Mativ Q3 sales fall, missing estimates, after tornado disruption

Overview

• Specialty materials maker's Q3 sales fell 2.8% yr/yr, mainly due to tornado impact

• Adjusted EPS for Q3 rose to $0.31

• Adjusted EBITDA for Q3 declined 7% yr/yr

Outlook

• Company expects full-year financial performance to be ahead of prior year

• Company expects inventory losses from tornado to be fully recoverable

• Company says it is focusing on initiatives to accelerate sustainable, profitable revenue growth

Result Drivers

• FAM SEGMENT GROWTH - Higher volume/mix and increased selling prices in Filtration & Advanced Materials segment drove sales growth

• TORNADO IMPACT - July tornado led to lower sales and volumes in Sustainable & Adhesive Solutions, especially in Paper & Packaging

• OPERATIONAL DISRUPTION - Adjusted EBITDA growth was hampered by operational disruption from the July tornado, per CEO Shruti Singhal

Company press release:

Key Details

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

Analyst Coverage

• Wall Street's median 12-month price target for Mativ Holdings, Inc. is $21.00, about 88% above its November 3 closing price of $11.17

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• Nov 2 - Celanese Q3 sales rise 6%

• Nov 4 - Solstice Advanced Materials beats Q3 revenue estimates on segment growth, raises FY outlook

• Nov 2 - Chemours Q3 adjusted profit misses estimates despite titanium pricing gains

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)