MATV Q2 2026 - Preliminary Earnings Alert

Event: Quartr Q2 2026 event Retrieved: 2026-08-05T21:05:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=available | financials=earnings release only | transcript=not available (call scheduled 2026-08-06 12:30Z)

Consensus scorecard

Reported results and guidance

No revenue, earnings, or EBITDA guidance is provided in this release. The only forward figures disclosed are the declared dividend and the staggered debt maturity profile:

• Scorecard recap: net sales of $531.8m beat consensus by 4.6% and adjusted EPS of $0.50 beat the $0.28 estimate by 78.6%.
• Sales grew 1.2% year over year and 1.7% organically; adjusted EBITDA of $75.0m rose 12% with margin up 130 basis points to 14.1%.
• CEO Shruti Singhal called it "our strongest financial quarter since becoming Mativ four years ago," citing record adjusted EBITDA and margins.
• Cash from operating activities was $67.9m in the quarter, up 18%; free cash flow was $60.4m, up 24%.
• Total debt was $974.5m and cash $66.3m at 30 June 2026, for net debt of $908.2m; total liquidity was approximately $345.5m ($66.3m cash plus $279.2m revolver availability).
• The two largest non-GAAP adjustments this quarter were $0.25 per share of purchase accounting expenses (mainly non-cash intangible amortization) and $0.16 per share of loss on debt extinguishment.
• The 47% quarterly tax rate is attributed to geographical earnings mix and the inability to benefit from losses in jurisdictions carrying a full valuation allowance.
• SAS segment adjusted EBITDA rose 18.8% with margin up 210 basis points; FAM adjusted EBITDA rose 1.4% with margin up 50 basis points on lower volume/mix, including the impact of an exited facility.

Key bullish aspects

• Both scorecard metrics beat: net sales by 4.6% and adjusted EPS by 78.6%.
• Gross profit grew 9.3% on 1.2% sales growth as cost of products sold fell 0.8%, lifting gross margin 1.6 percentage points to 21.3%; the six-month gross margin gain is similar (+12.4% gross profit on +0.1% sales).
• Adjusted EBITDA of $75.0m rose 12% with margin up 130 basis points to 14.1%, and the company describes both as records.
• Both segments expanded margin: SAS adjusted EBITDA rose 18.8% (+210 bps to 15.3%) on 2.8% sales growth, and FAM held margin up 50 basis points to 17.6% despite a 1.3% reported sales decline.
• Operating profit rose 75.6% to $35.3m, helped by an 81.6% drop in restructuring and impairment expense to $0.7m and a 3.1% cut in nonmanufacturing expenses.
• The GAAP line turned positive: net income of $3.6m and diluted EPS of $0.06 against a $(9.5)m loss and $(0.18) a year ago.
• Six-month operating cash flow rose 65.2% to $68.9m while capital spending fell 29.6% to $15.9m; the company reports $60.4m of second-quarter free cash flow, up 24%.
• Long-term debt fell 4.5% since year end to $970.1m and the maturity profile was refinanced onto a staggered schedule running to 2033.
• Selling and general expense fell 1.0% and research and development fell 26.9% in the quarter, and for six months S&G is down 7.6% and R&D down 20.0%.
• The prior-year comparison no longer carries the $411.9m goodwill impairment booked in the first half of 2025, so the six-month operating line swings from $(410.5)m to $42.6m.

Key bearish aspects

• The topline is essentially flat: net sales grew 1.2% in the quarter and 0.1% for six months, and FAM sales fell 1.3% reported and 0.1% organically.
• The gap between adjusted EPS of $0.50 and GAAP EPS of $0.06 is $0.44, of which $0.25 is recurring non-cash intangible amortization from past acquisitions — an add-back that repeats every quarter.
• The company took an $8.7m loss on debt extinguishment and paid $32.6m of debt issuance costs in the six-month period, so the refinancing carried a material cash and earnings cost.
• Interest expense rose 3.8% to $19.3m on higher average rates on the floating portion of the debt, and six-month interest of $36.8m is more than three times six-month pre-tax income before it.
• Net debt of $908.2m stands against $470.7m of stockholders' equity and $75.0m of quarterly adjusted EBITDA; leverage remains the stated strategic priority rather than an achieved one.
• The 47% effective tax rate cut $3.2m from $6.8m of pre-tax income, and the release attributes it to a structural cause — full valuation allowances in loss-making jurisdictions — rather than a one-off.
• Cash fell 21.3% since year end to $66.3m, and the six-month period is still a $(8.1)m net loss and a $(0.15) diluted loss per share.
• Working capital consumed $2.6m of cash: accounts receivable rose 16.7% and inventories rose 3.4% since year end against 0.1% six-month sales growth, partly offset by a 23.8% rise in accounts payable.
• FAM volume/mix was negative, including the impact of an exited facility, and its growth came from price and currency rather than demand; SAS also had negative volume/mix outside Tapes, Labels & Liners.
• Intangible assets fell 7.4% and property, plant and equipment fell 4.8% since year end while capital spending was cut 29.6%, so the asset base is shrinking faster than it is being replaced.
• Adjusted unallocated expenses rose $0.7m on higher advisory expenses.
• Accumulated deficit widened 9.9% to $(215.1)m and total stockholders' equity fell 5.6% to $470.7m in six months.

