Magnera Corporation (NYSE: MAGN) saw its stock plummet 6.13% in pre-market trading on Wednesday following the release of its fiscal 2025 second-quarter results and updated outlook. The global specialty materials company reported disappointing earnings and lowered its full-year guidance, sparking investor concerns.
For the quarter ended March 29, 2025, Magnera reported net sales of $824 million, up from $558 million in the same period last year. However, the company swung to a loss with earnings per share (EPS) of $(1.15), a significant drop from $0.44 in the prior-year quarter. The stark decline in profitability has rattled investors, contributing to the pre-market sell-off.
Adding to the negative sentiment, Magnera lowered its full-year comparable Adjusted EBITDA range, signaling ongoing challenges. While the company reaffirmed its post-merger adjusted free cash flow range, it cautioned about uncertainties related to tariff-driven demand concerns. CEO Curt Begle emphasized the company's focus on executing strategic priorities of integration, synergy realization, and long-term growth, but acknowledged the need to align with short-term market realities. This cautious outlook has further fueled investor apprehension, leading to the sharp pre-market decline.
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