Mativ Holdings, Inc.
For the period ended Mar 31, 2025. Filed May 8, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 8, 2025
MATV$11.70-5.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0001000623-24-000047
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001000623-25-000024
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 139 previous paragraphs and 104 current paragraphs.
61 unchanged; 26 reworded; 17 added; 43 removed; 9 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
Recent Developments
Current report
In April 2025, the U.S. government announced a baseline tariff of 10% on products imported from all countries and an additional individualized reciprocal tariff on the countries with which the United States has the largest trade deficits, including China. Increased tariffs by the United States have led and may continue to lead to the imposition of retaliatory tariffs by foreign governments. Additionally, the U.S. government has announced and rescinded multiple tariffs on several foreign jurisdictions, which has increased uncertainty regarding the ultimate effect of the tariffs on economic conditions. Current uncertainties about tariffs and their effects on trading relationships may impact the macroeconomic conditions in the markets in which we operate. Although we are continuing to monitor the impact of such announcements, as well as opportunities to mitigate their related impacts, costs and other effects associated with the tariffs remain uncertain.
Current report
Consolidated net sales of $484.8 million during the three months ended March 31, 2025 decreased $15.4 million, or 3.1%, compared to the prior year period.
Current report
FAM segment net sales of $187.6 million during the three months ended March 31, 2025 decreased $15.1 million, or 7.4%, compared to the prior year period primarily due to lower volume/mix (an approximately 5% decrease), lower selling prices (an approximately 1% decrease) and unfavorable currency translation (an approximately 1% decrease).
Current report
SAS segment net sales of $297.2 million during the three months ended March 31, 2025 decreased $0.3 million, or 0.1%, compared to the prior year period, reflecting sales associated with closed facilities in the prior year (an approximately 5% decrease) and unfavorable currency translation (an approximately 1% decrease), mostly offset by higher volume/mix (an approximately 5% increase) and higher selling prices (an approximately 1% increase).
Current report
Nonmanufacturing expenses of $85.0 million during the three months ended March 31, 2025 increased $1.6 million, or 1.9%, compared to the prior year period primarily driven by costs incurred under the Plan, which included $5.9 million related to our previously disclosed CEO transition.
Current report
Operating loss was $430.6 million during the three months ended March 31, 2025 compared to operating loss of $13.8 million in the prior year period.
Current report
In the FAM segment, operating loss was $410.0 million during the three months ended March 31, 2025 reflecting a $424.6 million decrease, compared to operating profit of $14.6 million in the prior year period primarily due to the $411.9 million goodwill impairment in 2025, see Note 6. Goodwill. Excluding the goodwill impairment, operating profit was $1.9 million, a $12.7 million decrease from the prior year due to lower volume/mix, higher manufacturing and distribution costs, unfavorable net selling price versus input cost performance, partially offset by lower selling and general expenses.
Current report
Unallocated expenses of $33.6 million during the three months ended March 31, 2025 increased $1.0 million compared to the prior year period primarily due to costs incurred under the Plan, which included $5.9 million related to our previously disclosed CEO transition.
Current report
Other Income (Expense), Net
Current report
Other expense, net was $1.8 million during the three months ended March 31, 2025, compared to Other income, net of $1.7 million in the prior year period, primarily driven by foreign currency losses.
Current report
Cash Used In Operating Activities
Current report
Cash Provided By Financing Activities
Current report
During the first quarter of 2025, primarily in response to a sustained decline in the Company's share price, an interim quantitative goodwill impairment test was performed.
Current report
While significant estimates and assumptions related to forecasted future cash flows used in the March 1, 2025, interim impairment test were generally aligned with those used in the annual impairment test performed as of October 1, 2024, the discount rate for the FAM reporting unit was increased to 14%, to reflect a market participant view of additional risk associated with achieving forecasted cash flows in the growing end markets with which FAM is aligned. The interim impairment test resulted in a full (non-cash) impairment of all goodwill attributable to the FAM reporting unit of $411.9 million.