Key uncertainties

• The release contains no revenue, earnings, EBITDA, or free cash flow guidance for the third quarter or the full year, so no forward expectation is available from this document.
• No prior-year adjusted EPS or adjusted income figure is given anywhere in this release, so the quality of the adjusted earnings improvement cannot be compared year over year from this document.
• The full non-GAAP reconciliation tables at the end of the release were not read for this preliminary, so the complete bridge from $3.6m of GAAP net income to $28.2m of adjusted income is not verified here beyond the two adjustments the release calls out.
• "Organic" sales growth of 1.7% is stated without a bridge separating price, volume/mix, currency, and the exited facility, so the underlying demand trend is not determinable.
• The exited facility affecting Filtration & Netting volume is not named, sized, or dated in this release.
• The refinancing that produced the $8.7m extinguishment loss and $32.6m of issuance costs is described only as producing maturities staggered through 2033; the new rate structure, tranche sizes, and covenant terms are not disclosed here.
• Total debt of $974.5m does not tie directly to the $970.1m of long-term debt plus $4.4m of current debt without rounding; the release does not reconcile its debt figure to the balance sheet.
• The quarter's free cash flow of $60.4m against six-month operating cash flow of $68.9m implies a weak first quarter, and the release provides no quarterly cash flow statement to confirm the split.
• The tax rate is driven by jurisdictions with full valuation allowances; the release does not state the size of those allowances or the conditions under which they would release.
• Accounts payable rose $38.3m since year end while cash fell $17.9m; the release does not indicate whether payables timing supported the reported free cash flow.
• The release announces the next quarterly dividend of $0.10 per share but does not state a payout policy, a buyback authorization, or a leverage target.
• The 8:30 a.m. ET call on 6 August had not occurred at the time of this report; management's account of guidance, leverage, volume trends, and the refinancing is not assessed at this stage.

Market context

• API Ninjas snapshot: MATV $9.58 on NYSE, volume 378,233, quote timestamped 2026-08-05T20:12:41Z, retrieved 2026-08-05T20:33:00Z. The release was published after the U.S. close on 2026-08-05, one day ahead of the scheduled call; this is a single quote of unstated session basis captured minutes after the close, not a measured reaction to the release.

Source limitations

• Every actual above comes from the Quartr Q2 2026 earnings release document (3667502). Quartr standardized financials for this event are not yet populated.
• The API Ninjas estimate row is dated 2026-08-05 against a Quartr event date of 2026-08-06. Mativ published results after the close on 5 August ahead of a 6 August call, so the one-day drift is inside maximal-mode tolerance; the row carried no fiscal year or quarter, so the exact ticker-and-event-date match path was used.
• API Ninjas supplied no actual or difference fields for this event, so each beat/miss is calculated locally as Quartr actual minus API Ninjas estimate.
• Gross margin percentages, the six-month effective comparisons, and balance-sheet percentage changes not printed in the release are calculated from the release's own columns; where the release prints its own percentage change, that figure is shown.
• Adjusted income, adjusted EPS, adjusted EBITDA, adjusted EBITDA margin, and free cash flow are non-GAAP measures as defined by the company. The prior-year total adjusted EBITDA of $67.2m is not printed as a total in the release; it is the sum of the prior-year segment adjusted EBITDA figures the release does print ($34.9m FAM plus $42.5m SAS less $10.2m unallocated), and it reconciles to the stated 12% growth and 130 basis point margin gain.
• The consolidated statements in this release are unaudited.
• The balance-sheet change column compares 30 June 2026 to 31 December 2025, not to the prior-year quarter; the cash flow statement is six-month, not quarterly.
• Segment gross profit for the prior year and segment adjusted EBITDA dollars for the prior year are shown only where the release prints them.

Source links

• Quartr Q2 2026 earnings release
• Quartr release highlights page
• Quartr release segment detail page
• Quartr release cash flow and debt page
• Quartr release statements of income page
• Quartr release balance sheet page
• Quartr release cash flow statement page