Mattr (MATR) Q4 2024 earnings summary

Executive summary

• Achieved new annual revenue records in most business lines, with FY 2024 continuing operations revenue at $885M (up 0.5% YoY), and completed major North American production modernization and optimization initiatives, including three new U.S. manufacturing sites and a final Canadian relocation expected by mid-2025.

• Closed the acquisition of AmerCable (Amicable) for US$280M (CAD$403M) in January 2025, significantly expanding the connection technologies segment, now the largest segment.

• Repurchased over 3.3 million shares in 2024, totaling nearly 12% of outstanding stock since NCIB inception, and invested over $100M in continuing businesses.

• Disposed of non-core assets, with the sale of Thermotite (Brazilian pipe coating business) pending and expected to close by mid-2025.

• Ended 2024 with a cash balance exceeding $502M and a net debt-to-Adjusted EBITDA ratio of 1.0x (2.5x pro forma for AmerCable acquisition).

Financial highlights

• Q4 2024 revenue from continuing operations was $208M (CAD 207.8M), up 8.5% year-over-year; adjusted EBITDA from continuing operations was $12.7M, down 50.9%.

• Full-year 2024 revenue from continuing operations was $885.3M, up 0.5%; adjusted EBITDA was $108.2M, down 28.2%.

• Q4 cash provided by operating activities was $45.2M; net cash generated in Q4 was $316.5M.

• Full-year 2024 net cash generated was $168.4M; company invested $101M in capital expenditures and repurchased 3.3M shares for $48M.

• Discontinued operations (Thermotite) Q4 revenue was $24M, adjusted EBITDA $8.3M; full-year revenue $74M, adjusted EBITDA $22.5M.

Outlook and guidance

• Expects meaningful year-over-year growth in 2025 revenue, adjusted EBITDA, and adjusted EPS, led by connection technologies (including AmerCable) and Xerxes within composite technologies.

• Anticipates 10%+ year-over-year growth in three of four legacy business lines in 2025, with FlexPipe expected to be flat.

• Targeting annual EBITDA growth above 10% and margins above 20% long-term; 2025 margins expected in the mid-teens, with Q2 and Q3 strongest.

• Capital expenditures for 2025 expected at $60–$70M, with $15M for maintenance and the rest for growth projects.

• Near-term capital allocation to emphasize debt repayment, completion of growth investments, and continued share repurchases; expects to return to target leverage within 12–18 months post-AmerCable acquisition.