Magnera continues to struggle with structural margin compression, as evidenced by thin gross margins fluctuating between 9.2% and 10.9% over the last five quarters.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 3.27B | 3.2B | 2.19B | 1.39B | 1.49B | 1.08B | 916.5M | 927.67M | 866.29M | 800.36M | 761.22M | 1.67B | 1.81B | 1.73B | 1.58B | 1.61B | 1.47B | 1.2B | 1.27B | 1.16B | 997.14M | 589.2M | 553.48M | 543.23M | 550.16M | 642.26M | 739.81M | 705.49M | 727.3M | 567.07M | 566.1M |
| Revenue Growth % | 49.3% | 46.5% | 57.85% | -7.09% | 37.49% | 18.35% | -1.2% | 7.09% | 8.24% | 5.14% | -54.33% | -7.93% | 4.9% | 8.9% | -1.72% | 9.99% | 22.44% | -5.96% | 9.97% | 16.11% | 69.24% | 6.45% | 1.89% | -1.26% | -14.34% | -13.19% | 4.86% | -3% | 28.26% | 0.17% | -9.24% |
| Cost of Goods Sold | 2.94B | 2.92B | 1.95B | 1.26B | 1.34B | 939.9M | 768.63M | 780.13M | 735.88M | 656.77M | 629.47M | 1.46B | 1.58B | 1.51B | 1.37B | 1.41B | 1.28B | 927.58M | 1.1B | 1B | 891.84M | 492.02M | 461.06M | 463.69M | 423.88M | 501.14M | 591.2M | 533.14M | 549.8M | 422.3M | 400.9M |
| COGS % of Revenue | - | 91.04% | 89.16% | 90.64% | 90.02% | 86.65% | 83.87% | 84.1% | 84.95% | 82.06% | 82.69% | 87.82% | 87.01% | 87.33% | 86.52% | 87.21% | 87.3% | 77.47% | 86.04% | 86.5% | 89.44% | 83.51% | 83.3% | 85.36% | 77.05% | 78.03% | 79.91% | 75.57% | 75.59% | 74.47% | 70.82% |
| Gross Profit | 325M | 287M | 237M | 129.71M | 148.8M | 144.79M | 147.87M | 147.54M | 130.41M | 143.59M | 131.75M | 202.97M | 235.15M | 218.66M | 213.65M | 206.19M | 186.25M | 269.76M | 177.78M | 156.31M | 105.29M | 97.18M | 92.41M | 79.55M | 126.28M | 141.12M | 148.61M | 172.35M | 177.5M | 144.77M | 165.2M |
| Gross Margin % | 9.95% | 8.96% | 10.84% | 9.36% | 9.98% | 13.35% | 16.13% | 15.9% | 15.05% | 17.94% | 17.31% | 12.18% | 12.99% | 12.67% | 13.48% | 12.79% | 12.7% | 22.53% | 13.96% | 13.5% | 10.56% | 16.49% | 16.7% | 14.64% | 22.95% | 21.97% | 20.09% | 24.43% | 24.41% | 25.53% | 29.18% |
| Gross Profit Growth % | - | 21.1% | 82.72% | -12.83% | 2.77% | -2.08% | 0.22% | 13.14% | -9.18% | 8.99% | -35.09% | -13.69% | 7.54% | 2.35% | 3.62% | 10.71% | -30.96% | 51.74% | 13.74% | 48.45% | 8.35% | 5.15% | 16.18% | -37.01% | -10.52% | -5.04% | -13.77% | -2.9% | 22.61% | -12.37% | -5.17% |
| Operating Expenses | 199M | 193M | 378M | 127M | 312.75M | 116.18M | 98.71M | 92.91M | 108.47M | 110.34M | 153.27M | 106.59M | 128.37M | 132.14M | 111.78M | 120.92M | 121.66M | 109.36M | 78.57M | 37.49M | 105.2M | 26.99M | -10.98M | 45.3M | 54.64M | 119.12M | 60.27M | 104.02M | 99.5M | 72.6M | 69.1M |
| OpEx % of Revenue | - | 6.02% | 17.28% | 9.17% | 20.97% | 10.71% | 10.77% | 10.02% | 12.52% | 13.79% | 20.13% | 6.4% | 7.09% | 7.66% | 7.05% | 7.5% | 8.3% | 9.13% | 6.17% | 3.24% | 10.55% | 4.58% | -1.98% | 8.34% | 9.93% | 18.55% | 8.15% | 14.74% | 13.68% | 12.8% | 12.21% |
| Selling, General & Admin | 199M | 173M | 128M | 109.74M | 144M | 153M | 99.14M | 94.97M | 111.72M | 110.53M | 153.15M | 127.71M | 133.24M | 133.87M | 121.59M | 124.87M | 122.11M | 110.26M | 97.9M | 116.14M | 92.48M | 67.63M | 59.94M | 59.15M | 53.7M | 60.23M | 60.27M | 56.26M | 51.8M | 36.8M | 35.5M |
