First Quarter Highlights

GAAP: Net sales of $792 million, Operating income of $14 million
Non-GAAP: Adjusted EBITDA of $93 million
Fiscal 2026 guidance: Reaffirmed adjusted EBITDA of $380 - $410 million and free cash flow of $90 - $110 million

Curt Begle, Magnera's CEO, commented: "Magnera delivered a strong first quarter that met our expectations and reinforces our full-year 2026 Adjusted EBITDA and free cash flow guidance. These results reflect the continued focus and execution of our teams across the organization.

Capital allocation remains disciplined and aligned with our commitment to debt reduction. During the quarter, we made $27 million in debt payments demonstrating our confidence in our cash flow generation.

Looking ahead, our global teams remain focused on driving long-term shareholder value through decisive actions centered on our strategic pillars of cost optimization, portfolio differentiation, and commercial excellence. We believe these priorities position Magnera well to deliver sustainable performance and continued value creation."

Key Financials

	December Quarter
GAAP results	2025	2024
Net sales	$792	$702
Operating income	14	(22)

	December Quarter		Reported	Comparable(1)
Adjusted non-GAAP results	2025	2024	Δ%	Δ%
Net sales	$792	$702	13%	(7%)
Adjusted EBITDA⁽¹⁾	93	84	11%	0%

⁽¹⁾

^{Adjusted non-GAAP results exclude items not considered to be ongoing operations. In addition, comparable change % normalizes the impacts of foreign currency and the recent merger with Glatfelter. Further details related to non-GAAP measures and reconciliations can be found under "Reconciliation of Non-GAAP Financial Measures and Estimates" section or in reconciliation tables in this release. Dollars in millions}

Consolidated Overview

The net sales increase of 13% included revenue from the merger of $112 million and favorable foreign currency changes of $36 million that were partially offset by a $52 million decrease in selling prices primarily due to the pass-through of lower raw material costs and a 1% organic volume decline which was attributed to strength in our consumer solutions product categories being more than offset by competitive pressures in South America and general market softness in Europe.

The adjusted EBITDA increase of 11% was primarily due to the contribution from the merger of $8 million.

Americas

The net sales increase in the Americas segment included a 2% organic volume growth, revenue from the merger of $42 million and favorable foreign currency changes of $8 million that were partially offset by a $38 million decrease in selling prices primarily due to the pass-through of lower raw material costs and competitive pressures from imports in South America.

The adjusted EBITDA increase included a contribution from the merger of $5 million and improved organic growth in North America partially offset by unfavorable impacts from price cost spread of $4 million.

Rest of World

The net sales increase in the Rest of World segment included revenue from the merger of $70 million and a $28 million favorable impact from foreign currency changes partially offset by a 5% organic volume decline which was primarily attributed to general market softness in Europe and a $14 million decrease in selling prices primarily due to the pass-through of lower raw material costs.

The adjusted EBITDA increase included a contribution from the merger of $3 million and favorable impacts from price cost spread of $4 million as the result of synergy realization and mix improvement.

Fiscal Year 2026 Guidance - Reaffirmed

Adjusted EBITDA of $380 - $410 million

Free cash flow of $90 - $110 million; cash flow from operations of $170 - $190 million

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