on a continuing operations basis, excluding the results of the divested Engineered Papers (EP) business[195](index=195&type=chunk) - The significant improvement in operating loss and net loss in 2024 compared to 2023 was primarily due to a **$401.0 million goodwill impairment charge** recorded in 2023[212](index=212&type=chunk)[228](index=228&type=chunk) - As of December 31, 2024, the company had total debt of **$1,089.3 million**, cash of $94.3 million, and a net leverage ratio of **4.4x**, against a maximum covenant of 5.50x[236](index=236&type=chunk) Consolidated Results of Operations (in millions) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net Sales | $1,981.1 | $2,026.0 | | Gross Profit | $364.1 | $355.8 | | Operating Profit (Loss) | $6.3 | $(413.9) | | Net Loss from Continuing Operations | $(48.7) | $(507.7) | | Diluted EPS from Continuing Operations | $(0.90) | $(9.33) | [Critical Accounting Estimates](index=39&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Critical%20Accounting%20Estimates) Key estimates involve significant judgment for income taxes, contingencies, asset valuation, and goodwill, which had a major 2023 impairment - Key critical accounting estimates include Income Taxes, Contingencies, Property, Plant and Equipment Valuation, and Goodwill[201](index=201&type=chunk) - Goodwill is tested for impairment annually or more frequently if indicators exist; the company recorded a non-cash goodwill impairment charge of **$401.0 million in 2023** related to certain reporting units within the SAS segment[208](index=208&type=chunk) [Results of Operations (2024 vs. 2023)](index=42&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Results%20of%20Operations) Consolidated net sales fell 2.2% to $1.98 billion in 2024, while gross profit improved and operating profit recovered from a prior-year impairment - Gross profit margin increased to **18.4% in 2024 from 17.6% in 2023**, reflecting favorable net selling price and input cost performance[218](index=218&type=chunk) - Restructuring and other impairment expenses increased to **$38.1 million in 2024** from $22.6 million in 2023, including costs for a new organizational realignment plan and a facility impairment[221](index=221&type=chunk)[222](index=222&type=chunk)[224](index=224&type=chunk) - The SAS segment's operating profit increased by **$421.7 million**, primarily due to the absence of the $401.0 million goodwill impairment charge that was recorded in 2023[227](index=227&type=chunk)[228](index=228&type=chunk) Net Sales by Segment (in millions) | Segment | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | FAM | $766.5 | $810.0 | (5.4)% | | SAS | $1,214.6 | $1,216.0 | (0.1)% | | **Total** | **$1,981.1** | **$2,026.0** | **(2.2)%** | [Liquidity and Capital Resources](index=45&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $356.4 million available on its revolver, refinanced debt in 2024, and remains in covenant compliance - Net cash provided by operations was **$94.8 million in 2024**, an increase from $76.6 million in 2023[240](index=240&type=chunk) - In October 2024, the company redeemed its $350.0 million 6.875% senior notes due 2026, using proceeds from a new private offering of **$400.0 million 8.000% senior notes due 2029**[262](index=262&type=chunk)[263](index=263&type=chunk) - The company was in compliance with its debt covenants at December 31, 2024, which include a maximum net debt to EBITDA ratio of **5.50x** and a minimum interest coverage ratio of **2.50x**[255](index=255&type=chunk)[260](index=260&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=52&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Mativ is exposed to foreign currency, interest rate, and commodity price risks, selectively using derivatives to hedge currency and interest rates - A hypothetical 10% unfavorable change in foreign currency exchange rates would result in a pre-tax loss of approximately **$35.2 million** on transactional exposures[283](index=283&type=chunk) - After accounting for interest rate hedges, **89% of the company's debt was subject to fixed rates** as of December 31, 2024; a 100 basis point increase in rates on the variable portion would decrease annual pre-tax earnings by **$1.2 million**[284](index=284&type=chunk) Hypothetical 10% Commodity & Energy Price Change Impact on Annual Pre-Tax Earnings | Risk Factor | Impact (in millions) | | :--- | :--- | | Resin Prices | ~$19.4 | | Wood Pulp Prices | ~$14.1 | | Purchased Energy Prices | ~$6.3 | [Financial Statements and Supplementary Data](index=55&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements and notes for 2022-2024, detailing key accounting and business events - The sale of the Engineered Papers business in November 2023 for **$620.0 million** resulted in a gain on sale of **$170.0 million**, net of tax; the business is presented as a discontinued operation in all periods[415](index=415&type=chunk)[416](index=416&type=chunk) - In 2023, the company recorded a goodwill impairment charge of **$401.0 million** related to reporting units now within the SAS segment; no impairment was recorded in 2024 or 2022[420](index=420&type=chunk) Consolidated Balance Sheet Data (in millions) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $658.1 | $712.5 | | Total Assets | $2,447.9 | $2,642.4 | | Total Current Liabilities | $274.5 | $281.4 | | Long-Term Debt | $1,086.7 | $1,101.8 | | Total Liabilities | $1,589.4 | $1,693.3 | | Total Stockholders' Equity | $858.5 | $949.1 | Consolidated Cash Flow Data (in millions) | Cash Flow | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash from Operations | $94.8 | $106.6 | | Net Cash from (used in) Investing | $(56.7) | $547.2 | | Net Cash used in Financing | $(55.9) | $(662.9) | [Controls and Procedures](index=110&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of year-end 2024 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2024[575](index=575&type=chunk) - Management concluded that internal control over financial reporting was **effective** as of December 31, 2024, based on the COSO 2013 framework[577](index=577&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=113&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors and governance is incorporated by reference from the 2025 Proxy Statement, with officer information in Part I - Most information for this item is **incorporated by reference** from the 2025 Proxy Statement[592](index=592&type=chunk) - Biographical information for executive officers is located in Part I, Item 1 of this report[88](index=88&type=chunk)[592](index=592&type=chunk) [Executive Compensation](index=113&type=section&id=Item%2011.