| SG&A % of Revenue | - | 5.4% | 5.85% | 7.92% | 9.66% | 14.11% | 10.82% | 10.24% | 12.9% | 13.81% | 20.12% | 7.66% | 7.36% | 7.76% | 7.67% | 7.74% | 8.33% | 9.21% | 7.69% | 10.03% | 9.27% | 11.48% | 10.83% | 10.89% | 9.76% | 9.38% | 8.15% | 7.97% | 7.12% | 6.49% | 6.27% |
| Research & Development | 0 | 20M | 13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 0.62% | 0.59% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 237M | 17.25M | 168.75M | -36.82M | -432K | -2.06M | -3.26M | -197K | 116K | -21.11M | -4.86M | -1.73M | -9.81M | -3.95M | -453K | -898K | -19.32M | -78.65M | 12.72M | -40.64M | -70.92M | -13.85M | 937K | 58.89M | 0 | 47.77M | 47.7M | 35.8M | 33.6M |
| Operating Income | 126M | 94M | -141M | 2.71M | -163.95M | 28.61M | 49.16M | 54.63M | 21.94M | 33.25M | -21.52M | 96.37M | 106.78M | 86.52M | 101.87M | 85.27M | 64.59M | 160.41M | 99.21M | 118.82M | 94K | 70.18M | 103.39M | 34.25M | 71.64M | 22M | 88.34M | 68.33M | 78M | 72.17M | 96.1M |
| Operating Margin % | 3.86% | 2.93% | -6.45% | 0.2% | -10.99% | 2.64% | 5.36% | 5.89% | 2.53% | 4.15% | -2.83% | 5.78% | 5.9% | 5.01% | 6.43% | 5.29% | 4.41% | 13.4% | 7.79% | 10.26% | 0.01% | 11.91% | 18.68% | 6.3% | 13.02% | 3.43% | 11.94% | 9.69% | 10.72% | 12.73% | 16.98% |
| Operating Income Growth % | - | 166.67% | -5299.11% | 101.65% | -672.97% | -41.79% | -10.03% | 149% | -34.01% | 254.52% | -122.33% | -9.75% | 23.42% | -15.07% | 19.47% | 32.02% | -59.73% | 61.68% | -16.5% | 126302.13% | -99.87% | -32.12% | 201.88% | -52.19% | 225.61% | -75.09% | 29.29% | -12.4% | 8.08% | -24.9% | -8.65% |
| EBITDA | 321M | 300M | 34M | 65.96M | -97.23M | 90.03M | 105.76M | 105.45M | 69.47M | 75.33M | 17.77M | 159.61M | 177.34M | 154.72M | 171.37M | 154.59M | 130.43M | 221.66M | 159.82M | 174.82M | 50.12M | 120.83M | 154.99M | 90.28M | 116.65M | 66.82M | 134.45M | 116.1M | 125.7M | 107.97M | 129.7M |
| EBITDA Margin % | 9.83% | 9.36% | 1.55% | 4.76% | -6.52% | 8.3% | 11.54% | 11.37% | 8.02% | 9.41% | 2.33% | 9.58% | 9.8% | 8.96% | 10.81% | 9.59% | 8.9% | 18.51% | 12.55% | 15.1% | 5.03% | 20.51% | 28% | 16.62% | 21.2% | 10.4% | 18.17% | 16.46% | 17.28% | 19.04% | 22.91% |
| EBITDA Growth % | 138.42% | 782.35% | -48.45% | 167.84% | -207.99% | -14.87% | 0.29% | 51.81% | -7.78% | 323.99% | -88.87% | -10% | 14.62% | -9.72% | 10.86% | 18.52% | -41.16% | 38.69% | -8.58% | 248.84% | -58.52% | -22.04% | 71.68% | -22.61% | 74.58% | -50.3% | 15.81% | -7.64% | 16.42% | -16.75% | -5.88% |
| D&A (Non-Cash Add-back) | 195M | 206M | 175M | 63.25M | 66.72M | 61.42M | 56.6M | 50.82M | 47.52M | 42.08M | 39.29M | 63.24M | 70.56M | 68.2M | 69.5M | 69.31M | 65.84M | 61.26M | 60.61M | 56M | 50.02M | 50.65M | 51.6M | 56.03M | 45M | 44.81M | 46.11M | 47.77M | 47.7M | 35.8M | 33.6M |
| EBIT | 126M | -16M | 61M | -6.35M | -171.19M | 26.03M | 39.38M | -24.05M | 22.88M | 32.78M | -28.73M | 96.04M | 106.3M | 87.17M | 97.64M | 82.64M | 59.08M | 162.37M | 104.19M | 118.85M | 30.41M | 71.75M | 123.77M | 41.23M | 75.89M | 22M | 88.34M | 68.33M | 78M | 72.17M | 96.1M |
