"On a consolidated basis, our Q1 operating results, while mixed, came in as we expected at the start of the year." – Shruti Singhal, President and CEO of Mativ.
May 7, 2025 - Mativ Holdings, Inc. (NYSE: MATV) reported earnings results for the three months ended March 31, 2025.
President and Chief Executive Officer Shruti Singhal commented, "Since stepping in to lead Mativ eight weeks ago, I have seen firsthand the role we serve as trusted partner to our customers, enabling them to solve their most complex challenges. However, this past year has been incredibly challenging for our shareholders and employees. We are simply not where we need to be operationally to navigate the current demand environment or future challenges. We are pivoting to a much higher sense of urgency across our company to act swiftly, comprehensively and decisively to undertake the necessary changes to grow market share, return to sustainable and profitable growth, and most importantly restore value to our shareholders.
"Our top priority is to accelerate our pace of execution with a focus on three key areas: driving enhanced commercial execution, sharpening our efforts to de-lever the balance sheet, and conducting a strategic review of our portfolio. These actions are to ensure Mativ is focused on our highest value initiatives to enable our long-term success. We are executing against a clear strategic roadmap and are taking accelerated actions to position Mativ for profitable growth while de-levering our balance sheet and creating sustainable value for our shareholders.
"On a consolidated basis, our Q1 operating results, while mixed, came in as we expected at the start of the year. Our SAS segment delivered its fifth consecutive quarter of strong year-over-year results improvements, with organic revenue growth of approximately 6% and adjusted EBITDA growth of more than 3%, while FAM performance was impacted disproportionately by the higher priced year-end inventory we sold through during Q1, as well as continued slow demand in our transportation and construction-related end markets."
Filtration & Advanced Materials (FAM) segment sales, comprised primarily of filtration media and components, advanced films, coating and converting solutions, and extruded mesh products, were $187.6 million, down 7.4% versus the prior year period, reflecting lower volume/mix, lower selling prices and unfavorable currency translation.
GAAP Operating Profit in 2025 included $417.9 million of restructuring and impairment expenses primarily related to our goodwill impairment. Adjusted EBITDA (see non-GAAP reconciliations) decreased 30% versus prior year as lower SG&A expenses were more than offset by lower volume/mix, higher manufacturing and distribution costs, and unfavorable net selling price versus input cost performance.
Sustainable & Adhesive Solutions (SAS) segment sales, comprised primarily of tapes, labels, liners, specialty paper, packaging and healthcare solutions, of $297.2 million were up 5.7% on an organic basis, and down 0.1%, on a reported basis, versus the prior year period, as higher volume across all product categories and higher selling prices were offset by sales associated with closed and divested plants and unfavorable currency translation.
GAAP Operating Profit in 2025 included $0.3 million in restructuring expenses primarily related to footprint rationalization. Adjusted EBITDA (see non-GAAP reconciliations) increased $1.0 million (or more than 3%) compared to the prior year period, driven by higher volume across all product categories excluding the impact from closed and divested plants, and lower SG&A expenses partially offset by higher manufacturing and distribution costs, and unfavorable net selling price versus input cost performance.
Mativ Holdings, Inc. is a global leader in specialty materials, solving customers' most complex challenges by engineering bold, innovative solutions that connect, protect and purify our world. Headquartered in Alpharetta, Georgia, Mativ manufactures on three continents and generate sales in over 90 countries through its family of business-to-business and consumer product brands.
SOURCE: Mativ Holdings, Inc.