10-Q - Magnera Corp (0000041719) (Filer)

Wed, May 7, 9:31 PM (8 days ago)

**Magnera Corporation (MAGN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $824,000, up 48% from $558,000 in Q1 2024, driven by the GLT acquisition. - **Profit Margins:** Operating income was $4,000, down 81% from $21,000 in Q1 2024 due to increased business integration costs and losses from the acquired GLT business. - **Net Income:** Net loss was $41,000, compared to a net income of $14,000 in Q1 2024. - **Cash Flow:** Net cash from operating activities was $7,000, an improvement from a net outflow of $7,000 in Q1 2024. - **Earnings Changes:** Basic and diluted net loss per share was $(1.15), compared to earnings of $0.44 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by the GLT acquisition, partially offset by foreign currency changes and decreased selling prices. - **Operating Income Decline:** Due to increased business integration costs, losses from the acquired GLT business, and foreign currency impacts. - **Comprehensive Income:** Increased loss attributed to currency translation changes and increased net loss. **Trends and Uncertainties:** - **Raw Material Trends:** Temporary shortages managed through supply chain collaboration. - **Economic Factors:** Inflation, tariffs, and currency devaluation pose challenges, but geographic and end-market diversity mitigates risks. - **Acquisition Impact:** GLT acquisition expected to realize annual synergies of $55,000,000 net of incremental standalone costs. **Future Operations Impact:** - **Liquidity:** Adequate cash balance and borrowing capacity to meet short-term and long-term needs. - **Free Cash Flow:** Projected post-Transaction free cash flow of $75-95,000,000 for fiscal 2025, including $75,000,000 of capital spending. - **Market Risks:** Exposure to interest rate and foreign currency risks managed through hedging strategies. **Conclusion:** Magnera Corporation's Q1 2025 financial performance was significantly impacted by the GLT acquisition, leading to revenue growth but also increased costs and losses. The company faces economic uncertainties but remains optimistic about long-term demand and synergy realization from the acquisition. Adequate liquidity and strategic risk management position Magnera for future growth.