Mativ Holdings reported improved fourth-quarter performance and record free cash flow for full-year 2025, despite continued weakness in end markets and a challenging macroeconomic environment.
For the fourth quarter, Mativ posted sales of $463.1 million, up 1.0% year over year, or 1.9% on an organic basis. Adjusted EBITDA rose 19% to $53.5 million, lifting the adjusted EBITDA margin to 11.6%, an increase of 180 basis points compared with the prior year. Adjusted earnings per share reached $0.15, while free cash flow totaled $8.0 million.
Full-year sales reached $1.99 billion, representing modest reported growth and a 2.5% organic increase. Adjusted EBITDA rose 3% to $224.7 million, supported by margin expansion to 11.3%. Mativ generated record free cash flow of $93.8 million, more than doubling the prior year’s level, driven by stronger operating performance and disciplined working capital management.
“Our strong fourth quarter capped a solid, transformational year for Mativ,” said Shruti Singhal, president and chief executive officer. She pointed to disciplined commercial execution, prudent inventory management, and favorable pricing relative to input costs as key contributors to the company’s performance.
Segment performance
The Filtration & Advanced Materials segment delivered fourth-quarter sales of $177.2 million, up 5.6% year over year. Higher volumes, favorable mix and currency translation supported growth, while adjusted EBITDA margin expanded to 18.7% as pricing and cost controls offset higher manufacturing expenses.
In the Sustainable & Adhesive Solutions segment, fourth-quarter sales totaled $285.9 million, down 1.7% on a reported basis. Margin performance improved, with adjusted EBITDA margin rising to 13.6%, reflecting lower manufacturing costs and favorable net pricing, partially offset by lower volumes and higher distribution costs.
Balance sheet and outlook
Cash from operating activities reached $133.8 million for the year, up 41% from 2024. Net debt stood at $934.0 million at year-end, with total liquidity of approximately $515 million. The company’s debt maturities are staggered between 2027 and 2029.
Looking ahead, management acknowledged ongoing demand softness and policy uncertainty but emphasized a continued focus on cash generation, balance sheet improvement and selective growth initiatives in 2026.
Mativ Holdings is a global specialty materials company serving a wide range of industrial and consumer markets. Headquartered in Alpharetta, Georgia, Mativ operates manufacturing facilities on three continents and sells products in more than 100 countries. The company is organized into two segments—Filtration & Advanced Materials and Sustainable & Adhesive Solutions—focused on filtration, specialty papers, advanced materials, tapes, labels, and engineered solutions for premium applications.
Source: Mativ