| Net Interest Income | -146M | -150M | -3M | -63.25M | -32.8M | -12.28M | -6.62M | -9.29M | -15.05M | -13.08M | -13.64M | -17.18M | -18.76M | -17.66M | -18.23M | -31.13M | -24.74M | -17.33M | -18.18M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 1.49M | 408K | 73K | 399K | 1.12M | 559K | 237K | 206K | 283K | 159K | 310K | 460K | 666K | 808K | 1.89M | 4.97M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 146M | 150M | 3M | 64.74M | 33.21M | 12.35M | 7.02M | 10.41M | 15.61M | 13.32M | 13.85M | 17.46M | 18.92M | 17.96M | 18.69M | 31.79M | 25.55M | 19.22M | 23.16M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -229M | -260M | 6M | -73.8M | -40.44M | -14.94M | -16.8M | -89.09M | -14.67M | -13.79M | -21.06M | -17.8M | -19.4M | -17.32M | -22.93M | -34.43M | -31.06M | -17.26M | -18.18M | -24.88M | -22.32M | -10.04M | -12.63M | -13.83M | -12.52M | -10.48M | -19.74M | -3.18M | -19.3M | 1.43M | 1.8M |
| Pretax Income | -103M | -166M | -135M | -71.09M | -204.39M | 13.68M | 32.36M | -34.45M | 7.28M | 19.47M | -42.58M | 78.58M | 87.38M | 69.2M | 78.94M | 50.84M | 33.53M | 143.15M | 81.03M | 93.93M | -22.23M | 60.14M | 90.76M | 20.42M | 59.13M | 11.52M | 68.6M | 65.15M | 58.7M | 73.6M | 97.9M |
| Pretax Margin % | -3.15% | -5.18% | -6.17% | -5.13% | -13.71% | 1.26% | 3.53% | -3.71% | 0.84% | 2.43% | -5.59% | 4.71% | 4.83% | 4.01% | 4.98% | 3.15% | 2.29% | 11.96% | 6.36% | 8.11% | -2.23% | 10.21% | 16.4% | 3.76% | 10.75% | 1.79% | 9.27% | 9.23% | 8.07% | 12.98% | 17.29% |
| Income Tax | 7M | -7M | 19M | 7.01M | -10.28M | 6.96M | 11.58M | -9.24M | 7.72M | 25.08M | -28.41M | 14M | 18.14M | 2.04M | 19.56M | 8.15M | -20.91M | 19.7M | 23.14M | 30.46M | -9.99M | 21.53M | 34.66M | 7.43M | 21.49M | 4.69M | 24.6M | 23.73M | 22.6M | 28.3M | 37.5M |
| Effective Tax Rate % | -6.8% | 4.22% | -14.07% | -9.86% | 5.03% | 50.86% | 35.77% | 26.82% | 106.16% | 128.83% | 66.71% | 17.82% | 20.76% | 2.95% | 24.78% | 16.03% | -62.35% | 13.76% | 28.56% | 32.43% | 44.95% | 35.8% | 38.19% | 36.39% | 36.35% | 40.73% | 35.86% | 36.42% | 38.5% | 38.45% | 38.3% |
| Net Income | -110M | -159M | -154M | -79.05M | -194.21M | 6.94M | 21.3M | -21.54M | -177.6M | 7.91M | 21.55M | 64.58M | 69.25M | 67.16M | 59.38M | 42.69M | 54.43M | 123.44M | 57.89M | 63.47M | -12.24M | 38.61M | 56.1M | 12.66M | 37.59M | 6.96M | 44M | 41.42M | 36.1M | 45.3M | 60.4M |
| Net Margin % | -3.37% | -4.96% | -7.04% | -5.71% | -13.02% | 0.64% | 2.32% | -2.32% | -20.5% | 0.99% | 2.83% | 3.87% | 3.82% | 3.89% | 3.75% | 2.65% | 3.71% | 10.31% | 4.55% | 5.48% | -1.23% | 6.55% | 10.14% | 2.33% | 6.83% | 1.08% | 5.95% | 5.87% | 4.96% | 7.99% | 10.67% |
| Net Income Growth % | 17% | -3.25% | -94.81% | 59.29% | -2899.6% | -67.43% | 198.87% | 87.87% | -2344.17% | -63.28% | -66.62% | -6.75% | 3.11% | 13.1% | 39.08% | -21.57% | -55.9% | 113.24% | -8.8% | 618.73% | -131.69% | -31.18% | 343.11% | -66.32% | 440.31% | -84.19% | 6.22% | 14.75% | -20.31% | -25% | -8.21% |
