ALPHARETTA, Ga. - Mativ Holdings, Inc. ("Mativ" or the "Company") (NYSE: MATV) reported earnings results for the three months and year ended December 31, 2024.
On November 30, 2023, Mativ Holdings, Inc. (“Mativ” or the “Company”) completed the sale of its Engineered Papers business. Financial results for continuing operations exclude Engineered Papers in all periods.
Adjusted measures are reconciled to GAAP at the end of this release. Financial comparisons are versus the prior year period unless stated otherwise. Figures may not sum to total due to rounding. "Comparable" non-GAAP measures used to compare current period Mativ results reflect prior period results revised to align with our new segment reporting structure. The Company previously also filed a separate Form 8-K on May 8, 2024, which includes comparable financial statements for all fiscal quarters of 2023 revised to align with the new segment reporting structure.
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
Management Commentary
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.”
Source: Mativ
