Overview

• U.S. materials solutions provider's Q2 net sales fell 3% yr/yr on lower prices and volumes

• Adjusted EBITDA for Q2 rose 1% yr/yr, aided by price-cost spread and currency benefits

• Company generated $73 mln in free cash flow and repaid $36 mln in debt during Q2

Outlook

• Magnera says it remains committed to full-year 2026 Adjusted EBITDA and free cash flow guidance

• Company cites significant global uncertainty and challenging macro environment impacting outlook

Result Drivers

• LOWER SELLING PRICES - Co said a $57 mln decrease in selling prices, mainly due to product mix and pass-through of lower raw material costs, weighed on net sales

• VOLUME DECLINES - Co said a 2% organic volume decline was mainly due to winter storm disruptions in North America and general market softness in Europe

• CURRENCY BENEFITS - Co said favorable foreign currency changes of $48 mln partially offset sales declines and contributed $2 mln to adjusted EBITDA

Company press release: ID:nGNXbnq3jj

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Sales		$796 mln	$809.42 mln (2 Analysts)
Q2 Adjusted EBITDA		$90 mln	$89.79 mln (2 Analysts)
Q2 Operating Income		$17 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the textiles & leather goods peer group is "buy."

• Wall Street's median 12-month price target for Magnera Corp is $14.00, about 26.5% above its May 6 closing price of $11.07

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 11 three months ago

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