Mativ(US:MATV)2025-11-06 21:52Financial Performance - Consolidated net sales for the three months ended September 30, 2025, were $513.7 million, an increase of $15.2 million or 3.0% compared to the prior-year quarter[162]. - Gross profit for the same period was $99.4 million, reflecting an increase of $5.8 million or 6.2%, with a gross profit margin of 19.3%[165]. - Operating profit for the three months ended September 30, 2025, was $16.0 million, an increase of $9.0 million compared to the prior year[171]. - Consolidated net sales for the nine months ended September 30, 2025 were $1,523.9 million, an increase of $1.4 million, or 0.1%, compared to the prior year[179]. - Gross profit for the nine months ended September 30, 2025 was $275.7 million, a decrease of $10.8 million, or 3.8%, compared to the prior year[182]. - Operating loss for the nine months ended September 30, 2025 was $394.5 million, compared to an operating profit of $3.7 million in the prior year[188]. Segment Performance - The Filtration & Advanced Materials segment reported net sales of $198.3 million, up $8.7 million or 4.6%, while the Sustainable & Adhesive Solutions segment had net sales of $315.4 million, an increase of $6.5 million or 2.1%[162][164]. - Filtration & Advanced Materials segment net sales decreased by $8.4 million, or 1.4%, to $590.3 million, primarily due to lower volume/mix and selling prices[180]. - Sustainable & Adhesive Solutions segment net sales increased by $9.8 million, or 1.1%, to $933.6 million, driven by higher volume/mix and selling prices[181]. Cash Flow and Debt - Cash provided by operations for the three months ended September 30, 2025, was $72.8 million, compared to $37.6 million in the prior year[160]. - Cash provided by operating activities was $114.5 million, an increase from $70.7 million in the prior year period[199]. - As of September 30, 2025, total debt was $1,028.9 million, with a net leverage ratio of 4.2x against a maximum covenant ratio of 5.50x[157]. - Total debt to capital ratio increased to 72.1% as of September 30, 2025, compared to 55.9% at December 31, 2024[208]. - The Company had $420.2 million of undrawn capacity on its $600.0 million revolving line of credit facility as of September 30, 2025[157]. - Unused borrowing capacity under the Amended Credit Agreement was $420.2 million as of September 30, 2025[207]. Expenses and Impairments - The Company incurred total restructuring and other impairment expenses of $8.1 million, down from $11.2 million in the prior year[167]. - Interest expense decreased to $17.7 million, a reduction of $0.6 million or 3.3% compared to the prior year[175]. - Interest expense decreased by $0.9 million, or 1.6%, to $54.1 million during the nine months ended September 30, 2025[192]. - A non-cash impairment of goodwill amounting to $411.9 million was recorded for the FAM reporting unit due to a discount rate increase to 14%[211]. - A potential impairment of approximately $15.0 million for SAS could occur with a 100bps increase in the discount rate[212]. Tax and Dividends - The effective tax rate for the three months ended September 30, 2025, was 42.9%, compared to 13.3% in the prior year, primarily due to a one-time tax adjustment[177]. - The company announced a cash dividend of $0.10 per share payable on December 19, 2025[205]. Risks and Strategic Outlook - The company faces risks from economic conditions, market fluctuations, and trade barriers that could impact cash flow forecasts for SAS[213]. - Forward-looking statements include expectations regarding tariffs, debt obligations, and capital spending, indicating a focus on strategic growth initiatives[215]. - The company emphasizes the importance of managing risks associated with acquisitions and market competition[216]. - Market risk exposure as of September 30, 2025, remains consistent with previous disclosures[219].