0000041719-26-000014 | 10-Q | XBRL Viewer

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Financial Instruments and Fair Value Measurements (Details) € in Millions, $ in Millions	3 Months Ended
	Dec. 27, 2025 USD ($)	Dec. 27, 2025 EUR (€)	Dec. 28, 2024 USD ($)
Financial Instruments and Fair Value Measurements [Abstract]
Fair value of long-term indebtedness greater/(less) than book value \| $	$ (56)
Cross-Currency Swap Maturing November 2027 [Member]
Financial Instruments and Fair Value Measurements [Abstract]
Notional amount of swap (in Euro) \| €		€ 250
Cross-Currency Swap Maturing November 2029 [Member]
Financial Instruments and Fair Value Measurements [Abstract]
Notional amount of swap (in Euro) \| €		€ 425
Cross-currency Swap [Member] \| Accumulated Other Comprehensive Loss [Member]
Financial Instruments and Fair Value Measurements [Abstract]
Gain/(loss) on net investment hedges, net of tax \| $	$ (2)		$ 8

Consolidated Balance Sheets (Parentheticals) - shares shares in Millions	Dec. 27, 2025	Sep. 27, 2025
Consolidated Balance Sheets [Abstract]
Common stock, shares issued (in Shares)	35.9	35.6

Long-Term Debt

3 Months Ended

Dec. 27, 2025

Long-Term Debt [Abstract]

Long-Term Debt

5. Long-Term Debt

Long-term debt consists of the following:

Facility	Maturity Date		December 27, 2025			September 27, 2025
Term loan	November 2031	$	706		$	731
Revolving credit facility	November 2029		—			—
4.75% First Priority Senior Secured Notes	October 2029		500			500
7.25% First Priority Senior Secured Notes	November 2031		798			800
Debt discounts, deferred fees and other			(73	)		(79	)
Total long-term debt		$	1,931		$	1,952

Despite not having financial maintenance covenants on our Term Loan and secured notes, these agreements do contain certain negative covenants. The failure to comply with these negative covenants could restrict our ability to incur additional indebtedness, effect acquisitions, enter into certain significant business combinations, make distributions or redeem indebtedness. We are in compliance with all covenants as of December 27, 2025.

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 27, 2025	Sep. 27, 2025
Current assets:
Cash and cash equivalents	$ 264	$ 305
Accounts receivable	553	522
Finished goods	301	303
Raw materials	175	171
Prepaid expenses and other current assets	72	122
Total current assets	1,365	1,423
Noncurrent assets:
Property, plant and equipment	1,453	1,476
Goodwill and intangible assets	880	890
Right-of-use assets	60	62
Other assets	135	138
Total assets	3,893	3,989
Current liabilities:
Accounts payable	326	356
Accrued employee costs	80	90
Other current liabilities	150	155
Total current liabilities	556	601
Noncurrent liabilities:
Long-term debt	1,931	1,952
Deferred income taxes	48	46
Operating lease liabilities	44	45
Other long-term liabilities	276	281
Total liabilities	2,855	2,925
Equity:
Common stock (35.9 and 35.4 million shares issued, respectively)	1	1
Additional paid-in capital	1,422	1,417
Retained loss	(193)	(159)
Accumulated other comprehensive loss	(192)	(195)
Total equity	1,038	1,064
Total liabilities and equity	$ 3,893	$ 3,989

Segment and Geographic Data (Tables)

3 Months Ended

Dec. 27, 2025

Segment and Geographic Data [Abstract]

Selected Information by Reportable Segment

Selected information by reportable segment is presented in the following tables:


	Quarterly Period Ended
		December 27, 2025			December 28, 2024
Net Sales
Americas	$	440		$	420
Rest of World		352			282
Total net sales	$	792		$	702

Segment operating expenses(4)
Americas	$	382		$	364
Rest of World		317			254
Total segment operating expenses	$	699		$	618

Adjusted EBITDA
Americas	$	58		$	56
Rest of World		35			28
Total adjusted EBITDA	$	93		$	84

