Mativ Q2 Earnings Call Highlights

Mativ NYSE: MATV reported second-quarter 2026 results that included its highest quarterly adjusted EBITDA since the company’s formation, as pricing actions, cost management and footprint optimization supported profitability and cash generation. Net sales totaled $532 million, up more than 1% from a year earlier on a reported basis and nearly 2% organically. Adjusted EBITDA rose nearly 12% year over year to $75 million, while adjusted EBITDA margin expanded 130 basis points to 14.1%. Free cash flow increased to $60 million from $49 million in the prior-year quarter. President and CEO Shruti Singhal said the quarter reflected the company’s efforts over the past 18 months to transform its operating model, commercial organization and capital-allocation approach. She cited value-based pricing, cost programs and strategic footprint actions as contributors to the results. Segment Results The company’s Filtration & Advanced Materials, or FAM, segment generated approximately $202 million in sales. Organic sales were largely flat, while reported sales declined 1% from the prior year. Mativ said lower filtration volume mix and the impact of its exited Wilson, North Carolina, facility were partly offset by favorable selling prices and foreign-currency translation. FAM adjusted EBITDA increased 1% to $35 million, and the segment’s margin improved 50 basis points to 17.6%. The company said pricing gains and lower selling, general and administrative expenses outweighed higher manufacturing costs and lower volume mix. Sales in the Sustainable & Adhesive Solutions, or SAS, segment rose more than 2% year over year to $330 million, supported by higher selling prices and currency effects. Tapes and labels sales expanded nearly 10%, led by finished tape categories and tape backings, according to Singhal. Commercial print and packaging delivered flat to modest growth despite what management described as a declining underlying market. SAS adjusted EBITDA increased more than 18% to a quarterly record of $50 million. Segment margin rose 210 basis points to 15.3%, as proactive pricing more than offset inflation and higher manufacturing, distribution and SG&A expenses. In healthcare, Mativ said operations at its Knoxville facility returned to normal in early in the second quarter after a temporary outage. The resulting volume recovery offset the continuing effect of separate customer destocking actions during the period. The company expects healthcare to remain a minor headwind to consolidated results during the second half of 2026. Cash Flow, Debt and Inflation Chief Financial Officer Scott Minder said free cash flow benefited from lower restructuring expenses and capital-expenditure timing. Working capital represented 11.5% of sales, an improvement of 150 basis points from a year earlier, even as the company invested in inventory to support growth initiatives. Net debt was $908 million at the end of the quarter, down $61 million sequentially. Net lev