Mattr Corp (MTTRF) Q2 2025 Earnings Call Highlights: Record Revenue Growth Amid Tariff Challenges

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Revenue: $321 million, a 33% increase from the second quarter of 2024.
Adjusted EBITDA: $42.5 million, a 5% increase year-over-year.
Connection Technologies Revenue: $176.5 million, 99% higher than the previous year.
Composite Technologies Revenue: $144.4 million, a 5% decrease year-over-year.
Net Debt: $534.3 million as of June 30, 2025.
Net Debt to Adjusted EBITDA Ratio: 3.5x, or 3.1x on a pro forma basis.
Cash Balance: $52.9 million as of June 30, 2025.
Capital Expenditures: $14.5 million in the quarter.
Share Repurchases: Over 700,000 shares repurchased under the NCIB program.
Warning! GuruFocus has detected 3 Warning Signs with MTTRF.
Release Date: August 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Mattr Corp (MTTRF) achieved a 5% year-over-year adjusted EBITDA growth despite macroeconomic uncertainties and tariff challenges.
The successful integration of the AmerCable acquisition has contributed positively to revenue and adjusted EBITDA, with AmerCable securing significant industrial and marine orders.
Connection Technologies segment set a new second-quarter record for both revenue and adjusted EBITDA, with sales nearly doubling compared to the previous year.
Xerxes achieved a new post-COVID quarterly revenue record, driven by strong demand for fuel storage and water management products.
Flexpipe's new Texas facility is on track to reach normalized efficiency levels, with freight savings expected to offset increased manufacturing costs by late 2025.
Negative Points
The introduction of US tariffs on copper products is likely to impact Shawflex and AmerCable, potentially raising costs for finished wire and cable products.
Wire and cable revenue saw a slight sequential decline due to anticipated reductions in AmerCable sales and temporary bottlenecks at Shawflex.
Composite Technologies segment experienced a 5% year-over-year revenue decrease, primarily due to lower international sales of Flexpipe.
Xerxes faced challenges in workforce expansion, limiting tank production acceleration and impacting margins.
The uncertainty surrounding future tariff changes and potential counter tariffs by Canada adds unpredictability to Mattr Corp's financial outlook.
Q & A Highlights
Q: Could you expand on what's happening in the Shawflex business, especially compared to AmerCable's performance? A: Mike Reeves, President and CEO, explained that Shawflex, primarily serving Canadian markets, faced lower industrial demand than expected and was impacted by the relocation to a new manufacturing facility. However, the move is now complete, and production levels have returned to pre-move levels. The focus is now on finding higher-margin opportunities despite the low industrial demand in Canada.
Q: Does the recent introduction of copper tariffs affect your margin expansion plans for 2026? A: Mike Reeves stated that while the demand environment and tariff policies for 2026 are uncertain, Mattr expects margin improvement due to the elimination of MEO costs, enhanced production efficiency, and new technology launches. The company is confident in its ability to grow market share and improve margins despite external challenges.
Q: Can you provide more detail on your exposure to US copper tariffs in the wire and cable business? A: Mike Reeves noted that copper is the largest cost component, with annual spending between CAD 100 million and CAD 130 million. The tariffs are expected to increase costs by mid-single-digit percentages, which Mattr plans to pass on to customers. The company is mitigating risks by procuring more materials within the US.
Q: How is the integration of AmerCable progressing, and what does the backlog look like? A: Mike Reeves expressed satisfaction with the AmerCable acquisition, noting that integration is nearly complete. The combination of AmerCable and Shawflex is gaining traction, with a backlog of opportunities exceeding $10 million. The team is successfully securing new orders, particularly in the data center sector.
Q: Can you discuss the performance of DSG-Canusa, especially in the automotive and industrial sectors? A: Mike Reeves highlighted DSG-Canusa's strong performance despite market uncertainties. The automotive sector, particularly in North America, has been impacted by tariffs, but DSG-Canusa has captured market share by focusing on technology evolution. The industrial sector is growing through new technology introductions and sales force management.
Q: What is the current status of Xerxes' backlog, particularly in the fuel and stormwater markets? A: Mike Reeves reported strong demand in both markets, with fuel station construction expected to grow by 10% in 2025 and 15% in 2026. Xerxes set a new revenue record in Q2, and the backlog extends well into the first half of 2026. The company is focused on improving production output and efficiency to meet demand.
Q: How are you managing pricing in the wire and cable business amid copper price fluctuations? A: Mike Reeves explained that Mattr uses both fixed and variable pricing strategies. The company has pre-purchased copper for fixed-price contracts to limit exposure. For variable contracts, recent copper price declines will be factored into customer pricing, and any tariff-related cost increases will be shared with customers.
Q: Can you comment on the competitiveness of Flexpipe's larger diameter products in international markets? A: Mike Reeves noted that while international oilfield markets have been quieter, Flexpipe's larger diameter products are competitive in the segments they serve. The company has not lost significant tenders but has seen fewer tenders due to market conditions. New product introductions are expected to enhance competitiveness.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.