Current report
The fair value of the SAS reporting unit, was estimated to exceed its carrying value by approximately 6% as of March 1, 2025. Forecasted cash flows for SAS are primarily aligned with both growing and mature end markets, therefore it is subject to less risk than FAM. The interim impairment test for SAS utilized a discount and long-term growth rates of 10.5% and 2%, respectively. Considering the Company's share price as of March 31, 2025, a 100bps increase in the SAS discount rate would result in an implied enterprise control premium of nil and an impairment of approximately $15.0 million.
Current report
The Company’s ability to achieve forecasted cash flows in SAS may be negatively impacted by factors including, but not limited to, deterioration of general economic conditions, seasonal or cyclical market and industry fluctuations, adverse changes in our end-market sectors, and the imposition of tariffs and other trade barriers. Unfavorable changes in these factors, along with further sustained declines in our share price, could impact the fair value of SAS, leading to possible future impairment charges. No additional indicators of impairment, other than the sustained decline in share price, were identified for SAS as a result of the interim impairment test.
Removed paragraphs (43)
Previous report
Organizational Realignment Plan
Previous report
As part of the organizational realignment effective during the first quarter of 2024, we reorganized into two new reportable segments: Filtration & Advanced Materials ("FAM") and Sustainable & Adhesive Solutions ("SAS"). Refer to Note 1. General of the Notes to the unaudited Condensed Consolidated Financial Statements for more information on our new segment structure.
Previous report
All information presented within this MD&A is based on the new segment structure for comparative purposes.
Previous report
EP Divestiture
Previous report
On November 30, 2023 the Company completed the sale of the Engineered Papers business ("EP business"). With the sale of the EP business, Mativ ceased participating in tobacco-based products markets.
Previous report
The EP business is presented as a discontinued operation for all periods and certain prior period amounts have been retrospectively revised to reflect these changes. The unaudited condensed consolidated financial statements and the notes thereto, unless otherwise indicated, are on a continuing operations basis. Refer to Note 15. Discontinued Operations of the Notes to the unaudited Condensed Consolidated Financial Statements for more information on the discontinued operation and transaction.
Previous report
Consolidated net sales of $498.5 million during the three months ended September 30, 2024 increased $0.3 million or 0.1%, compared to the prior-year quarter.
Previous report
FAM segment net sales of $189.6 million during the three months ended September 30, 2024 decreased $6.2 million, or 3.2%, compared to the prior-year quarter. The FAM net sales decline reflected lower volumes in advanced films along with lower selling prices, partially offset by higher volumes in filtration & netting.
Previous report
SAS segment net sales of $308.9 million during the three months ended September 30, 2024 increased $6.5 million, or 2.1%, compared to the prior-year quarter, reflecting higher volumes across all end-markets and higher selling prices, partially offset by sales associated with closed and divested facilities.
Previous report
Gross profit of $93.6 million during the three months ended September 30, 2024 increased $6.9 million, or 8.0%, compared to the prior-year quarter. The increase in gross profit reflected lower manufacturing costs, partially offset by lower volumes in advanced films and unfavorable mix.
Previous report
Nonmanufacturing expenses of $75.4 million during the three months ended September 30, 2024 decreased $13.9 million, or 15.6%, compared to the prior-year quarter. The decrease is primarily due to 2023 expenses related to the EP Divestiture and integration.
Previous report
Restructuring and other impairment expenses related to the organizational realignment plan (the "Plan") were comprised primarily of severance charges. For the three months ended September 30, 2024, these charges were $0.7 million, of which $0.2 million, $0.5 million and none incurred within FAM, SAS and Unallocated, respectively. For additional information on the Plan, refer to Note 8. Restructuring and Other Impairment Activities of the Notes to the unaudited Condensed Consolidated Financial Statements.
Previous report
Restructuring and other impairment expenses in the SAS segment, excluding costs associated with the Plan, included impairment charges of $8.9 million to fully impair the net assets at our Eerbeek, Netherlands facility. The impairment assessment was performed after revising our long-term view on cash flows associated with the facility. The remaining restructuring and other impairment expenses for the three months ended September 30, 2024 were related to a facility closure announced in a prior year.
Previous report
Operating profit of $7.0 million during the three months ended September 30, 2024, increased $426.9 million, compared to the prior year period.
