Executive Summary

EPS and revenue beat: Adjusted EPS of $0.39 vs S&P Global consensus $0.31; revenue of $513.7M vs $513.0M consensus; adjusted EBITDA margin reached a post‑merger high of 13.0%. Drivers were positive price vs input costs, higher volumes in both segments, and lower manufacturing costs, partially offset by higher distribution costs and unallocated expenses . EPS consensus values from S&P Global.*
Momentum extended: Q2+Q3 2025 represent the strongest two consecutive quarters since the merger for adjusted EBITDA and free cash flow; Q3 free cash flow was $66.7M (+179% YoY) and cash from operations $72.8M (+94% YoY) .
Guidance/tone: Management now expects Q4 adjusted EBITDA to increase “at least 10%” YoY (vs prior “favorable” YoY), maintains 2025 capex at ~$40M and working capital as a ~$10M source; tariff exposure updated to <6% of sales (from <7%) .
Balance sheet: Net debt fell to $931.8M; liquidity ~$517M; net leverage reduced to 4.2x with a pathway toward ~4.0x by year-end; dividend maintained at $0.10/share .
Segment highlights: SAS organic sales +5.6% with margin +200 bps YoY to 15.3%; FAM turned to growth with sales +4.6% YoY and first YoY increase in sales and adj. EBITDA since the merger .

What Went Well and What Went Wrong

What Went Well

Record profitability metrics: Adjusted EBITDA margin reached 13.0%, the highest since the merger; adjusted EBITDA +10% YoY to $66.8M; free cash flow $66.7M, nearly triple YoY .
SAS execution: SAS adjusted EBITDA rose 17.8% YoY to $48.3M with margin +200 bps to 15.3% on favorable price/cost, lower manufacturing and SG&A; organic sales +5.6% .
FAM inflection: “Q3 was the first quarter of growth in sales and Adjusted EBITDA since the merger,” with HVAC and air pollution control up 20%+, water filtration up ~10%, and medical films improving; quote: “We delivered one of our strongest quarters since the formation of Mativ three years ago.” .

What Went Wrong

Distribution costs elevated: Higher distribution expenses pressured consolidated results; management is pursuing warehouse and freight optimization to offset this .
FAM pricing and costs: FAM faced lower selling prices and higher manufacturing costs, limiting EBITDA growth despite volume gains .
Macro/tariffs headwinds: Construction/auto demand remains mixed; cross‑sourcing to mitigate tariffs raised logistics costs; tariff exposure still present (now <6% of sales) .

Financial Results

Consolidated P&L vs prior year and prior quarter

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($M)	$498.5	$525.4	$513.7
GAAP EPS	$(0.38)	$(0.18)	$(0.06)
Adjusted EPS	$0.21	$0.33	$0.39
Adjusted EBITDA ($M)	$60.8	$67.2	$66.8
Adjusted EBITDA Margin %	12.2%	12.8%	13.0%
Cash from Operations ($M)	$37.6	$57.6	$72.8
Free Cash Flow ($M)	$23.9	$48.9	$66.7

Notes: Non-GAAP adjustments include $0.27 per share purchase accounting and $0.18 per share restructuring in Q3 2025 .

Segment performance (Q3 2025 vs Q3 2024)

Segment	Revenue Q3’24 ($M)	Revenue Q3’25 ($M)	Adj. EBITDA Q3’24 ($M)	Adj. EBITDA Q3’25 ($M)	Adj. EBITDA Margin Q3’24	Adj. EBITDA Margin Q3’25
Filtration & Advanced Materials (FAM)	189.6	198.3	36.5	36.9	19.3%	18.6%
Sustainable & Adhesive Solutions (SAS)	308.9	315.4	41.0	48.3	13.3%	15.3%

Balance Sheet & Liquidity KPIs (sequential)

KPI	Q2 2025	Q3 2025
Net Debt ($M)	995.0	931.8
Liquidity ($M)	453	517
Net Leverage (Credit Agreement)	4.5x	4.2x; aiming closer to ~4.0x YE
Dividend per share	$0.10 (declared Aug 6)	$0.10 (declared Nov 5)

Results vs S&P Global Consensus

Metric	Consensus	Actual	Surprise
Revenue ($M)	513.0*	513.7	+0.7
Primary EPS ($)	0.31*	0.39	+0.08 (beat)
EBITDA ($M)	66.5*	66.8 (Adj)	+0.3 (note basis)

Values retrieved from S&P Global.* Note: S&P EBITDA methodologies can differ from company Adjusted EBITDA; use caution when comparing .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA YoY	Q4 2025	“Compare favorably YoY”	“Increase by at least 10% YoY”	Raised/More specific
Cash Flow	Q4 2025	“Compare favorably YoY”	“Similar to prior year”	Tempered
Capex	FY 2025	~$40M	~$40M (on track)	Maintained
Working Capital	FY 2025	~$10M source	~$10M source	Maintained
Cost Savings	Through YE 2026	$35–$40M; $15–$20M in 2025	$35–$40M; $15–$20M in 2025 (on track)	Maintained
Tariff Exposure	Ongoing	<7% of sales	<6% of sales	Improved
Dividend	Ongoing	$0.10 per quarter (continued)	$0.10 declared (Dec 19 pay date)	Maintained

