Mativ Holdings, Inc. Q4 FY2025 earnings call

• 2025 was a transformational year with strong results in Q4, including year-over-year improvements in sales, adjusted EBITDA and margin; record free cash flow. • Cultural transformation underway fostering agility, speed, and accountability. • 3 strategic pillars: driving enhanced commercial excellence, strengthening balance sheet, optimizing portfolio. • In commercial excellence, Q4 net sales grew to $463M, organic sales up 1.9% y-o-y. • Strengthening balance sheet: operational and working capital efficiencies, cost-cutting efforts yielding ~$20M savings in 2025, adjusted EBITDA Q4 up 19% to $53.5M. • Optimizing portfolio: comprehensive review, closing underperforming facility in Wilson, NC, streamlining SKUs and R&D resources. • In 2026, cost-saving efforts to deliver additional $15M - $20M of realized savings, leveraging AI as a foundational enterprise capability.

Filtration and Advanced Materials (FAM) segment: Q4 net sales up over 5% vs prior year, with double-digit growth in transportation and industrial filtration, paint protection films and erosion control netting; adjusted EBITDA $33 million, up 26% y-o-y, margins 18.7% (improved 300 bps). Sustainable and Adhesive Solutions (SAS) segment: Net sales largely flat organically, down ~$5M reported; driven by lower-than-expected volumes in labels, automotive tapes and release liners (partly in Europe); adjusted EBITDA nearly $39M, up over 8% y-o-y, margins 13.6% (improved 130 bps).

• Q1 2026 adjusted EBITDA expected to increase 15% - 20% vs prior year, driven by favorable price-to-input cost ratio, operational improvements and SG&A savings. • 2026 capital expenditures expected to be $45M, split ~50% on growth projects and 50% on efficiency and safety projects. • Onetime cash costs between $5M - $10M to fund savings initiatives, $10M investment in net working capital, depreciation, amortization and stock-based compensation $90M combined, interest expense ~$74M, $8M annual fees for accounts receivable securitization facility. • Raw material costs expected to be a $20M - $25M headwind, mainly driven by forecasted market price increases for resins, polymers, pulp and paper, weighted towards second half of the year. • Expect to make progress toward leverage goal of 2.5 to 3.5x in 2026, with additional $15M - $20M in cost savings expected within the year.

Q: Daniel Harriman asked about specific businesses under pressure in SAS and catalysts for improvement, sustainability of FAM momentum, and cadence of free cash flow in 2026.

A: Shruti Singhal said SAS had weakness in automotive tapes, industrial labels, release liners in Europe but focused on share gain opportunities; FAM momentum expected to continue with investments paying off; Scott Minder said free cash flow expected to have a seasonal pattern with small decline in 2026 to fund growth but good results expected long term.

Q: Lars Kjellberg asked about Q1 guidance, market view, commercial pipeline.

A: Shruti Singhal said Q1 guidance 15% - 20% adjusted EBITDA growth with some demand weakness but segments expected to perform well; Scott Minder said top line expected low single-digit volume growth but EBITDA growth from cost savings; Shruti Singhal said commercial pipeline is focused with surgical approach winning in certain segments.

Q: Massimiliano Pilato asked about capturing volumes with muted demand and offsetting input costs, contribution of new projects with Miru, and Q1 savings.

A: Shruti Singhal said collaborative and surgical approach to pricing and share gain; Scott Minder said pricing to recover input costs and capture value; Shruti Singhal said Miru partnership sales expected towards end of 2026 more in 2027; Scott Minder said $5M - $7M of savings lapped in 2026 with rest new initiatives weighted to middle to latter part of the year.