Previous report
In the FAM segment, operating income was $19.9 million during the three months ended September 30, 2024 reflecting an unfavorable $2.7 million, or 11.9%, change, compared to the prior year period, primarily due to lower volumes in advanced films, and lower selling prices, partially offset by higher volumes in filtration & netting, lower selling and general expenses, and improved manufacturing efficiencies.
Previous report
In the SAS segment, operating income of $10.3 million during the three months ended September 30, 2024 increased $416.1 million, compared to the prior year period, driven by the 2023 $401.0 million goodwill impairment, decrease in other impairment expense, favorable manufacturing and distribution costs, favorable relative net selling price versus input cost performance, higher volumes, partially offset by unfavorable mix and higher selling and general expenses.
Previous report
Unallocated expenses of $23.2 million during the three months ended September 30, 2024 decreased $13.5 million, or 36.8%, compared to the prior year period primarily due to the EP Divestiture and integration costs incurred in the prior year period.
Previous report
Other Expense, Net
Previous report
Other expense, net was $12.7 million during the three months ended September 30, 2024, compared to the prior year period expense of $0.3 million, primarily driven by other asset related charges and foreign currency losses.
Previous report
Net loss during the three months ended September 30, 2024 was $20.8 million, or $0.38 per diluted share, compared with net loss of $464.3 million, or $8.50 per diluted share, during the prior-year quarter.
Previous report
RESULTS OF OPERATIONS
Previous report
Comparison of the Nine Months Ended September 30, 2024 and 2023
Previous report
Net Sales
Previous report
Consolidated net sales of $1,522.5 million during the nine months ended September 30, 2024 decreased $51.2 million, or 3.3%, compared to the prior year period.
Previous report
FAM segment net sales of $598.7 million during the nine months ended September 30, 2024 decreased $29.4 million, or 4.7%, compared to the prior year period primarily due to lower volumes in advanced films, as well as lower selling prices across the segment.
Previous report
SAS segment net sales of $923.8 million during the nine months ended September 30, 2024 decreased $21.8 million, or 2.3%, compared to the prior year period, reflecting lower volume/mix and lower selling prices, partially offset by favorable currency translation.
Previous report
Gross Profit
Previous report
Nonmanufacturing Expenses
Previous report
Nonmanufacturing expenses of $245.4 million during the nine months ended September 30, 2024 decreased $17.6 million, or 6.7%, compared to the prior year period primarily driven by integration related costs incurred in the prior year period.
Previous report
Restructuring and Other Impairment Expense
Previous report
Restructuring and other impairment expenses related to the Plan were comprised primarily of severance charges. For the nine months ended September 30, 2024, these charges were $16.4 million, of which $3.1 million, $10.0 million and $3.3 million incurred within FAM, SAS and Unallocated, respectively. For additional information on the Plan, refer to Note 8. Restructuring and Other Impairment Activities of the Notes to the unaudited Condensed Consolidated Financial Statements.
Previous report
Restructuring and other impairment expenses in the FAM segment, excluding costs associated with the Plan were due to facility closures announced in prior periods.
Previous report
Restructuring and other impairment expenses in the SAS segment, excluding costs associated with the Plan included charges of $16.1 million to fully impair the net assets at our Eerbeek, Netherlands facility. The impairment assessment was performed after revising our long-term view on cash flows associated with the facility. The remaining restructuring and other impairment expenses for the nine months ended September 30, 2024 were related to a facility closure announced in a prior year.
Previous report
Operating Profit (Loss)
Previous report
Operating profit of $3.7 million during the nine months ended September 30, 2024 increased $415.4 million compared to the prior year period.
Previous report
In the FAM segment, operating income of $59.7 million during the nine months ended September 30, 2024 decreased $18.6 million, or 23.8%, compared to the prior year period primarily due to lower volumes in advanced films and higher manufacturing costs.
Previous report
Unallocated expenses of $86.1 million during the nine months ended September 30, 2024 decreased $18.5 million, or 17.7% compared to the prior year period primarily due to integration related costs incurred in the prior year period.
Previous report
Interest Expense
Previous report
Other Expense, Net
Previous report
Other expense, net of $12.1 million during the nine months ended September 30, 2024 decreased $8.5 million, compared to the prior year period, primarily driven by other asset related charges and foreign currency losses.