%20Executive%20Compensation) All information related to executive compensation is incorporated by reference from the company's 2025 Proxy Statement - All information for this item is **incorporated by reference** from the "Executive Compensation" section of the 2025 Proxy Statement[593](index=593&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=113&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership details are incorporated by reference, with 1.9 million securities available for issuance under equity compensation plans Securities Available for Future Issuance under Equity Compensation Plans (as of Dec 31, 2024) | Plan Category | Number of Securities Available | | :--- | :--- | | Equity compensation plans approved by stockholders | 1,874,559 | | Equity compensation plans not approved by stockholders | — | | **Grand total** | **1,874,559** | Part IV [Exhibits and Financial Statement Schedules](index=115&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the Form 10-K, including key agreements, contracts, and required certifications - This section provides a comprehensive list of all exhibits filed with the annual report, including key agreements and certifications[600](index=600&type=chunk)

Financial Data and Key Metrics Changes - Consolidated net sales from continuing operations for Q4 2024 were $459 million, up 4.3% year-over-year on an organic basis and 1.4% as reported [24] - 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 [25][30] - Adjusted EBITDA margin increased slightly year-over-year in the SAS segment, while FAM's adjusted EBITDA was down more than $10 million year-over-year [26][27] Business Line Data and Key Metrics Changes - SAS segment net sales were $291 million, up almost 13% on an organic basis, driven by higher volumes across all end markets [25] - FAM segment net sales were $168 million, down more than 7% year-over-year, with stable performance in filtration but lower volumes in advanced films [27] - SAS generated strong adjusted EBITDA performance of $36 million, up almost 8% year-over-year, while FAM's adjusted EBITDA was $26 million [25][27] Market Data and Key Metrics Changes - The overall market demand remains challenged, impacting Q1 results, with expectations of higher inventory costs and input costs [32] - The company anticipates a $10 million to $15 million headwind on input costs mainly driven by increases in the price of pulp, papers, resins, and polymers [33] Company Strategy and Development Direction - The company is focused on profit growth, cash flow generation, and reducing debt and leverage, with plans to reduce overall capital spending while still investing for growth [21][22] - A clear portfolio strategy has been established with identified growth platforms and investments aligned with the strongest markets and customers [21] - The company has restructured its organization, reducing non-operating costs by over $20 million in 2024, with plans for an additional $20 million reduction by the end of 2026 [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a prolonged low industrial demand environment and is optimistic about leveraging commercial excellence best practices across the company [22][23] - The company is executing initiatives to deliver a more agile operating model and grow share in current markets while expanding addressable markets [35] - Management expressed confidence in the turnaround efforts in the FAM segment, particularly in advanced films, and expects improvements in the second half of the year [58] Other Important Information - The company has reduced its debt by over 35% and streamlined its plant footprint by over 25% [19] - A new leadership structure has been implemented to drive improvements across the business, with Ryan Elwart promoted to lead commercial activities [20] Q&A Session Summary Question: Impact of higher inventory and input costs on Q1 - Management confirmed that Q1 will be impacted by higher inventory and input costs, with plans in place to cover these through pricing actions over the year [38][39] Question: Strategy regarding potential tariffs in Canada and Mexico - Management indicated that there has been minimal impact from implemented tariffs and has plans to mitigate potential future tariffs through supply chain adjustments [41][42] Question: Leveraging SAS successes in FAM - Management outlined four key areas for leveraging SAS successes in FAM, including demand generation, strategic customer management, cross-selling opportunities, and leveraging talent across segments [49][50] Question: Sustainability of healthcare turnaround - Management expressed confidence in the sustainability of the healthcare turnaround, highlighting strong growth and margin improvements [54][56] Question: Progress on previous investments in new lines - Management provided updates on various investments, noting that while some are still in early stages, they are confident in the growth potential despite reducing CapEx spending [60][61]

Company Performance - Mativ Holdings reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.04 per share, but down from $0.23 per share a year ago, representing a 25% earnings surprise [1] - The company posted revenues of $458.6 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.17%, and showing a slight increase from $452.3 million year-over-year [2] - Over the last four quarters, Mativ Holdings has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Market Performance - Mativ Holdings shares have declined approximately 17% since the beginning of the year, contrasting with the S&P 500's gain of 4.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.17 on revenues of $485.6 million, and for the current fiscal year, it is $1.15 on revenues of $2.01 billion [7] Industry Outlook - The Chemical - Specialty industry, to which Mativ Holdings belongs, is currently ranked in the bottom 19% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Mativ Holdings may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]