A maker of engineered specialty materials used in everyday essentials, Mativ produces filtration media that cleans air and water, plus tapes, labels, packaging, and healthcare products sold in over a hundred countries. It was born in 2022 when two storied manufacturers — Schweitzer-Mauduit (spun off from Kimberly-Clark in 1995) and Neenah — merged, and the name "Mativ" was coined to nod to material science. Among its innovations is Gessner filter media that swaps fossil-based resins for lignin, a natural polymer from wood.
Mativ's gross margin widened to 21.3% in Q2 FY2026, the highest in over three years, as lower costs and pricing actions took hold.
Mativ's crossed 21% for the first time since the Neenah merger. rose 1.2% to $531.8 million and climbed to $35.3 million as lower manufacturing costs and proactive pricing outweighed a volume decline in the Filtration & Advanced Materials . The company is now generating consistent profits and , with down to 3.8x, but revenue growth remains elusive.
Key takeaways
widened 1.6 points to 21.3%, the highest since Q2 FY2022, driven by favorable price-versus-cost performance and proactive pricing actions in both segments.
rose 75.6% to $35.3 million, as a $13.4 million increase in combined with a 3.1% decline in nonmanufacturing expenses and a sharp drop in restructuring charges to $0.7 million from $3.8 million.
rose 1.2% to $531.8 million, with the Sustainable & Adhesive Solutions up 2.8% on higher pricing, while Filtration & Advanced Materials fell 1.3% on lower volume and mix.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 net income swung to $3.6M from a $9.5M loss, driven by gross margin expansion and lower restructuring costs.
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Total rose 1.2% to $531.8M, with SAS sales up 2.8% on higher pricing, while FAM segment sales fell 1.3% on lower volume/mix.
expanded to 21.3% from 19.7%, as both segments benefited from favorable price-versus-cost performance and proactive pricing actions.
swung to a $3.6 million profit from a $9.5 million loss a year ago, reflecting the improved operating performance without the prior year's restructuring costs.
for the first six months rose to $68.9 million from $41.7 million, and reached $60.4 million in the quarter, up 23.5% .
The improved to 3.8x from 4.5x a year ago, well below the 5.00x maximum, and the company declared a $0.10 per share .
What changed
The Q2 FY2025 watch item on pressure has resolved favorably: margin expanded to 21.3% from 19.7%, as the higher manufacturing and distribution costs cited then reversed into a from lower costs and pricing actions.
The Filtration & Advanced Materials returned to a decline of 1.3% after a 4.6% gain in Q3 FY2025, indicating the volume recovery flagged in prior quarters has not yet become sustained.
generation of $60.4 million in Q2 continued the improvement noted in FY2025, and the fell to 3.8x, moving further from the 4.7x peak reached in Q1 FY2025.
The organizational realignment initiative flagged in FY2024 is now delivering visible cost reductions: nonmanufacturing expenses fell 3.1%, with R&D expense down 26.9%.
What to watch
Whether can hold above 21% in the second half now that the favorable manufacturing cost comparisons and pricing actions are fully reflected, or whether it reverts as those benefits annualize.
Whether the Filtration & Advanced Materials can return to sustained growth after another quarter of volume and mix decline, or whether cost improvements alone will drive segment profitability.
The pace of generation after a strong first half, and whether it can be sustained to further reduce debt ahead of the May 2027 term loan maturity.
The impact of the April 2026 refinancing on and headroom, and whether the extended maturity to 2029 provides sufficient runway to continue reducing .
Nonmanufacturing expenses decreased 3.1% to $77.3M, primarily due to a 26.9% drop in R&D expense from organizational realignment initiatives.
Restructuring and other expense fell sharply to $0.7M from $3.8M, reflecting lower severance charges versus the prior-year period.
for the first six months improved to $68.9M from $41.7M, driven by higher and favorable movements.
The company declared a $0.10 per share and reported a of 3.8x, well below its 5.00x maximum.
Quantitative and Qualitative Disclosures About Market Risk
Our market risk exposure at June 30, 2026 is consistent with, and not materially different than, the market risk and discussion of exposure presented under the caption "Quantitative and Qualitative Disclosures about Market Risk" in Part II, Item 7A of our Annual Report on Form 1…
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Our market risk exposure at June 30, 2026 is consistent with, and not materially different than, the market risk and discussion of exposure presented under the caption "Quantitative and Qualitative Disclosures about Market Risk" in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2025.
The Company is subject to various claims and pending or threatened lawsuits in the normal course of business. The Company is not currently a party to any legal proceedings that it believes would have a material adverse effect on its financial position, results of operations, or…
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The Company is subject to various claims and pending or threatened lawsuits in the normal course of business. The Company is not currently a party to any legal proceedings that it believes would have a material adverse effect on its financial position, results of operations, or cash flows. Refer to Note 10. Commitments and Contingencies of the notes to the unaudited condensed consolidated financial statements included in this report.
There have been no material changes to the risk factors described in our Annual Report on Form 10-K for the year ended December 31, 2025. In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in…
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There have been no material changes to the risk factors described in our Annual Report on Form 10-K for the year ended December 31, 2025. In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the factors discussed in Part I, "Item 1A, "Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.