Showing the first 40 of 43 passages. Open the source sections for the rest.
Reworded paragraphs (26)
Previous wording
This MD&A discusses the financial condition and results of operations of the Company as of and for the three and nine months ended September 30, 2024.
Current wording
This MD&A discusses the financial condition and results of operations of the Company as of and for the three months ended March 31, 2025.
Previous wording
As of September 30, 2024, the Company had $1,143.4 million of total debt, $162.2 million of cash, and $300.6 million of undrawn capacity on its $600.0 million revolving line of credit facility (the "Revolving Facility"). Per the terms of the Company's amended credit agreement (the "Amended Credit Agreement"), net leverage was 4.1x at the end of the third quarter, versus a current maximum covenant ratio of 4.50x.
Current wording
As of March 31, 2025, the Company had $1,122.8 million of total debt, $84.0 million of Cash and cash equivalents, $9.8 million of Restricted cash, and $323.2 million of undrawn capacity on its $600.0 million revolving line of credit facility (the "Revolving Facility"). Per the terms of the Company's amended credit agreement (the "Amended Credit Agreement"), net leverage was 4.7x at the end of the first quarter, versus a current maximum covenant ratio of 5.50x.
Previous wording
As of September 30, 2024, the Company’s nearest debt maturity was our 6.875% $350.0 million senior unsecured notes which were due October 1, 2026 and were redeemed on October 7, 2024 concurrently with the private placement of our 8.000% $400.0 million senior notes due 2029. For additional information, refer to Note 16. Subsequent Events of the Notes to the unaudited Condensed Consolidated Financial Statements. Our next nearest debt maturities are our Revolving Credit Facility, Term Loan A Facility, and Delayed Draw Term Loan Facility, due on May 6, 2027. Refer to "Liquidity and Capital Resources" section for additional detail.
Current wording
As of March 31, 2025, the Company’s nearest debt maturity was our Revolving Credit Facility, Term Loan A Facility, and Delayed Draw Term Loan Facility, due on May 6, 2027. Refer to "Liquidity and Capital Resources" section for additional detail.
Previous wording
Gross profit of $286.5 million during the nine months ended September 30, 2024 increased $16.6 million, or 6.2%, compared to the prior year period. The change in gross profit reflected favorable relative net selling price versus input cost performance, favorable distribution costs, partially offset by lower volume, less favorable product mix, and higher manufacturing costs. The Company monitors and continues to adjust staffing levels of manufacturing labor relative to volumes.
Current wording
Gross profit of $72.6 million during the three months ended March 31, 2025 decreased $11.4 million, or 13.6%, compared to the prior year period. The change in gross profit reflected higher manufacturing and distribution costs, unfavorable relative net selling price versus input cost performance, and lower volume/mix in our FAM segment. The Company monitors and continues to adjust staffing levels of manufacturing labor relative to volumes.
Previous wording
The Company incurred total restructuring and other impairment expense of $37.4 million in the nine months ended September 30, 2024 compared with $17.6 million in the prior year period.
Current wording
The Company incurred total restructuring and other impairment expense of $6.3 million in the three months ended March 31, 2025 compared with $14.4 million in the prior year period.
Previous wording
Restructuring and other impairment expenses in the FAM segment, excluding costs associated with the Plan, were primarily due to facility closures announced in prior years.
Current wording
Restructuring and other impairment expenses in both the FAM and SAS segments were primarily due to facility closures announced in prior years.
Previous wording
In the SAS segment, operating income was $30.1 million during the nine months ended September 30, 2024 reflecting a $415.5 million increase, compared to the prior year period, driven by the $401.0 million goodwill impairment in 2023, favorable relative net selling price versus input cost performance, and favorable distribution and manufacturing expenses, partially offset by lower volume/mix and higher selling and general expenses.
Current wording
In the SAS segment, operating profit was $13.0 million during the three months ended March 31, 2025 reflecting a $8.8 million increase, compared to the prior year period, driven by higher volume across all product categories excluding the impact from closed facilities, and lower selling and general expenses partially offset by unfavorable net selling price versus input cost performance, higher manufacturing and distribution costs.
