Latest news with #AmerCable
Globe and Mail
20-05-2025
- Business
- Globe and Mail
Mattr Reports Voting Results From Annual Meeting
TORONTO, May 20, 2025 (GLOBE NEWSWIRE) -- Mattr Corp. ('Mattr' or the 'Company') (TSX: MATR) announced today in accordance with Toronto Stock Exchange requirements, the voting results from its Annual Meeting held May 15, 2025 in Toronto, Ontario. A total of 43,559,302 common shares were voted at the meeting representing 69.87% of the votes attached to all outstanding shares. Shareholders voted in favour of all items of business before the meeting, including the election of all director nominees as follows: Name of Nominee % of Votes For % of Votes Against Laura A. Cillis 99.93 0.07 Kathleen J. Hall 99.86 0.14 Alan R. Hibben 99.84 0.16 Kevin L. Nugent 98.26 1.74 Michael Reeves 99.93 0.07 Kathy Rethy 99.70 0.30 Marvin Riley 99.77 0.23 'I appreciate the continued strong support of Mattr's shareholders for both our strategic direction and our experienced team of Directors who provide invaluable governance oversight,' said Mike Reeves, Mattr's President and CEO. 'With output expanding from our recently established production facilities, strong customer adoption of our newly developed technologies and meaningful growth opportunities for the recently acquired AmerCable business, I believe Mattr is well positioned to deliver accelerating shareholder returns over the coming years.' Detailed voting results for the meeting are available on SEDAR+ at About Mattr Mattr is a growth-oriented, global materials technology company broadly serving critical infrastructure markets, including transportation, communication, water management, energy and electrification. Its two business segments, Connection Technologies and Composite Technologies, enable responsible renewal and enhancement of critical infrastructure. For further information, please contact: Meghan MacEachern VP, Investor Relations & External Communications Telephone: 437.341.1848 Email: Website: Source: Mattr Corp.
Yahoo
16-05-2025
- Business
- Yahoo
Mattr Corp (MTTRF) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amid Market Challenges
Revenue from Continuing Operations: $320.1 million, a 52% increase year-over-year. Adjusted EBITDA from Continuing Operations: $46.6 million, an 80% increase year-over-year. Connection Technologies Segment Revenue: $187.3 million, 106% higher than the prior year. Composite Technologies Segment Revenue: $132.8 million, an 11% increase year-over-year. Cash Used in Operating Activities: $5.9 million, primarily due to increased investment in working capital. Cash Used in Investing Activities: $406.9 million, mainly reflecting the acquisition of AmerCable. Net Debt: $562.8 million as of March 31, 2025. Net Debt to Adjusted EBITDA Ratio: 3.6 times, including lease liabilities. Thermotite Business Revenue: $23 million with adjusted EBITDA margins of 32%. Capital Expenditures: $11.6 million, with $24.1 million of cash deployed. Warning! GuruFocus has detected 2 Warning Signs with MTTRF. Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Mattr Corp (MTTRF) reported a 52% year-over-year increase in revenue and an 80% rise in adjusted EBITDA for Q1 2025, showcasing strong business performance. The acquisition of AmerCable has been successfully integrated, contributing significantly to the Connection Technologies segment's revenue growth. The company has a strong balance sheet, enabling it to navigate market uncertainties confidently and continue investing in technology development and operational efficiencies. Mattr Corp's ShawFlex business is well-positioned to benefit from a resurgence in nuclear power generation, with significant growth potential in the nuclear sector. The Composite Technologies segment saw an 11% increase in revenue, driven by increased demand for Xerxes fuel storage and water management products, as well as higher sales of Flexpipe products. Geopolitical uncertainties and potential US tariffs have created an uncertain outlook for global trade, impacting customer confidence and potentially affecting future demand. Mattr Corp anticipates a sequential decline in revenue and adjusted EBITDA in Q2 2025 due to macroeconomic uncertainties and potential tariff impacts. The company faces challenges with order delays from overseas customers, particularly affecting AmerCable's exports to countries like Canada, Chile, and China. The Connection Technologies segment experienced tempered margins due to nearly $3 million in non-capitalizable MEO costs during the quarter. Flexpipe's revenue was modestly below the first quarter of 2024, and the company expects further deceleration in North American onshore well completions due to volatile crude oil prices. Q: Can you quantify the impact of pull-forward demand from the composite division on sales and EBITDA? A: Tom Holloway, CFO, explained that the pull-forward impact on EBITDA was around $4 million for the total corporation, mostly in the Composite segment. This pull-forward will affect Q2 results, but the market remains uncertain, so further guidance was not provided. Q: Is there an update on the 7 to 8-inch line launch later this year, and any initial customer interest? A: Michael Reeves, CEO, confirmed strong customer interest. The equipment is being commissioned, and production is expected to start by the end of the year, with full commercial availability in 2026. Q: How do you expect the connection technologies facilities to perform compared to the composite facilities launched last year? A: Tom Holloway, CFO, noted that the connection technologies facilities are largely replacements with more modernization, so they are not expected to face the same fixed cost absorption issues. Minor issues may occur in Ohio, but none are expected in ShawFlex. Q: Can you provide tangible insights into medium voltage commercial synergies and customer interest? A: Michael Reeves, CEO, stated that while tariff uncertainty has limited upside, AmerCable's EBITDA contribution expectations remain unchanged. Some orders have been delayed, but new orders in medium voltage for industrial applications have been captured. Q: Is the expectation still to reach a 20% EBITDA margin for the connection technologies division? A: Tom Holloway, CFO, confirmed the expectation to reach a 20% EBITDA margin, although not this year. Market improvements could accelerate this timeline, but the margin profile view remains unchanged. Q: How is the outlook for international order flow in the Flexpipe segment? A: Michael Reeves, CEO, mentioned that international revenue in Q4 and Q1 was similar, with no large tenders expected this year. The second half of the year is anticipated to be stronger for international revenue generation. Q: What percentage of Xerxes revenue comes from stormwater management, and how has this business grown? A: Michael Reeves, CEO, indicated that stormwater management accounts for 20% to 25% of Xerxes revenue. Growth has been limited by production capacity, but new facilities are expected to drive this percentage higher. Q: Has steel price inflation driven any incremental demand for composite products? A: Michael Reeves, CEO, noted that steel tariffs have made composite solutions more attractive, driving customer migration from steel to composites. This trend is expected to continue, benefiting both Flexpipe and Xerxes. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
MATTR Announces First Quarter 2025 Results