Reconciling items:
Depreciation and amortization	$	49		$	53
Restructuring, transaction, business optimization and other activities		19			32
Argentina hyperinflation(1)		3			—
Corporate expense allocation(2)		—			3
Other non-cash charges(3)		8			18
Operating income (loss)		14			(22	)
Interest expense, net and other expense (income), net		43			47
Loss before income taxes	$	(29	)	$	(69	)


Depreciation and amortization
Americas	$	29	$	33
Rest of World		20		20
Total depreciation and amortization	$	49	$	53

Selected Information by Geographical Region

Selected information by geographical region is presented in the following table:


	Quarterly Period Ended
		December 27, 2025		December 28, 2024
Net sales
United States and Canada	$	341	$	306
Latin America		99		114
Rest of World		352		282
Total net sales	$	792	$	702

Selected Information by Product Line

Selected information by product line is presented in the following table:


	Quarterly Period Ended
(in percentages)		December 27, 2025		December 28, 2024
Net sales
Personal Care		44	%	53	%
Consumer Solutions		56	%	47	%
Total net sales		100	%	100	%

Basis of Presentation	3 Months Ended
Basis of Presentation	Dec. 27, 2025
Basis of Presentation [Abstract]
Basis of Presentation	1. Basis of Presentation On November 4, 2024 (the “Closing Date”), Treasure Holdco, Inc., which was a wholly owned subsidiary of Berry Global Group, Inc. (“Berry”), completed its merger (the “merger”) with the Glatfelter Corporation which concurrently changed its name to Magnera Corporation. The Consolidated and Combined Financial Statements contain combined financial statements for the fiscal periods prior to the Closing Date of the merger and were prepared on a stand-alone basis. The pre-merger Combined Financial Statements of Operations, Comprehensive Income (Loss), Cash Flows and Changes in Equity have been prepared on a carve-out basis, which include assumptions underlying the preparation that management believe are reasonable. However, the combined pre-merger financial information included herein may not necessarily reflect the Company’s results of operations, comprehensive income (loss), cash flows and changes in equity had the Company been an independent stand-alone company during the periods presented. The accompanying unaudited Consolidated and Combined Financial Statements of Magnera have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim reporting. In preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included, and all subsequent events up to the time of the filing have been evaluated. For further information, refer to the Company’s Form 10-K filed with the SEC on November 25, 2025. Recently Issued Accounting Pronouncements In 2023, the Financial Accounting Standards Board ("FASB") issued guidance with the goal of providing more information in the income tax reconciliation table and regarding income taxes paid. This Accounting Standard Update ("ASU") is effective for fiscal years beginning after December 15, 2024, may be applied prospectively or retrospectively, and allows for early adoption. The Company is currently evaluating the impact of adopting this guidance. In 2024, the FASB issued guidance with the goal of providing more expense information for certain categories of expenses that are included in line items on the face of the statements of operations. This ASU is effective for fiscal years beginning after December 15, 2026 and for interim periods beginning after December 15, 2027, and may be adopted on a prospective or retrospective basis and allows for early adoption. The Company is currently evaluating the impact of adopting this guidance.

Condensed Consolidated and Combined Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Dec. 27, 2025	Dec. 28, 2024
Cash Flows from Operating Activities:
Net loss	$ (34)	$ (60)
Adjustments to reconcile net cash from operating activities:
Depreciation	38	39
Amortization of intangibles	11	14
Non-cash interest expense	7	3
Deferred income tax	1	8
Share-based compensation expense	5	6
Other non-cash operating activities, net	9	32
Changes in working capital, net	(31)	(106)
Changes in other assets and liabilities	(4)	6
Net cash from (used in) operating activities	2	(58)
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(15)	(16)
Cash acquired from merger	0	37
Net cash from (used in) investing activities	(15)	21
Cash Flows from Financing Activities:
Proceeds from long-term borrowings	0	1,556
Repayments on long-term borrowings	(27)	(430)
Transfers from (to) parent, net	0	34
Cash distributions to parent	0	(1,111)
Debt fees and other, net	0	(16)
Net cash from (used in) financing activities	(27)	33
Effect of currency translation on cash	(1)	(11)
Net change in cash and cash equivalents	(41)	(15)
Cash and cash equivalents at beginning of period	305	230
Cash and cash equivalents at the end of period	$ 264	$ 215

