Mativ Holdings, Inc.

Welcome to Mathieu's fourth quarter and full year 2025 earnings conference call. On the call today from Mathieu are Shruti Singhal, Chief Executive Officer, Scott Minda, Chief Financial Officer, and Chris Cooper, Director of Investor Relations. Today's call is being recorded and will be made available for replay later this afternoon. At this time, all participants have been placed in listen-only mode. and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star followed by one on your touch-tone phone. If you need to remove yourself from the queue, please press star followed by two. If you require operator assistance, please press star zero. We ask that you please pick up your handset to allow optimal sound quality. It is now my pleasure to turn the call over to Mr. Chris Cooper. Sir, you may begin.

Good morning, everyone, and thank you for joining us for MADF's fourth quarter and full year 2025 earnings call. Before we begin, I'd like to remind you that comments included in today's conference call include forward-looking statements. Actual results may differ materially from these comments for reasons shown in detail in our SEC filings, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. Some financial metrics discussed during this call are non-GAAP financial metrics. Reconciliations to the closest GAAP metrics are included in the appendix of the earnings release, which along with the accompanying slide deck is now available on our website at ir.matters.com. With that, I'll turn the call over to Shruti.

Thanks, Chris. Good morning, everyone, and thank you for joining our call. We appreciate your continued interest in MATEP and are pleased to have this opportunity to share our outstanding results for the fourth quarter and full year of 2025, marking a period of remarkable success and progress. As I reflect on the past 12 months, I am incredibly proud and inspired by the unwavering commitment, agility, and perseverance the MATIF team has demonstrated. 2025 was not just another year. It was a transformational journey for our company. We faced a convergence of external headwinds from anemic demand in certain industrial sectors to a dynamic and often unpredictable trade and macroeconomic environment. Yet, it was also the year we proved that MATF is built to navigate these challenges and emerge even stronger. We not only overcame these obstacles, but also showcased MATF's strength and determination to thrive and grow. Our fourth quarter results were a powerful culmination to this exceptional year. We delivered year-over-year improvements in sales, adjusted EBITDA, and adjusted EBITDA margin. The metric that best showcases our operational discipline was free cash flow. We generated record free cash flow for the full year, more than double compared to the prior year. This is the direct result of an enterprise-wide focus on discipline execution, prudent inventory management, and aggressive expense control. Early on in 2025, our mandate became clear. improve the company's performance, and build a foundation for sustainable, profitable growth. I can confidently say today that we have made significant progress towards that goal. Over the past year, a cultural transformation has been underway at Mattiv that fundamentally reset our trajectory. It fosters agility, speed, and accountability. By streamlining decision making and bringing our teams closer to the customer, we have shifted from a reactive stance to a productive, growth-driven approach, confidently shaping our future. We also moved from a defensive posture, reacting to market volatility, to an offensive one, where we drive our own destiny through focused execution. We established a strong foundation built on three strategic pillars, driving enhanced commercial excellence, strengthening our balance sheet, and optimizing our portfolio. Let's start with the first pillar, commercial excellence. In a global environment characterized by weekend market demand, driving top line growth requires more than just serving the current market. It requires share growth and value maximization. Capping out this year, Q4 net sales grew to $463 million with organic sales up 1.9% compared to prior year. These results validate how our unified sales force is collaborating across segments, leveraging the full matter portfolio to expand our growth pipeline and deliver innovative solutions to both existing and new customers. The resilience of our results also underlines how our portfolio of highly engineered technical materials is instrumental to our customer success. We are partnering with customers to solve their most complex challenges, supporting their global operations with our reliable and localized supply chain and cutting edge products. In the second pillar, strengthening our balance sheet, Operational and working capital efficiencies was central to achieving this objective. Recognizing in early 2025 that volume leverage would be a challenge during the year, we focused on what was within our control, our pricing, our cost structure, our capital investments, and our inventory levels. We successfully drove pricing execution with precision to carefully manage our price versus input cost performance, ensuring coverage of our raw material inflation while we captured additional value through innovation and supply chain excellence. In 2025, our cost-cutting efforts yielded savings across the business of nearly $20 million. The results were evident throughout 2025, culminating with Q4's adjusted EBITDA growing 19% to $53.5 million and margins increased by 180 basis points compared to prior year. This margin expansion is clear evidence that our determined initiatives are taking hold and driving value. Another principle of this pillar is cash flow. I am pleased to report that we generated record free cash flow of $94 million in 2025, increasing nearly 140% year over year. In 2025, with a focus on inventory efficiency, we intentionally lowered our inventory levels by $26 million versus 2024, while supporting full-year organic sales growth of 2.5% and not compromising customer