MAGN

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 10:00 a.m. ET Executive Vice President, Investor Relations - Robert Weilminster Chief Executive Officer - Curt Begle Chief Financial Officer - Jim Till Operator: Thank you. Thank you for standing by and welcome to Magnera's Third Fiscal Quarter 2026 Earnings Conference Call. [Operator Instructions] I would now like to hand the call over to Robert Weilminster, EVP, Investor Relations. Please go ahead. Robert Weilminster: Thank you, operator, and thank you everyone for joining Magnera's Third Fiscal Quarter 2026 Earnings Call. Joining me are Magnera's Chief Executive Officer, Curt Begle; and Chief Financial Officer, Jim Till. Following our prepared remarks, we will have a question-and-answer session. [Operator Instructions] A few things to note before handing over the call. On our website at magnera.com, you can find today's press release and earnings call presentation under Investor Relations. You can also go directly to ir.magnera.com to review the investor presentations from our recent conference attendance. Our annual report and proxy statements with the SEC can be found on our website under Investor Relations. As referenced on Slide 2 during the call, we will be discussing certain non-GAAP financial measures. These measures are reconciled to the most directly comparable GAAP financial measures in our earnings press release and in the appendix of the presentation available on our website. Additionally, a reminder that we will make certain forward-looking statements. These statements are made based upon management's expectations and beliefs concerning future events impacting the company and, therefore, are subject to risks and uncertainties. Actual results or outcomes may differ materially from those expressed or implied in our forward-looking statements. Some factors that could cause the results or outcomes to differ are in the company's latest SEC filings and our news releases. These statements speak only as of today and we undertake no obligation to update them. I will now turn the call over to Magnera's CEO, Curt Begle. Curtis Begle: Thank you, Robert. Good morning, and thank you for joining our call. This quarter's strong performance reflects the organizational transformation initiatives we executed following our merger, as well as the proactive initiatives taken by our global teams. Magnera leadership set high expectations for action-oriented execution, operational rigor, and performance guided by our purpose, promise, and beliefs, and the team continues to deliver against those expectations despite a volatile macroeconomic backdrop. I am pleased to report that we produced our strongest earnings quarter as Magnera, driven by focused execution. For the quarter, revenue was $857 million with adjusted EBITDA of $99 million. Earnings grew 9% with a 70 basis point improvement versus the prior-year quarter. Continued investment in differentiated products supported strong growth in our global wipes and infrastructure businesses, enabled by our commercial excellence discipline. Based on our performance this quarter and our outlook for the full fiscal year, we are reaffirming the free cash flow guide and moving adjusted EBITDA to the lower end of the previous guidance range. Jim will cover the details later in the call. Our earnings performance and strategic investments in essential mission-critical products continue to advance our scale and financial targets. As I reflect on the quarter's results, I'll start with focused execution. Three strategic pillars continue to drive our business: improving our cost position to create a leading global competitive chassis, winning with customers through product leadership and innovation, and strengthening commercial excellence. Our synergy and Project CORE transformation programs delivered strong savings globally. I appreciate our team's disciplined, action-oriented approach, including the difficult decisions required to drive this earnings improvement. We are also investing strategically in product lines and higher growth end markets that require product expertise. Our wipes portfolio grew across all 4 key end market applications: disinfecting, personal care including baby, moist toilet tissue, and specialty industrial. A highlight of the quarter was the launch of our new Universa product line, which I will discuss shortly. In infrastructure, we experienced growth in house wrap and accessories as we strategically expanded our national supply partner network in North America. Outside North America, infrastructure grew with continued strength in cable wrap and sustained growth in air and liquid filtration. At Magnera, the strength and resilience of our businesses are grounded in the deliberate balance we have built across our consumer solutions and personal care portfolios. These products span tea bags, coffee filters, wipes, dryer sheets, filtration, baby diapers, adult incontinence, and medical garments, categories anchored in everyday non-discretionary consumer demand. This balance is by design. It reflects a broad platform of 44 global manufacturing facilities and technology capabilities that position Magnera as a global leader supplying critical materials for customers' products in key end markets. When one end market faces cyclical pressure, the resilience of the broader portfolio provides ballast, supporting stable earnings, diversified customer exposure, and the flexibility to invest through the cycle. Our leading polymer and fiber technologies, backed by an extensive patent portfolio provided a broader range of and greater customer choice, strengthening our reach in both developed and emerging markets. The culmination of this balance will drive stable cash flows, volume growth, and earnings improvement. Universa is a strong example of this balance. We have one of the broadest portfolios of sustainable wipes solutions globally, including several leading products enabled by proprietary technology. In June, we launched Universa to deliver performance across a wide range of customer needs. Our core offerings are designed for daily maintenance, facilities cleaning and janitorial applications where fast absorption and operational efficiency are essential. Universa Plus, using our proprietary Spinlace technology, delivers a strong, absorbent, cloth-like feel for industrial and general purpose cleaning tasks. Universa Max provides low linting and superior abrasion resistance for demanding environments that require durability and reliability. This consolidated range of industrial wipers brings together the trusted performance of our existing Chicopee and Sontara brands. Before I turn the call over to Jim, I want to briefly recap the progress we have made since Magnera was created less than 2 years ago. In our first year, we set out bold ambitions to better the world with possibilities made real. We built a world-class team, launched our new brand, established a foundation for an integrated organization, and continued to provide mission-critical products to our customers. We will exit our transition services agreement, including migration off the legacy Amcor ERP systems before the end of the calendar year 2026. Since inception, we have closed a complex merger transaction, integrated swiftly, and focused on the priorities we can control: synergy delivery, footprint improvements through Project CORE, sales mix improvement, and strengthening our balance sheet with our strong free cash flow generation. Our demonstrated ability to execute against these priorities reinforces Magnera's positive trajectory as a durable, proven business positioned to create shareholder value. I will now turn the call over to Jim for a comprehensive financial update. James Till: Thank you, Curt, and good morning, everyone. Turning to our financial results on Slide 11. We delivered a solid third quarter that was generally in line with our expectations. This quarter represents the first period in which we realized the full run rate benefits for both Project CORE and our merger synergies. Those benefits were partially offset by continued inflationary pressures across key raw material inputs. Even with these headwinds, our results demonstrated our disciplined operational execution that has been a hallmark of our organization since the merger. Over the past 2 years, our teams have remained focused on integrating the business, simplifying our operating model, and driving sustainable cost efficiencies despite a highly dynamic macroeconomic environment. Their execution has positioned us well to navigate inflationary pressures while continuing to strengthen our long-term earnings power of the company. For the quarter, net sales was $857 million. Solid performance across our wipes and infrastructure product categories drove organic sales growth of 1%, reflecting stable customer demand and effective commercial execution. As we discussed in our previous call, raw material inflation accelerated meaningfully during the quarter. Our commercial organization responded quickly by implementing pricing actions across the portfolio. While these actions substantially offset the increase in input costs, there was naturally some timing lag, particularly in our Rest of World operations, where the price realization slightly trailed the Americas segment. We expect those pricing actions to continue flowing through as we move into the fourth quarter. Despite these external cost pressures, adjusted EBITDA increased to $99 million, representing a 9% improvement compared to the prior-year quarter. This performance reflects the benefits of Project CORE, synergy realization, disciplined cost management, and the resilience of our operating teams around the globe. Turning to cash flows, free cash flow for the quarter was negative, as expected, but came in better than our internal forecast. Throughout the quarter, our teams proactively reduced working capital levels by managing inventories, receivables, and purchasing activities to help offset the impact of higher raw material costs. These actions demonstrated both our agility of the organization and our continued focus on disciplined cash management during periods of elevated volatility. Moving now to our segment performance, beginning with Americas on Slide 12. Revenue was essentially flat in Americas compared to the prior year. Organic volume growth of 1% led by continued strength in our infrastructure product categories together with higher selling prices implemented to recover raw material inflation was largely offset by planned portfolio and product mix actions associated with Project CORE. Adjusted EBITDA in Americas increased an impressive 16% to $71 million. The improvement reflects several factors, including full run rate realization of Project CORE benefits, continued merger synergy capture, improved manufacturing efficiencies and the recovery from the winter storm disruptions that impacted our second quarter results. Overall, the Americas business continues to execute well with strong operational performance and disciplined commercial management. Turning to the Rest of World segment on Slide 13, revenue increased modestly compared to the prior year as higher selling prices and continued strength in both our wipes and infrastructure categories was more than offset by demand softness across Europe, where macroeconomic conditions remain challenging. Adjusted EBITDA declined slightly year-over-year. Continued operational improvements and merger synergies were more than offset by inflationary pressures that moved through the region faster than the pricing actions could fully recover during the quarter. While Europe remains a dynamic operating environment, our regional leadership teams have continued to respond decisively. They're implementing pricing initiatives, strengthening customer engagement, optimizing manufacturing operations, and maintaining a disciplined cost control to preserve profitability while positioning the business for improved performance as market conditions stabilize. Now turning to our guidance, based on our performance year-to-date and our current outlook, we are reaffirming our free cash flow guidance of approximately $90 million to $110 million for the full year. Cash generation remains a key priority for the company, and we remain confident in our ability to deliver on that commitment. With respect to adjusted EBITDA, we now expect results to finish toward the lower end of the previously communicated guidance range. While operational execution remains strong and synergy capture continues to track ahead of our expectations, we believe the updated outlook appropriately reflects the persistence of inflation pressures and continued macroeconomic uncertainty. We ended the quarter with approximately $575 million of available liquidity, providing us with significant financial flexibility to support our strategic priorities. Our balance sheet continues to strengthen, and our liquidity position enables us to continue investing in the business while maintaining a disciplined capital allocation framework. Looking ahead, our priorities remain unchanged. We will continue executing on Project CORE, drive operational excellence, generate strong free cash flow, and strengthen