Mativ Holdings (MH2) Q3 2026 Earnings Report

The call was predominantly positive. Mativ reported strong FAM growth, a commercial space commercialization milestone, year-to-date EBITDA and margin expansion, improved free cash flow, debt reduction, and continued progress in higher-value applications. These positives were partly offset by the tornado's $20 million to $25 million sales impact, SAS declines, healthcare destocking, 50% Canadian tariffs, elevated tax expense, and Q4 temporary cost pressures. Management characterized the headwinds as temporary and maintained expectations for full-year revenue, earnings, and cash generation above prior-year levels.

For Q4, Mativ expects continued momentum across the majority of its business categories, producing year-over-year organic volume growth in both operating segments, with advanced films and filtration remaining key revenue and margin growth drivers; Q4 adjusted EBITDA is expected to remain resilient and broadly stable, with a low single-digit percent moderation year-over-year, driven primarily by temporary headwinds from storm-related costs and North American tariffs, including 50% Canadian tariffs implemented in August. Paper and packaging distribution inefficiency is expected to remain a cost headwind, healthcare customer de-stocking is expected to continue through year-end, with order pattern normalization in early 2027, and Q3’s lost sales are expected to be largely recovered over the next couple of quarters, including in Q4. Mativ remains on track to deliver full-year revenue, earnings, and cash generation ahead of prior year levels and expects reaching the upper end of its target leverage range of 2.5-3.5 times by mid-2027.