Magnera (MAGN) AI Stock Analysis

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Magnera

(NYSE:MAGN)

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Rating:49Neutral

Price Target:$11.00▼(-6.78% Downside)

Action:reiterated

Date:08/08/26

MAGN’s score is held back primarily by weak financial quality (ongoing net losses, thin gross margins, and elevated leverage) despite strong revenue growth and improved operating/cash-flow performance. Technicals are neutral with a mixed moving-average picture and modestly positive MACD. Valuation is penalized by a negative P/E and no dividend yield data. The latest earnings call was moderately supportive due to reaffirmed free cash flow guidance and synergy progress, but inflation and a lower-end EBITDA outlook temper the upside.

Positive Factors

Strong revenue growth and improving operationsRevenue growth of 55.1% and improving operating margins indicate stronger scale and execution across the business. Although profitability remains incomplete, the shift from deeply negative operating results toward positive EBIT and EBITDA supports a more durable earnings recovery if growth and cost improvements persist.

Negative Factors

Continued net losses and thin gross marginsOngoing net losses show that revenue growth and operating improvement have not yet translated into sustainable bottom-line profitability. Thin gross margins leave limited protection against inflation or execution setbacks, making earnings more sensitive to cost changes and reducing the durability of near-term financial improvement.

Magnera (MAGN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $422.44M
Dividend Yield: ―
Average Volume (3M): 414.50K
Price to Earnings (P/E): -3.8
Beta (1Y): 1.22
Revenue Growth: ―
EPS Growth: ―
Country: US
Employees: 8,500
Sector: Consumer Defensive
Sector Strength: 62
Industry: Household & Personal Products

Magnera Business Overview & Revenue Model

Company Description

Magnera Corporation manufactures and sells non-woven and related products worldwide. It sells its products primarily into consumer-oriented end markets, such as healthcare, and personal care. The company offers personal care and consumer solution pro...

Magnera Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q3-2026)|% Change Since:-12.85%|Next Earnings Date:Nov 24, 2026

Earnings Call SentimentPositive

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.

Positive Updates

Strong Quarterly Financials

Revenue of $857 million and adjusted EBITDA of $99 million for the quarter; adjusted EBITDA increased 9% year-over-year and earnings grew 9% with a 70 basis point improvement in margin versus the prior-year quarter.

Negative Updates

Raw Material Inflation and Pricing Lag in Rest of World

Raw material inflation accelerated meaningfully during the quarter. Pricing actions were implemented but there was a timing lag in Rest of World (RoW) causing under-recovered costs; management noted a few million dollars of catch-up expected to flow in Q4 and RoW adjusted EBITDA declined slightly year-over-year.

Company Guidance

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.

Magnera Financial Statement Overview

Summary

Revenue growth is strong (+55.1% TTM) and operating profitability has improved, with positive operating cash flow (~$172M) and free cash flow (~$113M). However, MAGN remains net unprofitable (TTM net margin ~-3.4%), gross margins are thin (~11%), and leverage is elevated (debt ~1.9x equity) with negative ROE (~-10.8%), keeping overall financial quality below average.

Income Statement

44Neutral

Balance Sheet

38Negative

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.28B	2.19B	1.39B	1.49B	1.08B	916.50M
Gross Profit	360.00M	237.00M	129.71M	148.80M	144.79M	147.87M
EBITDA	236.00M	236.00M	56.89M	-104.46M	87.45M	95.98M
Net Income	-112.00M	-154.00M	-79.05M	-194.21M	6.94M	21.30M
Balance Sheet
Total Assets	3.83B	2.81B	1.56B	1.65B	1.88B	1.29B
Cash, Cash Equivalents and Short-Term Investments	280.00M	230.00M	50.27M	110.66M	138.44M	99.58M
Total Debt	1.96B	2.06B	865.38M	849.60M	787.36M	313.52M
Total Liabilities	2.82B	668.00M	1.31B	1.33B	1.34B	708.95M
Stockholders Equity	1.02B	2.14B	256.85M	318.00M	542.76M	577.93M
Cash Flow
Free Cash Flow	113.00M	120.00M	-59.39M	-78.56M	40.94M	80.86M
Operating Cash Flow	172.00M	192.00M	-25.62M	-40.82M	70.98M	108.99M
Investing Cash Flow	-52.00M	-39.00M	-37.10M	-33.10M	-489.77M	-26.77M
Financing Cash Flow	-114.00M	-109.00M	-949.00K	46.92M	462.35M	-100.31M

Magnera Technical Analysis

Technical Analysis SentimentNeutral

Last Price11.80

Price Trends

50DMA11.78Positive

100DMA12.28Negative

200DMA11.92Negative

Market Momentum

MACD0.05Negative

RSI52.87Neutral

STOCH80.50Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAGN, the sentiment is Neutral. The current price of 11.80 is above the 20-day moving average (MA) of 11.49, above the 50-day MA of 11.78, and below the 200-day MA of 11.92, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 52.87 is Neutral, neither overbought nor oversold. The STOCH value of 80.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MAGN.

Magnera Risk Analysis

Magnera disclosed 32 risk factors in its most recent earnings report. Magnera reported the most risks in the "Macro & Political" category.

Macro & Political - Risks related to catastrophic events or geopolitical conditions that may disrupt the company’s business

Latest Risks Added

2 New Risks

1.Before investing in our securities, we recommend that investors carefully consider the risks described in our annual reports on Form 10-K and any subsequent periodic reports filed with the SEC. Realization of any of these risks could have a material adverse effect on our business, financial condition, cash flows and results of operations. We caution readers that the list of risk factors discussed in our SEC filings may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this report may not in fact occur. Accordingly, readers should not place undue reliance on those statements.Q2, 2026

2.Before investing in our securities, we recommend that investors carefully consider the risks described in our annual reports on Form 10-K and any subsequent periodic reports filed with the SEC. Realization of any of these risks could have a material adverse effect on our business, financial condition, cash flows and results of operations. We caution readers that the list of risk factors discussed in our SEC filings may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this report may not in fact occur. Accordingly, readers should not place undue reliance on those statements.Q2, 2026

Magnera Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

MAGN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMB	78Outperform	$35.90B	18.36	122.57%	4.72%	-12.19%	-19.22%
PG	72Outperform	$374.48B	23.94	29.55%	2.68%	3.52%	-3.74%
REYN	71Outperform	$4.98B	14.41	15.32%	3.89%	2.69%	10.81%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EPC	58Neutral	$1.32B	-14.29	-6.27%	2.10%	-7.00%	-246.78%
CLX	54Neutral	$10.64B	18.26	-1893.55%	5.66%	-5.41%	-26.46%
MAGN	49Neutral	$422.44M	-3.77	-10.77%	―	―	―

* Consumer Defensive Sector Average

Performance Comparison

MAGN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MAGN	Magnera Corporation	11.80	2.98	33.79%
CLX	Clorox Company	88.00	-15.86	-15.27%
KMB	Kimberly Clark	107.94	10.65	10.95%
PG	Procter & Gamble Company	161.57	17.72	12.32%
EPC	Edgewell Personal Care Co	28.57	9.91	53.09%
REYN	Reynolds Consumer Products Inc	23.63	0.05	0.22%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 08, 2026

Magnera AI Stock Analysis