service levels. We also lowered our annual capital expenditures by $15 million while prioritizing safety and growth projects. The additional free cash flow allowed us to reduce our net debt by over $60 million and advance toward our target leverage range. This continued focus on cash flow generation provides us with liquidity and flexibility to navigate future uncertainties while continuing to invest in our highest return opportunities. Finally, our third pillar centers around optimizing our portfolio. Over the past three quarters, we have performed a comprehensive portfolio review, including assets, product categories, facilities, and support functions. In 2025, we took decisive steps enclosing an underperforming facility in Wilson, North Carolina. And we further optimized our supply chain support infrastructure. We streamlined SKUs and optimized R&D resources by prioritizing efforts and expenditures to better leverage resources while minimizing impact to our commercial pipeline. Portfolio optimization remains the top priority for 2026. We are harmonizing our go-to market strategies to match customer needs and demand trends, aligning a broad portfolio with areas of strongest growth. This approach will guide innovation, manufacturing, supply chain, and sales resources, ensuring capital is deployed where it can deliver the greatest impact. With that, let's turn to our segment results for the quarter. Our filtration and advanced materials segment, or FAM, had an outstanding quarter and built on its momentum from last quarter. This marks the second quarter of sales and adjusted EBITDA growth since the merger. Net sales were up more than 5% versus prior year with notable growth in all categories, led by double-digit growth in transportation and industrial filtration, paint protection films, and erosion control netting. In our sustainable and adhesive solution segment, or SAS, sales were down slightly on an organic basis, driven by lower than expected volumes. SAS growth in key categories was led by healthcare, cable tapes, as well as commercial print, more than offset by headwinds in labels, automotive tapes, and release liners partly in Europe. We remain optimistic about overcoming these pockets of softness and are confident in our ability to adapt effectively as market conditions evolve throughout 2026. Before I turn to our outlook, I'll provide a few thoughts on the macro environment, how it affects MATIF, and how we drive value. We are operating in a world of heightened complexity with dynamic trade movements and pockets of significant geopolitical instability. These realities require us to remain agile and adapt our business. MATIV is uniquely positioned to navigate this constantly evolving environment. Our global footprint allows us to be close to our customers in over 100 countries, mitigating single region risks. Our diverse supply chain and procurement strategies have proven resilience, ensuring that we can deliver for our customers on time without interruption and at a fair price. To demonstrate our strategy and full range of capabilities and how they drive value, I'll share a brief overview of our value proposition. We engineer surfaces and substrates through coating, saturation, extrusion, and adhesive technologies to unlock material performance in some of the most demanding customer applications. Our harmonized global network consistently delivers continuous, tight tolerance, highly complex profiles from development through high volume production. Our global supply chain scale delivered through localized assets and service capabilities guarantees efficient execution and dependable fulfillment. These capabilities are at the core of our customer relationships. MATA wins when our customers win in their markets. This builds long lasting relationships on a foundation of trust that drives sustained demand and value creation. We are committed to growing these strategic imperatives in the years ahead. Looking ahead, I'm encouraged by the opportunity to build on the foundation we established in 2025. Scott will walk you through our underlying assumptions for 2026, but I want to leave you with a key takeaway. As we continue to strengthen our performance, I want to emphasize our unwavering focus on profitable growth and confident execution. The improvements we made in 2025, strengthening our balance sheet right-sizing our inventory, and optimizing our cost structure provide the foundation for future growth and resilience against uncertainty. We have and will continue to transform MATIF into an agile, more capable entity, one that can better navigate dynamic environments to achieve profitable growth and increased cash flow generation. In 2026, our cost-saving efforts will remain a focus. with Wave 2 expected to deliver additional $15 to $20 million of realized savings throughout 2026. Another important priority in 2026 will also be leveraging AI as a foundational enterprise capability. We are strategically pursuing a dual approach to AI, balancing return on investment, use cases like sales lead generation, advanced production scheduling, and predictive maintenance with return on employee initiatives that boost productivity, such as AI-powered data analysis and contract management. These applications will be embedded across commercial, operational, supply chain, finance, and workforce functions to drive sustained performance and long-term competitive advantage. To sum up, I'm proud of our team's execution in the challenging 2025 demand environment. In both segments, we focused on factors within our control and drove tangible results. As a result, our consolidated adjusted EBITDA margins improved by 180 basis points versus prior year. This strong performance is a testament to the dedication and expertise of the entire MATF team, who also improved our company-wide safety metrics by almost 10%. I extend my deepest gratitude for their outstanding contribution and effort. With that, I'll turn the call over to our new CFO, Scott Minder, to provide a more detailed overview of our financial performance. Welcome to the team, Scott.