Latest news with #MTTRF
Yahoo
2 days ago
- Business
- Yahoo
Mattr Corp (MTTRF) Q2 2025 Earnings Call Highlights: Record Revenue Growth Amid Tariff Challenges
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.
Yahoo
16-05-2025
- Business
- Yahoo
Stantec Inc (STN) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Net Revenue: $1.6 billion, up 13.3% year over year. Organic Growth: 5.9% overall, with notable double-digit growth in Canada. Acquisition Growth: 3.2%. Adjusted EBITDA: Increased by over 19%, with a margin of 16.2%. Adjusted EPS: Growth of 29% compared to Q1 2024, reaching $1.16. Gross Revenue: $1.9 billion, up almost 12% year over year. Project Margins: 54.3%, a 10 basis point increase over last year. Operating Cash Flow: Increased almost 136% year over year, from $43 million to $101 million. Net Debt to Adjusted EBITDA Ratio: 1.1 times as of March 31. Backlog: Reached a record $7.9 billion, with 7.5% organic growth. US Net Revenue Growth: 9.7%, with 2.4% organic growth. Canada Net Revenue Growth: 15%, with 12.2% organic growth. Global Business Net Revenue Growth: 20.3%, with 7.5% organic growth. Warning! GuruFocus has detected 2 Warning Signs with MTTRF. Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Stantec Inc (NYSE:STN) reported a strong start to 2025 with a 13.3% year-over-year increase in net revenue, reaching $1.6 billion. The company achieved a 19% growth in adjusted EBITDA, with an enhanced margin of 16.2%. Stantec Inc (NYSE:STN) announced two strategic acquisitions, including Page, which will make it the second-largest architectural firm in North America. The company's backlog reached a record $7.9 billion, indicating strong demand and future work. Stantec Inc (NYSE:STN) maintained a positive outlook for 2025, expecting net revenue growth of 7% to 10% and adjusted EPS growth of 16% to 19%. Organic growth in the US was slightly below expectations at 2.4%, attributed to project cycle timing and a tough comparison from the previous year. Despite strong performance, the company did not raise its guidance for 2025, citing the need to close acquisitions and assess Q2 results. There is some uncertainty in the US government business, with potential impacts on procurement cycles and contract renewals. The integration of ZETCON in Germany is progressing slower than usual due to language and accounting differences. The company faces heightened market uncertainty due to tariffs, policy shifts, and regulatory changes, which could impact future performance. Q: In terms of organic growth for the US, you achieved 2.4%, which is slightly below the consolidated level. Is this due to tough comparisons from last year or are there current uncertainties in the US market? A: Gordon Johnston, President and CEO, explained that the lower growth is partly due to a tough comparison from last year when they completed a significant water project. However, they expect mid to high single-digit organic growth for the year, supported by a strong backlog. Q: Despite adding two acquisitions and nearly 1,600 people, why hasn't the guidance for 2025 been raised? A: Vito Culmone, EVP and CFO, stated that the base business is performing well, and the guidance remains unchanged due to the timing of acquisition closures. They plan to reassess the guidance after Q2. Q: Can you provide insights into the US government business and any impacts from current uncertainties? A: Gordon Johnston noted that there has been little impact from uncertainties. While there was a temporary slowdown in procurement cycles, the situation has normalized, and they remain positive about ongoing projects and future opportunities. Q: How is the integration of ZETCON progressing, and does it align with your strategy for growth in Germany? A: Gordon Johnston mentioned that ZETCON is performing better than expected, and they are using it as a platform for further growth in Germany. The integration is progressing slowly due to language and accounting differences, but it aligns with their strategic goals. Q: Have macro uncertainties affected M&A opportunities or regional interests? A: Gordon Johnston stated that they maintain a long-term perspective on M&A, focusing on strategic and cultural fit. Vito Culmone added that seller motivations remain unchanged, with technology investments and succession planning driving market dynamics. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data
Yahoo
15-03-2025
- Business
- Yahoo
Mattr Corp (MTTRF) Q4 2024 Earnings Call Highlights: Revenue Growth Amidst EBITDA Challenges
