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Introduction & Market Context
Mattr Corp (MATR) reported strong first-quarter 2025 results on May 15, with revenue jumping 52% year-over-year, driven by the recent AmerCable acquisition and organic growth across its business segments. The infrastructure technology company’s stock closed at $11.24, up 0.54% following the presentation, as investors balanced impressive Q1 performance against management’s more cautious outlook for the second quarter.
Quarterly Performance Highlights
Mattr delivered substantial growth in Q1 2025, with revenue reaching $320.1 million, a 52% increase compared to the same period last year. Adjusted EBITDA surged 80% year-over-year to $46.6 million, demonstrating significant margin improvement across the company’s business segments.
The Connection Technologies segment was the standout performer, posting record revenue of $187 million, representing a 106% increase compared to Q1 2024. This exceptional growth was primarily driven by the AmerCable acquisition completed on January 2, 2025, along with year-over-year increases in DSG-Canusa revenue.
As shown in the following financial results summary:
The Composite Technologies segment also delivered solid results, with revenue increasing 11.3% to $132.8 million and Adjusted EBITDA rising 40.2% to $21 million. The segment’s performance was bolstered by higher Xerxes revenue and increased Flexpipe North American revenue, which the company attributed to continued market share gains.
Strategic Initiatives
Mattr’s presentation highlighted its disciplined capital allocation strategy, balancing organic investments, acquisitions, debt management, and shareholder returns. The company has remained active on its Normal Course Issuer Bid (NCIB) program, which was renewed in June 2024.
The company’s strategic transformation continued with the completion of the AmerCable acquisition and an agreement to sell Thermotite, its Brazilian pipe coating business. This divestiture, expected to close by mid-2025, aligns with Mattr’s strategy to simplify its portfolio and focus on infrastructure and industrial markets.
Mattr also emphasized its positioning to benefit from the growing nuclear power market through its Shawflex engineered wire and cable portfolio. The company highlighted opportunities in Canadian CANDU nuclear power generation sites, with significant refurbishment and new-build activity expected.
The following timeline illustrates Mattr’s potential opportunities in the nuclear sector:
Financial Position
The company reported a net debt to adjusted EBITDA ratio of 3.6x at quarter-end. However, management noted that adjusting for the AmerCable acquisition and upcoming Thermotite divestiture, the pro forma ratio would be 2.9x, or 2.1x excluding lease liabilities.
Mattr maintained strong liquidity with $319.1 million in unutilized credit facilities as of March 31, 2025, and a quarter-end credit facility balance of $158.3 million.
The company’s capital expenditure strategy is illustrated in the following chart:
Capital spending totaled $11.6 million in Q1, with $8.6 million directed toward growth initiatives. Management expects total capital expenditures of $60-70 million for the full year 2025.
Forward-Looking Statements
Despite the strong Q1 performance, Mattr’s outlook for Q2 was more cautious. Management cited "substantial market uncertainty" regarding potential tariffs and related economic conditions, which could impact customer investment decisions.
The company specifically noted that it anticipates Q2 business performance to be lower than Q1, with varying expectations across its product lines. While DSG-Canusa is expected to show modest year-over-year growth, Shawflex anticipates lower revenue compared to the prior year. AmerCable’s revenue is described as "front-loaded" for 2025, suggesting potential moderation in coming quarters.
As outlined in the company’s outlook:
Mattr emphasized that while it expects limited direct impact from currently anticipated tariffs, the uncertainty surrounding these trade measures could drive customers to "temper pace of investment," potentially affecting near-term demand.
The company maintains a positive long-term view, citing continuing global investment growth and increased exposure to electrification markets through the AmerCable acquisition. Management believes underlying demand will continue its upward trend despite near-term uncertainties.
Full presentation:
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