Magnera | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 839 M

Revenue: As of FY2025 Q3, the actual value is USD 839 M, missing the estimate of USD 850.13 M.

EPS: As of FY2025 Q3, the actual value is USD -0.51.

Americas Segment

Net Sales

• Quarter ended June 28, 2025: $473 million
• Quarter ended June 29, 2024: $388 million
• Change: $85 million (22%)

Operating Income

• Quarter ended June 28, 2025: $12 million
• Quarter ended June 29, 2024: $16 million
• Change: -$4 million (-25%)

Net Sales (YTD)

• Three quarters ended June 28, 2025: $1,366 million
• Three quarters ended June 29, 2024: $1,111 million
• Change: $255 million (23%)

Operating Income (YTD)

• Three quarters ended June 28, 2025: $13 million
• Three quarters ended June 29, 2024: $33 million
• Change: -$20 million (-60%)

Rest of World Segment

Net Sales

• Quarter ended June 28, 2025: $366 million
• Quarter ended June 29, 2024: $168 million
• Change: $198 million (118%)

Operating Income

• Quarter ended June 28, 2025: $1 million
• Quarter ended June 29, 2024: $1 million
• Change: $0 million (0%)

Net Sales (YTD)

• Three quarters ended June 28, 2025: $999 million
• Three quarters ended June 29, 2024: $522 million
• Change: $477 million (91%)

Operating Loss (YTD)

• Three quarters ended June 28, 2025: -$18 million
• Three quarters ended June 29, 2024: -$7 million
• Change: -$11 million (-157%)

Consolidated Overview

Net Sales

• Quarter ended June 28, 2025: $839 million
• Quarter ended June 29, 2024: $556 million
• Change: $283 million (51%)

Operating Income

• Quarter ended June 28, 2025: $13 million
• Quarter ended June 29, 2024: $17 million
• Change: -$4 million (-24%)

Net Sales (YTD)

• Three quarters ended June 28, 2025: $2,365 million
• Three quarters ended June 29, 2024: $1,633 million
• Change: $732 million (45%)

Operating Income (Loss) (YTD)

• Three quarters ended June 28, 2025: -$5 million
• Three quarters ended June 29, 2024: $26 million
• Change: -$31 million (-119%)

Cash Flow

Operating Cash Flow

• Three quarters ended June 28, 2025: $7 million
• Three quarters ended June 29, 2024: $31 million

Free Cash Flow

• Three quarters ended June 28, 2025: $45 million

Future Outlook and Strategy

Core Business Focus

• The company announced capacity rationalizations projected to cost approximately $20 million over the next two years to deliver future cost savings and optimize equipment utilization.
• Despite global macro-economic challenges, the company projects post-Transaction free cash flow of $75-95 million for fiscal 2025, including $75 million of capital spending.

Non-Core Business

• The company intends to pursue additional acquisition targets to support improving long-term financial performance, enhancing market positions, and expanding existing and complementary product lines.