our balance sheet. Although the external environment remains uncertain, we believe the actions that we have taken over the last two years have created a stronger, more efficient company that well positioned us to deliver sustainable long-term value to our shareholders. With that, I'll turn the call back over to Curt. Curtis Begle: Thank you, Jim. This quarter's performance was a result of focused execution globally. While the demand environment remains muted, consumers continue to spend, favoring products that combine value with proven performance. Our company has demonstrated resiliency through the unpredictable and challenging times, and we will continue to embrace every opportunity to improve the company's performance. With that, we are happy to answer your questions. Operator, please open the line for questions. Operator: [Operator Instructions] Our first question comes from the line of Gabe Hajde of Wells Fargo. Gabe Hajde: I had a little bit more of a short-term question, and I'd say congratulations on the quarter, given all the volatility especially on the raw material side. Just maybe to the extent you're comfortable commenting on sort of order patterns and cadence as the quarter progressed, and I'm just trying to understand delayed purchases or weather disruptions that kind of got pushed into the June quarter. And then from a seasonal perspective, what we kind of expect or what you're seeing maybe in July into the final quarter of your fiscal year, if there's any abnormalities or anything that you're observing from, like I said, customer order pattern demand standpoint. Curtis Begle: Hey, Gabe, thanks for the question. Good to hear your voice. Very consistent with what we experienced going into Q3, is what I would say, which is, again, orders are steady. We've been working closely with customers, and particularly those in certain geographies that had challenges receiving product due to the nature of the challenges related to the war, particularly in the Middle East. But in terms of what we see from a demand outlook for the quarter, we see it to be very, very consistent. Our inventory levels are in a very good position, especially from a production standpoint. So we expect to see kind of more of the same this quarter that we saw in Q3. Gabe Hajde: Okay. And then maybe one medium, longer-term question. In the press release, you kind of gave us this pro forma $405 million of adjusted EBITDA, which layers in the final synergies and Project CORE contribution. I think at the onset, that number had been closer to $445 million. I'm just -- and again, I appreciate a lot's changed in the backdrop, but just maybe how you're thinking about the medium-term prospects for the business and maybe a timeframe to get to that $405 million. I appreciate you're not giving us '27 guidance, but just how to think about maybe under-recovered price cost in fiscal '26, and then residual Project CORE and/or synergies. I mean you said this was the first quarter that we kind of hit full run rate. So maybe we've got that $405 million in our sights over the next 18 to 24 months so we don't get any sort of exogenous shocks to the system. James Till: Yes. Gabe, thanks for the question. What I would say is the teams did an excellent job in terms of going out with pricing and mirroring our flow through. Our flow through is pretty quick. Particularly in Americas, I would say that, that was a net neutral for us. Now there is a couple million, as we highlighted in the commentary in Rest of World that will flow into the fourth quarter in terms of the lag catch-up, was part of your question. And then as we're looking, we're not going to give 2027 guidance, but what I would say is I think we've told folks we're anticipating kind of $20 million floating over from those run rate synergies and CORE into 2027, and that remains our -- we still believe that, that's the case. Operator: Thank you. Our next question comes from the line of Kevin McCarthy of Vertical Research Partners. Please go ahead, Kevin. Kevin McCarthy: I was wondering if you could compare and contrast your price experience in the Americas versus the Rest of World? I think you made a comment in the prepared remarks that maybe there were some lag effects on the RoW side. And so just wondering if you would expect to catch up fully or not, or perhaps more than that in the fourth quarter? James Till: Yes. Kevin, thanks for the question. Good to hear from you. Yes, so what I would say is it was a very collaborative exercise with sort of all customers globally in Asia and in the Americas. We were able to push those through. So it was sort of net neutral in terms of cost versus price, which was what our intent was and was our goal in the Rest of World and Europe. As you had highlighted, there is a couple million dollars that will float into the fourth quarter as there was a bit of a lag in terms of getting those prices adjusted to reflect those increased costs. Kevin McCarthy: Great. And then secondly, for Jim, perhaps, I think you affirmed your free cash flow target range, which if my memory is correct, was $90 million to $110 million. And so with 1 quarter left, I would appreciate your updated thoughts on how to get there from here, kind of what you're thinking about in terms of working capital, other moving parts to achieve that range. James Till: Yep. Thank you for the additional question. It's a good question. So we obviously moved to the lower end of the range on EBITDA. The easiest offset to that will be CapEx. So we originally guided roughly $80 million. We're rolling in around $15 million a quarter, so our natural run will be around $60 million. There was a working capital use this quarter as anticipated because of the inflation. The teams did a nice job of offsetting a good portion of that. It wasn't quite as much as we anticipated because of the efforts the teams did on inventories. But what I would say is there's still work to go there in the fourth quarter. And we knew we moved on very quickly on the impacts to the EBITDA, and we knew that the working capital pieces, it was going to take us the entire back half to sort of offset those increases. And so I would say it's still work to go on the working capital, but we feel comfortable with the initiatives that we have in place that we'll be able to get that back in order here in the fourth quarter. Operator: [Operator Instructions] Our next question comes from the line of Edward Brucker of Barclays. Edward Brucker: My first one, just on these pricing actions that you've taken that seems like you've reduced the lag on these raw material pass-throughs, is that something that you worked with your customers to do that's permanent? So we should just expect that are these shorter-term lags going forward or would you say that they would revert back over time? Curtis Begle: Thanks, Edward. As we talked about in the last call, traditionally or historically, index moves were set up for a little bit in times of just kind of steady normal shades of business. And in cases like what we experienced coming into Q3 with the rapid inflation that we were experiencing, going to customers and working with them on short-term moves to the monthly pass-through was really critical in order for us to ensure that we were neutralizing that negative impact. And so there will be some cases with customers that we would keep that in a consistent basis. But we would expect in the coming months, quarters, years that in a more normalized environment, you would revert back to quarterly kind of index moves or bimonthly. But I would say at the very least, we've shortened overall those ranges. But we're very efficient in our pass-throughs in general. It's just the amount of the increases were so significant that customers, working with customers understood that. And we would look to -- if there's big drops down, that we'd work with customers on providing that ride back with them. So again, I would say, overall, as we renegotiate new contracts, our intent would be to shorten the lag up even more. But in general, I would say for us, we're extremely efficient. It's just this was unprecedented times in terms of the spike in raw materials. Edward Brucker: Got it. Thanks. And from a CapEx perspective, should we expect that kind of $60 million number going forward, or would you say that there's going to be some deferred CapEx that would need some catch-up in the next couple of years? Curtis Begle: I wouldn't say we're deferring anything this year. For us, it's a matter of making sure that we have the right amount of ROI in terms of the investments that we're making. We've obviously been heavily focused on the integration and ensuring the right investments from a maintenance standpoint, safety CapEx inside of the sites. In terms of the larger growth investments, we've been very efficient in identifying opportunities to improve existing platforms and lines. But as we go into future years, we would adjust that CapEx appropriately as it relates to any major growth programs or growth initiatives inside of the business. But we're very comfortable with where we sit today in terms of our capital dollar spend. Operator: Our next question comes from the line of Gabe Hajde of Wells Fargo. Gabe Hajde: Jim, I had a follow-up, and I apologize, maybe too deep in the weeds here. But the revenue bridge in Americas, I think you guys kind of called out in the press release that price was negative $13 million. On the flip side, we're obviously talking about shortening lag times on a pretty big spike in raw material pass-through. So can you just help us maybe with the bridge between -- I'm assuming you called out negative mix. So maybe business that you kind of walked away from and maybe when that starts to annualize through the revenue line? James Till: Sure, sure. So if you remember in Q1 and Q2, we were running around $40 million negative in that line for exactly what you said. So it was higher priced, I guess, higher sales dollars, price per unit, but lower profitability. Items that we walked away from is Project CORE. So you saw that hitting us in Q1, Q2. They hit us again in Q3, but it was offset with inflationary items. So we'll continue to lap that through the remainder of the year, and then it should sort of lap in Q1 of 2027. Gabe Hajde: Okay. And then, Curt, can you remind us, you talked about some of the innovation items, new products that you guys have put out there. And I can't remember if I've asked you guys in the past where you talked about like a vitality index or a new product index or something like that. Is that something that you plan to talk about or that you actively track and are wanting to kind of communicate to the external world? And then rough investment, maybe less about CapEx and more about R&D that's flowing through the income statement for us. Curtis Begle: Yes, I don't have the total in terms of expenses as it relates to R&D. Obviously, we do continue to heavily invest in new product development, new features and benefits within certain product lines. We're excited about the Universa launch. And that will be part of our forward run rate whenever we provide our '27 guide in Q4 and beyond. But in terms of the vitality index, we track that every quarter. And so historically, it's been about the 15% to 20% range. In terms of new innovation and the impact to the portfolio, that's getting close to north of 25%, and many of those products in some cases are to -- might be for a similar application than what we're doing today, but it provides more value to our customers, which in turn improves our overall mix, which is what we've been focused on as we looked at our portfolio and continue to evaluate the portfolio of where we have the long-term right to win, where we have true differentiation, how we can backstop that with our patents, our IP, and the customer collaboration. And so we'll continue to track that. We can provide some of that information as we get into maybe the next call as I look at Robert here, just to give a better understanding. But as we talked about, it's finding opportunities for us to shrink the more commodity-sized portion of our portfolio to true value-added products and mixing up, which will be reflected in the overall earnings percentage of the business and earnings in general. So that's really the big focus. And Jim touched on it earlier when you think about the top line, we've made conscious choices as it relates to certain parts of our portfolio that may have driven a higher top line number due to the nature that it has many different touches inside of our system. So it could be things like just secondary processes. And if we're not getting the value for the products that we're providing to the market and it's not worthy of the capital that we would expect to grow in those spaces, those are the choices that we've made throughout this first 1.5 years going on 2 years of ensuring that we have, again, the right platforms, the right customers, the right markets and the right to win, and then it hits our expectation and margin thresholds that we would expect for the business. Operator: Our next question comes from the line of Kevin McCarthy of Vertical Research Partners. Kevin McCarthy: Just maybe a housekeeping