Magnera Corporation Reports 48% Revenue Growth to $824 Million Following Glatfelter Merger

Magnera Corporation reported significant financial results for the quarter ended March 29, 2025, following its recent merger with Glatfelter Corporation. The company achieved net sales of $824 million, a 48% increase from $558 million in the same quarter of the previous year. This growth was primarily driven by $311 million in revenue from the acquisition, although it faced a $26 million adverse impact from foreign currency fluctuations and a $14 million decrease in selling prices. The company recorded an operating income of $4 million, a decline of 81% compared to the prior year's operating income of $21 million, largely due to increased business integration costs and losses from the acquired GLT business.

In the two-quarter period ending March 29, 2025, Magnera's net sales reached $1.526 billion, up 42% from $1.077 billion in the prior year. However, the company reported an operating loss of $18 million, a significant drop from the $9 million operating income recorded in the previous year. The increase in net sales was attributed to $497 million from the GLT acquisition, offset by a $40 million negative impact from foreign currency changes and a 1% organic volume decline attributed to general market softness. The Americas segment generated $893 million in sales, a 24% increase, while the Rest of World segment saw a 79% increase to $633 million.

The merger with Glatfelter, completed on November 4, 2024, has positioned Magnera as a global leader in sustainable solutions, combining GLT's product portfolio with Treasure's proprietary technologies. The company anticipates realizing annual synergies of $55 million from the merger. The acquisition has also led to a restructuring of operations, with the company focusing on integrating GLT's assets and optimizing its product offerings across its customer base.

Operationally, Magnera's workforce and customer base have expanded as a result of the merger. The company is now better positioned to serve major brand owners globally, although it has faced challenges such as increased business integration costs and losses from the GLT business. As of March 29, 2025, the company reported a cash balance of $283 million, primarily located outside the U.S., and is in compliance with all covenants related to its long-term debt, which includes a $785 million term loan and $800 million in senior secured notes.

Looking ahead, Magnera's management remains optimistic about the company's long-term demand fundamentals despite ongoing economic challenges, including inflation and supply chain disruptions. The company projects a post-Transaction free cash flow of $75-95 million for fiscal 2025, which includes $75 million allocated for capital spending. Magnera's strategic focus will continue to be on enhancing market positions and expanding product lines through acquisitions, while managing costs and improving operational efficiencies.