Mattr (MATR) 17th Annual Southwest IDEAS Conference summary

Organizational transformation and business focus

• Underwent major transformation, divesting eight businesses and acquiring one, shifting from a volatile, over-leveraged structure to a focused infrastructure products manufacturer.

• Now operates in two segments: connection technologies (electrification-driven) and composite technologies (composite materials for liquid management).

• Manufacturing footprint is primarily North American, with recent investments in automation and facility upgrades.

• Capital spending has been elevated to address a decade of underinvestment, but will normalize in 2026.

• Most strategic transformation steps are now complete, with focus on operational efficiency and organic growth.

Market trends and growth drivers

• Focuses on critical infrastructure niches with high barriers to entry and low competition.

• Macro themes: electrification, infrastructure renewal, and environmental management drive long-term demand.

• Data center construction is a growing but potentially cyclical opportunity, with $30–$40 million annual run rate.

• Xerxes benefits from a multi-decade U.S. fueling network renewal, with strong demand for new and replacement underground tanks.

• Composite tanks offer longer life and lower risk than steel, with regulatory trends favoring replacement and upgrades.

Financial outlook and capital allocation

• 2026 expected to be more challenging due to trade friction and Canadian economic slowdown, but margin improvement targeted.

• EBITDA margins are expected to rise year-over-year, with long-term targets of 20%+ EBITDA margin, 10%+ revenue growth, and 70%+ free cash flow conversion.

• Net debt increased with AmerCable acquisition, but balance sheet stress-tested and focus is on debt reduction.

• Share repurchases paused to prioritize cash preservation and balance sheet strength.

• Capital spending will shift to maintenance and low-growth CapEx in 2026, after recent elevated investment.