Previous wording
Interest expense of $18.3 million during the three months ended September 30, 2024 increased $1.5 million, or 8.9%, compared to the prior year period. Interest expense increased primarily due to higher average balances and higher average interest rates on the floating portion of our outstanding debt in 2024.
Current wording
Interest expense of $17.8 million during the three months ended March 31, 2025 decreased $0.5 million, or 2.7%, compared to the prior year period. Interest expense decreased primarily due to lower average interest rates and lower average balances on the floating portion of our outstanding debt in 2025.
Previous wording
A $3.2 million income tax benefit in the three months ended September 30, 2024 resulted in an effective tax rate of 13.3% compared with (6.2)% in the prior year period. The net change was primarily due to mix of earnings in the current period, impact from valuation allowance changes in the current and prior periods, and goodwill impairment not deductible for tax purposes in the prior period.
Current wording
A $24.7 million income tax benefit in the three months ended March 31, 2025 resulted in an effective tax rate of 5.5% compared with 7.9% in the prior year period. The net change was primarily due to mix of earnings, impact from a $48.2 million increase to our valuation allowance, and goodwill impairment not deductible for tax purposes, in the current period.
Previous wording
Net loss during the nine months ended September 30, 2024 was $50.2 million, or $0.93 per diluted share, compared to net loss of $494.1 million, or $9.06 per diluted share, during the prior year period.
Current wording
Net loss during the three months ended March 31, 2025 was $425.5 million, or $(7.82) per diluted share, compared to net loss of $28.0 million, or $(0.52) per diluted share, during the prior year period.
Previous wording
As of September 30, 2024, $134.5 million of the Company's $162.2 million of cash and cash equivalents was held by foreign subsidiaries. We believe our sources of liquidity and capital, including cash on-hand, cash generated from operations, our Revolving Facility, and our Receivables Sales Agreement (an off-balance sheet arrangement as defined in Item 303(a)(4)(ii) of SEC Regulation S-K), will be sufficient to finance our continued operations, our current and long-term growth plan, and dividend payments.
Current wording
As of March 31, 2025, $61.6 million of the Company's $84.0 million of Cash and cash equivalents was held by foreign subsidiaries. Restricted cash of $9.8 million represents primarily retained contributions associated with our UK Pension scheme, the use of which is restricted to obligations related to the scheme. We believe our sources of liquidity and capital, including cash on-hand, cash generated from operations, our Revolving Facility, and our Receivables Sales Agreement (an off-balance sheet arrangement as defined in Item 303(a)(4)(ii) of SEC Regulation S-K), will be sufficient to finance our continued operations, our current and long-term growth plan, and dividend payments.
Previous wording
As of September 30, 2024, the Company had net operating working capital of $452.1 million, including cash and cash equivalents of $162.2 million, compared to net operating working capital of $433.9 million, including cash and cash equivalents of $120.2 million as of December 31, 2023. The increase was attributable primarily to an increase in accounts receivable and cash and cash equivalents, partially offset by an increase in accounts payable and accrued liabilities and other current liabilities.
Current wording
As of March 31, 2025, the Company had net operating working capital of $391.0 million, including Cash and cash equivalents of $84.0 million, compared to net operating working capital of $386.2 million, including Cash and cash equivalents of $94.3 million as of December 31, 2024. The increase was attributable primarily to an increase in accounts receivable and a decrease in accrued expenses and other current liabilities, partially offset by a decrease in inventories and an increase in accounts payable.
Previous wording
Net cash provided by operating activities was $70.7 million during the nine months ended September 30, 2024 compared to net cash provided of $37.8 million during the prior year period. The increase was attributable to lower net loss adjusted for non-cash items and favorable year-over-year movements in working capital related cash flows.
Current wording
Net cash used in operating activities was $15.9 million during the three months ended March 31, 2025 compared to net cash used of $13.0 million during the prior year period. The decrease was attributable to unfavorable year-over-year movements in working capital related cash flows, offset by lower net loss net of Adjustments to reconcile Net loss to Net cash used in operations.