question. As you exit the TSAs, is that a financially meaningful event for you? Is there any sort of step function? Or is that exit smooth, so to speak, from a modeling perspective? James Till: Yes, what you'll see is we're still spending money on the TSA. So you have one-time cost associated, Kevin. So when we talk about the integration costs, those will begin to ramp down as we exit the TSA and finish the integration through kind of the next few quarters. So financial, I would say from a cash standpoint, it will be a cash benefit. Kevin McCarthy: Okay, very good. And then I wanted to clarify, in my own mind anyway, the status of Project CORE. I think you made a comment to the effect that you are at a full run rate now for synergies and Project CORE. So maybe just some updated thoughts there. Is it largely complete in terms of any asset rationalization actions that you were considering? Curtis Begle: Yes. I would say that, again, as Jim talked about in our commentary, we're very proud of what the team was able to accomplish when we -- I think it was this call last year, when we announced Project CORE and what we were doing from, unfortunately, the challenging decisions of shutting down facilities, idling certain assets and moving some of our products around as we cross qualified in other sites. Still integrating some of that work, but in general, real ahead of schedule in terms of what we kind of expected. And we continue to evaluate, Kevin, opportunities for productivity improvements. And as I mentioned before, really focused on the portfolio and how we can continue to enhance that from a vitality index standpoint, but higher margin products on the right platforms in the right regions with the right customers. James Till: Yes, and the only thing I would add is the Wave 1. So as we had highlighted, Project CORE is sort of a pipeline of initiatives. And so the first wave was the most easy one-to-one. But we'll continue to evaluate those additional initiatives, that additional pipeline as we get into 2027 and forward. Operator: As there are no further questions, I would like to turn the call back to Curt Begle for closing remarks. Curt? Curtis Begle: We appreciate your interest in Magnera. Thanks for joining today, and we look forward to catching up with some of you in investor conferences and updating you on our progress on the next call. Have a great day. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in Magnera, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Magnera wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Magnera (MAGN) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Magnera Corporation? Here are five stocks we like better. Magnera delivered its strongest quarter since formation, reporting $857 million in fiscal Q3 revenue and $99 million in adjusted EBITDA, up 9% year over year. Results benefited from merger synergies, Project CORE cost actions and manufacturing improvements, though raw-material inflation remained a headwind. Organic sales grew 1%, led by wipes and infrastructure products, while Americas adjusted EBITDA rose 16% to $71 million. European demand remained soft, and inflation outpaced pricing recovery in the rest-of-world segment. Magnera maintained its $90 million–$110 million free-cash-flow outlook but expects full-year adjusted EBITDA near the low end of its prior range. The company also lowered expected annual capital expenditures to about $60 million and expects roughly $20 million of synergies and Project CORE benefits to carry into fiscal 2027. Magnera (NYSE:MAGN) reported third-quarter fiscal 2026 revenue of $857 million and adjusted EBITDA of $99 million, its strongest earnings quarter since the company was formed, according to management. Adjusted EBITDA increased 9% from the prior-year quarter, supported by merger synergies, Project CORE cost actions and manufacturing improvements, although raw-material inflation remained a pressure. Chief Executive Officer Curt Begle said the company’s performance reflected post-merger transformation initiatives and execution by its global teams. He said Magnera continued to pursue three strategic priorities: improving its cost position, winning customers through product leadership and innovation, and strengthening commercial execution. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling “This quarter’s strong performance reflects the organizational transformation initiatives we executed following our merger, as well as the proactive initiatives taken by our global teams,” Begle said. Magnera said organic sales grew 1% during the quarter, driven by its wipes and infrastructure product categories. Begle said the wipes portfolio grew across disinfecting, personal care including baby products, moist toilet tissue and specialty industrial applications. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The company launched its Universa industrial wiper line in June, consolidating products under its Chicopee and Sontara brands. The line includes core products for maintenance and janitorial use, Universa Plus products using proprietary spunlace technology, and Universa Max products designed for low linting and abrasion resistance in more demanding environments. Infrastructure sales growth included housewrap and accessories in North America as Magnera expanded its national supply partner network. Outside North America, the company cited continued strength in cable wrap and growth in air and liquid filtration. → No Hangover: Revisiting Microsoft One Week After Earnings Begle said the company’s portfolio is designed to balance consumer and personal-care end markets, including tea bags, coffee filters, wipes, dryer sheets, filtration materials, diapers, adult-incontinence products and medical garments. He said those categories are supported by 44 manufacturing facilities globally and tend to serve everyday, non-discretionary demand. In the Americas, revenue was essentially flat from the prior year. Organic volume growth of 1%, infrastructure demand and higher selling prices were largely offset by planned portfolio and product-mix actions connected with Project CORE, Chief Financial Officer Jim Till said. Americas adjusted EBITDA rose 16% to $71 million. Till attributed the improvement to the full run-rate benefit of Project CORE, merger synergies, manufacturing efficiencies and recovery from winter-storm disruptions that affected the second quarter. Revenue in the rest-of-world segment increased modestly. Higher prices and strength in wipes and infrastructure were more than offset by demand softness in Europe, where management said macroeconomic conditions remain challenging. Adjusted EBITDA in the segment declined slightly year over year as inflation moved through the region faster than pricing actions could recover it. Management said pricing actions substantially offset higher input costs overall, but price realization in rest-of-world operations lagged the Americas. Till said a few million dollars of pricing recovery in Europe is expected to flow into the fiscal fourth quarter. Begle said the company shifted to monthly pass-through arrangements with some customers during the period of sharp raw-material inflation. While some customer contracts may retain shorter pricing cycles, he said Magnera would generally expect pricing mechanisms to return to quarterly or bimonthly index movements under more normalized conditions. Magnera reaffirmed its full-year free-cash-flow outlook of approximately $90 million to $110 million. Free cash flow was negative in the third quarter, as anticipated, but outperformed the company’s internal forecast, Till said. The company worked to reduce working capital through inventory, receivables and purchasing management to offset the effects of higher raw-material costs. Till said there is still work to do in the fourth quarter to further normalize working capital. While affirming the cash-flow target, Magnera now expects full-year adjusted EBITDA to finish toward the lower end of its previously communicated range. Till said the updated outlook reflects persistent inflation and macroeconomic uncertainty despite continued operational execution and synergy realization. Management said it expects capital expenditures to run at roughly $60 million for the year, versus an original estimate of about $80 million. Begle said the lower spending level does not reflect deferred capital expenditures, but rather discipline around returns on investment and the use of existing production platforms. Magnera ended the quarter with about $575 million of available liquidity. The company also said it expects to exit its transition services agreement, including migration from legacy Amcor enterprise-resource-planning systems, before the end of calendar 2026. Till said the completion of the transition would reduce one-time integration and transition-services costs and provide a cash benefit. Management said the quarter marked the first full run-rate period for both merger synergies and the initial wave of Project CORE actions. Those actions have included facility closures, idled assets, product transfers and portfolio changes intended to improve margins and simplify operations. Till said Magnera expects about $20 million of run-rate synergies and Project CORE benefits to carry into fiscal 2027. Begle said the company will continue evaluating productivity measures and portfolio opportunities, with an emphasis on higher-margin products, platforms and customer relationships. Begle also said Magnera tracks a “Vitality Index” measuring the contribution of innovation to its portfolio. He said that measure has historically been in the 15% to 20% range and is approaching more than 25%, as the company emphasizes value-added offerings over commodity-oriented products. Magnera's purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera's solutions propel our customers' goals forward and solve end-users' problems, every day. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Magnera Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved the strongest earnings quarter since the merger, attributed to the full run-rate realization of Project CORE and merger synergy benefits. Maintained stable earnings despite a volatile macro environment by balancing non-discretionary consumer solutions with industrial infrastructure products. Drove organic sales growth of 1% through differentiated product investments in global wipes and infrastructure, despite demand softness in Europe. Executed a deliberate portfolio shift by exiting lower-margin commodity business to focus on high-value, mission-critical applications. Launched the Universa industrial wiper line to consolidate trusted brands and offer a tiered performance range from daily maintenance to high-durability tasks. Successfully mitigated significant raw material inflation through rapid pricing actions and shortened index lag times, particularly in the Americas. Reaffirmed full-year free cash flow guidance of $90 million to $110 million, supported by disciplined working capital management and CapEx optimization. Adjusted EBITDA expectations to the lower end of the previous range to account for persistent inflationary pressures and macroeconomic uncertainty. Anticipates approximately $20 million in incremental synergy and Project CORE benefits to flow into fiscal year 2027. Plans to exit all transition services agreements (TSAs) and migrate off legacy ERP systems by the end of calendar year 2026. Focusing future R&D on increasing the vitality index toward 25% by prioritizing proprietary technologies like Spinlace for value-added products. Reported a temporary lag in price realization within the Rest of World segment, which is expected to normalize in the fourth quarter. Reduced full-year CapEx forecast to approximately $60 million, down from $80 million, by focusing on high-ROI maintenance and safety projects over large-scale growth investments. Noted that planned portfolio actions associated with Project CORE resulted in a $13 million headwind to Americas revenue as the company exited less profitable business. Identified ongoing geopolitical challenges in the Middle East as a factor impacting product delivery logistics in certain geographies. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management characterized demand as steady and consistent with Q3 levels, despite broader macroeconomic volatility. Confirmed that inventory levels are in a strong position to meet production needs for the final quarter of the fiscal year. Management successfully moved many customers to monthly pass-throughs to neutralize rapid inflation spikes. While some contracts may revert to quarterly indices in a stable environment, the company intends to permanently shorten lag ranges in new contract negotiations. Exiting the TSAs will lead to a reduction in one-time integration costs over the coming quarters. The transition is expected to be a net cash benefit as the company moves toward a fully integrated, independent operating model. The company has reached full run-rate for 'Wave 1' of Project CORE, which included facility closures and asset idling. Management is currently building a pipeline for future productivity initiatives to be evaluated for fiscal 2027 and beyond.

