Magnera | 8-K: FY2025 Q4 Revenue Beats Estimate at USD 839 M

Revenue: As of FY2025 Q4, the actual value is USD 839 M, beating the estimate of USD 838.06 M.

EBIT: As of FY2025 Q4, the actual value is USD 49 M.

Fourth Quarter Highlights

• Net Sales: $839 million
• Operating Income: $10 million
• Adjusted EBITDA: $90 million
• Cash Flow from Operations: $96 million
• Term Loan Repayment: $50 million

Fiscal Year Highlights

• Net Sales: $3.2 billion
• Operating Income: $5 million
• Adjusted EBITDA: $362 million
• Post-Merger Adjusted Free Cash Flow: $126 million, representing a yield of over 30% as of year-end
• Year-End Leverage: 3.8x

Key Financials

• Net Sales: Increased by 51% in the September quarter, including $328 million from the Glatfelter merger and $10 million from favorable foreign currency changes, offset by a $35 million decrease in selling prices and a 3% organic volume decline.
• Adjusted EBITDA: Increased by 36%, with a $28 million contribution from the Glatfelter merger, offset by a $3 million volume decline and $3 million from price/cost spread.

Free Cash Flow and Net Debt

• Cash Flow from Operating Activities: $103 million
• Additions to Property, Plant, and Equipment, Net: - $67 million
• Post-Merger Adjusted Free Cash Flow: $126 million
• Total Debt: $1,952 million
• Cash and Cash Equivalents: $305 million
• Total Net Debt: $1,647 million

Fiscal Year 2026 Guidance

• Adjusted EBITDA: $380 - $410 million
• Free Cash Flow: $90 - $110 million; Cash Flow from Operations: $170 - $190 million

Outlook

Magnera Corporation aims to improve reported earnings by approximately 9% in 2026 through cost improvement and capacity optimization actions. The company plans to work closely with customers to provide valued solutions, despite a soft macroeconomic environment.