Why Mativ Holdings Shares Are Jumping Today

Mativ Holdings, Inc. MATV shares are rising on Thursday.

The company reported fourth-quarter adjusted earnings per share of 23 cents, beating the analyst consensus of 14 cents. Quarterly revenue of $452.30 million missed the street view of $461.05 million. Sales fell 13.7% year over year, reflecting lower volumes.

Adjusted EBITDA was $50.0 million, down 20% versus the prior year, as impacts from lower volumes more than offset net benefits of price/input costs and synergies.

“We developed a comprehensive approach to navigate these headwinds and then realized, as the year progressed, that the macro-environment was even more challenging with profound and prolonged customer de-stocking effects and persistent inflation,” said Chief Executive Officer Julie Schertell. 

The company said it divested Engineered Papers, reduced debt by over 35%, consolidated sites, and achieved targeted Merger synergies ahead of plan. 

In January 2024, Mativ Holdings also announced an organizational restructuring initiative that will reduce the firm’s non-operating costs by $40 million over the next three years.

The company’s total debt was $1.104 billion as of December 31, 2023, and total cash was $120.2 million. As a result, net debt stands at $984 million, down $605 million year over year.

Dividend: The company announced its next quarterly cash dividend of $0.10 per share, payable on March 22, 2024, to stockholders of record as of March 8, 2024.

On August 1, 2023, the company revealed capital allocation changes, including reducing the quarterly dividend from $0.40 to $0.10 per share.

Price Action: MATV shares are trading higher by 30% to $15.29 on the last check Thursday.