Magnera (NYSE:MAGN) stock plummeted 5.51% in Thursday's pre-market trading session, following the company's lackluster fiscal 2025 earnings guidance and wider-than-expected losses in the first quarter.
The industrial equipment maker reported a GAAP net loss of $1.69 per share for Q1 fiscal 2025, significantly worse than the $0.25 per share loss in the prior year period. Revenue rose 35.3% year-over-year to $702 million, driven by strong demand across Magnera's product lines.
However, Magnera's fiscal 2025 adjusted EBITDA guidance of $387 million (midpoint) implies just a 7% year-over-year increase, disappointing investors who were expecting stronger profit growth. The company also projected post-merger adjusted free cash flow of only $75-$95 million for the full year.