Long-Term Debt - Long-Term Debt (Parentheticals) (Details)	Dec. 27, 2025
4.75% First Priority Senior Secured Notes [Member]
Long-Term Debt [Abstract]
Interest rate	4.75%
7.25% First Priority Senior Secured Notes [Member]
Long-Term Debt [Abstract]
Interest rate	7.25%

Document and Entity Information - shares shares in Millions	3 Months Ended
Document and Entity Information - shares shares in Millions	Dec. 27, 2025	Feb. 05, 2026
Document Information Line Items
Entity Central Index Key	0000041719
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 27, 2025
Document Fiscal Year Focus	2026
Document Transition Report	false
Entity Address, Address Line One	9335 Harris Corners Pkwy
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Charlotte
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28269
City Area Code	866
Local Phone Number	744-7380
Entity File Number	1-03560
Entity Registrant Name	Magnera Corporation
Entity Tax Identification Number	23-0628360
Entity Incorporation, State or Country Code	PA
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	MAGN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		35.9
Amendment Flag	false
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--09-26

Restructuring and Other Activities (Details)	3 Months Ended
Restructuring and Other Activities (Details)	Dec. 27, 2025
Restructuring and Other Activities [Abstract]
Term of Project CORE restructuring plan	2 years

Consolidated and Combined Statements of Operations - USD ($) $ in Millions	3 Months Ended
	Dec. 27, 2025	Dec. 28, 2024
Consolidated and Combined Statements of Operations [Abstract]
Net sales	$ 792	$ 702
Costs and expenses:
Cost of goods sold	695	631
Selling, general and administrative	50	47
Amortization of intangibles	11	14
Restructuring and other activities	22	32
Operating income (loss)	14	(22)
Other expense, net	3	21
Interest expense, net	40	26
Loss before income taxes	(29)	(69)
Income tax expense (benefit)	5	(9)
Net loss	$ (34)	$ (60)
Net loss per share: Basic (in Dollars per share)	$ (0.95)	$ (1.69)
Net loss per share: Diluted (in Dollars per share) (in Dollars per share)	$ (0.95)	$ (1.69)

Contingencies and Commitments (Details) $ in Millions	3 Months Ended
Contingencies and Commitments (Details) $ in Millions	Dec. 27, 2025 USD ($)
Contingencies and Commitments [Abstract]
Term to reimburse government oversight costs	29 years
Environmental liability	$ 17
Escrow asset	9
Acquired Liability Related to Certain Tax Claims [Member] \| Minimum [Member]
Contingencies and Commitments [Abstract]
Estimated tax liability	40
Acquired Liability Related to Certain Tax Claims [Member] \| Maximum [Member]
Contingencies and Commitments [Abstract]
Estimated tax liability	$ 58

Segment and Geographic Data (Details) $ in Millions	3 Months Ended
Segment and Geographic Data (Details) $ in Millions	Dec. 27, 2025 USD ($) Segment	Dec. 28, 2024 USD ($)
Segment and Geographic Data [Abstract]
Number of reportable segments \| Segment	2
Number of operating segments \| Segment	2
Non-cash restructuring and other expenses \| $	$ 3
Merger [Member]
Segment and Geographic Data [Abstract]
Inventory step up \| $		$ 12

Basic and Diluted Net Loss Per Share (Details) shares in Millions	3 Months Ended
	Dec. 27, 2025 shares
Basic and Diluted Net Loss Per Share [Abstract]
Antidilutive shares excluded from computation of earnings per share (in Shares)	3.6

Income Taxes	3 Months Ended
Income Taxes	Dec. 27, 2025
Income Taxes [Abstract]
Income Taxes	7. Income Taxes The year-to-date effective income tax rate was unfavorably impacted by the jurisdictional mix of pre-tax results among the Company and its subsidiaries and losses, which generate no tax benefit in domestic and certain foreign jurisdictions. Foreign income taxed in the U.S., as well as certain changes in applicable withholding taxes, also unfavorably influenced the effective tax rate.

