Company: MATV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001000623-25-000024
Chunk: 45

Company: Mativ Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 45
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6)$(13.8)$(416.8)N.M.(88.8)%(2.8)%

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. 

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. 

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. 

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.

Interest Expense 

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.

Other Income (Expense), Net 

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. 

Income Taxes

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