Mattr Announces Second Quarter 2025 Results

Executive Summary

• Mattr Corp. reported second-quarter 2025 financial results, delivering $321 million in revenue from continuing operations (a 33% increase year-over-year) and $42 million in Adjusted EBITDA from continuing operations (a 5% increase).
• The company completed its strategic portfolio transformation with the sale of its final pipe coating subsidiary, Thermotite, for US$37.4 million, and concluded its North American production footprint Modernization, Expansion and Optimization (MEO) projects.
• Management anticipates third-quarter 2025 revenue and Adjusted EBITDA to be modestly below the second quarter due to new US tariffs on copper products, moderating customer buying behavior, and lower gross margins from unfavorable revenue mix.

Key Details

• Continuing Operations Financials (Q2 2025):
  • Revenue: $321 million (up 33% from $241 million in Q2 2024).
  • Operating Income: $10 million.
  • Adjusted EBITDA: $42 million (up 5% from $40.4 million in Q2 2024).
  • Net Loss from Continuing Operations: $(3.7) million.
  • Diluted Adjusted EPS: $0.12.
• Segment Performance:
  • Connection Technologies: Revenue increased 99% to $177 million (driven by AmerCable acquisition); Operating Income was $11 million; Adjusted EBITDA was $22 million (up 28%). Includes $7 million in MEO costs.
  • Composite Technologies: Revenue decreased 5% to $144 million; Operating Income was $16 million; Adjusted EBITDA was $25 million (down 10%).
• Strategic Transactions:
  • Sale of Thermotite: Completed on June 4, 2025, to Vallourec. Aggregate proceeds received were US$37.4 million ($51.0 million CAD), comprising a purchase price of US$17.5 million and working capital estimates including US$17.6 million in cash.
  • AmerCable Acquisition: Included in Q2 results; incurred $3.4 million in acquisition costs (including $2.6 million non-cash inventory fair value adjustment).
• Capital Allocation & Share Repurchases:
  • NCIB renewed effective June 30, 2025.
  • Repurchased ~0.7 million shares for $7 million during the quarter.
  • Post-quarter repurchases (as of July 31, 2025): 100,000 shares for ~$1.3 million.
• Balance Sheet & Cash:
  • Cash and cash equivalents: $52.9 million (down from $502.5 million at Dec 31, 2024, largely due to AmerCable acquisition funding).
  • Total Net Debt-to-Adjusted EBITDA ratio: 3.53x (up from 1.01x at Dec 31, 2024).
• Outlook & Risks:
  • Tariffs: US government announced 50% tariff on copper-related products, impacting input costs for wire and cable businesses.
  • Q3 2025 Guidance: Revenue and Adjusted EBITDA expected to be modestly below Q2 2025 levels.
  • MEO Costs: Company discontinued reporting MEO costs starting Q3 2025 as projects are complete.
  • Production Ramp-up: New facilities (Shawflex Vaughan, DSG-Canusa Ohio, Flexpipe Texas, Xerxes South Carolina) are ramping up; normalized efficiency levels expected in 2026.
  • Capital Expenditures: Full-year capex expected to be $60-$70 million.

Notable Quotes

• “Mattr successfully navigated continuing global economic uncertainty by levering its diversified portfolio of differentiated infrastructure products during the second quarter,” said Mike Reeves, Mattr’s President & CEO.
• “In parallel, the Company has now concluded its strategic transformation, with the sale of Thermotite and the completion of its North American production network re-vitalization activities during the quarter.”
• “As a consequence, we currently anticipate Mattr's third quarter revenue and Adjusted EBITDA will be modestly below the second quarter of 2025.”