Magnera (MAGN 1.08%), which manufactures absorbent hygiene products, protective apparel, wipes, and specialty construction products, reported strong sales and "record" cash from operations last night, sending the stock up 33.4% through 11:15 a.m. ET Thursday morning.
According to TheFly.com, two analysts follow Magnera, and they both expected the company to report $838 million in sales for fiscal Q4 2025. Magnera reported $839 million.
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Magnera Q4 earnings
Magnera grew its sales an astounding 51% year over year in Q4, and flipped its operating income from negative $167 million to positive $10 million. (Net, the company lost $40 million). For the full year, Magnera says sales grew 46.5% (so the growth rate is both high and accelerating), and operating profit was $5 million.
On the bottom line, Magnera's net losses were basically flat year over year, $159 million, versus $155 million in fiscal 2024 -- but the company generated positive free cash flow of $36 million in 2025.
NYSE: MAGN
Key Data Points
Is Magnera stock a buy?
And next year could be even better. Commenting on the results, CEO Curt Begle pronounced himself "proud of what our team has accomplished not only this quarter but over the entire year." He noted that the company "exceeded our free cash flow target." He noted that Magnera's "post-merger adjusted free cash flow," which is a non-GAAP number, should be $126 million.
Heading into fiscal 2026, Magnera aims to grow earnings 9% (although how one grows "earnings" in comparison to a net loss is a bit confusing). Free cash flow will either improve or not, depending on how you look at it. Magnera forecasts fiscal 2026 FCF between $90 million and $110 million.
Call it $100 million at the midpoint, and Magnera stock at $283 million in market cap looks cheap enough to buy.
