Magnera Corporation

Hello, and welcome to the McNaira Q1 2026 earnings conference call. At this time, all participants are in listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand has been raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. It is now my pleasure to introduce EVP Investor Relations, Robert Wildminster.

Thank you, operator, and thank you, everyone, for joining Magnera's first quarter 2026 earnings call. Joining me, I have Magnera's Chief Executive Officer, Kurt Bagley, and Chief Financial Officer, Jim Till. Following our prepared remarks, we will have a question and answer session. To allow everyone the opportunity to participate, We ask that you limit yourself to one question with a brief follow-up, then fall back into the queue for any additional questions. A few things to note before handing over the call. On our website at mcnera.com, you can find today's press release and earnings call presentation under investor relations. You can also go directly to ir.mcnera.com to review the investor presentations from our recent conference attendance. Lastly, we filed our annual report and proxy statements with the SEC, which can be found on our website under investor relations and financials. As referenced on slide two during the call, we will be discussing certain non-GAAP financial measures. These measures are reconciled to the most directly comparable GAAP financial measures in our earnings press release and in the appendix of the presentation available on our website. Additionally, a reminder that we will make certain forward-looking statements. These statements are made based upon management's expectations and beliefs concerning future events impacting the company and therefore are subject to risks and uncertainties. Actual results or outcomes may differ materially from those expressed or implied in our forward-looking statements. Some factors that could cause the results or outcomes to differ are in the company's latest SEC filings, and our news releases. These statements speak only as of today, and we undertake no obligation to update them. I will now turn the call over to Magnero's CEO, Kurt Bagley.

Thank you, Robert. Good morning, and thank you for joining our call. I am pleased to present our first quarter results and highlight the momentum that we've carried in 2026. For today's update, I'll focus on our financial performance, highlight key innovation efforts to improve our differentiated portfolio mix, and update you on how our business excellence journey is aligned with emerging macro trends. First, our sequential earnings improvement over Q4 was in line with our expectations and reinforces our 2026 adjusted EBITDA guidance of 9% growth, with our synergy realization and project core transformation programs tracking as planned. It is noteworthy to mention that despite consumer spending concerns related to inflation, our customers are indicating resiliency and demand for the essential products we provide. Magnera's improved earnings for our rest of world segment is a result of the intense focus on addressing our cost structure in competitive end markets while increasing our consumer solution mix in our portfolio. Our organic volume growth in North America helped offset the expected year-over-year volume decline in South America due to competitive import pressure from Asia. There are open inquiries in several countries connected to anti-dumping concerns and potential countermeasures. We expect earnings stability in South America in the coming quarters as we lap the prior year comparison in the third quarter. The improved mix in our personal care businesses is a result of addressing the demands of the largest consumer products companies and expanding our premium product lines in private label applications. The continued strength in our consumer solutions is a result of ongoing sustainability infrastructure investments in Europe and Asia. The benefit of our global scale anchors our ability to better manage energy efficiency through increased productivity. I've tasked our Americas team to increase operational progress in North America through targeted investments and operational excellence to enable growth opportunities in oversold platforms. As predicted, the South American markets are stabilizing. reflected by the supply chain alignment we have with our customers. Pivoting now to innovation on slide 7, I will highlight the positive impact our efforts will have on our business mix in 2026 and beyond. Shortly after we launched Magnera, our resources were intentionally deployed to programs that were part of our broader strategy to be a cost-competitive product leader in our chosen markets. We thrive on being the trusted solutions partner to meet the most challenging consumer needs. The presentation materials provided highlight a small sample of our key leading innovations in two categories, with the first being transformational by design. Although these innovations take longer to realize full potential, they address key end market needs. We identify the second category as incremental improvements to current products or introducing an existing innovation to a new market. Last quarter, We launched a transformational breakthrough in barrier protection for healthcare applications. This proprietary innovation delivers fluid repellency requirements for healthcare professionals while ending the need for PFAS chemicals. This innovation not only solves end of life material concerns, it provides the mission critical performance demanded by the end user. Another exciting development is the progress that we have made in with an advanced material solution that extends battery life and accelerates charging times. As lithium ion batteries grow with vehicle electrification and growing defense needs, we developed a product that is a candidate for a government grant supporting regional supply chain priorities in critical national security programs. Next, I'll speak to innovations enabled by Magnera's existing intellectual property and platform capabilities to improve existing products. Our KamiSoft platform is a step improvement in softness while maintaining barrier and tensile strength. We launched this product in North America and have taken that platform to the remaining regions. Last year, we had $15 million in sales and we're seeing growth in mid-single digits as we go into 2026. The benefits to consumers are common in branded and private label personal care products. Before completing my opening comments, I want to clarify how we are winning in the market. In the first quarter, our premium hard surface disinfectant wipes technology proved its value in the face of an elevated flu season. Our ability to meet our customers' dynamic supply requirements demonstrated our flexibility and localized supply chain value, resulting in strong growth in our Americas region. In addition, we were able to support the growing needs for premium private label baby consumer, and disperseable wipes. A second bright spot was growth in European infrastructure enabled by our strong position in essential utility investments and maintenance projects. As Europe has prioritized infrastructure to provide continuity for critical utilities and data cables, we have made operational improvements to increase efficiencies and meet the growing demand. Lastly, our branded GEKA tape which provided required protection against corrosive environmental elements found above ground and undersea for high-voltage cable applications and wind and solar energy expansions, also provided nice gains in the quarter. Turning to slide 10, our strategic priorities are clear, disciplined, and intentionally designed to position the company for a sustained long-term success. At the foundation of our strategy is a commitment to strengthening our global cost structure, ensuring we operate with efficiency, scale, and competitiveness required to earn the right to win in the markets we serve. Equally important, we are focused on delivering product leadership by fostering thoughtful, collaborative innovation across the organization and with our customers. By aligning deep market insight with technical excellence, we aim to develop differentiated solutions that create enduring value and reinforce our leadership positions. Finally, we are advancing a comprehensive set of commercial excellence initiatives to ensure we fully realize the advantages of our portfolio, capabilities and market positions. Through disciplined execution, sharper focus on priority segments and stronger customer engagement, we will maximize our impact in the spaces where we choose to compete and grow. Our strategic direction was constructed to capitalize on established positions in key markets, as noted on slide 11. By design, we continue to balance our product portfolio to ensure financial stability in all economic cycles. We remain confident in our ability to deliver on our full-year financial guidance. Our optimization efforts are well underway, and we continue to cultivate an innovative culture aligned with our commitments to our customers while providing the stable financial results our investors expect. At this point, I will conclude my opening remarks and invite Jim to provide a detailed overview of our financial performance.