Aug 6, 2026, 4:47 PM ETBasic Materials

Magnera — Third Quarter 2026 Earnings Summary

MAGNMAGNERA CORP

Financial Performance

GAAP net sales reached $857 million for the quarter, up from $839 million in the prior year period, representing a 2% increase; year-to-date net sales were $2,445 million compared to $2,365 million.
GAAP operating income was $22 million for the quarter, an improvement from $13 million in the prior year; year-to-date operating income was $53 million versus a loss of $5 million.
Non-GAAP adjusted EBITDA was $99 million for the quarter, up 9% from $91 million in the prior year; year-to-date adjusted EBITDA was $282 million, up 7% from $264 million.
On a comparable basis, year-to-date adjusted EBITDA increased 3% from the prior year.
Net cash from operating activities for the three-quarter period ended June 27, 2026, was $76 million, compared to $7 million in the prior year period.
Free cash flow for the three-quarter period was $32 million (operating cash flow of $76 million less $44 million in capital expenditures).
The company reported a twelve-month adjusted free cash flow yield of greater than 25% as of quarter-end.
Total debt was $1,901 million as of June 27, 2026, down from $1,952 million as of September 27, 2025.
Cash and cash equivalents were $280 million at quarter-end, down from $305 million at the start of the period.

The company reaffirmed its full-year free cash flow outlook.
The company held to the lower end of its adjusted EBITDA guidance range for the full year.

Americas segment net sales increased due to a 1% organic volume improvement and $10 million favorable foreign currency impact, partially offset by a $13 million decrease in selling prices.
Americas adjusted EBITDA improved primarily due to an $11 million favorable price-cost spread driven by Project CORE and merger synergies, partially offset by higher selling, general and administrative costs.
Rest of World segment net sales increased due to an $11 million favorable foreign currency impact and a $5 million increase in selling prices from raw material cost pass-throughs.
Rest of World adjusted EBITDA declined $2 million as benefits from Project CORE and synergies were offset by higher regional inflation, timing of material pass-throughs, and higher selling, general and administrative costs.
Global organic volume growth was 1%, attributed to strength in consumer solutions product categories and recovery in North America from winter storm disruptions.
Net sales included a $21 million favorable foreign currency change globally.

The company navigated a dynamic macro-economic environment with significant spikes in inflationary costs for certain raw materials.
The company manages negative product mix and raw material cost pass-throughs through disciplined pricing actions.

Key risks include global economic conditions, inflation, and the cost and availability of raw materials and energy.
Potential challenges involve supply chain disruptions, adverse weather events affecting facilities and suppliers, and labor disputes.
Risks include the inability to integrate future acquired companies or realize expected operating synergies, specifically regarding the November 2024 business combination with a subsidiary of Berry Global Group, Inc.
Operational risks include cyber breaches, fluctuating exchange rates, tariffs, differing tax laws, and litigation or regulatory investigations.

CEO Curt Begle stated the company delivered a record third quarter led by organic volume growth and synergy benefits from Project Core.
Management highlighted the commercial team's execution in managing significant inflationary cost spikes.
Management expressed a focus on executing strategic objectives and delivering dependable financial results despite the dynamic macro-economic environment.

The company serves over 1,000 customers worldwide across 44 global facilities with over 8,000 employees.
The company operates in material solutions for absorbent hygiene, protective apparel, wipes, building and construction, and food and beverage industries.
A conference call to discuss results was scheduled for August 6, 2026, at 10:00 AM U.S. Eastern Time.
The press release includes non-GAAP measures such as Adjusted EBITDA and free cash flow, with reconciliations provided to GAAP measures.
Forward-looking adjusted EBITDA and adjusted free cash flow reconciliations were not provided due to high variability and complexity regarding debt refinancing and non-comparable items.