Mativ Q3 2026 Sales, EBITDA Fall as Tornado Weighs on SAS

Mativ reported lower third-quarter fiscal 2026 sales and adjusted EBITDA as disruption from a previously disclosed July tornado weighed on its SAS segment, offsetting double-digit growth and margin expansion in FAM.

Sales declined 2.8% to $499.5 million from $513.7 million a year earlier. On an organic basis, sales fell 2.3%. The company said the tornado was the primary factor behind the decrease.

Adjusted EBITDA fell 6.7% to $62.3 million, while adjusted EBITDA margin narrowed to 12.5% from 13.0%. Lower volume and mix reduced adjusted EBITDA by $8.1 million, and manufacturing costs and other items created a further $5.9 million drag. Favorable price-cost performance contributed $9.5 million.

GAAP net loss narrowed to $1.2 million from $3.2 million, with GAAP loss per diluted share improving to $0.03 from $0.06. Adjusted earnings per diluted share decreased to $0.31 from $0.39. Gross profit was $97.7 million, compared with $99.4 million in the prior-year quarter.

FAM growth offsets SAS weakness

FAM sales increased 10.2% as reported to $218.5 million and rose 11.6% organically, supported by higher volume and mix as well as increased selling prices. The segment’s adjusted EBITDA climbed 20.4% to $39.6 million, and its margin expanded by 150 basis points to 18.1%.

Mativ attributed the FAM earnings improvement to stronger volume and mix and favorable price-cost performance, partly offset by higher manufacturing costs. Segment gross profit rose to $51.5 million from $42.5 million.

SAS sales declined 10.9% to $281.0 million. The company cited lower volume and mix resulting from the tornado’s impact, continued destocking in Healthcare and unfavorable currency movements. Higher selling prices provided a partial offset.

SAS adjusted EBITDA fell 24.7% to $32.6 million, with margin contracting to 11.6% from 13.7%. Lower volume and mix and higher distribution expense outweighed favorable price-cost performance. Segment gross profit decreased to $46.2 million from $56.9 million.

Unallocated adjusted EBITDA expense was $9.9 million, compared with $9.4 million a year earlier, while unallocated GAAP operating expense declined to $14.2 million from $14.8 million.

Year-to-date cash flow remains above prior year

Despite the third-quarter decline, Mativ said year-to-date profitability and cash generation remained ahead of the prior-year period. Gross profit increased 7% to $295.9 million, cash provided by operating activities rose 3% to $117.4 million, and free cash flow grew 5% to $90.5 million.

The presentation did not include a quantified financial outlook. The disclosed operating uncertainties include the continuing effects of the July tornado, Healthcare customer destocking, currency pressure, and elevated manufacturing and distribution costs. Mativ also cautioned that forward-looking statements remain subject to the risks detailed in its regulatory filings.

All results were presented on a continuing-operations basis and exclude the Engineered Papers business divested in November 2023. Adjusted EBITDA, adjusted EBITDA margin, adjusted EPS, organic sales growth and free cash flow are non-GAAP measures.