Accounting Policies, by Policy (Policies)	3 Months Ended
Accounting Policies, by Policy (Policies)	Dec. 27, 2025
Accounting Policies [Abstract]
Business Combination	On November 4, 2024 (the “Closing Date”), Treasure Holdco, Inc., which was a wholly owned subsidiary of Berry Global Group, Inc. (“Berry”), completed its merger (the “merger”) with the Glatfelter Corporation which concurrently changed its name to Magnera Corporation.
Basis of Presentation	The Consolidated and Combined Financial Statements contain combined financial statements for the fiscal periods prior to the Closing Date of the merger and were prepared on a stand-alone basis. The pre-merger Combined Financial Statements of Operations, Comprehensive Income (Loss), Cash Flows and Changes in Equity have been prepared on a carve-out basis, which include assumptions underlying the preparation that management believe are reasonable. However, the combined pre-merger financial information included herein may not necessarily reflect the Company’s results of operations, comprehensive income (loss), cash flows and changes in equity had the Company been an independent stand-alone company during the periods presented.
Consolidated and Combined Financial Statements	The accompanying unaudited Consolidated and Combined Financial Statements of Magnera have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim reporting. In preparing financial statements in conformity with GAAP, we must make estimates and assumptions that affect the reported amounts and disclosures at the date of the financial statements and during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included, and all subsequent events up to the time of the filing have been evaluated. For further information, refer to the Company’s Form 10-K filed with the SEC on November 25, 2025.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In 2023, the Financial Accounting Standards Board ("FASB") issued guidance with the goal of providing more information in the income tax reconciliation table and regarding income taxes paid. This Accounting Standard Update ("ASU") is effective for fiscal years beginning after December 15, 2024, may be applied prospectively or retrospectively, and allows for early adoption. The Company is currently evaluating the impact of adopting this guidance. In 2024, the FASB issued guidance with the goal of providing more expense information for certain categories of expenses that are included in line items on the face of the statements of operations. This ASU is effective for fiscal years beginning after December 15, 2026 and for interim periods beginning after December 15, 2027, and may be adopted on a prospective or retrospective basis and allows for early adoption. The Company is currently evaluating the impact of adopting this guidance.
Revenue Recognition	Revenue is recognized when performance obligations are satisfied, in an amount reflecting the consideration to which the Company expects to be entitled. We consider the promise to transfer products to be our sole performance obligation. Generally, our revenue is recognized for standard promised goods at the time of shipment, when title and risk of loss pass to the customer. The Company disaggregates revenue based on reportable business segment, geography, and significant product line.
Accounts Receivable	The Company records current expected credit losses based on a variety of factors including historical loss experience and current customer financial condition. The reserve as of each period end and changes to our current expected credit losses, write-off activity, and recoveries were not material for any of the periods presented.
Customer Supply Chain Financing Programs	The Company participates in customer supply chain financing programs to collect certain receivables through third-party financial institutions. These arrangements qualify as true sales, as the receivables are transferred without recourse. As a result, the balances are removed from trade receivables on the balance sheet, and the cash proceeds are reported as operating cash flows.

Financial Instruments and Fair Value Measurements - Fair Value of Derivatives and Location on Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Dec. 27, 2025	Sep. 27, 2025
Cross-currency Swaps [Member] \| Designated as Hedging [Member]
Financial Instruments and Fair Value Measurements [Abstract]
Fair value of derivative instruments	$ (102)	$ (99)

Basic and Diluted Net Loss Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Dec. 27, 2025	Dec. 28, 2024
Numerator
Consolidated net loss	$ (34)	$ (60)
Denominator
Weighted average common shares outstanding - basic (in Shares)	35.7	35.4
Weighted average common shares outstanding - dilutive (in Shares)	35.7	35.4
Net loss per share:
Basic (in Dollars per share)	$ (0.95)	$ (1.69)
Diluted (in Dollars per share)	$ (0.95)	$ (1.69)

