Magnera (MAGN) Q2 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool Thu, May 7, 2026 at 10:46 PM GMT+7 26 min read MAGN Image source: The Motley Fool. Chief Executive Officer — Curtis L. Begle Vice President of Investor Relations — Robert Weilminster Operator: Good day, and welcome to the Magnera Corp. Second Quarter 2026 Earnings Conference Call. At this time, participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. To ask a question, you will need to press 11 on your touchtone telephone. Please note this call is being recorded. I would now like to turn the call over to Robert Weilminster, Vice President of Investor Relations. Please go ahead. Robert Weilminster: Thank you, Operator, and thank you, everyone, for joining Magnera Corp. s second fiscal quarter 2026 earnings call. Joining me, I have Magnera Corp. s Chief Executive Officer, Curtis L. Begle, and Chief Financial Officer, James M. 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 magnera.com, you can find today s press release and earnings call presentation under Investor Relations. You can also go directly to ir.magnera.com to review the investor presentations from our recent conference attendance. Our annual report and proxy statements with the SEC can be found on our website under Investor Relations. As referenced on Slide 2 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 Magnera Corp. s CEO, Curtis L. Begle. Curtis L. Begle: Thank you, Robert. Good morning, and thank you for joining our call. I am pleased to present our second quarter results and highlight our performance amid ongoing macroeconomic uncertainty. My remarks today will focus on four key themes. First, our earnings of $90 million of adjusted EBITDA were in line with expectations after adjusting for weather-related factors highlighted during our February earnings call. Our strong free cash flow enabled us to pay down $36 million of debt in the quarter. Second, I will discuss the winter storms that affected more than 50% of the United States, causing significant supply chain disruptions impacting both our customers operations and our own. Third, the war in the Middle East has created global challenges on many fronts, including having a direct impact on our raw material and supply chain costs. Lastly, I will discuss how Magnera Corp. has responded to these challenges and continues to strategically invest in our business to position us for future success. The global economic environment remains strained, though there are signs of resilience within the Americas. Elsewhere, we continue to encounter tempered demand, particularly in Europe. Compounding these challenges, new geopolitical conflicts have contributed to higher operational costs and further supply chain disruptions. Magnera Corp. s scale and global footprint are built for times like this. Through localized sourcing, disciplined cost management, and success in Project CORE initiatives, we have mitigated many of these impacts. We remain focused on managing our controllables. As mentioned, our largest region, North America, was impacted by back-to-back winter storms, Fern and Hernando. Fern required the temporary shutdown of 13 manufacturing sites, resulting in lost production and impacting shipping days depending on the location. The second storm, Hernando, affected seven plants, but as with Fern, there was no significant damage and shipping resumed. We anticipate recouping most weather-related setbacks in the second half of the fiscal year. Transportation lanes remained tight in the quarter and are expected to require additional time to stabilize. Our teams did an excellent job responding to the storms by working together to prioritize the safety of our employees and assets. As the weather improved, our teams quickly assessed impacts and initiated plans to restart production and supply to our c

Magnera (MAGN) Q2 2026 Earnings Transcript

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Magnera (MAGN) Q2 2026 Earnings Transcript

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