Earnings Call Themes & Trends

Topic	Q1 2025 (Q-2)	Q2 2025 (Q-1)	Q3 2025 (Current)	Trend
Price vs Input Costs	Unfavorable; actions underway	Slightly unfavorable; expected to turn favorable H2	Favorable in Q3; expected favorable in Q4	Improving
Tariffs/Macro	<7% of sales exposed; localized supply chain	<7% exposure; minimizing via cross-sourcing	Exposure updated to <6%; cross-sourcing raising distribution costs	Slight improvement; residual cost drag
FAM Turnaround	Films weakness; plan to regain share	Sequential PPF/films improvement; pipeline building	First YoY growth since merger; HVAC/APC +20%+, water +~10%	Inflecting
SAS Execution	5th straight quarter of EBITDA/margin growth	5th straight organic sales growth; customer wins	6th straight organic sales growth; margin +200 bps YoY	Consistently strong
Deleveraging/FCF	Plan to halve leverage by 2026; capex to $40M	Net leverage 4.5x; FCF to double 2024	Net leverage 4.2x; strong Q3 FCF; liquidity $517M	Improving
Portfolio Review	Initiated; broad scope	Ongoing; cost targets raised to $35–$40M	Continuing; Wilson, NC facility closure (accretive 2026)	Ongoing optimization
R&D/Operations	N/A	Ops excellence programs launched	R&D optimization; safety improved >15%; process yields up	Efficiency gains

Management Commentary

“We delivered one of our strongest quarters since the formation of Mativ three years ago,” citing highest adjusted EBITDA margin and second-highest free cash flow since the merger .
“Adjusted EBITDA came in 10% higher at the top end of [our] range, and we doubled free cash flow versus last year on a year-to-date basis” .
On pricing discipline: “We are very focused on maintaining a positive price versus input cost relationship… formalized [via] a pricing process… governed by a steering committee” .
On FAM: “Q3 was the first quarter of growth in sales and Adjusted EBITDA since the merger… 20%+ growth in HVAC and air pollution… ~10% growth in water filtration” .
On deleveraging: “Our net leverage ratio… has been reduced to 4.2x, and we expect to be even closer to the 4x level by the end of the year” .

Q&A Highlights

FAM trajectory: Management expects continued favorable YoY comps in Q4; strong HVAC/APC and water filtration pipeline; regaining films share, particularly in premium segments in North America and mid‑tier in Asia .
Wilson, NC site closure: <1% of sales; some one-time cash costs; accretive to EBITDA and margins beginning Q1 2026 .
Margin path: Target remains 15% longer term; progress to continue in 2026, but trajectory “gradual” .
Tariff mitigation: Cross‑sourcing under USMCA, pricing actions, and local-for-local supply chains; less than 6% of sales currently subject to tariffs .
Q4 outlook: Adjusted EBITDA expected to be at least +10% YoY, driven by SAS volume, favorable price/cost, and cost savings; seasonality implies Q4 cash flow similar to prior year .

Estimates Context

Q3 2025 vs S&P Global consensus: Revenue $513.7M vs $513.0M*; EPS $0.39 vs $0.31*; EBITDA (company Adjusted) $66.8M vs S&P consensus 66.5M* (note methodology differences) .
Forward consensus (S&P Global): Q4 2025 EPS $0.09*; revenue $469.6M*; Q1 2026 EPS $0.02* (low coverage: 1–2 estimates). Values retrieved from S&P Global.*
Implications: EPS beat and explicit Q4 EBITDA guide (≥10% YoY) suggest upward pressure to Q4 EBITDA/EPS estimates; however, management’s cash flow guide for Q4 is “similar to prior year,” tempering FCF upside near-term .

Key Takeaways for Investors

EPS beat with record post‑merger margin and strong FCF underscore improving execution and pricing discipline; SAS strength continues while FAM inflects to growth .
Guidance effectively raised for Q4 EBITDA (≥+10% YoY), a potential catalyst for estimate revisions and sentiment improvement .
Deleveraging gaining traction (4.5x → 4.2x QoQ) with liquidity at $517M; net debt down $63M QoQ; FCF deployment remains focused on debt reduction .
Cost programs ($35–$40M by YE 2026; $15–$20M in 2025) and R&D/ops optimizations support margin trajectory toward 15% over time .
Tariff exposure reduced to <6%, but distribution cost mitigation is a watch item as cross‑sourcing persists; upcoming warehouse and TMS initiatives aim to offset .
Segment mix is improving: SAS margins expanding; FAM returning to growth with high‑value filtration/films verticals—supporting sustained consolidated margin expansion .
Near-term trading setup: Positive beat/raise dynamic on EPS/EBITDA vs modest Q4 FCF seasonality; watch Q4 volume progression in SAS, price/cost favorability, and distribution cost trends for confirmation of trajectory .

Appendix: Additional Data Points

Q3 tax rate: 42.9% benefit due to one-time adjustment and earnings mix .
Interest expense: $17.7M (down from $18.3M YoY); >80% debt effectively fixed; maturities 2027–2029 .
Dividend: $0.10 per share payable Dec 19, 2025 (record date Nov 28, 2025) .

All consensus estimate figures marked with an asterisk (*) are Values retrieved from S&P Global.

Mativ Holdings, Inc. (MATV)·Q3 2025 Earnings Summary