Executive Summary

Q3 revenue was $332.1M (+0.7% y/y; +0.8% q/q), Adjusted EBITDA was $24.6M (−3.5% y/y; −4.0% q/q), and GAAP EPS from continuing operations was −$0.44 (vs −$0.43 y/y; −$0.35 q/q), reflecting stable top line but continued margin and interest pressure .
Segment mix was mixed: Spunlace EBITDA rose to $4.8M despite Hurricane Helene downtime (+$2.5M y/y), Airlaid EBITDA was $18.0M (−$0.8M y/y but +$2.9M q/q), while Composite Fibers EBITDA fell to $10.1M (−$1.1M y/y) due to new wallcover sanctions .
Balance sheet leverage rose to 3.8x (bank covenant basis) with net debt of ~$846.0M as of 9/30/24 (vs 3.5x and ~$836.4M at 6/30/24), highlighting ongoing financing costs and the pre-merger posture .
Strategic catalyst: merger with Berry’s HHNF business to form Magnera expected to close November 4, 2024; management framed Q3 as the final standalone release and cited sequential recovery in Airlaid and resilience into close .

What Went Well and What Went Wrong

What Went Well

Spunlace delivered EBITDA of $4.8M (+$2.5M y/y) despite Hurricane Helene idle time, supported by stronger Sontara mix and operational gains .
Airlaid showed sequential EBITDA improvement of ~$2.9M versus Q2 on better order patterns in feminine hygiene and tabletop, with European recovery signs noted by management .
CEO emphasized “resilience and progress” across core segments into the Magnera close, underscoring operational momentum as a setup for the combined company .

What Went Wrong

Composite Fibers EBITDA declined to $10.1M (−$1.1M y/y) as “additional sanctions” pressured wallcover demand and muted price-cost dynamics amid pass-through lags .
GAAP loss from continuing operations widened q/q to −$20.0M (vs −$15.8M in Q2) and EPS to −$0.44 (vs −$0.35), reflecting lower operating leverage and higher non-operating expense .
Leverage and net debt increased to 3.8x and ~$846.0M respectively (vs 3.5x and ~$836.4M in Q2), limiting financial flexibility ahead of transaction close .

Financial Results

Consolidated performance (oldest → newest)

Metric	Q3 2023	Q2 2024	Q3 2024
Net Sales ($USD Millions)	$329.9	$329.4	$332.1
Gross Profit ($USD Millions)	$44.5	$36.8	$35.5
Net Loss from Continuing Ops ($USD Millions)	$(19.7)	$(15.8)	$(20.0)
GAAP EPS – Continuing Ops ($)	$(0.43)	$(0.35)	$(0.44)
Adjusted EPS ($)	$(0.23)	$(0.25)	$(0.26)
Adjusted EBITDA ($USD Millions)	$25.5	$25.6	$24.6

Segment performance (Net Sales, EBITDA, EBITDA %; oldest → newest)

Segment	Q3 2023	Q2 2024	Q3 2024
Airlaid Net Sales ($M)	$147.0	$130.6	$138.3
Airlaid EBITDA ($M)	$18.7	$15.1	$18.0
Airlaid EBITDA %	12.8%	11.6%	13.0%
Composite Fibers Net Sales ($M)	$109.7	$117.2	$113.7
Composite Fibers EBITDA ($M)	$11.2	$9.7	$10.1
Composite Fibers EBITDA %	10.2%	8.3%	8.9%
Spunlace Net Sales ($M)	$73.8	$82.2	$80.4
Spunlace EBITDA ($M)	$2.2	$5.6	$4.8
Spunlace EBITDA %	3.0%	6.8%	5.9%

KPIs and balance sheet (quarter-end unless noted; oldest → newest)

KPI	Q1 2024	Q2 2024	Q3 2024
Leverage (bank covenant basis, x)	3.7x (3/31)	3.5x (6/30)	3.8x (9/30)
Cash & Equivalents ($M)	$30.2	$33.9	$41.6
Total Debt ($M)	$875.7	$870.3	$887.6
Net Debt ($M)	$845.5	$836.4	$846.0
Total Capex ($M)	$7.5 (Q1)	$5.7 (Q2)	$8.5 (Q3)
Airlaid Shipments (metric tons)	38,341 (Q1)	37,795 (Q2)	39,069 (Q3)
Composite Fibers Shipments (metric tons)	25,002 (Q1)	25,735 (Q2)	22,862 (Q3)
Spunlace Shipments (metric tons)	16,091 (Q1)	15,937 (Q2)	14,699 (Q3)

Note on estimates: S&P Global consensus data for GLT was unavailable via our tool due to a mapping issue, so estimate comparisons are not provided.

Guidance Changes

No quantitative update was issued in the Q3 press release; the most recent formal guidance was reiterated on the Q2 call. The company also notes it provides Adjusted EBITDA guidance but does not reconcile to GAAP net income due to unpredictability of certain items .

Metric	Period	Previous Guidance	Current (Q3)	Change
Adjusted EBITDA	FY 2024	$110–$120M; management leaning toward lower end	No update in Q3 PR; stance unchanged	Maintained
Capex	FY 2024	$30–$35M	No update in Q3 PR	Maintained
Cash Interest	FY 2024	~ $70M	No update in Q3 PR	Maintained
Cash Taxes	FY 2024	$15–$20M	No update in Q3 PR	Maintained
Working Capital	FY 2024	Breakeven to slightly positive	No update in Q3 PR	Maintained
Net Cash Flow	FY 2024	About −$30M	No update in Q3 PR	Maintained

Earnings Call Themes & Trends

(We did not find a Q3 2024 earnings call transcript; themes below use Q1/Q2 calls and Q3 press release.)

