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Mativ Second Quarter 2025 Earnings Release Presentation August 2025
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Forward Looking Statements, Non-GAAP Disclosure, & Definitions 2 This presentation may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws that are subject to the safe harbor created by such laws and other legal protections. Caution should be taken not to place undue reliance on any such forward-looking statements because actual results may differ materially from the results suggested by these statements. These forward-looking statements are made only as of the date of this presentation. We undertake no obligation, except as may be required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part I, “Item 1A. Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024, and those described from time to time in our periodic and other reports filed with the Securities and Exchange Commission. Certain financial measures and comments contained in this presentation are “non-GAAP” financial measures. We believe that investors’ understanding is enhanced by disclosing these non-GAAP financial measures as a reasonable basis for comparison of our ongoing results of operations. All non-GAAP (adjusted) figures are reconciled to closest GAAP measure in the appendix. All financial metrics are presented on a continuing operations basis unless noted othe rwise; all per share metrics are on a diluted basis.
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3 • Sales were up 2% organically year-over-year, driven by organic volume improvements in SAS and favorable currency across the company • GAAP loss was $9.5 million, GAAP EPS was $(0.18) • Second-highest adjusted EBITDA and cash flow quarter since the merger, with cash from operating activities of $57.6 million, and free cash flow of $48.9 million, up 25% and 33% versus the prior year period, respectively. • Adjusted EBITDA was up 1% versus the prior year period, as lower SG&A expenses across the company, higher organic volume in SAS and favorable cost mix in FAM, as well as lower SG&A costs were partially offset by higher manufacturing and distribution costs, and unfavorable net selling price versus input cost performance • Expect Q3 adjusted EBITDA to increase 5-10% year-over-year, and Q3 cash flow generation to compare favorably year-over-year. • Also expect Q4 adjusted EBITDA and cash flow levels to compare favorably year-over-year Note: Adjusted EBITDA, Adjusted EPS, and organic sales growth are non-GAAP measures and reconciled in the appendix of this presentation. Please refer to reconciliations at the end of this presentation and in the 8-K and earnings release dated August 6, 2025 for additional details. ($ millions, except EPS) Q2 FY25 Q2 FY24 Sales $525.4 $523.8 Organic Sales $525.4 $512.1 Organic % versus: +2% GAAP EPS $(0.18) ($0.03) Adjusted EPS $0.33 $0.34 Operating Profit (Loss) $20.1 $10.5 GAAP Net Loss $(9.5) $(1.4) Adjusted EBITDA $67.2 $66.6 % versus: +1% Q2 Consolidated Results
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$66.6 $1.8 $(2.0) $0.7 $67.2 Q2 FY24 Volume/Mix Price/Cost Mfg. Costs & Other Q2 FY25 4 Q2 Consolidated Results Variances Net Sales Adj. EBITDA Note: Financials are as reported; Adjusted EBITDA is a non-GAAP measure and reconciled in the appendix of this presentation. Please refer to reconciliations at the end of this presentation and in the 8-K and earnings release dated August 6, 2025 for additional details. $523.8 $(5.4) $(0.3) $7.3 $525.4 Q2 FY24 Volume/Mix Price Currency Q2 FY25Q2 FY24 Q2 FY25CurrencyPriceVolume/Mix Q2 FY24 Q2 FY25Mfg. Costs & Other Price/CostVolume/Mix
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5 • FAM Sales reflecting lower selling prices, lower volume/mix, partially offset by favorable currency translation • SAS Sales were up 5% on organic basis as higher organic volume, higher selling prices, and favorable currency translation were partially offset by sales associated with closed and divested plants • FAM Adjusted EBITDA decreased as lower SG&A expenses and favorable cost mix were more than offset by higher manufacturing and distribution costs, and unfavorable net selling price versus input cost performance • SAS Adjusted EBITDA decreased as lower SG&A expenses, and higher volume excluding the impact from closed and divested plants were more than offset by higher manufacturing and distribution costs ($ millions) Q2 FY25 Q2 FY24 Sales $204.4 $206.4 % versus: -1% GAAP Operating Profit $22.6 $25.2 Adj. EBITDA 40.6 42.3 % versus: -4% Sales $321.0 $317.4 Organic Sales $321.0 $305.7 % versus: +5% GAAP Operating Profit $24.8 $15.6 Adj. EBITDA 45.3 46.2 % versus: -2% Unallocated GAAP Op. Expense $(27.3) $(30.3) Unallocated Adj. EBITDA $(18.7) $(21.9) Q2 Segment Results FAMSAS Note: Adjusted EBITDA, Adjusted EPS, and organic sales growth are non-GAAP measures and reconciled in the appendix of this presentation. Please refer to reconciliations at the end of this presentation and in the 8-K and earnings release dated August 6, 2025 for additional details.
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6 Driving Enhanced Commercial Execution • Leverage successful SAS go-to-market approach across the Company • Harmonize tools, level of empowerment, and organizational support across salesforce • Prioritize growth initiatives, align incentive structures, and delayer • Move existing products into new geographies and adjacent applications • Cross-sell full Mativ portfolio • Make it much easier for our customers to do business with us 2025 Key Priorities To Drive Improved Performance Conduct Strategic Portfolio Review • Strategic review of assets and business lines • Wide range of characteristics on how each product category contributes to Mativ’s bottom line, competitive position, margin profile and portfolio diversity • Ensure strategically balanced contribution • Evaluate opportunities to unlock value and enhance balance sheet and go-to-market positioning • Align capital allocation to highest margin and growth opportunities De-Lever through Margin and Cash Flow Improvement • Announced pricing actions effective in March • Taskforce underway to comprehensively review cost and operating structure • More aggressive asset optimization • Target $15M - $20M* of cost reductions in 2025 • In addition to previously announced $20M wave by year-end 2026 • Target $40M in 2025 capital expenditures • Reduction from $55M incurred in 2024 • Target $20M - $30M inventory reduction by year-end 2025 • Working capital now expected to be $10M source of cash for full year 2025 * Updated management estimate as of August 6, 2025, previous estimate was $10M - $15M of cost reductions
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7 • Additional cost reductions of $15-20 million • Depreciation, amortization and stock-based comp to be around $100 million • Interest expense to be around $75 million plus another $9 million in fees for our A/R facility • Capital expenditures of around $40 million • One-time cash costs to be around $15-$20 million • Working capital to be a $10 million source of cash, driven by inventory reduction of $20-30 million • Normalized tax rate of 24% 2025 Full Year Considerations
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Appendix
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9 Non-GAAP Reconciliation: Segment Reporting
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10 Non-GAAP Reconciliation: Segment Reporting (cont.)
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11 Non-GAAP Reconciliation: Consolidated Reported Results