TORONTO, May 14, 2025 (GLOBE NEWSWIRE) -- Mattr Corp. ('Mattr' or the 'Company') (TSX: MATR) reported today its operational and financial results for the three months ended March 31, 2025. This press release should be read in conjunction with the Company's Management Discussion and Analysis ('MD&A') and interim consolidated financial statements for the three months ended March 31, 2025, which are available on the Company's website and at Highlights include1: On January 2, 2025, the Company completed its acquisition of AmerCable® Incorporated ('AmerCable'), a U.S. manufacturer of highly engineered wire and cable solutions for the net purchase price of US$283 million, equivalent to approximately CAD $407 million based on the USD-CAD exchange rate as of December 31, 2024 which includes the contractual purchase price, initial working capital adjustments, and US$19.3 million of cash in the business. This transaction is still subject to final net working capital adjustments. AmerCable is now reported under the Company's Connection Technologies segment; On a consolidated basis (including Continuing Operations and Discontinued Operations), Mattr reported revenue of $343 million, net income of $53 million, Adjusted EBITDA2 of $54 million, diluted Earnings Per Share ('EPS') of 0.84 and diluted Adjusted EPS2 of $0.34. Results are inclusive of Modernization, Expansion and Optimization ('MEO')2 costs of $2.7 million incurred during the quarter; During the first quarter of 2025, Mattr's Continuing Operations (including AmerCable) delivered revenue of $320 million, operating income of $18 million and Adjusted EBITDA of $47 million, an 80% increase compared to the first quarter of 2024; The Connection Technologies segment's first quarter revenue increased by 106% to $187 million compared to $91 million in the prior year's quarter. Operating income increased by 24% to $18 million compared to $15 million in the prior year's quarter and Adjusted EBITDA from the segment was $30 million, a 73% increase compared to the first quarter of 2024; The Composite Technologies segment's first quarter revenue increased by 11% to $133 million compared to $119 million in the prior year's quarter. Operating income increased by 219% to $13 million compared to $4 million in the prior year's quarter and Adjusted EBITDA from the segment was $21 million, a 40% increase compared to the first quarter of 2024; During the first quarter of 2025, Discontinued Operations generated revenue of $23 million, operating income of $7 million and Adjusted EBITDA of $7 million; and During the first quarter of 2025, the Company committed $11.6 million to new capital expenditures while outlaying approximately $24.1 million in cash, including previously accrued amounts, to support long-term growth in its Composite Technologies and Connection Technologies segments. The Company also repurchased approximately 1.0 million of its common shares for a total repurchase price of $11 million under its normal course issuer bid ('NCIB'). Subsequent to the quarter and as of April 30, 2025, the Company has repurchased 313,800 shares for an aggregate repurchase price of approximately $3.0 million. ______________________________1. The Company's consolidated financial statements for the three months ended March 31, 2025, report Continuing Operations as the Company's Composite Technologies and Connection Technologies reporting segments and Financial and Corporate. Discontinued Operations include Company's Thermotite business, its final remaining pipe coating business. Total consolidated figures include figures from both Continuing Operations and Discontinued Operations2. Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted EPS are non-GAAP measures. MEO costs is a supplementary financial measure. Non-GAAP measures and supplementary financial measures do not have standardized meanings prescribed by GAAP and are not necessarily comparable to similar measures provided by other companies. See 'Section 5.0 – Reconciliation of Non-GAAP Measures' for further details and a reconciliation of these non-GAAP measures. 'The first quarter of 2025 saw Mattr leverage its unique product portfolio to deliver strong business performance despite geopolitically driven uncertainty across many end markets,' said Mike Reeves, Mattr's President & CEO. 'With customer adoption of recently released technologies accelerating, robust performance from AmerCable in its first quarter as a Mattr brand, and newly established manufacturing facilities operating at improved levels of efficiency, Q1 saw meaningful year-over-year expansion of both revenue and Adjusted EBITDA generation within both operating segments.' 'Mattr benefitted modestly during the first quarter from acceleration of purchasing decisions by some customers ahead of early April US tariff announcements. While Mattr's own USMCA compliant products were not directly impacted by these announcements, the uncertain outlook for global trade and macro-economic conditions has undoubtedly impacted customer confidence across much of the critical infrastructure landscape. Consequently, the Company currently expects demand for its products during the second quarter of 2025, and likely beyond, will be unfavorably impacted. While the full year business impact remains unclear, we currently anticipate the second quarter of 2025 will see Mattr's revenue and Adjusted EBITDA move lower sequentially.' Mr. Reeves continued, 'While the Company cannot control the business environment within which it operates, in recent history the talented teams across our organization have proven nimble, resilient and cost-conscious in the face of challenging conditions. As demonstrated by our first quarter performance, Mattr's technology driven products, differentiated positioning in key markets, strong customer value proposition and rebalanced, modernized manufacturing footprint create the opportunity for market outperformance, regardless of prevailing conditions.' Mr. Reeves concluded, 'Our hard-earned balance sheet strength enables Mattr to navigate market uncertainties with confidence, remaining committed to technology development, to enhancing cost and operational efficiency across the organization, to extracting commercial synergies from our newly expanded wire and cable portfolio and to creating long-term value for our shareholders, including via additional accretive acquisitions and the continued repurchase of shares under our NCIB.' Selected Financial Highlights Three Months Ended March 31, 2025 2024 (in thousands of Canadian dollars, except per share amounts and percentages) $ % $ % Revenue 320,120 210,039 Gross Profit 83,618 26% 59,768 28% Operating Income from Continuing Operations (a) 18,441 6% 4,029 2% Net Income (Loss) from Continuing Operations 48,069 (2,145 ) Net Income (Loss) from Discontinued Operations 4,657 (3,494 ) Net Income (Loss) for the period 52,726 (5,639 ) Earnings per share: Basic 0.84 (0.09 ) Diluted 0.84 (0.09 ) Adjusted EBITDA from Continuing Operations (b) 46,554 15% 25,827 12% Adjusted EBITDA from Discontinued Operations (b) 7,477 32% 4,242 29% Total Consolidated Adjusted EBITDA from Operations (b) 54,031 16% 30,069 13% Total Consolidated Adjusted EPS from Operations (b) Basic 0.34 0.16 Diluted 0.34 0.16 (a) Operating income for the three months ended March 31, 2025, includes no restructuring costs and other net, while operating loss for the three months ended March 31, 2024, includes $3.2 million restructuring costs and other net. (b) Adjusted EBITDA, adjusted EBITDA margins and Adjusted EPS are non-GAAP measures. Non-GAAP measures do not have standardized meanings under GAAP and are not necessarily comparable to similar measures provided by other companies. See 'Section 5.0 – Reconciliation of Non-GAAP Measures' for further details and a reconciliation of these non-GAAP measures. 1.0 FIRST QUARTER HIGHLIGHTS On January 2, 2025, the Company, through its subsidiary, successfully completed the acquisition of AmerCable, a U.S.