Consolidated and Combined Statements of Changes in Equity - USD ($) $ in Millions	Common Stock [Member]	Berry Net Investment [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss - Currency Translation [Member]	Retained Earnings [Member]	Total
Balance at Sep. 28, 2024	$ 0	$ 2,307	$ 0	$ (168)	$ 0	$ 2,139
Net loss	0	0	0	0	(60)	(60)
Other comprehensive income (loss)	0	0	0	(71)	0	(71)
Cash distribution to parent	0	(1,111)	0	0	0	(1,111)
Transfers from parent, net	0	129	0	0	0	129
Distribution of parent’s net investment	1	(1,325)	1,324	0	0	0
Acquisition	0	0	74	0	0	74
Share-based compensation	0	0	6	0	0	6
Balance at Dec. 28, 2024	1	0	1,404	(239)	(60)	1,106
Balance at Sep. 27, 2025	1	0	1,417	(195)	(159)	1,064
Net loss	0	0	0	0	(34)	(34)
Other comprehensive income (loss)	0	0	0	3	0	3
Share-based compensation	0	0	5	0	0	5
Balance at Dec. 27, 2025	$ 1	$ 0	$ 1,422	$ (192)	$ (193)	$ 1,038

Revenue and Accounts Receivable	3 Months Ended
Revenue and Accounts Receivable	Dec. 27, 2025
Revenue and Accounts Receivable [Abstract]
Revenue and Accounts Receivable	2. Revenue and Accounts Receivable Revenue is recognized when performance obligations are satisfied, in an amount reflecting the consideration to which the Company expects to be entitled. We consider the promise to transfer products to be our sole performance obligation. Generally, our revenue is recognized for standard promised goods at the time of shipment, when title and risk of loss pass to the customer. The Company disaggregates revenue based on reportable business segment, geography, and significant product line. See Note 8. Segment and Geographic Data. The Company records current expected credit losses based on a variety of factors including historical loss experience and current customer financial condition. The reserve as of each period end and changes to our current expected credit losses, write-off activity, and recoveries were not material for any of the periods presented. The Company participates in customer supply chain financing programs to collect certain receivables through third-party financial institutions. These arrangements qualify as true sales, as the receivables are transferred without recourse. As a result, the balances are removed from trade receivables on the balance sheet, and the cash proceeds are reported as operating cash flows.

Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 27, 2025	Sep. 27, 2025
Leases [Abstract]
Operating lease right-of-use assets	$ 60	$ 62
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Current operating lease liabilities	$ 18	$ 18
Noncurrent operating lease liabilities	$ 44	$ 45

Contingencies and Commitments	3 Months Ended
Contingencies and Commitments	Dec. 27, 2025
Contingencies and Commitments [Abstract]
Contingencies and Commitments	9. Contingencies and Commitments Litigation The Company is party to various legal proceedings involving routine claims which are incidental to its business. Although the Company’s legal and financial liability with respect to such proceedings cannot be estimated with certainty, the Company believes that any ultimate liability would not be material to its Consolidated Balance Sheet, Consolidated and Combined Statements of Operations, or Cash Flows. Environmental Claims Over the next 29 years, we are primarily responsible for the reimbursement of government oversight costs associated with certain environmental claims regarding the Fox River located in Wisconsin. At December 27, 2025, the outstanding balance of the environmental liability and corresponding escrow asset was $17 million and $9 million, respectively. Tax Claims As part of a previous acquisition, the Company acquired a liability related to certain tax claims. Depending on the resolution of the tax claim, the settlement will range between $40 million and $58 million as of December 27, 2025 with an eventual payment to the Brazilian government and/or the selling stockholders of the previous acquisition. The Company has recorded an estimated tax liability on the Consolidated Balance Sheets in Other long-term liabilities as the settlement of existing and potential claims is expected to be greater than one year.