Summary of Mattercorp (MTTR.F) FY Conference Call - August 27, 2025 Company Overview - Mattercorp is a materials technology organization focused on converting basic materials into designed products for critical infrastructure end markets [2][3] - The company has undergone significant transformation over the past four years, including a name change, divestiture of eight businesses, and acquisition of three [2] Business Segments - Mattercorp operates in two segments: 1. **Connection Technologies**: Focuses on electrification-related products, including wire and cable solutions [4][5] 2. **Composite Technologies**: Concentrates on liquid management products, replacing legacy materials with composites [2][6] Market Position and Growth Drivers - Approximately 90% of revenue is derived from North America, with a strong focus on U.S. and Canadian markets [3] - The company anticipates benefiting from long-term investments in capital infrastructure driven by population growth, electrification, and digitization [3] - Demand exceeds supply across all product lines, indicating strong growth potential [12][13] Financial Performance and Projections - The company has seen substantial revenue growth and modest EBITDA margin improvement despite undergoing transformation [21] - Projected capital spending for 2026 is expected to normalize between $40 million to $50 million, significantly lower than previous years [19] - Maintenance CapEx is approximately $15 million annually, indicating low capital intensity [19] Operational Efficiency and Manufacturing - Focus on improving operational execution and manufacturing efficiency without requiring additional capital investments [14] - Investment of approximately $200 million in North American manufacturing facilities over the past two years, including four new facilities [16][17] - The company aims for a consistent 10% growth year-over-year, over 20% EBITDA margin, and over 70% free cash flow conversion rate [23] Debt Management and Shareholder Returns - The company has moved from a net cash position in 2024 to taking on modest debt for acquisitions, with plans for consistent deleveraging [24][25] - Share buybacks have been a priority, with approximately 14% of outstanding shares repurchased over the last 2.5 years [26] Challenges and Risks - The company faces tariff-related challenges, particularly with copper tariffs affecting supply chain costs [30][32] - Uncertainty in the marketplace may lead to delayed customer purchases and projects, impacting near-term demand [33] Conclusion - Mattercorp has completed its portfolio transformation and is positioned to focus on operational execution, revenue growth, and margin expansion moving forward [27][29]