| Net Income (Continuing) | -110M | -159M | -154M | -78.1M | -194.12M | 6.72M | 20.78M | -25.21M | -448K | -5.61M | -14.18M | 64.58M | 69.25M | 67.16M | 59.38M | 42.69M | 54.43M | 123.44M | 57.89M | 63.47M | -12.24M | 38.61M | 56.1M | 12.99M | 37.64M | 6.83M | 44M | 41.42M | 36.1M | 45.3M | 60.4M |
| Discontinued Operations | 0 | 0 | 0 | -950K | -91K | 216K | 515K | 3.67M | -177.16M | 13.53M | 35.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -325K | -42K | 129K | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -3.06 | -4.48 | -4.41 | -2.27 | -5.63 | 0.20 | 0.62 | -0.64 | -5.28 | 0.23 | 0.64 | 1.91 | 2.04 | 1.98 | 1.77 | 1.21 | 1.52 | 3.51 | 1.65 | 1.82 | -0.35 | 1.13 | 1.65 | 0.38 | 1.12 | 0.21 | 1.33 | 1.27 | 1.12 | 1.39 | 1.83 |
| EPS Growth % | 17.87% | -1.59% | -94.27% | 59.68% | -2915% | -67.74% | 196.88% | 87.87% | -2355.56% | -63.27% | -66.67% | -6.37% | 3.29% | 11.76% | 46.24% | -20.51% | -56.67% | 112.6% | -9.29% | 618.52% | -131.03% | -31.5% | 337.93% | -66.28% | 437.5% | -84.31% | 4.08% | 13.95% | -19.63% | -24.11% | -5.37% |
| EPS (Basic) | - | -4.48 | -4.41 | -2.27 | -5.63 | 0.21 | 6.24 | -0.64 | -5.28 | 0.23 | 0.64 | 1.94 | 2.08 | 2.03 | 1.81 | 1.22 | 1.55 | 3.51 | 1.66 | 1.83 | -0.35 | 1.14 | 1.66 | 0.38 | 1.13 | 0.21 | 1.33 | 1.27 | 1.12 | 1.39 | 1.83 |
| Diluted Shares Outstanding | 35.9M | 35.5M | 34.92M | 34.66M | 34.48M | 34.56M | 34.32M | 33.95M | 33.67M | 34.18M | 33.95M | 33.8M | 33.9M | 34.08M | 33.59M | 35.23M | 35.67M | 35.21M | 35.06M | 34.94M | 34.3M | 34.11M | 33.98M | 33.58M | 33.63M | 33.45M | 33.18M | 32.57M | 32.29M | 32.57M | 32.95M |
| Basic Shares Outstanding | 35.9M | 35.5M | 34.92M | 34.66M | 34.48M | 34.27M | 34.11M | 33.95M | 33.67M | 33.55M | 33.51M | 33.38M | 33.23M | 33.2M | 32.96M | 34.79M | 35.32M | 35.14M | 34.81M | 34.64M | 34.3M | 33.86M | 33.72M | 33.58M | 33.24M | 33.45M | 33.18M | 32.52M | 32.29M | 32.57M | 32.95M |
| Dividend Payout Ratio | - | - | - | - | - | 352.57% | 110.3% | - | - | 284.05% | 100.16% | 31.66% | 27% | 25.26% | 26.29% | 38.91% | 30.76% | 13.44% | 28.45% | 25.76% | - | 41.02% | 28.13% | 212.3% | 80.61% | 429.38% | 67.33% | 71.24% | 81.44% | 65.34% | 49.67% |
Persistent negative net margins
Following the November 2024 merger, Magnera's revenue trajectory appears highly volatile, with quarterly figures shifting from $332.1 million in 2024Q3 to $796.0 million in 2026Q1, reflecting the significant inorganic expansion and subsequent integration challenges inherent in the combined entity's current operational scale.
The dramatic revenue step-up observed between 2024Q4 and 2025Q1 suggests that the top-line growth is primarily driven by the consolidation of legacy assets rather than organic demand acceleration. Investors should monitor whether the company can stabilize these revenue levels, as the recent 3.4% sequential decline in 2026Q1 may indicate early signs of demand softening or integration-related disruption.
As reported in recent financial statements, Magnera maintains a thin gross margin profile, fluctuating between 9.2% and 10.9% over the last five quarters, which underscores the company's limited pricing power as a converter in a highly commodity-sensitive nonwovens manufacturing environment.