Previous wording
During the nine months ended September 30, 2024, net changes in operating working capital resulted in cash inflows of $0.8 million, an increase from $13.4 million of outflows during the prior year period. The $14.2 million increase was due to an increase in net changes of accounts payable and other current liabilities, partially offset by a decrease in net changes of inventories and accounts receivable.
Current wording
During the three months ended March 31, 2025, net changes in operating working capital resulted in cash outflows of $22.1 million, compared to $12.7 million of outflows during the prior year period. The $9.4 million change was due to a decrease in net changes of accounts payable and other current liabilities, partially offset by a decrease in net changes of accounts receivable.
Previous wording
Cash used in investing activities during the nine months ended September 30, 2024 was $29.4 million, compared to cash outflows of $49.4 million during the prior year period, primarily attributable to changes in capital spending and proceeds from sale of assets. Within investing cash flows, capital spending was $32.9 million compared to $49.4 million in the prior year period.
Current wording
Cash used in investing activities during the three months ended March 31, 2025 was $10.6 million, compared to cash outflows of $9.1 million during the prior year period, primarily attributable to changes in capital spending partially offset by proceeds from settlement of swap contracts. Capital spending was $13.9 million compared to $12.1 million in the prior year period.
Previous wording
Cash provided by financing activities during the nine months ended September 30, 2024 was $12.2 million, compared to cash used of $13.2 million during the prior year period. During the nine months ended September 30, 2024, financing activities primarily consisted of $127.0 million of borrowings under the Revolving Facility, $16.2 million of dividends paid to the Company's stockholders, and payments on our long-term debt of $97.0 million.
Current wording
Cash provided by financing activities during the three months ended March 31, 2025 was $24.5 million, compared to cash provided of $45.8 million during the prior year period. During the three months ended March 31, 2025, financing activities primarily consisted of $54.0 million of borrowings under the Revolving Facility, $5.5 million of dividends paid to the Company's stockholders, and payments on our long-term debt of $22.7 million.
Previous wording
During the prior year period, financing activities primarily consisted of $180.0 million of proceeds from borrowings under the Revolving Facility, $134.2 million of payments on our long-term debt, and $49.8 million of dividends paid to the Company's stockholders.
Current wording
During the prior year period, financing activities primarily consisted of $69.0 million of proceeds from borrowings under the Revolving Facility, $16.7 million of payments on our long-term debt, and $5.4 million of dividends paid to the Company's stockholders.
Previous wording
The following table presents activity related to our debt instruments for the nine months ended September 30, 2024 and 2023 (in millions):
Current wording
The following table presents activity related to our debt instruments for the three months ended March 31, 2025 and 2024 (in millions):
Previous wording
Net proceeds from borrowings were $30.0 million during the nine months ended September 30, 2024, compared to net proceeds from borrowings of $45.8 million during the prior year period.
Current wording
Net proceeds from borrowings were $31.3 million during the three months ended March 31, 2025, compared to net proceeds from borrowings of $52.3 million during the prior year period.
Previous wording
Unused borrowing capacity under the Amended Credit Agreement was $300.6 million as of September 30, 2024.
Current wording
Unused borrowing capacity under the Amended Credit Agreement was $323.2 million as of March 31, 2025.
Previous wording
Our total debt to capital ratios, as calculated under the Amended Credit Agreement, at September 30, 2024 and December 31, 2023 were 56.4% and 53.8%, respectively.
Current wording
Our total debt to capital ratios at March 31, 2025 and December 31, 2024 were 72.4% and 55.9%, respectively.
Previous wording
The preparation of our unaudited condensed consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make judgments, assumptions and estimates that affect the amounts reported. There have been no material changes to the critical accounting policies and estimates described in our Form 10-K for the 2023 fiscal year ended December 31, 2023.
Current wording
The preparation of our unaudited condensed consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make judgments, assumptions and estimates that affect the amounts reported. There have been no material changes to the critical accounting policies and estimates described in our Form 10-K for the 2024 fiscal year ended December 31, 2024, other than the below item related to goodwill.