-based manufacturer of highly engineered wire and cable solutions, from Nexans USA Inc. AmerCable has been incorporated into Mattr's Connection Technologies segment, which is now the largest segment in its portfolio. The Company paid US$283 million, equivalent to approximately CAD $407 million based on the USD-CAD exchange rate as of December 31, 2024 which includes the contractual purchase price, initial working capital adjustments, and US$19.3 million of cash in the business. The final working capital adjustment is anticipated to be completed during the second half of the year. During the first quarter of 2025, the Company delivered $320.1 million in revenue from Continuing Operations, a $110.1 million or a 52.4% increase from the same quarter of 2024. The Company's operating income from Continuing Operations in the first quarter of 2025 was $18.4 million, an increase of $14.4 million, or 357.7%, compared to the first quarter of 2024. Adjusted EBITDA from Continuing Operations was $46.6 million during the first quarter of 2025, an increase of $20.7 million, or 80.3%, compared to the first quarter of 2024. These favorable movements as compared to the prior year period were driven by the addition of AmerCable and strong performance across most business lines, despite the economic uncertainties arising from tariff announcements. The first quarter of 2025 results include $9.5 million in costs associated with the acquisition of AmerCable including the impact of $4.2 million of costs related to the non-cash inventory fair value adjustment, which was part of AmerCable purchase price allocation accounting. The Company's financial results in the first quarter of 2025 also include the impact of $2.7 million in MEO costs related to the Company's ongoing MEO strategy and is similar to the $2.7 million of MEO costs recorded in the first quarter of 2024. Additionally, the Company recorded a recovery of $2.2 million in share-based incentive compensation against operating income from Continuing Operations during the first quarter of 2025 driven by the change in the Company's share price. Comparatively, operating income from Continuing Operations in the prior year's first quarter included an expense of $7.6 million in share-based incentive compensation. As at March 31, 2025, the Company had cash and cash equivalents totaling $52.7 million, a decrease from $502.5 million as at December 31, 2024 which included restricted cash. The decrease in cash compared to the year-end 2024 was largely attributable to closing and funding the AmerCable acquisition during the quarter. Selected Segment Financial Highlights Three Months Ended March 31, 2025 2024 (in thousands of Canadian dollars) $ % $ % Revenue Connection Technologies 187,346 90,757 Composite Technologies 132,774 119,282 Revenue from Continuing Operations 320,120 210,039 Revenue from Discontinued Operations 23,301 14,422 Operating Income (Loss) Connection Technologies 18,041 10% 14,543 16% Composite Technologies 12,807 10% 4,017 3% Financial and Corporate (12,407 ) (14,531 ) Operating Income from Continuing Operations 18,441 4,029 Operating Income from Discontinued Operations 7,493 3,696 Adjusted EBITDA (a) Connection Technologies 30,461 16% 17,617 19% Composite Technologies 21,038 16% 15,008 13% Financial and Corporate (4,945 ) (6,798 ) Adjusted EBITDA from Continuing Operations (a) 46,554 15% 25,827 12% Adjusted EBITDA from Discontinued Operations (a) 7,477 32% 4,242 29% a) Adjusted EBITDA is non-GAAP measures. Non-GAAP measures do not have standardized meanings under GAAP and are not necessarily comparable to similar measures provided by other companies. See 'Section 5.0 – Reconciliation of Non-GAAP Measures' for further details and a reconciliation of these non-GAAP measures. The Connection Technologies segment now includes the Company's Shawflex, AmerCable and DSG-Canusa business lines, and delivered revenue of $187.3 million in the first quarter of 2025, a new first quarter record and an increase of $96.6 million when compared to the first quarter of 2024. Its operating income in the first quarter of 2025 was $18.0 million compared to $14.5 million in the first quarter of 2024. The segment delivered Adjusted EBITDA of $30.5 million during the first quarter of 2025, a $12.8 million increase versus the prior year quarter. This was the first quarter the Company's business included AmerCable's financial results, which significantly contributed to the increased financial performance in the Connection Technologies segment as compared to the first quarter of 2024. The AmerCable business line contributed strong performance across its end markets in the first quarter of 2025, particularly the mining sector. The Connection Technologies segment results include a $4.2 million impact from non-cash inventory fair value adjustment as part of AmerCable purchase price allocation accounting, which is added back for Adjusted EBITDA purposes. The segment successfully completed all expected first-quarter AmerCable business onboarding activities. Consolidated revenue generation in the segment's wire and cable businesses (Shawflex and AmerCable) was strongly favorable compared to the prior year, driven primarily by increases in the mining, energy and industrial sectors, partially offset by weaker sales into infrastructure applications, driven by customer project timing. DSG-Canusa revenue increased marginally compared to the prior year period, primarily driven by higher sales into automotive end markets in North America as the Company gained market share despite a backdrop of reduced global automotive production during the quarter. Year-over-year increases in segment operating income and Adjusted EBITDA were primarily driven by the addition of AmerCable, partially offset by $2.7 million of non-capitalizable MEO costs associated with the bifurcation and relocation of its North American footprint. This compares to $0.4 million of MEO cost recognized in the prior year period. The Composite Technologies segment contains the Company's Flexpipe® and Xerxes® business lines and delivered revenue of $132.8 million in the first quarter of 2025, an increase of $13.5 million, or 11.3%, compared to the first quarter of 2024. Operating income for the segment in the first quarter of 2025 was $12.8 million, an $8.8 million increase from the $4.0 million reported in the first quarter of 2024. North American Flexpipe revenue increased compared to the same period in the prior year, despite significantly reduced North American completion activity, as the Company continued to secure new customers and further penetrate the large diameter product market. The business also benefitted from some customers accelerating purchases ahead of potential tariff announcements. International revenue was lower year-over-year, primarily due to the timing of orders and deliveries, with the prior-year period benefiting from a significant shipment to the Middle East. Within Xerxes, first-quarter revenue exceeded the prior-year period, primarily driven by increased sales of Fiberglass Reinforced Plastic (FRP) tanks for retail fuel applications and Hydrochain products for storm water management applications. Adjusted EBITDA for the Composite Technologies segment in the first quarter of 2025 was $21.0 million, an increase of $6.0 million from the $15.0 million reported in the first quarter of 2024. This increase was primarily driven by higher gross profit resulting from increased revenue. This was partially offset by a slight decline in gross margin, reflecting a change in product mix and increased freight expenses associated with pre-emptive relocation of inventory into the U.S. to mitigate potential tariff impacts. The segment did not incur any non-capitalizable MEO costs in the first quarter of 2025, as the new production facilities for Flexpipe and Xerxes were fully set up and operational, compared to $2.3 million of MEO costs incurred during the first quarter of 2024 for the setup of these production sites. Discontinued Operations generated revenue of $23.3 million and $7.5 million of Adjusted EBITDA during the first quarter of 2025 compared to $14.4 million in revenue and $4.2 million of Adjusted EBITDA during the first quarter of 2024. 