Mattr (MATR) Q3 2024 earnings summary

Executive summary

• Consolidated Q3 2024 revenue was $250M, Adjusted EBITDA was $37M, and adjusted EPS was $0.23, including discontinued Brazil operations and $3.1M in MEO costs and $1.9M in severance costs.

• Entered agreement to sell Thermotite (Brazilian pipe coating business) for ~$24M, now classified as discontinued operations, with closing expected by mid-2025.

• Announced definitive agreement to acquire AmerCable for $280M USD, expected to close around year-end 2024, and to be immediately accretive.

• Maintained active capital allocation, including share repurchases and ongoing investment in growth initiatives.

• Operational transformation and new manufacturing sites remain on track for substantial completion by year-end 2024.

Financial highlights

• Q3 2024 revenue from continuing operations was $226.2M, up 2% year-over-year; consolidated Adjusted EBITDA was $36.7M, and Adjusted EBITDA from continuing operations was $29.3M.

• Composite Technologies revenue fell 2.7% to $136.4M; Adjusted EBITDA dropped 37.5% to $20.3M, with margin falling to 14.9%.

• Connection Technologies revenue rose 9.9% to $89.9M, setting a Q3 record; Adjusted EBITDA decreased by $2.6M due to margin compression.

• Discontinued operations (Thermotite/Brazil) reported $24M revenue and $7.5M–$8M Adjusted EBITDA, fully booked into mid-2025.

• Cash and equivalents at quarter-end were $186M; net debt-to-Adjusted EBITDA ratio was 0.59x.

Outlook and guidance

• Q4 2024 revenue and Adjusted EBITDA from continuing operations expected to be the lowest of the year due to seasonal and macro headwinds, severance, and transaction costs.

• Full-year 2024 revenue expected to be similar to or slightly below 2023; 2025 outlook strong for North American industrial and infrastructure sectors.

• Anticipate $20M in annual cost savings from restructuring, with most realized in 2025.

• 2024 CapEx expected at $90M–$100M; 2025 CapEx likely at the upper end of $30M–$50M.

• AmerCable acquisition expected to increase exposure to electrification macro theme.