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• Consolidated Net Sales: USD 498.5 million, compared to USD 498.2 million in the prior year.

• Organic Sales Growth: Up 1.4% year over year.

• Adjusted EBITDA: USD 60.8 million, up 10% from USD 55.4 million in the prior year.

• Adjusted EBITDA Margin: Increased 110 basis points year over year.

• Filtration and Advanced Materials Segment Sales: USD 190 million, down 3% versus Q3 of 2023.

• Sustainable and Adhesive Solutions Segment Sales: USD 309 million, up more than 4% on an organic basis.

• SAS Adjusted EBITDA: USD 41 million, up almost 20% year over year.

• Interest Expense: USD 18 million, increased 9% from the prior year.

• Net Debt: USD 981 million.

• Available Liquidity: USD 463 million.

• Net Leverage Ratio: 4.1 times, sequentially flat with Q2.

• Q4 2024 Sales Outlook: Expected to be up mid single digits versus last year.

• Q4 2024 Adjusted EBITDA Outlook: Expected to be down low double digits versus last year.

• 2024 Full Year Capital Expenditures: Approximately USD 50 million, down from previously communicated USD 60 million.

• Depreciation and Amortization Expense: Expected to be around USD 100 million.

• Warning! GuruFocus has detected 6 Warning Signs with MATV.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Mativ Holdings Inc (NYSE:MATV) reported a 10% increase in adjusted EBITDA from continuing operations, reaching USD 60.8 million compared to the prior year.

• The company has successfully implemented a turnaround effort in its healthcare segment, achieving above-market organic sales growth of over 5% and improved profitability.

• Investments in growth areas such as filtration, specialty tapes, and release liners are expected to provide incremental revenue of over $115 million in the next 3 to 4 years.

• Mativ Holdings Inc (NYSE:MATV) has streamlined its operations by reducing its footprint from 48 sites to 35, which is expected to improve margins and reduce costs.

• The company has secured new customer agreements and commitments, including a long-term commitment for release liners with a major consumer goods company in North America.

Negative Points

• Net sales in the filtration and advanced materials segment were down 3% compared to Q3 2023, primarily due to lower volumes in the advanced films category.

• The advanced films category is facing challenges due to weak markets in automotive and construction, increased competition from Asia, and poor operational performance in a major North American plant.

• Interest expense increased by 9% from the prior year, driven by higher interest rates on floating rate debt and a higher revolver balance.

• The company expects Q4 adjusted EBITDA to be down in low double digits versus last year due to timing of incentives, product mix, and extended downtime over the holiday season.

• Demand recovery remains sluggish, with no significant indicators of improvement in the near term, impacting overall sales growth.