2.0 OUTLOOK The Company acknowledges that extreme uncertainty exists regarding the magnitude and duration of tariffs impacting the movement of goods between the US and other countries, and the business and economic consequences arising from such tariffs. The Company currently manufactures products in the US and/or Canada that are sold cross-border in all of its business units and imports raw materials and component parts for the production of its products. The Company also sources raw materials from other countries that are currently subject to or may in the future become subject to tariffs by the United States government. The Company continues to diversify its supply chain and has secured sources based in several different countries for a majority of its raw material needs. The Company remains vigilant and prepared to take additional mitigation actions as needed, including raising the selling prices of its products where necessary and permitted under its contractual arrangements. The related economic uncertainty may also cause customers to pause or cancel investment decisions, which could impact overall near-term demand for the Company's products in certain end markets. The outlook below includes the Company's current visibility of the potential impact of tariffs. Despite near and medium term geopolitical and macroeconomic challenges, the Company remains positive on the long-term outlook and macro drivers for its products. The Company has largely completed its disposition of non-core assets and the modernization, expansion and optimization of its North American production network, with the remaining sale of its Brazilian pipe coating business expected to close around mid 2025 and the relocation of its Shawflex manufacturing site expected to be completed at the end of the second quarter of 2025. MEO costs are expected to be $5 to $7 million in the second quarter and will mark the completion of the MEO expense recognition program by the Company. Consequently, over the course of 2025, Mattr is expected to return to more normalized operations, with a primary focus on delivering value from its restructured operational footprint while also ensuring full integration and optimization of AmerCable following its acquisition. The Company currently anticipates revenue and Adjusted EBITDA from Continuing Operations in the second quarter of the year to fall below the first quarter of 2025, including the recognition of MEO costs during the second quarter within its Connection Technologies segment. The Company observed some accelerated customer purchasing activity during the first quarter - primarily in its Flexpipe business - as a result of tariff uncertainty, and amid this uncertainty, the Company currently anticipates some customer purchasing decisions in the second quarter and beyond may be delayed or reduced. The Company currently anticipates sales from its Xerxes fuel and water products in the second quarter of 2025 will rise modestly compared to the first quarter as conditions become more favorable for underground installation activity. Production efficiency from the business's recently established South Carolina site is expected to evolve favorably over the remainder of 2025. The Company currently anticipates sales of its Flexpipe products in the second quarter of 2025 will be lower than the first quarter, as modestly higher international shipments and continued North American market share gains are likely offset by further reductions in North American completion activity, driven by tariff uncertainty and lower oil prices. Production efficiency from the business's recently established Texas site is expected to evolve favorably over the remainder of 2025. The Company currently anticipates sales of its DSG-Canusa products in the second quarter of 2025 will be similar to the first quarter, as lower activity from its automotive customers is expected to be offset by new customer capture and new product introduction. The production efficiency from the business's recently established Ohio site is expected to evolve favorably over the remaining course of 2025. The Company currently anticipates sales of Shawflex and AmerCable wire and cable products in the second quarter of 2025 will decline compared to the first quarter, driven primarily by lower deliveries into specific industrial, mining and energy applications, partially offset by higher deliveries into infrastructure applications. The timing of specific deliveries within the AmerCable business drove a particularly strong result during the first quarter, which is still expected to be the strongest quarter of 2025 for this business. Copper price volatility has also increased since the start of the year and is being closely monitored to ensure the impacts arising from any rapid movements are minimized. The Company has successfully leveraged Shawflex resources to secure early confirmation of US and Canadian customer appetite to utilize AmerCable's medium voltage products in specific industrial applications and continues to anticipate initial, modest benefits from these expected industrial sector commercial synergies will commence in the second half of 2025. Key AmerCable related factors impacting Connection Technology segment results to date, and going forward, include: The Company incurred approximately $1 million of non-routine onboarding expenses related to the acquisition of AmerCable in the first quarter, and expects additional expenses of up to $4 million over the remainder of 2025. These costs are added back for the calculation of Adjusted EBITDA. The revaluation of AmerCable's inventory to fair value as part of the purchase price allocation accounting is expected to temporarily lower gross margins in the first half of the year as the inventory is sold. These costs are added back for the calculation of Adjusted EBITDA. The recognition of intangible assets, including goodwill, customer relationships and trade names as part of the AmerCable purchase price allocation accounting and the corresponding amortization of these assets will impact reported earnings. However, these are non-cash expenses and do not impact the Company's underlying operational performance or cash flow. While the Company expects to maintain its 'all of the above' approach to capital allocation, with the acquisition of AmerCable and the majority of its large organic MEO projects completed, the Company's capital deployment in 2025 is expected to focus more heavily on debt repayment and activity under its NCIB. The Company currently anticipates total full year capital expenditures will be $60-$70 million, with approximately $15 million of such amount allocated to maintenance capital, and the remaining amounts allocated to growth projects, including completion of the remaining MEO projects. Given the elevated geopolitical uncertainty, the Company continues to evaluate market conditions and remains prepared to adjust its capital program and spend as needed. The Company has moved above its normal net-debt-to-Adjusted EBITDA ratio target of 2.0 times, including leases, as a result of its acquisition of