Magnera (W2B) Q3 2026 Earnings Report

The call emphasized strong execution: revenue of $857M, adjusted EBITDA up 9% to $99M, realization of full run-rate Project CORE and merger synergies, a successful product launch (Universa), and reaffirmed free cash flow guidance and robust liquidity. Offsetting these positives were persistent raw material inflation with pricing lag in Rest of World, a negative free cash flow quarter, demand softness in Europe, and management lowering adjusted EBITDA outlook to the low end of the prior range. Overall, the operational and strategic progress appears to outweigh the near-term inflation and regional headwinds.

Management reaffirmed full-year free cash flow of approximately $90–$110 million while moving adjusted EBITDA guidance to the lower end of the previously communicated range; for context, Q3 revenue was $857 million with adjusted EBITDA of $99 million (up 9% year‑over‑year and +70 bps vs. prior‑year quarter). They reiterated a pro‑forma adjusted EBITDA target of $405 million once final synergies and Project CORE are fully realized (versus an earlier pro‑forma near $445 million), expect roughly $20 million of run‑rate synergies/CORE to carry into fiscal 2027, and indicated pricing actions should largely flow through in Q4 (with a “couple million” lag in Rest of World to be recovered). CapEx is tracking below the prior ~$80 million guide to a rough run‑rate of ~$60 million, quarter free cash flow was negative but better than forecast, available liquidity is about $575 million, and TSA exit/integration costs will taper as the TSA ends by year‑end 2026.