Topic	Previous Mentions (Q1 2024)	Previous Mentions (Q2 2024)	Current Period (Q3 2024)	Trend
European macro/market demand	Europe cited as “most difficult market,” Airlaid weakness and competition from alternative substrates; actions to diversify products/customers	Markets mixed, especially Europe; Airlaid softer; sequential pickup expected H2	Composite Fibers pressured by new wallcover sanctions; Airlaid Europe showing sequential recovery in Q3	Stabilizing sequentially but subject to sanctions/macros
Price–cost management & pass-throughs	Price-cost improvements in Composite Fibers and Spunlace; pass-through timing lags highlighted	Positive price-cost spread across all segments; 3–6 month lag for pass-throughs	Composite Fibers hit by lag as costs rose while prices floated down; segments still managed for spread	Ongoing discipline; lag can create quarter-to-quarter noise
Supply chain/operations	Spunlace TN back after tornado; ops efficiencies driving margin	Utilization: Airlaid ~80% 1H; Spunlace ~70%; Composite ~90% then 80–85% 2H	Hurricane Helene caused idle time at Asheville through October; resumption expected early November	Transitory disruption; production normalization expected
Innovation & sustainability	Airlaid specialty filter media in EU; plant-based caps; biodegradable materials	Airlaid filter product supply agreement progressing	Continued product/mix commentary (Sontara strength)	Building pipeline; mix tailwinds in Spunlace
Merger/integration & capital structure	HSR expiration; integration planning underway	All antitrust clearances & IRS ruling; financing plan: ~$1.6B TLB, $350M ABL; GLT $500M bonds to become secured with equal guarantees	Close targeted Nov 4, 2024; final earnings release as standalone	Imminent close; financing details articulated

Management Commentary

“Despite ongoing external pressures, Glatfelter’s solid third quarter results demonstrated continued resilience and progress in its core business segments… In Airlaid, we were able to leverage stronger order patterns… driving sequential improvements in EBITDA of $2.9 million. In Spunlace, we delivered $4.8 million EBITDA despite impact from Hurricane Helene…” — Thomas Fahnemann, President & CEO .
“As we close the legacy Glatfelter chapter and prepare for a new future under Magnera… We are now well positioned for continued growth and innovation… It’s been a pleasure and a privilege to serve as CEO during this critical time…” — Thomas Fahnemann .

Q&A Highlights

(No Q3 2024 transcript identified; highlights below are from Q2 2024 call for context.)

Airlaid utilization and regional split: Airlaid ~80% in 1H 2024; second half slightly higher; North America “healthier” than Europe; Composite ~90% 1H; Spunlace ~70% .
Working capital seasonality: Use of cash in Q3 as production ramps; Q4 typically strongest for working capital release; net favorable 2H expected .
Transaction financing and bond status: ~$1.6B Term Loan B; $350M ABL; ~$300–$400M of existing debt to be repaid; GLT $500M bonds to become secured and guaranteed at close .
Price–cost pass-through: Mix of floating and non-floating contracts; typical lag ~3 months; management more proactive on non-formula pricing vs 2022 .
FY outlook reaffirmed on Q2 call: Adj. EBITDA $110–$120M (tilt to lower end); cash interest ~$70M; Capex $30–$35M; cash taxes $15–$20M; net cash flow about −$30M .

Estimates Context

S&P Global (Capital IQ) consensus estimates for Q3 2024 were unavailable via our tool due to a mapping issue for GLT; therefore, we cannot provide a results vs. consensus comparison for revenue or EPS at this time. We will update if/when S&P Global mapping is available.

Key Takeaways for Investors

Set-up into Magnera: Q3 shows stable revenue and steady Adjusted EBITDA as GLT heads into the Magnera close (target Nov 4), with Spunlace resilience and improving Airlaid sequentially supporting the near-term earnings base into the combined entity .
Watch Composite Fibers sanctions impact: Sanctions weighed on wallcover in Q3, pressuring EBITDA and margin; monitor sanctions trajectory and pass-through timing as cost trends evolve .
Temporary supply disruption: Hurricane Helene caused Asheville idle time through October; management expected early November resumption—any extended disruption would be a risk to Q4 mix and shipments .
Leverage and cash cost vigilance: Leverage uptick to 3.8x and net debt ~$846M warrant continued focus on cash generation and interest expense into and after close .
No Q3 guidance update; prior targets intact: FY 2024 Adj. EBITDA $110–$120M and cash framework held from Q2; absence of Q3 update suggests focus on closing and integration execution .
Trading implications: Near-term stock drivers include (1) Magnera close mechanics/financing, (2) confirmation of Asheville restart and Q4 production cadence, and (3) signs of European demand stabilization and sanctions overhang resolution—each can shift sentiment on near-term earnings power .

Sources: Q3 2024 8‑K earnings press release and exhibits ; Q2 2024 8‑K and transcript – –; Q1 2024 8‑K and transcript – –. Additionally, the company’s Q3 press release on GlobeNewswire confirms the Q3 highlights and merger timing .

Glatfelter Corp (GLT)·Q3 2024 Earnings Summary