CHARLOTTE N.C., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Third Quarter Highlights GAAP: Net sales of $857 million, Operating income of $22 million Non-GAAP: Adjusted EBITDA of $99 million Twelve-month adjusted free cash flow yield of greater than 25% as of quarter-end Curt Begle, Magnera’s CEO, commented: “We delivered a record third quarter led by organic volume growth, combined with the savings benefits of synergy initiatives and Project Core. In addition, our commercial team executed the disciplined actions required to effectively manage the significant spike in inflationary costs of certain raw materials. As we continue to navigate a dynamic macro-economic environment, we remain focused on executing our strategic objectives and delivering dependable financial results. Consistent with that commitment, we are reaffirming our full-year free cash flow outlook, while holding to the lower end of our adjusted EBITDA guidance range.” Key Financials (1)  Adjusted non-GAAP results exclude items not considered to be ongoing operations. In addition, comparable change % normalizes the impacts of foreign currency and the merger with Glatfelter. Further details related to non-GAAP measures and reconciliations can be found under “Reconciliation of Non-GAAP Financial Measures and Estimates” section or in reconciliation tables in this release. Dollars in millions Consolidated Overview The net sales increase included a favorable foreign currency change of $21 million and a 1% organic volume improvement, partially offset by an $8 million decrease in selling prices primarily due to negative product mix net of the pass-through of higher raw material costs. The volume increase was mainly attributed to strength in our consumer solutions product categories globally and recovery in North America from winter storm disruptions experienced in the second quarter. The adjusted EBITDA was up 9% primarily as a result of favorable price cost spread of $11 million. Americas The net sales increase included a favorable foreign currency change of $10 million and a 1% organic volume improvement, partially offset by a $13 million decrease in selling prices primarily due to negative product mix net of the pass-through of higher raw material costs. The adjusted EBITDA improvement resulted mostly from a favorable price cost spread of $11 million due to the realized benefits from Project CORE and merger synergies that were partially offset by higher selling, general and administrative costs. Rest of World The net sales increase included a favorable foreign currency change of $11 million and a $5 million increase in selling prices due to the pass-through of higher raw material costs. The adjusted EBITDA declined $2 million as benefits from Project CORE and synergy realization were offset by higher inflation in the region, timing of material pass throughs and higher selling, general and administrative costs. Investor Conference Call The Company will host a conference call, August 6, 2026, at 10:00 AM U.S. Eastern Time to discuss the third quarter results. The webcast can be accessed here. A replay of the webcast will be available via the same link on the Company’s website after the completion of the call. By TelephoneParticipants may register for the call here now or any time up to and during the time of the call and will immediately receive the dial-in number and a unique pin to access the call. While you may register at any time up to and during the time of the call, you are encouraged to join the call 15 minutes prior to the start of the event. About Magnera Magnera Corporation (NYSE: MAGN) serves 1,000+ customers worldwide, offering a wide range of material solutions, including components for absorbent hygiene products, protective apparel, wipes, specialty building and construction products, and products serving the food and beverage industry. Operating across 44 global facilities, Magnera is supported by over 8,000+ employees. Magnera’s purpose is to better the world with new possibilities made real. For more than 160 years, the Company has delivered the material solutions their partners need to thrive. Through economic upheaval, global pandemics and changing end-user needs, we have consistently found ways to solve problems and exceed expectations. The distinct scale and comprehensive portfolio of products brings customers more materials and choices. Magnera builds personal partnerships that withstand an ever-changing world. Visit Magnera.com for more information and follow @MagneraCorporation on social platforms. Non-GAAP Financial Measures and EstimatesThis press release includes non-GAAP financial measures including, but not limited to, Adjusted EBITDA, free cash flow, and comparable basis net sales and adjusted EBITDA. A reconciliation of these non-GAAP financial measures to comparable measures determined in accordance with accounting principles generally accepted in the United States of America (GAAP) is set forth at the end of this press release. Information reconciling forward-looking adjusted EBITDA and adjusted free cash flow are not provided because such information is not available without unreasonable effort due to high variability, complexity, and low visibility with respect to certain items, including debt refinancing activity or other non-comparable items.   These items are uncertain, depend on various factors, and could be material to our results computed in accordance with U.S. GAAP. Forward Looking Statements This document contains certain statements that are “forward-looking” statements within the meaning of the federal securities laws and are presented pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking” statements include, but are not limited to, statements with respect to our future financial performance and condition, results of operations and business, our expectations or beliefs concerning future events, plans, objectives, expectations and intentions, and other statements that are not historical facts. These statements may contain words such as “believes,” “expects,” “may,” “will,” “should,” “would,” “could,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “projects,” “outlook,” “guidance,” “anticipates” or “looking forward” or similar expressions. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. These forward-looking statements are based upon the current beliefs and expectations of the management of Magnera and are subject to risks and uncertainties that may change at any time. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and uncertainties, they include, among others, the following: global economic conditions; inflation; the cost and availability of raw materials and energy; disruption of our supply chain; the adverse impact of weather events on our facilities, inventory and suppliers, as well as adverse effects on our customers, suppliers and other business partners; the effect of competition on our business; our inability to integrate future acquired companies or to realized expected operating synergies; synergies expected to be achieved in connection with our business combination with a subsidiary of Berry Global Group, Inc. in November 2024; our inability to retain our officers and employees or the occurrence of labor disputes; disruption of our information technology systems, including as a result of a cyber breach; risks associated with operating internationally, including fluctuating exchange rates, tariffs, differing tax laws and regulation; litigation and regulatory investigations; and disputes related to intellectual property used in our business. Additional information regarding these risks and uncertainties and other risks applicable to our business are described in additional detail in our reports filed with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the fiscal year ended September 27, 2025, and other filings that we make with the SEC. These risk factors may not contain all of the material factors that are important to you. New factors may emerge from time to time, and it is not possible to either predict new factors or assess the potential effect of any such new factors. Accordingly, readers should not place undue reliance on those statements. All forward-looking statements are made as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. Consolidated and Combined Statements of Operations (Unaudited) Condensed Consolidated and Combined Statements of Cash Flows (Unaudited) Condensed Consolidated Balance Sheets (unaudited) Reconciliation of Non-GAAP Measures and Estimates(in millions of dollars) (1) Supplemental financial measures that are not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures should not be considered as alternatives to operating or net income or cash flows from operating activities, in each case determined in accordance with GAAP. Comparable basis measures exclude the impact of currency translation effects and acquisitions. These non-GAAP financial measures may be calculated differently by other companies, including other companies in our industry, limiting their usefulness as comparative measures. Management believes that Adjusted EBITDA and other non-GAAP financial measures are useful to our investors because they allow for a better period-over-period comparison of operating results by removing the impact of items that, in management’s view, do not reflect our core operating performance. We define “free cash flow” as cash flow from operating activities less net additions to property, plant, and equipment. We believe free cash flow is useful to an investor in evaluating our liquidity because free cash flow and similar measures are widely used by investors, securities analysts, and other interested parties in our industry to measure a company’s liquidity. We believe free cash flow is also useful to an investor in evaluating our liquidity as it can assist in assessing a company’s ability to fund its growth through its generation of cash and as pre-merger cash flow is not indicative of our current structure and operations.We also use Adjusted EBITDA and comparable basis measures, among other measures, to evaluate management performance and in determining performance-based compensation. Adjusted EBITDA is a measure widely used by investors, securities analysts, and other interested parties in our industry to measure a company’s performance. We also believe these measures are useful to an investor in evaluating our performance without regard to revenue and expense recognition, which can vary depending upon accounting methods. (2) Includes restructuring, business optimization and other charges, which includes $17 million of transaction compensation expense in the prior year(3) Consists of estimated parent-allocated charges for the period prior to merger which is required by GAAP as part of the carve-out financial statement process(4) Prior year includes $12 million inventory step-up charge related to the merger and other non-cash charges(5) Includes expense for stock compensation and disposals and sale of assets(6) The prior year comparable basis change excludes the impacts of foreign currency and acquisitions/mergers IR Contact Information                                                        Robert WeilminsterEVP, Investor Relations        [email protected]