AmerCable. Through prioritization of debt repayment, the Company currently expects to move back below its normal target ratio within 12 to 18 months of the acquisition date. 3.0 CONFERENCE CALL AND ADDITIONAL INFORMATION Mattr will be hosting a Shareholder and Analyst Conference Call and Webcast on Thursday, May 15th, 2025 at 9:00 AM ET, which will discuss the Company's First Quarter 2025 Financial Results. To participate via telephone, please register at and a telephone number and pin will be provided. Alternatively, please go to the following website address to participate via webcast: The webcast recording will be available within 24 hours of the live presentation and will be accessible for 90 days. About Mattr Mattr is a growth-oriented, global materials technology company broadly serving critical infrastructure markets, including transportation, communication, water management, energy and electrification. The Company operates through a network of fixed manufacturing facilities. Its two business segments, Composite Technologies and Connection Technologies, enable responsible renewal and enhancement of critical infrastructure. For further information, please contact: Meghan MacEachernVP, Investor Relations & External CommunicationsTel: 437-341-1848Email: Source: Mattr 4.0 FORWARD-LOOKING INFORMATION This news release includes certain statements that reflect management's expectations and objectives for the Company's future performance, opportunities and growth, which statements constitute 'forward-looking information' and 'forward-looking statements' (collectively 'forward-looking information') under applicable securities laws. Such statements, other than statements of historical fact, are predictive in nature or depend on future events or conditions. Forward-looking information involves estimates, assumptions, judgements and uncertainties. These statements may be identified by the use of forward-looking terminology such as 'may', 'will', 'should', 'anticipate', 'expect', 'believe', 'predict', 'estimate', 'continue', 'intend', 'plan' and variations of these words or other similar expressions. Specifically, this news release includes forward-looking in-formation in the Outlook Section and elsewhere in respect of, among other things: the ability of the Company to deliver higher returns to all shareholders; the Company's ability to deliver customer and shareholder value expansion; the expected timing for the closing of the sale of Thermotite; the gross sale proceeds of the sale of Thermotite; the anticipated timing for the final working capital adjustment for the AmerCable acquisition; the expected timing of the relocation of the Shawflex manufacturing site; the expected amount of MEO costs to be incurred in the second quarter of 2025; the expected completion of the MEO expense recognition program; the return to more normalized operations in the remainder of 2025; the decline in consolidated revenue and Adjusted EBITDA in the second quarter of 2025; the anticipated customer purchasing decisions in the second quarter of 2025 and beyond; the impact of tariffs implemented by the U.S. administration, including on the demand for the Company's products in the second quarter of 2025 and beyond; increased sales from Xerxes fuel and water products in the second quarter of 2025; sales of Flexpipe products in the second quarter of 2025; the volume of sales of Shawflex, AmerCable and DSG-Canusa products in the second quarter of 2025; the impact of new DSG-Canusa product introduction; the impact of lower activity of automotive customers; the level of efficiency in the Company's recently established production facilities, including the Xerxes South Carolina facility, the Flexpipe Texas facility, and the DSG-Canusa Ohio facility; the Company's approach to capital allocation and expected capital deployment, including debt repayment and activity under the Company's normal course issuer bid ('NCIB'). Forward-looking information involves known and unknown risks and uncertainties that could cause actual results to differ materially from those predicted by the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information as a number of factors could cause actual events, results and prospects to differ materially from those expressed in or implied by the forward-looking information. Significant risks facing the Company include but are not limited to the risks and uncertainties described in the Company's Management's Discussion and Analysis under 'Risks and Uncertainties' and in the Company's Annual Information Form ('AIF') under 'Risk Factors'. These statements of forward-looking information are based on assumptions, estimates and analysis made by management in light of its experience and perception of trends, current conditions and expected developments as well as other factors believed to be reasonable and relevant in the circumstances. These assumptions include those in respect of: the scale and duration of North American trade tariffs; expectations for demand for the Company's products; sales trends for the Company's products; North American onshore oilfield customer spending; the Company's ability to increase efficiency in its newly established manufacturing facilities; the effectiveness of modernization, expansion and optimization efforts; the Company's cash flow generation and growth outlook; activity levels across the Company's business segments; the Company's ability to manage supply chain disruptions and other business impacts caused by, among other things, current or future geopolitical events, conflicts, or disruptions, such as the conflict in Ukraine and related sanctions on Russia; the impact of the Russia and Ukraine conflict on the Company's demand for products and the strength of its and its customers supply chains; the current Israel-Palestine conflict; the impact of changing interest rates and levels of inflation; regular, seasonal impacts on the Company's businesses, including in the fiberglass reinforced plastic ('FRP') tanks business and composite pipe business; expectations regarding the Company's ability to attract new customers and develop and maintain relationships with existing customers; the continued availability of funding required to meet the Company's anticipated operating and capital expenditure requirements over time; consistent competitive intensity in the business in which the Company operates; no significant or unexpected legal or regulatory developments, other shifts in economic conditions, or macro changes in the competitive environment affecting the Company's business activities; key interest rates remaining relatively stable through the remainder of 2025; the accuracy of the forecast data from the Company's North American convenience store customers; the accuracy of market indicators in determining industry health for AmerCable's products, such as commodity prices, housing starts, and GDP; the impact of federal stimulus packages in the Connection Technologies reporting segment; heightened demand for electric and hybrid vehicles and for electronic content within those vehicles particularly in the Asia Pacific, Europe and Africa regions; heightened infrastructure spending in Canada, including in respect of commercial and municipal water projects, nuclear plant refurbishment and upgraded communication and transportation networks, communication networks and nuclear refurbishments; sustained health of oil and gas producers; the continued global need to renew and expand critical infrastructure, including energy generation and distribution, electrification, transportation network enhancement and storm management; the Company's ability to execute projects under contract; the Company's