Revenue: $207.8 million in Q4 2024, an 8.5% increase from Q4 2023. Adjusted EBITDA from Continuing Operations: $12.7 million in Q4 2024, a 50.9% decrease from the prior year. Composite Technology Segment Revenue: $120.3 million in Q4 2024, a 6.9% increase from Q4 2023. Connection Technology Segment Revenue: $87.5 million in Q4 2024, an 11% increase from Q4 2023. Cash Provided by Operating Activities: $45.2 million in Q4 2024. Net Cash Generated: $316.5 million in Q4 2024. Net Debt: $131.9 million as of December 30, 2024. Share Repurchases: Nearly 1.9 million shares repurchased in Q4 2024. Capital Expenditures: $33.1 million in Q4 2024. Full Year 2024 Revenue from Continuing Operations: $885.3 million, a 0.5% increase from 2023. Full Year 2024 Adjusted EBITDA from Continuing Operations: $108.2 million, a 28.2% decrease from 2023. Warning! GuruFocus has detected 2 Warning Signs with MTTRF. Release Date: March 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Mattr Corp (MTTRF) achieved new annual revenue records in three of its four business lines and year-over-year revenue growth within its consolidated continuing operations. The company successfully completed its North American production modernization, expansion, and optimization (MEO) program, establishing three new US manufacturing sites. Mattr Corp (MTTRF) acquired AmerCable, significantly enhancing its wire and cable portfolio and making connection technologies the larger of its two segments. The company repurchased more than 3.3 million shares under its normal course issuer bid, buying back nearly 12% of its stock since the program's inception. Mattr Corp (MTTRF) expects meaningful year-over-year growth in 2025 revenue and adjusted EBITDA, driven by its connection technology segment and the Xerxes business within its composite technology segment. Mattr Corp (MTTRF) experienced a 50.9% decrease in adjusted EBITDA from continuing operations compared to the prior year, primarily due to non-capitalizable expenses tied to the MEO strategy. The company anticipates continued weakness in the North American onshore oilfield market, Eurozone industrial sector, and global automotive market throughout 2025. Mattr Corp (MTTRF) incurred $18 million of non-capitalizable expenses related to its MEO strategy, impacting reported adjusted EBITDA. The company faced a decline in gross profit due to temporary impacts of unabsorbed costs at Xerxes sites and changes in product and customer mix. Mattr Corp (MTTRF) expects potential tariff impacts due to cross-border exposure, with approximately 30% of its continuing operations revenue derived from product sales crossing the US-Canadian border. Q: Can you discuss the potential impact of tariffs on your cross-border operations and how you plan to manage these costs? A: Michael Reeves, President and CEO, explained that most cross-border revenue is within the composites segment, with Mattr often being the importer of record for Flexpipe but not for Xerxes. If tariffs are imposed, Mattr plans to pass these costs to customers, as their products are USMCA compliant and currently not subject to tariffs. The company has also prepositioned inventory in the US to mitigate potential impacts. Q: What is the outlook for Flexpipe, especially in light of your competitor's recent performance? A: Michael Reeves noted that Flexpipe's revenue for Q4 2024 and Q1 2025 is expected to be similar, driven by market share gains and the introduction of larger-diameter products. These products have expanded Flexpipe's addressable market, and the company anticipates continued growth despite a flat North American operating environment. Q: How is the integration of AmerCable progressing, and what are the expected costs and benefits? A: Michael Reeves stated that the integration is going well, with a focus on maintaining AmerCable's current operations. The company expects $5 million in onboarding costs in 2025, with cross-selling opportunities anticipated to drive revenue growth. AmerCable's revenue is expected to be strongest in Q1 due to project timing. Q: Can you provide an update on the cost savings from the recent workforce restructuring? A: Tom Holloway, CFO, confirmed that the expected reductions have been executed, aligning the workforce with market demand. The restructuring costs were approximately $4.9 million, and the company believes it has the right cost base for anticipated 2025 revenue levels. Q: What are the expectations for MEO costs in 2025, and how will they impact the financials? A: Tom Holloway indicated that MEO costs are expected to be $7 million to $8 million in 2025, spread across the first two quarters, and will be concentrated in the connection technology segment. No further MEO costs are anticipated for composite technologies. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