CHARLOTTE, N.C., July 21, 2026 (GLOBE NEWSWIRE) -- Magnera (NYSE: MAGN) expects to release its third quarter results prior to trading on the New York Stock Exchange on Thursday, August 6, 2026. The earnings release, along with an investor presentation, will be available shortly thereafter on Magnera’s website at Investor Relations – Magnera. In conjunction with its release, Magnera will hold a conference call to discuss the third quarter financial results at 10:00 a.m. (ET) on Thursday, August 6, 2026. What: Q3 2026 Magnera Financial Results, Q&A, and Webcast When: Thursday, August 6, 2026 Time: 10:00 a.m. ET Telco: Pre-register (click here to receive dial-in and unique pin for Q&A) Webcast: Listen in option (live and replay) Approximately two hours after the Q&A session, an archived version of the webcast will be available on the Company’s website. About Magnera Magnera Corporation (NYSE: MAGN) serves 1,000+ customers worldwide, offering a wide range of material solutions, including components for absorbent hygiene products, protective apparel, wipes, specialty building and construction products, and products serving the food and beverage industry. Operating across 44 global production facilities, Magnera is supported by 8,000+ employees. Magnera’s purpose is to better the world with new possibilities made real. For more than 160 years, the company has delivered the material solutions its partners need to thrive. Through economic upheaval, global pandemics and changing end-user needs, Magnera has consistently found ways to solve problems and exceed expectations. The distinct scale and comprehensive portfolio of Magnera’s products bring customers more materials and choices. Magnera builds personal partnerships that withstand an ever-changing world. Forward-Looking Statements Information included or incorporated by reference in Magnera Corporation’s filings with the U.S. Securities and Exchange Commission (the “SEC”) and press releases or other public statements contain or may contain “forward-looking” statements within the meaning of the federal securities laws and are presented pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such “forward-looking” statements include, but are not limited to, statements with respect to our financial condition, results of operations and business, our expectations or beliefs concerning future events, statements about future financial and operating results, the company’s plans, objectives, expectations and intentions and other statements that are not historical facts. These statements contain words such as “believes,” “expects,” “may,” “will,” “should,” “would,” “could,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “projects,” “outlook,” “anticipates,” or “looking forward” or similar expressions that relate to our strategy, plans, intentions or expectations. All statements we make relating to our estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates, and financial results or to our expectations regarding future industry trends are forward-looking statements. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. These forward-looking statements are based upon the current beliefs and expectations of the management of Magnera and are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those that we expected. Additional information regarding these risks and uncertainties and other risks applicable to our business are described in additional detail in our reports filed with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the fiscal year ended September 27, 2025, and other filings that we make with the SEC. These risk factors may not contain all of the material factors that are important to you. New factors may emerge from time to time, and it is not possible to either predict new factors or assess the potential effect of any such new factors. Accordingly, readers should not place undue reliance on those statements. All forward-looking statements are based upon information available as of the date hereof. All forward-looking statements are made only as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statements as a result of new information, future events, or otherwise, except as otherwise required by law. Contact Information: Investor Relations: Robert Weilminster, [email protected]

Interested in Magnera Corporation? Here are five stocks we like better. Magnera said Q2 results were broadly in line with expectations after adjusting for winter storm disruptions, with $90 million in adjusted EBITDA and $73 million in free cash flow. The company also repaid $36 million of debt and ended the quarter with about $600 million in liquidity. Severe North American winter storms temporarily shut down multiple plants and caused about a $5 million EBITDA hit in the quarter. Management expects to recover most of the weather-related disruption in the second half of fiscal 2026. Despite rising raw material, energy and logistics costs, Magnera maintained its full-year guidance and said its capital allocation priority remains deleveraging. Executives also highlighted ongoing cost controls, pricing adjustments with customers and sustainability-focused investments. Magnera (NYSE:MAGN) said its fiscal second-quarter results were broadly in line with expectations after adjusting for the impact of severe winter storms in North America, as the specialty materials company pointed to steady free cash flow generation, debt reduction and ongoing cost-management initiatives. Chief Executive Officer Curt Begle said adjusted EBITDA was $90 million for the quarter, while Chief Financial Officer Jim Till said sales totaled $796 million. Till said the company generated $73 million of free cash flow during the quarter and $128 million of adjusted free cash flow over the last 12 months. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum Magnera also repaid $36 million of debt during the quarter, bringing debt repurchases for the first half of fiscal 2026 to $63 million. Till said the company ended the quarter with about $600 million of available liquidity. “After adjusting for the impacts of the winter storms in North America, we delivered performance that was in line with our expectations,” Till said. He added that adjusted EBITDA was “essentially flat” as gains from internal initiatives were offset by external headwinds. → 3 Ways to Target the Resources Powering AI and Data Centers Begle said back-to-back winter storms, Fern and Hernando, disrupted operations across North America, including temporary shutdowns at 13 manufacturing sites during Fern and seven plants during Hernando. He said there was no significant damage to plants and shipping resumed after the storms. Management said the storms affected production, shipping days and conversion costs. During the question-and-answer portion of the call, Begle said the company had previously estimated a $4 million to $6 million EBITDA impact from the shutdowns, and the actual impact was about $5 million for the quarter. → Quantum Earnings Season Is Ramping Up—What to Watch From 2 Major Players Begle said Magnera expects to recover most of the weather-related setbacks during the second half of fiscal 2026. He also said the company was still fulfilling some orders affected by the February storms as it moved into the fiscal third quarter. “Our teams did an excellent job responding to the storms by working together to prioritize the safety of our employees and assets,” Begle said. Magnera executives also highlighted pressure from geopolitical conflict, including the war in the Middle East and conflict involving Iran, which Begle said had direct effects on raw material and supply chain costs. He said rising costs for resin, pulp, energy, fuel, container shipping and transportation were affecting the business. Begle said raw materials, fuel, container shipping and delivery-related costs, including resin, pulp and energy expenses, represent about 70% of Magnera’s cost of goods sold. He said the company’s regional sourcing and manufacturing strategy has helped mitigate some disruptions. To address cost volatility, Begle said Magnera is working with customers to move some pricing mechanisms from quarterly to monthly adjustments. He said the company’s existing pass-through mechanisms are generally effective in normal market conditions, but the current environment has required more frequent adjustments. “In this case, it’s abnormal times,” Begle said. “Contracts are meant to be established for kind of normal environment times.” Begle said customers have generally been supportive after initial discussions, and he said the company has also pursued surcharges to address costs outside raw materials, including freight, logistics and energy. In the Americas segment, Till said Magnera achieved volume growth in adult and infrastructure categories, though winter storms weighed on reported volumes and affected conversion costs and product mix. Americas adjusted EBITDA declined by $6 million from the prior year. Till said reported revenues in the Americas reflected contractual pass-through of lower raw material costs during the quarter, which pressured pricing but did not materially affect underlying profitability. He said the company expects constrained capacity areas affected by the storms to recover in the second half of fiscal 2026. In the Rest of World division, revenue declined year over year. Till said strength in the European wipes business was more than offset by broad market softness in Europe and lower raw material cost pass-throughs. Adjusted EBIT for the division increased 19% to $32 million, which Till attributed to disciplined cost management, synergy realization, operational efficiency and portfolio optimization. Begle said the Americas showed signs of resilience, while industrial activity remained subdued amid tariffs, geopolitical uncertainty and policy ambiguity. He said Europe continued to face cautious business sentiment and tempered demand. Rest of World volumes were down 4% year over year. Globally, Begle said Magnera saw mid-single-digit volume increases in infrastructure product lines, driven by seasonality and focus on consumer solutions. He also said adult personal care categories, especially incontinence and feminine hygiene, posted solid growth supported by demographic trends, higher adoption and demand for premium features. Till said Magnera’s target range remains unchanged after incorporating March inflation. During the call, Wells Fargo analyst Gabe Hajde referenced guidance of $380 million to $410 million of EBITDA and $90 million to $110 million of free cash flow, and management discussed the unchanged outlook in that context. Till said the company expects some headwinds in the fiscal third quarter, followed by recovery in the fourth quarter. He said the pressure is especially relevant for cash flow because of working capital effects from inflation, though management is seeking offsets by working with customers, vendors and inventory levels. “We are operating in an environment of potentially unprecedented volatility, both in terms of the magnitude and timing of raw material inflation,” Till said. Magnera said its capital allocation priorities remain focused on deleveraging. In response to a question from Barclays analyst Edward Brucker, Till said the company’s previously stated target of roughly $100 million of debt paydown for the year, based on its guided free cash flow range, has not changed. Begle said Magnera is continuing to invest in projects intended to improve efficiency and sustainability. He cited projects at the company’s Gernsbach and Lydney facilities aimed at reducing energy consumption, including a Lydney project to reduce electricity and water use through modern vacuum blowers. He also said Magnera’s Dombühl team recently commissioned a new film asset intended to modernize its offering for elastic backsheets in hygiene, generate new volume and improve energy, raw material and plant efficiency. Begle highlighted sustainability targets from the company’s latest corporate sustainability report, including goals to reduce Scope 1 and 2 emissions by 42% and Scope 3 emissions by 25% by 2035. He said Magnera is also targeting a 10% reduction in water consumption and zero waste to landfill at 75% of its sites, or 34 locations, by 2035. “As we look ahead, there is uncertainty, but we remain steadfast in our commitment to delivering improved value for our stakeholders,” Begle said. Magnera's purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera's solutions propel our customers' goals forward and solve end-users' problems, every day. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Magnera Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Adjusted EBITDA of $90 million met expectations after accounting for $5 million in weather-related impacts from winter storms Fern and Hernando. The conflict in Iran has triggered significant inflation in raw materials, fuel, and shipping, affecting approximately 70% of the company's cost of goods sold. Management is mitigating cost volatility by transitioning customer pricing mechanisms from quarterly to monthly cadences to reduce recovery lags. Volume growth in adult personal care and infrastructure was offset by weather disruptions in North America and persistent demand softness in Europe. Project CORE and merger synergies remained flat year-over-year as internal efficiency gains were balanced against external macroeconomic headwinds. Strategic investments in the Gernsbach, Lidney, and Don Buell facilities are focused on energy efficiency, decarbonization, and modernizing hygiene product offerings. The company maintains a 'procure, manufacture, and sell local' strategy, which provided reliability of supply despite global logistics tightening. Full-year guidance remains unchanged at $3.8 to $4.1 billion in EBITDA and $90 to $110 million in free cash flow, despite unprecedented cost volatility. Management anticipates a sequential headwind in Q3 due to inflationary timing, followed by a projected recovery in Q4 as pricing actions take full effect. The company expects to recoup the majority of weather-related production setbacks during the second half of the fiscal year. Working capital is expected to consume more cash in the near term due to rising costs, though management is targeting offsets through shortened customer payment terms. Sustainability targets for 2035 include a 42% reduction in scope 1 and 2 emissions, a 25% reduction in scope 3 emissions, a 10% reduction in water consumption, and achieving zero waste to landfill at 75% of sites. Winter storm Fern forced the temporary shutdown of 13 manufacturing sites, while storm Hernando impacted an additional seven plants. Transportation lanes remain tight and are expected to require additional time to stabilize following recent global disruptions. The pass-through of lower raw material costs earlier in the quarter pressured headline pricing in the Americas, though it did not impact underlying profitability. South America is showing early signs of recovery as the company laps previous pressures from low-cost Asian imports. