2023 Third Quarter Overview:

• Generated net sales of ~$330 million and a GAAP net loss from continuing operations of $19.7 million
  

• Delivered strong sequential recovery of Adjusted EBITDA of $25.5 million following one-time Q2 adverse events
  

• Improved earnings from Turnaround Strategy, delivering highest EBITDA margin of last eight quarters
  

• Divested Ober-Schmitten site, eliminating future losses
  

• Lowered full-year EBITDA guidance by $10 million due to ongoing industry-wide market weakness, lower volumes and continued customer destocking
  

Improved Profitability Despite Continued Difficult Market Conditions

“Our performance improved in the third quarter as we moved past last quarter's one-time operational issues, further reflecting the team’s continued commitment to driving efficiencies across the business as part of our Turnaround Strategy,” said Thomas Fahnemann, President and CEO of Glatfelter. “We generated sequential EBITDA gains in our Composite Fibers segment through improved operations and the divestiture of the Ober-Schmitten business. Performance in the Airlaid segment also increased as we delivered sequential volume growth, stronger production and benefits from cost-out actions.

In Spunlace, earnings were stable sequentially as volume weakness was fully offset by operational improvements and prudent cost control. These outcomes meaningfully contributed to us generating Adjusted EBITDA of $25.5 million during the quarter, with our enterprise EBITDA margin reaching the highest level of the past eight quarters.”