Mativ Holdings' Q4 2024: Contradictions in Tariffs, Healthcare Strategy, and Market Demand Recovery

These are the key contradictions discussed in Mativ Holdings' latest 2024Q4 earnings call, specifically including: Tariff Impact and Strategy, Healthcare Segment Turnaround Sustainability, Impact of Higher Inventory and Input Costs, and Market Demand Recovery:



SAS Segment Performance:
- Sales in the SAS segment were up almost 13% year-over-year on an organic basis for Q4 2024, with adjusted EBITDA up nearly 8%.
- The growth was driven by increased volumes in all categories, particularly in tapes, labels, and liners.

FAM Segment Challenges and Recovery Efforts:
- Sales in the FAM segment were down more than 7% in Q4, with a focus on addressing a quality issue in paint protection film.
- Recovery efforts include improving quality controls, diversifying into medical and optical films, and introducing a mid-tier paint protection product.

Cost Management and Operational Improvements:
- Mativ reduced overhead costs by over $20 million in 2024 and plans for an additional $20 million reduction by the end of 2026.
- These efforts are part of a broader strategy to further reduce costs, streamline operations, and improve profitability.

Leadership and Strategic Alignment:
- Ryan Elwart, the current SAS segment leader, was promoted to lead commercial activities across all of Mativ.
- This is aimed at leveraging the success of the SAS commercial team across the entire organization to drive growth and customer focus.