Financial Data and Key Metrics Changes - Mativ's full year 2025 net sales were just under $2 billion, up 2.5% organically and modestly on a reported basis compared to the prior year [18] - Adjusted EBITDA for 2025 was $225 million, up 3% year-over-year, with Q4 Adjusted EBITDA increasing 19% to $53.5 million [19][24] - Free Cash Flow reached a record $94 million in 2025, more than doubling the previous year's result [10][24] Business Line Data and Key Metrics Changes - Filtration and Advanced Materials (FAM) segment net sales were up over 5% year-over-year, with adjusted EBITDA increasing by 26% [20][12] - Sustainable & Adhesive Solutions (SAS) segment sales were largely flat year-over-year on an organic basis, with adjusted EBITDA increasing by more than 8% [21][22] Market Data and Key Metrics Changes - The company faced an anemic demand environment in certain industrial sectors, particularly in Europe, impacting the SAS segment [4][12] - Despite challenges, the FAM segment showed resilience with growth in transportation and industrial filtration [36] Company Strategy and Development Direction - Mativ's strategy focuses on three pillars: enhancing commercial excellence, strengthening the balance sheet, and optimizing the portfolio [7][10] - The company aims to leverage AI as a foundational enterprise capability to drive productivity and operational improvements [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by geopolitical instability and dynamic trade movements but expressed confidence in Mativ's ability to navigate these complexities [13][15] - The outlook for 2026 includes expectations for continued cost-saving initiatives and a focus on profitable growth [29][30] Other Important Information - The company reduced net debt by over $60 million in 2025, with a target leverage range of 2.5-3.5 times [24][29] - Mativ plans to invest $45 million in capital expenditures in 2026, split between growth and efficiency projects [26] Q&A Session Summary Question: Details on headwinds within SAS and potential catalysts for improvement - Management noted weakness in automotive labels and industrial tapes, but expressed optimism for growth in release liners and other categories in 2026 [35][36] Question: Sustainability of momentum in FAM - Management highlighted ongoing investments and improvements in the FAM segment, expecting continued growth despite market challenges [36][37] Question: Cadence of free cash flow in 2026 - Management anticipates a small decline in free cash flow from 2025's record levels, primarily due to funding growth initiatives [38][39] Question: Guidance for Q1 and market conditions - Management expects low single-digit volume growth in Q1, with EBITDA growth of 15%-20% driven by operational improvements [46][52] Question: Commercial pipeline and performance relative to the market - Management emphasized a focused approach to the commercial pipeline, with strong customer collaboration and optimism for performance in both SAS and FAM segments [56]