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management noted that while they are moving quickly to monthly pricing, Q3 will likely see a cash headwind before recovering in Q4. The 'rule of thumb' for resin inflation is approximately $2 million in cash consumption for every penny increase, before considering offsetting management actions. Magnera is leading the market in shifting from quarterly to monthly resets for approximately 80% to 85% of the portfolio to address abnormal inflation. Customers have generally been supportive of the shift to ensure continuity of supply and shelf availability. Bookings for Q3 appear normal, with some additional volume driven by customers catching up on orders delayed by February storms. Management is being selective with new orders, prioritizing those that offer profit margins above current expectations. The company remains committed to a $100 million debt paydown target for the year, utilizing open market purchases. Strong first-half free cash flow of $73 million provided a 'head start' for deleveraging goals despite anticipated Q3 seasonal softness. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Image source: The Motley Fool. Thursday, May 7, 2026, at 10 a.m. ET Chief Executive Officer — Curtis L. Begle Chief Financial Officer — James M. Till Vice President of Investor Relations — Robert Weilminster Operator: Good day, and welcome to the Magnera Corp. Second Quarter 2026 Earnings Conference Call. At this time, participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question, you will need to press 11 on your touchtone telephone. Please note this call is being recorded. I would now like to turn the call over to Robert Weilminster, Vice President of Investor Relations. Please go ahead. Robert Weilminster: Thank you, Operator, and thank you, everyone, for joining Magnera Corp.'s second fiscal quarter 2026 earnings call. Joining me, I have Magnera Corp.'s Chief Executive Officer, Curtis L. Begle, and Chief Financial Officer, James M. Till. Following our prepared remarks, we will have a question-and-answer session. To allow everyone the opportunity to participate, we ask that you limit yourself to one question with a brief follow-up, then fall back into the queue for any additional questions. A few things to note before handing over the call. On our website at magnera.com, you can find today's press release and earnings call presentation under Investor Relations. You can also go directly to ir.magnera.com to review the investor presentations from our recent conference attendance. Our annual report and proxy statements with the SEC can be found on our website under Investor Relations. As referenced on Slide 2 during the call, we will be discussing certain non-GAAP financial measures. These measures are reconciled to the most directly comparable GAAP financial measures in our earnings press release and in the appendix of the presentation available on our website. Additionally, a reminder that we will make certain forward-looking statements. These statements are made based upon management's expectations and beliefs concerning future events impacting the company and therefore are subject to risks and uncertainties. Actual results or outcomes may differ materially from those expressed or implied in our forward-looking statements. Some factors that could cause the results or outcomes to differ are in the company's latest SEC filings and our news releases. These statements speak only as of today, and we undertake no obligation to update them. I will now turn the call over to Magnera Corp.'s CEO, Curtis L. Begle. Curtis L. Begle: Thank you, Robert. Good morning, and thank you for joining our call. I am pleased to present our second quarter results and highlight our performance amid ongoing macroeconomic uncertainty. My remarks today will focus on four key themes. First, our earnings of $90 million of adjusted EBITDA were in line with expectations after adjusting for weather-related factors highlighted during our February earnings call. Our strong free cash flow enabled us to pay down $36 million of debt in the quarter. Second, I will discuss the winter storms that affected more than 50% of the United States, causing significant supply chain disruptions impacting both our customers' operations and our own. Third, the war in the Middle East has created global challenges on many fronts, including having a direct impact on our raw material and supply chain costs. Lastly, I will discuss how Magnera Corp. has responded to these challenges and continues to strategically invest in our business to position us for future success. The global economic environment remains strained, though there are signs of resilience within the Americas. Elsewhere, we continue to encounter tempered demand, particularly in Europe. Compounding these challenges, new geopolitical conflicts have contributed to higher operational costs and further supply chain disruptions. Magnera Corp.'s scale and global footprint are built for times like this. Through localized sourcing, disciplined cost management, and success in Project CORE initiatives, we have mitigated many of these impacts. We remain focused on managing our controllables. As mentioned, our largest region, North America, was impacted by back-to-back winter storms, Fern and Hernando. Fern required the temporary shutdown of 13 manufacturing sites, resulting in lost production and impacting shipping days depending on the location. The second storm, Hernando, affected seven plants, but as with Fern, there was no significant damage and shipping resumed. We anticipate recouping most weather-related setbacks in the second half of the fiscal year. Transportation lanes remained tight in the quarter and are expected to require additional time to stabilize. Our teams did an excellent job responding to the storms by working together to prioritize the safety of our employees and assets. As the weather improved, our teams quickly assessed impacts and initiated plans to restart production and supply to our customers. We had no major weather-related damage at our plants. Next, I want to talk about how the conflict in Iran impacted us in the quarter. Our strategic principles to procure, manufacture, and sell within our regions provide a competitive advantage given our extensive asset base and leading positions in specialty materials. The majority of our business is sourced and sold locally within the respective regions, providing us and our customers reliability of supply. The rising cost in raw materials, fuel, container shipping, and delivery times, notably affecting resin, pulp, and energy expenses, constitute approximately 70% of our cost of goods sold. Additionally, inbound and outbound transportation expenses have increased. To address these pressures, we are working closely with customers to transition pricing mechanisms to a monthly cadence, helping mitigate timing lags in cost recovery. While enhancements to our global energy program have helped offset some of the increased costs, prices remain above pre-pandemic levels. Further details on the financial impact and working capital implications will be provided by James in his update. Before transitioning to James, I want to reiterate the resilience demonstrated by our organization in a persistently challenging market. In the Americas, industrial activity remains subdued, despite signs of stability as the sector contends with tariffs, geopolitical uncertainty, and policy ambiguity. The U.S. economy persists in a stable yet cautious state, while South America shows early signs of improvement following proactive measures addressing deflationary pressures and elevated transport costs from Asia. We expect a stronger performance in the latter half of the year in this region, and excluding weather impacts, volumes in the Americas would have reflected a positive year-over-year increase. In Europe, the manufacturing index has seen modest improvements; however, business sentiment remains cautious, mirroring trends from recent years. In the rest of world, year-over-year volume change was down 4%. We achieved mid-single-digit volume increases globally in infrastructure product lines driven by seasonality and continued emphasis on consumer solutions. Adult personal care categories, especially incontinence and feminine hygiene, also experienced solid growth, supported by demographic shifts and higher consumer adoption. Initiatives from governments and NGOs to destigmatize incontinence products, combined with customers' preferences for innovative and premium features, have bolstered demand. We are investing in our business for growth and improving our competitive position. We initiated two critical projects at our Gernsbach and Lidney facilities that will reduce our energy consumption and help advance our sustainability agenda. Our Lidney project will reduce our electricity and water usage by installing modern vacuum blowers. We appreciate the support from the Industrial Energy Transformation Organization in our decarbonization efforts. Our team at Don Buell recently commissioned a new film asset that will modernize our product offering for elastic backsheets in hygiene, generate new volume, and provide energy, raw material, and plant efficiency improvements. Each of these investments is aligned with our capital allocation strategy and demonstrates our commitment to improving our business over the long term. Finally, I would like to highlight the ambitious commitments detailed in our latest corporate sustainability report. This document underscores our resolve to operate transparently and deliver measurable progress. We have set targets to reduce scope 1 and 2 emissions by 42% and scope 3 emissions by 25% by 2035. We are also aiming for a 10% reduction in water consumption and plan to achieve zero waste to landfill at 75% of our sites, or 34 locations, by 2035. These goals reflect our commitment to building a more resilient, sustainable enterprise and making meaningful contributions to a better world. I will now turn the call over to James for a comprehensive financial update. James M. Till: Thank you, Curtis. Good morning, everyone. Turning to our financial results on Slide 11, after adjusting for the impacts of the winter storms in North America, we delivered performance that was in line with our expectations. Volumes and earnings came in as anticipated while we continued our trend of strong free cash flow generation, which we have demonstrated since the closing of the merger. Our teams have done an exceptional job of advancing synergy realization and making substantial progress on Project CORE, which resulted in adjusted EBITDA remaining essentially flat for the quarter as gains from internal initiatives were offset by external headwinds. During the quarter, we generated a robust $73 million of free cash flow, reflecting our focus on operational excellence, a disciplined capital expenditure approach, and working capital improvement initiatives. Over the last twelve months, we generated $128 million of adjusted free cash flow, representing a free cash flow yield of over 40% relative to our quarter-end market capitalization. For the quarter, sales were $796 million, as solid performance across adult and infrastructure product categories was offset by weather-related disruptions in North America and continued broad-based market softness in Europe. Adjusted EBITDA for the quarter was $90 million, as contributions from synergies and Project CORE were offset by the headwinds from the winter storm shutdowns, as well as weaker demand in Europe and negative mix in South America. Turning to our segment performance, beginning with the Americas on Slide 12. Despite the winter storm impacts, we achieved volume growth in our adult and infrastructure categories and saw normalization toward the end of the quarter in South America as we lap the Asia import pressures discussed on prior calls. Reported revenues reflected the contractual pass-through of lower raw material costs during the quarter, which pressured pricing but did not have a material effect on underlying profitability. Adjusted EBITDA in the Americas declined by $6 million compared to the prior year. Although winter storms pressured reported volumes, the most pronounced impact was on our conversion cost and product mix. As constrained capacity areas did not fully recover during the quarter, we do anticipate recovery of these areas in 2026. Turning now to the Rest of World Division on Slide 13. We experienced a year-over-year decline in revenues in the quarter, as strength in the European wipes business was more than offset by ongoing general softness in Europe and the pass-through of lower raw material costs. Adjusted EBITDA for the Rest of World division increased by an impressive 19% to $32 million. The improvement reflects our progress on disciplined cost management and synergy realization, as the division's performance illustrates the positive impacts of our focus on operational efficiency and portfolio optimization. Turning to capital allocation on Slide 14. Aligned with our capital allocation priorities, we repaid $36 million of outstanding debt during the quarter, bringing our debt repurchases for 2026 to $63 million. These actions reflect our continued focus on strengthening the balance sheet while maintaining a disciplined and balanced approach to