US company Mativ's sales drop 3.1% in Q1 FY25

Adjusted EBITDA was $37.2 million, Adjusted loss was $6 million, and Adjusted EPS was $0.14. Adjusted EBITDA was down 19 per cent versus the prior year, as lower SG&A expenses across both segments and higher volume/mix in SAS segment were more than offset by higher manufacturing and distribution costs, unfavourable net selling price versus input cost performance, and lower volume/mix in our FAM segment.

“Since stepping in to lead Mativ eight weeks ago, I have seen firsthand the role we serve as a trusted partner to our customers, enabling them to solve their most complex challenges. However, this past year has been incredibly challenging for our shareholders and employees. We are simply not where we need to be operationally to navigate the current demand environment or future challenges. We are pivoting to a much higher sense of urgency across our company to act swiftly, comprehensively and decisively to undertake the necessary changes to grow market share, return to sustainable and profitable growth, and most importantly restore value to our shareholders,” president and chief executive officer Shruti Singhal said.

“Our top priority is to accelerate our pace of execution with a focus on three key areas: driving enhanced commercial execution, sharpening our efforts to de-lever the balance sheet, and conducting a strategic review of our portfolio. These actions are to ensure Mativ is focused on our highest value initiatives to enable our long-term success. We are executing against a clear strategic roadmap and are taking accelerated actions to position Mativ for profitable growth while de-levering our balance sheet and creating sustainable value for our shareholders,” explained Singhal.

GAAP operating profit in 2025 included $417.9 million of restructuring and impairment expenses primarily related to goodwill impairment. Adjusted EBITDA decreased 30 per cent versus prior year as lower SG&A expenses were more than offset by lower volume/mix, higher manufacturing and distribution costs, and unfavourable net selling price versus input cost performance, the company said in a press release.

“On a consolidated basis, our Q1 operating results, while mixed, came in as we expected at the start of the year. Our SAS segment delivered its fifth consecutive quarter of strong year-over-year results improvements, with organic revenue growth of approximately 6 per cent and adjusted EBITDA growth of more than 3 per cent, while FAM performance was impacted disproportionately by the higher priced year-end inventory we sold through during Q1, as well as continued slow demand in our transportation and construction-related end markets,” added Singhal.

Year-to-date 2025 cash used in operating activities was $15.9 million. Capital spending and software costs totalled $13.9 million. Working capital was a $22.1 million use of cash due to the impact of an increase in accounts receivable, partially offset by a decrease in inventories and increase in accounts payable.

Total debt was $1,122.8 million as of March 31, 2025 and cash and cash equivalents were $84 million resulting in net debt of $1,038.8 million. Total liquidity was approximately $407 million, consisting of $84 million of cash and cash equivalents and $323 million of revolver availability. The company's debt matures on a staggered basis between 2027 and 2029.

Fibre2Fashion News Desk (RR)