Shares of Magnera (MAGN) tumbled 6.13% in pre-market trading on Wednesday following the release of the company's second-quarter financial results and updated outlook. The global leader in specialty materials for consumer products and personal care markets reported disappointing earnings and lowered its full-year guidance, raising concerns among investors.

For the second quarter ended March 29, 2025, Magnera reported net sales of $824 million, up 48% year-over-year, primarily due to the inclusion of revenue from the Glatfelter merger. However, on a comparable basis, net sales declined 4%. The company posted a GAAP operating income of just $4 million, down significantly from $21 million in the same quarter last year. Adjusted EBITDA came in at $89 million, representing a 17% increase year-over-year but an 8% decrease on a comparable basis.

In light of the challenging economic environment, Magnera has lowered its full-year outlook. The company now expects fiscal year 2025 comparable adjusted EBITDA to be in the range of $360 million to $380 million, down from its previous guidance. Despite the reduction in EBITDA expectations, Magnera reaffirmed its post-merger adjusted free cash flow range. CEO Curt Begle commented on the results, stating, "This quarter underscores the resilience of our business as we navigate ongoing global economic uncertainty." He emphasized the company's focus on integration, synergy realization, and long-term profitable growth in the face of uncertainties related to tariff-driven demand concerns.