Mativ(US:MATV)2025-08-06 20:04Financial Performance - Mativ reported sales of $525.4 million, a year-over-year increase of 0.3%, and a 2.6% increase on an organic basis[6] - Adjusted EBITDA was $67.2 million, up 1% year-over-year, while free cash flow reached $48.9 million, reflecting a 33% increase compared to the prior year[6] - Net sales for Q2 2025 were $525.4 million, a slight increase of 0.3% compared to $523.8 million in Q2 2024[30] - Gross profit decreased by 4.8% to $103.7 million in Q2 2025 from $108.9 million in Q2 2024[30] - The company reported a net loss of $9.5 million in Q2 2025, compared to a net loss of $1.4 million in Q2 2024[30] - The net loss for the six months ended June 30, 2025, was $435.0 million, significantly higher than the net loss of $29.4 million for the same period in 2024[41] - The diluted earnings per share for the six months ended June 30, 2025, was $(7.98), compared to $(0.54) for the same period in 2024[40] Segment Performance - The Filtration & Advanced Materials (FAM) segment sales were $204.4 million, down 1.0% year-over-year, primarily due to lower selling prices and volume/mix[7] - The Sustainable & Adhesive Solutions (SAS) segment sales increased to $321.0 million, up 5.0% on an organic basis and 1.1% on a reported basis[9] - The FAM segment reported net sales of $204.4 million, down 1.0% from $206.4 million in 2024, while the SAS segment saw an increase to $321.0 million, up 1.1% from $317.4 million[33] - The FAM segment's adjusted EBITDA for the three months ended June 30, 2025, was $40.6 million, a decrease from $42.3 million in 2024, while SAS reported $45.3 million, down from $46.2 million[38] - Organic growth for the consolidated Mativ was 2.6% for the three months ended June 30, 2025, with FAM segment showing a decline of 1.0% and SAS segment showing growth of 5.0%[39] Cash Flow and Dividends - Year-to-date cash provided by operating activities was $41.7 million, with capital spending totaling $22.6 million[14] - The company announced a quarterly cash dividend of $0.10 per share, payable on September 26, 2025[16] - Net cash provided by operations was $41.7 million for the first half of 2025, compared to $33.1 million for the same period in 2024[32] - The company reported cash provided by operating activities of $57.6 million for the three months ended June 30, 2025, compared to $46.1 million in the same period of 2024[41] - The company paid cash dividends of $11.4 million in the first half of 2025, slightly higher than $10.8 million in the same period of 2024[32] Debt and Assets - Total debt as of June 30, 2025, was $1,090.6 million, with net debt of $995.0 million after accounting for cash and cash equivalents of $95.6 million[15] - Total assets decreased to $2,076.7 million as of June 30, 2025, down from $2,447.9 million as of December 31, 2024[31] - Long-term debt remained stable at $1,087.7 million as of June 30, 2025, compared to $1,086.7 million as of December 31, 2024[31] - Total debt as of June 30, 2025, was $1,090.6 million, a slight increase from $1,089.3 million as of June 30, 2024[41] Operational Efficiency - Mativ's second quarter results reflect a significant sequential increase in both adjusted EBITDA and free cash flow, indicating improved operational efficiency[4] - Consolidated operating profit for the three months ended June 30, 2025, was $20.1 million, representing a return on net sales of 3.8%, compared to $10.5 million and 2.0% in 2024[34] - Adjusted operating profit for the three months ended June 30, 2025, was $44.4 million, with a return on net sales of 8.5%, compared to $44.0 million and 8.4% in 2024[36] - Non-GAAP adjustments to operating profit for the three months ended June 30, 2025, totaled $24.3 million, compared to $33.5 million in 2024[35] - The total non-manufacturing expenses for the consolidated segments decreased by 4.9% to $53.9 million for the three months ended June 30, 2025, from $56.7 million in 2024[33] - Restructuring and impairment expenses for the consolidated segments were $3.8 million for the three months ended June 30, 2025, down from $11.8 million in 2024, reflecting a decrease of 67.8%[33] - The company incurred a goodwill impairment expense of $411.9 million in the first half of 2025[30] - The company incurred restructuring and impairment expenses of $3.8 million for the three months ended June 30, 2025, down from $11.6 million in the same period of 2024[40] Research and Development - Research and development expenses increased by 15.5% to $6.7 million in Q2 2025 compared to $5.8 million in Q2 2024[30]