Magnera Corporation Reports 51% Increase in Net Sales but Faces $18 Million Net Loss

Magnera Corporation reported significant financial results for the quarter ended June 28, 2025, with net sales reaching $839 million, a 51% increase from $556 million in the same quarter of the previous year. For the three quarters ending June 28, 2025, net sales totaled $2.365 billion, up 45% from $1.633 billion in the prior year. However, the company experienced a net loss of $18 million for the quarter, compared to a net income of $19 million in the prior year, resulting in a loss per share of $0.51, down from earnings of $0.60 per share.

The financial performance reflects the impact of the acquisition of Glatfelter Corporation (GLT), which was completed on November 4, 2024. The transaction contributed approximately $320 million to net sales in the latest quarter. Despite this boost, the company faced challenges, including a 5% organic volume decline attributed to market softness in Europe and competitive pressures in South America. Operating income for the quarter was $13 million, a decrease from $17 million in the prior year, primarily due to increased business integration costs and a decline in sales volume.

Operationally, Magnera's Americas segment reported net sales of $473 million, a 22% increase from $388 million, while the Rest of World segment saw a substantial 118% increase in net sales to $366 million, driven by the GLT acquisition. However, both segments experienced declines in operating income, with the Americas segment reporting $12 million, down from $16 million, and the Rest of World segment maintaining a breakeven operating income of $1 million. The company’s total assets increased to $4.112 billion from $2.807 billion, largely due to the acquisition, while total liabilities rose to $2.981 billion.

Looking ahead, Magnera Corporation anticipates continued challenges from economic conditions, including inflation and supply chain disruptions. The company has initiated capacity rationalizations projected to cost approximately $20 million over the next two years, aimed at optimizing operations and achieving cost savings. Despite these challenges, management remains optimistic about long-term demand fundamentals and plans to pursue additional acquisitions to enhance market positions and product lines. The company projects a post-transaction free cash flow of $75-95 million for fiscal 2025, including $75 million in capital spending.