capital deployment. We closed the quarter with approximately $600 million of available liquidity, providing a strong financial foundation to navigate ongoing inflationary pressures, fund strategic investments, and pursue attractive growth opportunities while preserving flexibility in an increasingly dynamic geopolitical environment. From a guidance standpoint, after incorporating the March inflation, our target range remains unchanged. However, while we benefit from efficient pass-through mechanisms, we are operating in an environment of potentially unprecedented volatility, both in terms of the magnitude and timing of raw material inflation. As a result, we would expect some headwinds in the third quarter followed by recovery in quarter four. This concludes my financial review, and I will turn it back to Curtis. Curtis L. Begle: Thank you, James. This quarter's performance reflects the balance we have in our portfolio, our global scale, and our focus on improving our cost competitiveness. We have recovered from operational disruptions caused by the winter storms, worked closely with our customers to manage the negative impacts of the war in Iran, and maintained our long-term focus on business improvement. Our confidence in our business drove our debt repayment in the quarter. As we look ahead, there is uncertainty, but we remain steadfast in our commitment to delivering improved value for our stakeholders. Operator, please open the line for questions. Operator: Thank you. Please press 11. If your question has been answered and you would like to remove yourself from the queue, press 11 again. Our first question comes from Gabrial Shane Hajde with Wells Fargo. Your line is open. Gabrial Shane Hajde: Curtis, James, good morning. I know it was one month in March that you faced some of these higher costs, and the raw material suppliers tried to push in some price increases pretty quickly. I suspect that you had some level of raw material that sits on the books, and then by the time it filters through the income statement, maybe that mitigates some of the impact in the immediate short term. But you talked about having a lag impact on the third quarter. Can you give us a sense, with five months left for the second half, how you are thinking about the cadence and what you alluded to at the end of your remarks there, James, on EBITDA progression? Curtis L. Begle: I will cover the first part and then kick it over to James, Gabe. First, as we did see some of the inflationary measures coming through and anticipated them—historically, we have experienced some of these things, even if you go back to Katrina and Rita, where you had unprecedented lifts in a very short period of time—the most responsible and appropriate thing to do is to ensure continuity of supply for our customers. That is going to require whatever it takes to ensure that you are paying for the product to get it in. The immediate action and response from our commercial team I was extremely pleased with and proud of, getting with customers as soon as possible to start to address where we may have a quarterly price change versus monthly. In many cases, as we have talked about before, we are very efficient in our pass-through mechanisms for those inflationary costs. But whenever it goes up to the levels that it has, it is going to require shortening that window, and these are abnormal times. In terms of the collaboration with customers, it has been very positive. Ensuring that we get them supplied is paramount across the globe, and, more importantly, staying in regular communication. One thing we did not highlight as much on the script that I want to address is there are other increases you experience outside of just the raw material pass-throughs—freight, logistics, energy, etc. In addition to moving with the monthly price index moves, we work with customers on identifying surcharge opportunities and ensuring continuity of supply for them. James, I will let you cover how we are seeing the back half and the recovery. James M. Till: Thanks, Gabe, for the question. As Curtis highlighted, from an earnings standpoint the teams jumped in quickly to mitigate those gaps. The current environment is pretty fluid. My remarks in terms of headwinds are more in terms of cash. From a cash standpoint, the teams are working with customers and with vendors to offset any pressure that we would see in Q3 and offset that through the remainder of the year as we finish out the back half. Gabrial Shane Hajde: For posterity, you talked about reiterating the guidance—I think $3.8 to $4.1 of EBITDA and free cash of $90 to $110. Both of those elements are what you are talking about. And then, relatedly, cash flow generation was super strong in the first half—congratulations on that. Is there anything seasonally we should consider? There is not a lot of history to look to. It would seem to suggest, to your point, suppliers may give you a little bit of relief on the AP side, but with cost going up, it would consume cash. One of your prior parent companies gave a rule of thumb that for every penny it was roughly $7 million of cash consumption. Is there anything that you can help us with in that regard? Thank you. James M. Till: Sure. I remember that well. Unfortunately, it is not quite as mechanical for us. The straight math is $2 million a penny, but that is before offsetting actions. Then you think about working with customers, working with vendors, working on inventory levels. I would be remiss if I did not highlight that it is very fluid in terms of where we will be by the end of the year in terms of this inflation—it has even changed a lot in the last 24 hours. You are absolutely right that we had a very strong first half of the year. Q3 generally is a softer cash generation quarter for us due to timing of some payments and things like that. I am really proud of where the team started; it gave us a good head start as we get into the back half. There is a lot of uncertainty in terms of where it all plays out, but the teams are working diligently to offset the pressures that we see on cash, and on earnings we were very quick to try to address those gaps. Gabrial Shane Hajde: Last one for me. Order patterns or anything that you have observed, 60-some days into the conflict, that you would share with us? Orders—anything like that is flagging? Curtis L. Begle: That is a good callout, Gabe. If you recall last year at this time, we had concerns related to order bookings with the announcement of the tariffs and some of the behaviors that we started to see from customers. In this case, as we headed into Q3, bookings are very normal for us. If anything, we are still fulfilling orders that were impacted by the storms in February, so there is still some catch-up there. There are customers that get low on inventories in a couple of areas, so we have looked to support them. From a year ago to now, I would say we feel good about where our bookings are. I do not want to declare victory or have a one-month trend declare what the next two months might look like, but coming out of March into April, we feel good about where the volume sits and the demand outlooks are. We are staying close to customers, both existing and potentially new customers, as they are identifying challenges within their own supply streams. We are being very responsible and looking to make sure that whatever we pick up from a customer order standpoint is above our expectations from a profit margin standpoint. Operator: Thank you. Our next question comes from Kevin William McCarthy with Vertical Research Partners. Your line is open. Kevin William McCarthy: Curtis, I think I heard you reference a shift to a monthly pricing paradigm. Would you elaborate on that in terms of the reception among your customers, what constraints, if any, you may have given existing contracts, and how we should think about lag effects as you shift to this new pricing strategy? Curtis L. Begle: Thanks, Kevin, and good to hear your voice. Historically, as we have communicated, we are very efficient in terms of the pass-through mechanisms in a normal environment. If polyolefins go up or down 3% to 6% in a quarter, it typically does not have a material impact, positively or negatively, on our financials. In this case, these are abnormal times. Contracts are meant to be established for normal environments. We acted quickly. Our customers told us we were the first ones to come to them with this, and that is what we would expect as the largest player. The entire market understands the negative impact this can have on businesses in our space. I am really proud of what the team has done in terms of collaborative discussions with customers—ensuring supply so they can run their lines and provide products on the shelf is of the utmost importance. As expected, after tense early negotiations, our customers as a whole have been very supportive. We are shifting in the near term from quarterly to monthly with some customers, understanding that will persist until things settle down. Then we would go back to our normal pass-through mechanisms. Kevin William McCarthy: Understood. I want to follow up on your comments regarding winter storms Fern and Hernando. What was the EBITDA impact on Magnera Corp.'s fiscal second quarter from those storms? Do you expect to recover the majority of it or all of it in the back half, and what is the cadence of that? Curtis L. Begle: If you recall during the earnings call in February, we highlighted $4 million to $6 million of pressure because of those shutdowns, and it came in at about $5 million total for the quarter. It is a matter of us catching up with those orders and getting the lines to run efficiently, and our expectation is to recover that through the balance of the year. Kevin William McCarthy: Last one for me, James, just to follow up on your reiteration of the free cash flow range. Can you provide an update on some of the moving parts? I would have thought that working capital today would require a larger use of cash than we might have thought pre-war. What are you doing to try to offset that and maintain the range? James M. Till: We were roughly $10 million positive through the first half, thanks to really good work by the team and all the efforts that delivered a strong quarter as well as first half and enabled us to pay down debt. As we think about the inflationary pressure we are going to have on working capital from a cash standpoint, the outlook is very fluid. The teams are doing a nice job of working with customers in terms of shortening terms—which they understand as we are having the conversations on shortening the lag as well. We are talking with our vendors in terms of temporary terms, as well as looking at our inventory levels. All the things we would normally do, but in this situation, everything gets heightened even more to offset those pressures. Operator: Thank you. Our next question comes from Roger Spitz with Bank of America. Your line is open. Roger Spitz: Hi, thanks very much. I think at one point you gave a split of your sales by the amount subject to contract with pass-through mechanisms, which we have been talking about going from quarterly to monthly resets; secondly, subject to general price change announcements; and third, spot sales. Do you have an update on that? Curtis L. Begle: Thanks, Roger. We have done a really good job—and we talked about it last year—as we started to put in new contracts, particularly around some of the legacy Glatfelter customers, which is a good portion of the fiber-based business. We were roughly 70% a year ago; that is closer to roughly 85% on any contract customers. If you think about the mix across the organization, I would say about 20% of the total portfolio is subject to general price increase mechanisms or spot business. Product lines like Typar, for instance, typically have annual adjustments, and we have recently gone out with an increase in that infrastructure space. Roger Spitz: Great. That is it for me. Thank you. Curtis L. Begle: Thanks, Roger. Operator: Thank you. Our next question comes from Edward Brucker with Barclays. Your line is open. Edward Brucker: Thanks for taking the question. Just to add on to that, the business that is not on contract pass-throughs—how does pricing work there? Is it through negotiated pricing or price increases? And secondly, the contract pass-throughs—are those just for raw materials, and then you have to do surcharges on top of that to offset freight, energy, and logistics? Curtis L. Begle: Yes, correct. To answer your second question first, historically and strategically our input raw material costs make up the majority of our cost of goods sold, and those are on indexes and baked into the contracts. In times like this—when it escalates so quickly—those are the discussions we have with customers to ensure we can keep them in supply. For other inflationary costs, we typically have openers in the contract language to have those discussions with customers, show them the benchmarks and the changes, and then put those through as a temporary or somewhat longer-term surcharge to recover some of those costs. If escalation continues, we have to address it with additional surcharges. At this point, we have