continuing ability to provide new and enhanced product offerings to its customers; that the Company will identify and successfully execute on opportunities for acquisitions or investments; the higher level of investment in working capital by the Company; the easing of supply chain shortages and the continued supply of and stable pricing or the ability to pass on higher prices to the Company's customers for commodities used by the Company; the availability of personnel resources sufficient for the Company to operate its businesses; the maintenance of operations by the Company in major oil and gas producing regions; the adequacy of the Company's existing accruals in respect of environmental compliance and in respect of litigation and tax matters and other claims generally; the impact of adoption of artificial intelligence and other machine learning on competition in the industries which the Company operates; the Company's ability to meet its financial objectives; the ability of the Company to satisfy all covenants under its Credit Facility (as defined herein) and other debt obligations and having sufficient liquidity to fund its obligations and planned initiatives; and the availability, commercial viability and scalability of the Company's greenhouse gas emission reduction strategies and related technology and products, and the anticipated costs and impacts on the Company's operations and financial results of adopting these technologies or strategies. The Company believes that the expectations reflected in the forward-looking information are based on reasonable assumptions in light of currently available information. However, should one or more risks materialize, or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking information included in this news release and the Company can give no assurance that such expectations will be achieved. When considering the forward-looking information in making decisions with respect to the Company, readers should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not assume the obligation to revise or update forward-looking information after the date of this news release or to revise it to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws. To the extent any forward-looking information in this news release constitutes future oriented financial information or financial outlooks, within the meaning of securities laws, such information is being provided to demonstrate the potential of the Company and readers are cautioned that this information may not be appropriate for any other purpose. Future oriented financial information and financial outlooks, as with forward-looking information generally, are based on the assumptions and subject to the risks noted above. 5.0 RECONCILIATION OF NON-GAAP MEASURES The Company reports on certain non-GAAP and other financial measures that are used to evaluate its performance and segments, as well as to determine compliance with debt covenants and to manage its capital structure. These non-GAAP and other financial measures do not have standardized meanings under IFRS and are not necessarily comparable to similar measures provided by other companies. The Company discloses these measures because it believes that they provide further information and assist readers in understanding the results of the Company's operations and financial position. These measures should not be considered in isolation or used in substitution for other measures of performance prepared in accordance with GAAP. The following is a reconciliation of the non-GAAP measures reported by the is a non-GAAP measure defined as earnings before interest, income taxes, depreciation and amortization. Adjusted EBITDA is also a non-GAAP measure defined as EBITDA adjusted for items which do not impact day to day operations. Adjusted EBITDA is calculated by adding back to EBITDA the sum of impairments, costs associated with refinancing of long-term debt and credit facilities, gain on sale of land and other, gain on sale of investment in associates, gain on sale of operating unit, acquisition costs, restructuring costs, share-based incentive compensation cost, foreign exchange (gain) loss and other, net, hyperinflationary adjustments and the impact of transactions that are outside the Company's normal course of business or day to day operations. The Company believes that EBITDA and Adjusted EBITDA are useful supplemental measures that provide a meaningful indication of the Company's results from principal business activities prior to the consideration of how these activities are financed or the tax impacts in various jurisdictions and for comparing its operating performance with the performance of other companies that have different financing, capital or tax structures. The Company presents Adjusted EBITDA as a measure of EBITDA that excludes the effect of transactions that fall outside the Company's ordinary course of business or routine operations. Adjusted EBITDA is used by many analysts as one of several important analytical tools to evaluate financial performance and is a key metric in business valuations. It is also considered important by lenders to the Company and is included in the financial covenants of the Credit Facility. Three Months Ended March 31, March 31, (in thousands of Canadian dollars) 2025 2024 Net Income (Loss) from Continuing Operations $ 48,069 $ (2,145 ) Add: Income tax expense (38,858 ) 3,948 Finance costs, net 9,230 2,226 Amortization of property, plant and equipment, intangible assets and ROU assets 16,883 8,568 EBITDA from Continuing Operations 35,324 12,597 Share-based incentive compensation (recovery) cost (2,192 ) 7,632 Foreign exchange loss 3,907 2,397 Restructuring costs and other, net — 3,201 Cost associated with acquisition (a) 5,320 — Non-cash impact from inventory fair value adjustment (b) 4,195 — Adjusted EBITDA from Continuing Operations $ 46,554 $ 25,827 a) Costs associated with the acquisition of AmerCable Incorporated. b) Cost of goods sold impact from purchase price allocation accounting adjustment on acquired inventory from AmerCable acquisition. Connection Technologies Segment Three Months Ended March 31, March 31, (in thousands of Canadian dollars) 2025 2024 Operating Income $ 18,041 $ 14,543 Add: Amortization of property, plant and equipment, intangible assets and ROU assets 7,619 1,722 EBITDA 25,660 16,265 Share-based incentive compensation (recovery) cost (368 ) 1,319 Restructuring costs and other, net — 33 Cost associated with acquisition (a) 974 — Non-cash impact from inventory fair value adjustment (b) 4,195 — Adjusted EBITDA $ 30,461 $ 17,617 a) Costs associated with the acquisition of AmerCable Incorporated. b) Cost of goods sold impact from purchase price allocation accounting adjustment on acquired inventory from AmerCable acquisition. Composite Technologies Segment Three Months Ended March 31, March 31, (in thousands of Canadian dollars) 2025 2024 Operating Income $ 12,807 $ 4,017 Add: Amortization of property, plant and equipment, intangible assets and ROU assets 8,667 6,371 EBITDA 21,474 10,388 Share-based incentive compensation (recovery) cost (436 ) 1,452 Restructuring costs and other, net — 3,168 Adjusted EBITDA $ 21,038 $ 15,008 Financial and Corporate Three Months Ended March 31, March 31, (in thousands of Canadian dollars) 2025 2024 Operating Loss $ (12,407 ) $ (14,531 ) Add: Cost associated with repayment and modification of long-term debt — — Amortization of property, plant and equipment, intangible assets and ROU assets 597 475 EBITDA (11,810 ) (14,056 ) Share-based incentive compensation (recovery) cost (1,388 ) 4,861 Foreign exchange loss 3,907 2,397 Cost associated with acquisition (a) 4,346 — Adjusted EBITDA $ (4,945 ) $ (6,798 ) a) Costs associated with the acquisition of AmerCable Incorporated. Discontinued Operations Three Months Ended March 31, March 31, (in thousands of Canadian dollars) 2025 2024 Net Income (Loss) from Discontinued Operations $ 4,657 $ (3,494 ) Add: Income tax (recovery) expense 2,998 1,869 Finance costs, net recovery (162 ) (84 ) Amortization of property, plant and equipment, intangible assets and ROU assets — 428 EBITDA from Discontinued Operations 7,493 (1,281 ) Foreign exchange (gain) loss (16 ) 118 Loss on sale of operating unit and subsidiary — 5,405 Adjusted EBITDA from Discontinued Operations $ 7,477 $ 4,242 Total Consolidated Mattr (Continuing and Discontinued Operations) Three Months Ended March 31, March 31, (in thousands of Canadian dollars) 2025 2024 Net Income (Loss) $ 52,726 $ (5,639 ) Add: Income tax expense (35,860 ) 5,817 Finance costs, net 9,068 2,142 Amortization of property, plant and equipment, intangible assets and ROU assets 16,883 8,996 EBITDA 42,817 11,316 Share-based incentive compensation (recovery) cost (2,192 ) 7,632 Foreign exchange loss 3,891 2,515 Loss on sale of operating unit and subsidiary — 5,405 Restructuring costs and other, net — 3,201 Cost associated with acquisition (a) 5,320 — Non-cash impact from inventory fair value adjustment (b) 4,195 — Adjusted EBITDA $ 54,031 $ 30,069 a) Costs associated with the acquisition of AmerCable Incorporated. b) Cost of goods sold impact from purchase price allocation accounting adjustment on acquired inventory from AmerCable acquisition. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue and is a non-GAAP measure. The Company believes that Adjusted EBITDA margin is a useful supplemental measure that provides meaningful assessment of the business results of the Company and its Operating Segments from principal business activities excluding the impact of transactions that are outside of the Company's normal course of business. See reconciliation above for the changes in composition of Adjusted EBITDA, as a result of which the table below reflects restated figures for the prior year quarter to align with the updated composition. Operating margin is defined as operating (loss) income divided by revenue and is a non-GAAP measure. The Company believes that operating margin is a useful supplemental measure that provides meaningful assessment of the business performance of the Company and its Operating Segments. The Company uses this measure as a key indicator of financial performance, operating efficiency and cost control based on volume of business Net Income (attributable to shareholders) is a non-GAAP measure defined as Net Income (attributable to shareholders) adjusted for items which do not impact day to day operations. Adjusted Net Income (attributable to shareholders) is calculated by adding back to Net Income (attributable to shareholders) the after tax impact of the sum of impairments, costs associated with refinancing of long-term debt and credit facilities, gain on sale of land and other, gain on sale of investment in associates, gain on sale of operating unit, acquisition costs, restructuring costs, share-based incentive compensation cost, foreign exchange (gain) loss and other, net and hyperinflationary adjustments. The Company believes that Adjusted Net Income (attributable to shareholders) is a useful supplemental measure that provides a meaningful indication of the Company's results from principal business activities for comparing its operating performance with the performance of other companies that have different financing, capital or tax EPS (basic) is a non-GAAP measure defined as Adjusted Net Income (attributable to shareholders) divided by the number of common shares outstanding. Adjusted EPS (diluted) is a non-GAAP measure defined as Adjusted Net Income (attributable to shareholders) divided by the number of common shares outstanding, further adjusted for potential dilutive impacts of outstanding securities which are convertible to common shares. The Company presents Adjusted EPS as a measure of Earning Per Share that excludes the impact of transactions that are outside the Company's normal course of business or day to day operations. Adjusted EPS indicates the amount of Adjusted Net Income the Company makes for each share of its stock and is used by many analysts as one of several important analytical tools to evaluate financial performance and is a key metric in business valuations. Total Consolidated Mattr Adjusted EPS (Continuing and Discontinued Operations) Three Months Ended March 31, March 31, (in thousands of Canadian dollars except for per share amounts) 2025 2024 Earnings Per Share Earnings Per Share Basic Diluted Basic Diluted Total Consolidated Mattr Net Income (Loss)(a) $ 52,726 0.84 0.84 $ (5,842 ) (0.09 ) (0.09 ) Adjustments (before tax): Share-based incentive compensation (recovery) cost (2,192 ) 7,632 Foreign exchange loss 3,891 2,515 Loss on sale of operating unit and subsidiary — 5,405 Restructuring costs and other, net — 3,201 Cost associated with acquisition (b) 5,320 — Non-cash impact from inventory fair value adjustment (c) 4,195 — Tax effect of above adjustments (1,499 ) (2,066 ) Tax impact of the AmerCable acquisition (40,819 ) — Total Consolidated Mattr Adjusted Net Income (non-GAAP) (a) $ 21,622 0.34 0.34 $ 10,845 0.16 0.16 (a) Attributable to Shareholders of the Company. (b) One-time costs associated with the acquisition of AmerCable Incorporated. (c) One-time cost of goods sold impact from purchase price allocation accounting adjustment on acquired inventory from AmerCable acquisition. Total Net debt-to-Adjusted EBITDA is a non-GAAP measure defined as the sum of long-term debt, current lease liabilities and long-term lease liabilities, less cash and cash equivalents (including restricted cash), divided by the Consolidated (Continuing and Discontinued Operations) Adjusted EBITDA, as defined above, for the trailing twelve-month period. The Company believes Total Net debt-to-Adjusted EBITDA is a useful supplementary measure to assess the borrowing capacity of the Company. Total Net debt-to-Adjusted EBITDA is used by many analysts as one of several important analytical tools to evaluate how long a company would need to operate at its current level to pay of all its debt. It is also considered important by credit rating agencies to determine the probability of a company defaulting on its debt. See discussion above for the changes into the composition of Adjusted EBITDA. The table below reflects restated figures for the prior year quarters to align with current presentation. March 31, December 31 (in thousands of Canadian dollars except Net debt-to-EBITDA ratio) 2025 2024 Long-term debt $ 449,633 $ 471,238 Lease Liabilities 165,869 163,127 Cash and cash equivalents (and restricted cash) (52,716 ) (502,490 ) Total Net Debt 562,786 131,875 Q1 2024 Adjusted EBITDA — 30,069 Q2 2024 Adjusted EBITDA 42,824 42,824 Q3 2024 Adjusted EBITDA 36,743 36,743 Q4 2024 Adjusted EBITDA 21,060 21,060 Q1 2025 Adjusted EBITDA 54,031 — Trailing twelve-month Adjusted EBITDA $ 154,658 $ 130,696 Total Net debt-to-Adjusted EBITDA 3.64 1.01 Total Interest Coverage Ratio is a non-GAAP measure defined as Consolidated Adjusted EBITDA (Continuing and Discontinued Operations), as defined above, for the trailing twelve-month period, divided by finance costs, net, for the trailing twelve-month period. The Company believes Total Interest Coverage Ratio is a useful supplementary measure to assess the Company's ability to honor its debt payments. Total Interest Coverage Ratio is used by many analysts as one of several important analytical tools to judge a company's ability