In This Article:
-
Consolidated Net Sales: $459 million, up 4.3% year over year on an organic basis.
-
Adjusted EBITDA: $44.8 million, down 10% from $50 million in the prior year.
-
SAS Segment Sales: $291 million, up almost 13% on an organic basis.
-
SAS Adjusted EBITDA: $36 million, up almost 8% year over year.
-
FAM Segment Sales: $168 million, down more than 7% versus Q4 of '23.
-
FAM Adjusted EBITDA: $26 million, down more than $10 million year over year.
-
Net Debt: $995 million with available liquidity of $451 million.
-
Net Leverage Ratio: 4.4 times.
-
Interest Expense: $20 million, increased $6 million from the prior year.
-
Tax Benefit: 110% in the quarter due to a one-time tax adjustment.
-
Debt Reduction: Paid down more than $50 million of outstanding debt.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
The SAS segment delivered strong performance with a 13% year-over-year organic sales increase and an 8% rise in adjusted EBITDA.
-
Mativ Holdings Inc (NYSE:MATV) successfully reduced over $20 million in overhead costs in 2024 and plans further reductions by 2026.
-
The company expanded its sales pipeline by more than 50% compared to the previous year, indicating strong future growth potential.
-
Healthcare business turnaround resulted in over 10% growth in 2024, with margins accretive to the SAS segment.
-
Mativ Holdings Inc (NYSE:MATV) reduced its debt by over 35% and streamlined its plant footprint by over 25% in the last 18 months.
Negative Points
-
The FAM segment faced challenges with a 7% decline in net sales due to lower volumes in advanced films and netting categories.
-
Higher input and manufacturing costs led to a 10% decrease in adjusted EBITDA from continuing operations.
-
The company anticipates a $10 million to $15 million headwind on input costs due to increases in the price of raw materials.
-
Market demand remains challenged, impacting Q1 2025 results, with higher inventory and input costs expected.
-
The paint protection film segment experienced quality issues in late 2023, resulting in share loss and ongoing recovery efforts.
Q & A Highlights
Q: Can you provide more color on the impact of higher inventory and input costs in Q1 and how you plan to address them over time? A: Greg Weitzel, CFO: We anticipate $10 million to $15 million in increased input costs spread across various areas. We have announced pricing actions to cover these costs, aiming for a net positive outcome over the year. However, Q1 will likely see a moderate negative impact due to higher inventory costs being sold through.