The inability to consistently expand gross margins above the 11% threshold suggests that the company remains highly vulnerable to fluctuations in raw material costs like polypropylene resin. This structural limitation implies that Magnera functions more as a high-volume processor than a value-added specialty manufacturer, leaving little room for error in cost management.
Based on the provided income statement data, Magnera's operating income has failed to scale consistently with revenue, as evidenced by the 2026Q1 operating margin of 4.1% which remains suppressed by significant overhead costs relative to the company's thin gross profit generation.
The lack of meaningful operating leverage suggests that the anticipated merger synergies have yet to materialize in a way that improves bottom-line efficiency. Without a significant reduction in SG&A intensity or a substantial increase in throughput, the company may struggle to achieve sustainable operating profitability in the near term.
According to the company's reported figures, Magnera has consistently posted negative net income for ten consecutive quarters, with a net loss of $18.0 million in 2026Q1, indicating that the business model is currently unable to cover its total cost structure including interest and integration expenses.
The recurring nature of these losses, despite positive operating income in several recent quarters, suggests that non-operating items or high financing costs are significantly eroding shareholder value. Investors should investigate the sustainability of this loss-making trend, as it may indicate that the current capital structure is ill-suited for the company's operational reality.
While management emphasizes the potential for scale, the persistent negative net margins and the reliance on commodity-linked pricing suggest that the short-seller thesis regarding Magnera's inability to achieve a sustainable competitive advantage remains a significant risk factor for the newly formed entity.
The market may be overestimating the speed at which the company can transition from a commodity converter to a specialty materials provider. If the company fails to realize the projected $50 million in synergies, the current cash burn rate warrants further investigation into potential future liquidity constraints.
Quick answers to the most common questions about buying MAGN stock.
For fiscal year 2025, Magnera Corp. (MAGN) reported total revenue of $3.20B. This represents a 466.0% increase compared to $566.1M in 1996.
Magnera Corp. (MAGN) reported a net loss of $159.0M for the fiscal year ending 2025.
Magnera Corp. (MAGN) reported an operating income of $94.0M, resulting in an operating profit margin of 2.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Magnera Corp. (MAGN) generated $287.0M in gross profit for the year, representing a gross profit margin of 9.0%. This demonstrates the company's core pricing power and production efficiency.