Mativ's Sales Turn Down After a Tornado Hit Packaging

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter sales were $499.5 million, down 2.8% from a year earlier, as a July Wisconsin tornado cut Paper & Packaging and reversed the second quarter's 1.2% year-over-year increase.

Mativ Holdings (MATV), the specialty materials manufacturer, reported third-quarter sales of $499.5 million for the three months ended September 30, 2026, down 2.8% from a year earlier and 2.3% on an organic basis, reversing the 1.2% year-over-year increase recorded in the second quarter.

The company said the decline was primarily due to the previously disclosed tornado. GAAP results swung to a $1.2 million net loss, or $(0.03) a share, from $3.6 million of GAAP income, or $0.06 a share, in the prior quarter. Adjusted income was $17.5 million, or $0.31 a share. Adjusted EBITDA was $62.3 million, down 7% from the year-earlier period, with margin of 12.5%.

Filtration & Advanced Materials carried the growth. Segment sales were $218.5 million, up 11.6% organically and 10.2% as reported, after a 0.1% organic decline in the second quarter. President and CEO Shruti Singhal called it the segment’s strongest sales growth ever, citing robust demand in Aerospace & Defense and Transportation. The company said the increase reflected higher volume/mix, including the impact from an exited facility, and higher selling prices. FAM Adjusted EBITDA was $39.6 million, with margin of 18.1%.

Sustainable & Adhesive Solutions moved the other way. Sales were $281.0 million, down 10.9%, after a 2.8% increase in the second quarter, primarily due to the effects of the July tornado on the Paper & Packaging business. Lower volume/mix, including in Healthcare, and unfavorable currency were partially offset by higher selling prices. SAS Adjusted EBITDA was $32.6 million, with margin of 11.6%, down 210 basis points from the year-earlier period. GAAP gross margin in the segment was 16.4%. The company recorded $0.8 million of tornado-related costs, net of insurance recoveries, in SAS.

Singhal said disciplined execution had positioned Mativ to deliver year-over-year third-quarter Adjusted EBITDA growth prior to the operational disruption from the July tornado in Wisconsin. She said recovery remains on plan and the company expects inventory losses to be fully recoverable.

Unallocated Adjusted EBITDA was a $9.9 million expense. Interest expense was $18.1 million, mainly due to higher average rates on the floating portion of outstanding debt. Other expense, net was $0.4 million. Tax expense was $2.6 million, and the tax rate was 185.7%, which the company said was primarily driven by geographical earnings mix and the inability to benefit from losses in certain jurisdictions with a full valuation allowance.

Quarterly cash provided by operating activities was $48.5 million and free cash flow was $37.5 million. Total debt was $976.4 million as of September 30, 2026, with cash of $97.3 million and net debt of $879.1 million. Total liquidity was approximately $373.5 million.

On a nine-months-ended basis, the company said year-to-date profitability and cash flow were pacing ahead of the prior year. Gross profit was $295.9 million, up 7% versus the prior year. Cash provided by operating activities was $117.4 million and free cash flow was $90.5 million. Capital spending totaled $26.9 million.

The company declared a $0.10 per share quarterly cash dividend payable December 18, 2026. Singhal said the company is pivoting to growth and executing on initiatives that will accelerate sustainable, profitable revenue growth.