worked really closely with customers on roughly 80% to 85% of our total portfolio. The other portion is balanced out by some of our branded business that we sell in the market, like our Typar brand in the building construction market and our Centerra and Chicopee wipes businesses. Those are price pass-throughs and updates throughout the year where needed and appropriate. Less than 10% of our business I would consider spot, and that is negotiated typically quarter to quarter or order to order, much like bidding on a campaign for a particular quarter if we have some line time that makes sense to go out and get some spot business. Edward Brucker: That is helpful. And on capital allocation, you have done an impressive job reducing debt the past two quarters. Do you expect to continue to chip away at debt? Maybe if you have a debt reduction goal, that would be helpful. And how have you been taking that debt out—has it been through open market purchases? James M. Till: Our capital allocation approach has been to delever and pay down debt, and we do that efficiently with our cash, including in the open market, as you would expect. That has been the case for the entirety of this current year. We gave a target at the beginning of the year of roughly a 100 of debt paydown this year based off our guided free cash flow range, and that has not changed. Edward Brucker: Got it. Thanks. Operator: Thank you. Our next question is a follow-up from Kevin William McCarthy with Vertical Research Partners. Your line is open. Kevin William McCarthy: Yes, thank you and good morning. Question for you on your sequential margin progression. As we think about this wave of cost inflation, particularly on resins, being unprecedented—if you were to recover that cost inflation dollar for dollar, maybe your top line would inflate rapidly and you would be EBITDA neutral because you recovered one for one. But one consequence is your percentage margin would decline sequentially. Is that the right way to think about it as you move from March into June? I think you are a FIFO accounting company—maybe that helps a bit. Can you talk through the moving parts and what we should expect in terms of your sequential margin trajectory? Curtis L. Begle: You are spot on. As you think about the pass-through mechanisms, it will increase the top line, which is why we cover both top line and volume—overall organic volume growth—in a particular quarter. You would anticipate stable and expected EBITDA dollars on a higher sales dollar number, which in essence would reduce your EBITDA percentage by some basis points. In general, for us, it is really focused on earnings, free cash flow generation, and—even in a deflationary environment—you may see your top line drop while bottom-line margin improves. We focus on the physical volume we sell and the EBITDA dollars that come along with that. Kevin William McCarthy: And just to follow up on the customer order patterns—are your customers, in any cases, trying to get ahead of what is likely to be meaningful inflation, or are they not doing that? If they are, how do you approach that? Do you try to control the pace of orders in some fashion? What are you seeing and hearing? Curtis L. Begle: We did not experience swings as much as we have historically. In some cases, there is only so much we can make in a given quarter, month, or week. As we take those orders, we ensure we keep customers in supply, understand where their inventory positions may be, and we may have certain inventory levels we keep as safety stock for them. We have not seen anything particularly abnormal. They typically operate on lower inventories and have limited warehouse space. We are FIFO, with roughly 60-day turns as a whole, and certain product lines at about 14 days. We are still catching up with some of the orders that were impacted by the February storms, and that is what we expect throughout the balance of the year. Kevin William McCarthy: Perfect. Thank you again. James M. Till: Sure. Operator: Thank you. There are no further questions at this time. I would like to turn the call back over to Curtis L. Begle for closing remarks. Curtis L. Begle: Thank you, Operator, and thank you again for joining us today and for your interest in Magnera Corp. We look forward to updating you on our progress in our next quarter and seeing many of you at the conferences scheduled in June. Have a great day, everybody. Operator: Thank you for your participation. You may now disconnect. Before you buy stock in Magnera, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Magnera wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Magnera (MAGN) Q2 2026 Earnings Transcript was originally published by The Motley Fool

CHARLOTTE, N.C., May 06, 2026 (GLOBE NEWSWIRE) -- Second Quarter Highlights GAAP: Net sales of $796 million, Operating income of $17 million Non-GAAP: Adjusted EBITDA of $90 million Free cash flow $73 million, representing a twelve-month adjusted free cash flow yield of over 40% as of quarter-end Curt Begle, Magnera’s CEO, commented: “Magnera delivered a solid second quarter in line with our expectations as we remain steadfast during this time of significant global uncertainty to deliver on our full-year 2026 Adjusted EBITDA and free cash flow guidance. We made $36 million in debt repayments during the quarter and generated $73 million of free cash flow demonstrating our disciplined focus on operational excellence, capex deployment, and working capital improvement initiatives. Since the start-up of Magnera, we have demonstrated the resiliency of our business against an on-going challenging global macro environment. Our strategic focus remains centered on the pillars of cost optimization, portfolio differentiation, and commercial excellence. Our disciplined commitment to these priorities will continue to position Magnera to deliver growth in long-term shareholder value.” Key Financials Consolidated Overview The net sales decline included a $57 million decrease in selling prices primarily due to product mix and pass-through of lower raw material costs and a 2% organic volume decline partially offset by favorable foreign currency changes of $48 million. The volume decline was primarily attributed to winter storm disruptions in North America and general market softness in Europe. The adjusted EBITDA was up 1% as a result of favorable price cost spread of $2 million and a $2 million favorable benefit from foreign currency changes were partially offset by lower volumes. Americas The net sales decline included a $42 million decrease in selling prices primarily due to product mix, pass-through of lower raw material costs and a 1% organic volume decline. The volume decline was primarily attributed to winter storm disruptions in North America. The adjusted EBITDA decline was primarily a result of unfavorable price cost spread of $5 million. Rest of World The net sales increase included a favorable foreign currency change of $37 million partially offset by a $15 million decrease in selling prices primarily due to product mix, pass-through of lower raw material costs and a 4% organic volume decline. The volume decline was primarily attributed to general market softness in Europe. The adjusted EBITDA increase was primarily a result of favorable price cost spread of $7 million as the result of synergy realization and mix improvement and a $2 million favorable benefit from foreign currency changes partially offset by softer volumes. Investor Conference Call The Company will host a conference call, May 7, 2026, at 10:00 AM U.S. Eastern Time to discuss the March 2026 quarter results. The webcast can be accessed here. A replay of the webcast will be available via the same link on the Company’s website after the completion of the call. By Telephone Participants may register for the call here now or any time up to and during the time of the call and will immediately receive the dial-in number and a unique pin to access the call. While you may register at any time up to and during the time of the call, you are encouraged to join the call 15 minutes prior to the start of the event. About Magnera Magnera Corporation (NYSE: MAGN) serves 1,000+ customers worldwide, offering a wide range of material solutions, including components for absorbent hygiene products, protective apparel, wipes, specialty building and construction products, and products serving the food and beverage industry. Operating across 45 global facilities, Magnera is supported by approximately 8,000+ employees. Magnera’s purpose is to better the world with new possibilities made real. For more than 160 years, the Company has delivered the material solutions their partners need to thrive. Through economic upheaval, global pandemics and changing end-user needs, we have consistently found ways to solve problems and exceed expectations. The distinct scale and comprehensive portfolio of products brings customers more materials and choices. Magnera builds personal partnerships that withstand an ever-changing world. Visit Magnera.com for more information and follow @MagneraCorporation on social platforms. Non-GAAP Financial Measures and Estimates This press release includes non-GAAP financial measures including, but not limited to, Adjusted EBITDA, free cash flow, and comparable basis net sales and adjusted EBITDA. A reconciliation of these non-GAAP financial measures to comparable measures determined in accordance with accounting principles generally accepted in the United States of America (GAAP) is set forth at the end of this press release. Information reconciling forward-looking adjusted EBITDA and adjusted free cash flow are not provided because such information is not available without unreasonable effort due to high variability, complexity, and low visibility with respect to certain items, including debt refinancing activity or other non-comparable items. These items are uncertain, depend on various factors, and could be material to our results computed in accordance with U.S. GAAP. Forward-Looking Statements This document contains certain statements that are “forward-looking” statements within the meaning of the federal securities laws and are presented pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking” statements include, but are not limited to, statements with respect to our future financial performance and condition, results of operations and business, our expectations or beliefs concerning future events, plans, objectives, expectations and intentions, and other statements that are not historical facts. These statements may contain words such as “believes,” “expects,” “may,” “will,” “should,” “would,” “could,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “projects,” “outlook,” “guidance,” “anticipates” or “looking forward” or similar expressions. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. These forward-looking statements are based upon the current beliefs and expectations of the management of Magnera and are subject to risks and uncertainties that may change at any time. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Although it is not possible to identify all of these risks and uncertainties, they include, among others, the following: global economic conditions; inflation; the cost and availability of raw materials and energy; disruption of our supply chain; the adverse impact of weather events on our facilities, inventory and suppliers, as well as adverse effects on our customers, suppliers and other business partners; the effect of competition on our business; our inability to integrate future acquired companies or to realized expected operating synergies; synergies expected to be achieved in connection with our business combination with a subsidiary of Berry Global Group, Inc.; our inability to retain our officers and employees or the occurrence of labor disputes; disruption of our information technology systems, including as a result of a cyber breach; risks associated with operating internationally, including fluctuating exchange rates, tariffs, differing tax laws and regulation; litigation and regulatory investigations; and disputes related to intellectual property used in our business. Additional information regarding these risks and uncertainties and other risks applicable to our business are described in additional detail in our reports filed with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the fiscal year ended September 27, 2025, and other filings that we make with the SEC. These risk factors may not contain all of the material factors that are important to you. New factors may emerge from time to time, and it is not possible to either predict new factors or assess the potential effect of any such new factors. Accordingly, readers should not place undue reliance on those statements. All forward-looking statements are made as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. Consolidated and Combined Statements of Operations (Unaudited) Condensed Consolidated and Combined Statements of Cash Flows (Unaudited) Condensed Consolidated and Combined Balance Sheets (unaudited) Reconciliation of Non-GAAP Measures and Estimates (in millions of dollars) IR Contact Information Robert Weilminster EVP, Investor Relations [email protected]