Previous wording
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act") that are subject to the safe harbor created by the Act and other legal protections. Forward-looking statements include, without limitation, those regarding the incurrence of additional debt and expected maturities of the Company’s debt obligations, the adequacy of our sources of liquidity and capital, acquisition integration and growth prospects, the cost and timing of our restructuring actions, our expectations regarding our organizational realignment plan, the impact of ongoing litigation matters and environmental claims, the amount of capital spending and/or common stock repurchases, future cash flows, purchase accounting impacts, impacts and timing of our ongoing operational excellence and other cost-reduction and cost-optimization initiatives, profitability, and cash flow, the expected benefits and accretion of the Neenah merger and integration, whether the strategic benefits of the EP Divestiture can be achieved and other statements generally identified by words such as "believe," "expect," "intend," "guidance," "plan," "forecast," "potential," "anticipate," "confident," "project," "appear," "future," "should," "likely," "could," "may," "will," "typically" and similar words.
Current wording
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act") that are subject to the safe harbor created by the Act and other legal protections. Forward-looking statements include, without limitation, those regarding the incurrence of additional debt and expected maturities of the Company’s debt obligations, the adequacy of our sources of liquidity and capital, acquisition integration and growth prospects (including international growth), the cost and timing of our restructuring actions, the impact of ongoing litigation matters and environmental claims, the amount of capital spending and/or common stock repurchases, future cash flows, purchase accounting impacts, impacts and timing of our ongoing operational excellence and other cost-reduction and cost-optimization initiatives, profitability, and cash flow, the expected benefits and accretion of the Neenah merger and Scapa acquisition and integration, whether the strategic benefits of the EP Divestiture can be achieved and other statements generally identified by words such as "believe," "expect," "intend," "guidance," "plan," "forecast," "potential," "anticipate," "confident," "project," "appear," "future," "should," "likely," "could," "may," "will," "typically" and similar words.
Previous wording
•Risks associated with acquisitions, dispositions, strategic transactions and global asset realignment initiatives of Mativ, including the recent EP Divestiture;
Current wording
•Risks associated with acquisitions, dispositions, strategic transactions and global asset realignment initiatives of Mativ;
Previous wording
•Risks associated with pandemics and other public health emergencies, including the COVID-19 pandemic and its variant strains;
Current wording
•Risks associated with pandemics and other public health emergencies;
Previous wording
All forward-looking statements made in this document are qualified by these cautionary statements. Forward-looking statements herein are made only as of the date of this document, and we do not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.
Current wording
All forward-looking statements made in this document are qualified by these cautionary statements. Forward-looking statements herein are made only as of the date of this document, and Mativ undertakes no obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise.
Rearranged previous paragraphs (9)
Previous report — wording carried elsewhere
The following table presents net sales by segment for the three months ended September 30, 2024 and 2023 (in millions):
Previous report — wording carried elsewhere
The following table presents gross profit for the three months ended September 30, 2024 and 2023 (in millions):
Previous report — wording carried elsewhere
The following table presents nonmanufacturing expenses for the three months ended September 30, 2024 and 2023 (in millions):
Previous report — wording carried elsewhere
The following table presents restructuring and other impairment expense for the three months ended September 30, 2024 and 2023 (in millions):
Previous report — wording carried elsewhere
The Company incurred total restructuring and other impairment expense of $11.2 million and $16.3 million in the three months ended September 30, 2024 and 2023, respectively.
Previous report — wording carried elsewhere
The following table presents operating profit (loss) by segment for the three months ended September 30, 2024 and 2023 (in millions):
Previous report — wording carried elsewhere
Interest expense of $55.0 million during the nine months ended September 30, 2024 increased $6.2 million, or 12.7%, compared to the prior year period. Interest expense increased primarily due to higher average interest rates and higher average balances on the floating portion of our outstanding debt in 2024.
Previous report — wording carried elsewhere
A $13.2 million income tax benefit in the nine months ended September 30, 2024 resulted in an effective tax rate of 20.8% compared with (6.5)% in the prior year period. The net change was primarily due to mix of earnings in the current period, impact from valuation allowance changes in the current and prior periods, and goodwill impairment not deductible for tax purposes in the prior period.
Previous report — wording carried elsewhere
Net Loss and Net Loss per Share