Magnera 2025 Q3 Earnings Misses Targets with Net Loss Surges 185%

Magnera (MAGN) reported its fiscal 2025 Q3 earnings on Aug 07th, 2025. The company significantly underperformed expectations, swinging to a net loss and posting disappointing post-earnings price action. Magnera confirmed its prior guidance for adjusted free cash flow and EBITDA but failed to raise or revise it.

Magnera’s total revenue surged by 50.9% to $839 million in 2025 Q3, with the Personal Care and Consumer Solutions segments contributing $385.94 million and $453.06 million, respectively. This robust top-line performance was driven largely by the Glatfelter merger, which added $320 million in revenue, though it was partially offset by a 5% organic volume decline.

Magnera swung to a loss of $0.51 per share in 2025 Q3, down from a profit of $0.60 per share in 2024 Q3, representing a 185.0% negative change. The company reported a net loss of $-18 million, a 194.7% deterioration from the net income of $19 million in 2024 Q3, driven by higher operating and financing costs.

The stock price of Magnera has climbed 4.53% during the latest trading day, edged up 0.16% during the most recent full trading week, but tumbled 8.44% month-to-date.

Following the earnings release, the strategy of buying Magnera shares after a revenue beat and holding for 30 days delivered a -47.39% return, significantly underperforming the benchmark. This indicates the strategy failed to capitalize on the positive revenue momentum, highlighting the need for better risk management or tactical alternatives.

Curt Begle, CEO of Magnera, expressed satisfaction with the company’s performance amid challenging market conditions, emphasizing the team’s passion, resilience, and accountability as key contributors to success. He confirmed the company’s original guidance for post-merger adjusted free cash flow and adjusted EBITDA, citing confidence in long-term growth driven by sales and innovation pipelines, the Capacity Optimization and Resource Efficiency program (Project CORE), and synergy delivery.

Magnera confirmed its post-merger adjusted free cash flow and adjusted EBITDA guidance as previously communicated during its second quarter earnings call. The company is on track to deliver adjusted EBITDA within the stated range and emphasized its commitment to capacity optimization, resource efficiency, and synergy realization as strategic enablers of sustainable growth. No new numerical ranges were provided, but the outlook remains aligned with earlier guidance.

Magnera completed the Glatfelter merger, which contributed $320 million to its Q3 revenue. The merger also added $23 million to adjusted EBITDA, though the net sales and EBITDA increases were partially offset by organic volume declines and price/cost spread pressures. The Americas segment saw a $124 million revenue boost from the merger, but this was tempered by a 6% organic volume decline in South America due to competitive pressures from imports. The Rest of World segment benefited from a $196 million revenue boost and a $7 million favorable foreign currency impact, though it faced a 3% organic volume decline due to market softness in Europe.

Magnera is committed to strengthening its credit metrics by paying down debt in the near term. The company reported post-merger adjusted free cash flow of -$13 million in Q3 2025, a stark contrast to $45 million in the prior year period. As of June 28, 2025, Magnera had total debt of $1,999 million and total net debt of $1,723 million, with a leverage ratio of 3.9x. The company will host an investor call on August 6, 2025, to discuss Q3 results in detail.

The post-merger adjusted free cash flow is defined as cash flow from operating activities, less pre-merger free cash flow, less net additions to property, plant, and equipment. The company uses non-GAAP measures like adjusted EBITDA to evaluate management performance and determine performance-based compensation, as these metrics allow for a better period-over-period comparison by removing the impact of non-core items.

Magnera Corporation (NYSE: MAGN) operates across 46 global facilities and serves 1,000+ customers, offering a wide range of specialty materials for the consumer products and personal care markets. With a global workforce of over 9,000 employees, Magnera continues to focus on long-term sustainable growth through innovation, operational efficiency, and strategic synergies. Investors can access further details on the investor relations website or by contacting Robert Weilminster, EVP of Investor Relations, at IR@magnera.com.