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Magnera Corp trades at a discount with strong earnings growth and deleveraging post-merger in nonwoven industry.

Market News
13 Aug 2026
Seeking Alpha
View Source
Bullish
Magnera Corp trades at a discount with strong earnings growth and deleveraging post-merger in nonwoven industry.

Magnera Corporation (MAGN), formed from the merger of Glatfelter and Berry's HHNF businesses, is successfully integrating operations, growing earnings, and reducing debt in the nonwoven industry. The company trades at a low valuation of 5.5x FY26E EBITDA compared to peers at 9x, with a free cash flow yield around 20%, indicating undervaluation. Management projects FY26 EBITDA between $380–410 million and free cash flow of $90–110 million, with potential for even higher results in FY27. Upcoming events like the TSA exit and tariff changes could further boost the stock's valuation.

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