Mattr (OTCPK:MTTR.F) FY Conference Transcript

Summary of Mattr's Conference Call Company Overview - Company Name: Mattr - Stock Exchange: Toronto Stock Exchange (Symbol: MTTR) - CEO: Mike Reeves - Revenue: Over $1.3 billion in trailing 12-month revenue - Focus: Infrastructure products manufacturing, primarily in North America, with a global reach [1][2] Business Segments - Connection Technologies: Driven by electrification, focusing on engineered wire, cable, and assemblies. Brands include ShoreFlex (Canada) and AmerCable (U.S.) [2][3] - Composite Technologies: Transitioning from traditional materials to composite materials for liquid management. Key brands include Flexpipe (oil and gas) and Xerxes (underground fuel storage tanks) [4][5] Market Dynamics - Growth Opportunities: - Shift towards composite materials due to their longevity, faster installation, and corrosion resistance [5] - Aging infrastructure in North America necessitating expansion and refreshment [6] - Increasing demand for clean water and pollution management due to tightening regulations [6] Financial Performance and Strategy - Transformation: Significant restructuring over the past four years, divesting eight businesses and acquiring one [3] - Capital Expenditure: Normalized capital spending expected to be around 1% for maintenance and 2%-3% for growth in 2026 [9] - EBITDA Margins: Expected to exceed 20% with revenue growth rates above 10% and free cash flow conversion rates above 70% [11] Challenges and Risks - Economic Conditions: Anticipated challenges in 2026 due to economic slowing in Canada and potential trade frictions [7][8] - Debt Management: Increased net debt due to the acquisition of AmerCable, with a focus on debt reduction moving forward [12][14] - Tariff Risks: Monitoring potential tariffs on copper and the implications for manufacturing costs and margins [18][33] Competitive Landscape - Connection Technologies: Competing with TE Connectivity and 3M in the heat shrink tubing market, with a fragmented competitive environment in wiring cable [21][22] - Xerxes Business: Strong demand for underground fuel storage tanks driven by the replacement cycle of aging tanks and new convenience store constructions [25][26] Future Outlook - Data Center Construction: Growing revenue stream from data centers, with expectations of continued growth over the next 12 months [20][21] - Manufacturing Optimization: Ongoing investments in automation to improve production efficiency and meet rising demand [31] Conclusion - Mattr is positioned for growth in critical infrastructure markets, with a focus on efficiency and strategic capital allocation. The company is navigating potential economic and regulatory challenges while capitalizing on market opportunities in electrification and composite materials [16][36]