ALPHARETTA, Ga. (News release) -- Mativ Holdings, Inc. reported earnings results for the three months ended June 30, 2024. On November 30, 2023, Mativ Holdings, Inc. ("Mativ" or the "Company") completed the sale of its Engineered Papers business. Financial results for continuing operations exclude Engineered Papers in all periods.
Adjusted measures are reconciled to GAAP at the end of this release. Financial comparisons are versus the prior year period unless stated otherwise. Figures may not sum to total due to rounding. "Comparable" non-GAAP measures used to compare current period Mativ results reflect prior period results revised to align with our new segment reporting structure. The Company previously also filed a separate Form 8-K on May 8, 2024, which includes comparable financial statements for all fiscal quarters of 2023 revised to align with the new segment reporting structure.
Mativ Second Quarter 2024 Highlights (Continuing Operations)
- Sales of $523.8 million increased 4.7% sequentially versus Q1 2024 reflecting volume improvement, and decreased 0.5% versus the prior year
- GAAP loss was $1.4 million, GAAP EPS was $(0.03), which included organizational realignment, impairment, divestiture and purchase accounting expenses
- Adjusted income was $19.0 million, Adjusted EPS was $0.34, and Adjusted EBITDA was $66.6 million (see non-GAAP reconciliations)
- Adjusted EBITDA was up 45% sequentially and up 13% versus the prior year, primarily driven by favorable relative net selling price vs. input cost performance, increased volumes and improved distribution and manufacturing performance, partially offset by less favorable mix and less favorable SG&A expenses.
- Adjusted EBITDA margin increased 350 basis points sequentially and 150 basis points year-over-year.
Management Commentary
Chief Executive Officer Julie Schertell commented, "We are pleased to report that our second quarter results reflect strong adjusted EBITDA and margin growth, both on a year-over-year basis, as well as sequentially. This was driven by strong relative net selling price vs. input cost performance, increased volume and improved operating performance. We are confident in our ability to deliver strong adjusted EBITDA improvement on a year-over-year basis for the remaining quarters of 2024."
Ms. Schertell concluded, "July marked the two-year anniversary of the merger of SWM and Neenah to create Mativ. The past two years have been marked with significant accomplishments in transforming Mativ into an enterprise that is more agile and well-positioned for the future. These actions included divesting non-strategic businesses, closing and consolidating sites, integrating our systems, and restructuring our organization to be more lean, adaptable and scalable. As we head into our third year as a company, we continue to be relentlessly focused on delivering value to our customers, aggressively reducing complexity and costs, and delivering adjusted EBITDA and margin improvements. We are pleased with our execution and look forward to creating incremental value for our customers and shareholders."
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