to pay interest on its outstanding debt. It is also considered important by credit rating agencies to determine a company's riskiness relative to its current debt or for future borrowing. March 31, December 31 (in thousands of Canadian dollars except Net debt-to-EBITDA ratio) 2025 2024 Q1 2024 Adjusted EBITDA $ — $ 30,069 Q2 2024 Adjusted EBITDA 42,824 42,824 Q3 2024 Adjusted EBITDA 36,743 36,743 Q4 2024 Adjusted EBITDA 21,060 21,060 Q1 2025 Adjusted EBITDA 54,031 — Trailing twelve-month Adjusted EBITDA $ 154,658 $ 130,696 Q1 2024 Finance cost, net — 2,142 Q2 2024 Finance cost, net 4,341 4,341 Q3 2024 Finance cost, net 4,804 4,804 Q4 2024 Finance cost, net 5,846 5,846 Q1 2025 Finance cost, net 9,068 — Trailing twelve-month finance cost, net $ 24,059 $ 17,133 Total Interest Coverage Ratio 6.43 7.63 MEO costs is a supplementary financial measure. MEO costs not eligible for capitalization are reported as selling, general and administrative expenses or as cost of goods sold and incurred in support of the Company's certain specific, planned capital investments into high-return growth and efficiency improvement opportunities. These include the following: The replacement of the Company's Rexdale facility in Toronto, Ontario and the expansion of its Connection Technologies segment's North American manufacturing footprint through: a new heat-shrink tubing production site in Fairfield, Ohio; and a new wire and cable production site in Vaughan, Ontario. The addition of two new manufacturing facilities and the elimination of aging manufacturing facilities within the Composite Technologies network, namely: the shut-down and exit of aging production capabilities in the Xerxes FRP tank production site footprint; a new Xerxes FRP tank production site in Blythewood, South Carolina; a new Flexpipe composite pipe production site in Rockwall, Texas along with the co-located Hydrochain™ stormwater infiltration chamber production line. The Company considers these costs incremental to its normal operating base and would not have been incurred if these projects were not ongoing. 6.0 ADDITIONAL INFORMATION Additional information relating to the Company, including its AIF, is available on SEDAR+ at www. and on the 'Investors Centre' page of the Company's website at: Dated: May 14, 2025
Yahoo
19-02-2025
- Business
- Yahoo
2024: A record-breaking performance paving the way for 2025-2028 strategic roadmap
2024: A record-breaking performance Paving the way for 2025-2028 strategic roadmap _PRESS RELEASE_ 2024 standard sales of €7.1 billion (current sales of €8.5 billion), up +8.7% on a reported basis and +5.1% organically Acceleration in Electrification businesses, up +13.0% organically in 2024, reflecting early-bird investment and unabated focus on value-added solutions Q4 2024 standard sales of €1.9 billion, up +8.3% organically driven by all businesses A performance-driven journey beyond 2024 objectives and 'Winds of Change' 2021-2024 Capital Markets Day targets: All-time high adjusted EBITDA of €804 million, up +21.0% year-on-year, and adjusted EBITDA margin at 11.4% Outstanding Normalized free cash flow at €454 million and 56% normalized cash conversion Outperformance of ROCE in Electrification businesses at 26.3% Record subsea-driven PWR-Transmission adjusted backlog standing at €7.4 billion Successful deployment of the Electrification Pure Player strategy: Completion of the La Triveneta Cavi acquisition, divestment of AmerCable early 2025, and business separation of Lynxeo within the Non-electrification business Net income at €283 million, up +27% versus 2023 Strong balance sheet: net debt at €681 million and 0.85x leverage ratio Attractive return to shareholders: proposed dividend for 2024 of €2.60 per share, up +13% Initiation of 2025-2028 strategic roadmap 'Sparking Electrification with Tech solutions' with a new Executive Committee and structure to drive the next chapter forward Full-year 2025 guidance announced Adjusted EBITDA of between €770 and 850 million Free Cash Flow of between €225 and 325 million ~ ~ ~ Paris, February 19, 2025 – Today, Nexans, a global leader in the design and manufacturing of cable systems to power the world, published its financial statements for the fiscal year 2024, as approved by the Board of Directors at its meeting on February 18, 2025 chaired by Jean Mouton. Commenting on the Group's performance, Christopher Guérin, Nexans' Chief Executive Officer, said: 'In 2024, Nexans once again demonstrated its ability to deliver profitable and sustainable performance in a dynamic market environment. The Group set a new financial record, underscoring the success of its structural transformation and long-term strategic execution. 2024 also marks the successful completion of our 2021-2024 equity story 'Winds of Change', a period in which Nexans fundamentally transformed into a pure player in electrification. As we move to our next chapter up to 2028 'Sparking Electrification with tech solutions', we are building on this solid foundation with a renewed ambition: to accelerate our growth, drive innovation, and lead the energy transition with sustainable and high-value solutions. Our commitment remains unchanged—creating long-term value for all our stakeholders. ' 2024 KEY FIGURES (in millions of euros) 2023 2024 Sales at current metal prices 7,790 8,546 Sales at standard metal prices1 6,512 7,078 Reported growth -3.5% +8.7% Organic growth -0.9% +5.1% Adj. EBITDA 665 804 Adj. EBITDA as a % of standard sales 10.2% 11.4% Specific operating items (53) (22) Depreciation and amortization (179) (217) Operating margin 432 566 Reorganization costs (49) (62) Other operating items (9) 10 Operating income 374 513 Net financial income (loss) (83) (116) Income taxes (68) (115) Net income 223 283 Net debt 214 681 Normalized free cash-flow 454 454 ROCE 20.7% 21.1% 2024 BUSINESS PERFORMANCE Sales at standard metal prices reached €7,078 million in 2024, demonstrating strong organic growth of +5.1% at constant scope and currency compared to 2023. Excluding the Other activities segment, which is being strategically scaled down, organic growth stood at +8.1%. The Electrification businesses grew by +13.0% organically, driven largely by the PWR-Transmission segment's strong growth thanks to capacity expansion at the Halden plant in Norway. After a double digit organic growth in 2023, the Non-electrification business proved resilient with a small organic decline of -2.5%. In the fourth quarter of 2024, Nexans achieved remarkable organic growth of +8.3% compared to the fourth quarter of 2023, and growth of +11.7% excluding the Other activities segment driven by all business segments. Showcasing the strength of its core business focus, the Electrification businesses outperformed with +15.6% organic growth in the fourth quarter of 2024. Net acquisitions/disposals had an impact on standard sales of +€219 million reflecting i) the integration of La Triveneta Cavi into the PWR-Connect segment from June 1, 2024, ii) the acquisition of Reka Cables since April 2023 bolstering PWR-Grid and PWR-Connect segments, and iii) the divestment of the Telecom business since October 2023 in line with Nexans' vision to become an Electrification Pure Player. In the fourth quarter of 2024, Nexans continued to deliver on the implementation of its strategy to refocus its activities. The Group announced the execution of an agreement to sell AmerCable, a leading manufacturer of electrical power, control and instrumentation cables for harsh environments, for an enterprise value of US$280 million, which was completed on January 2, 2025. The Group also completed the business separation of its specialty industrial cable operations formerly Nexans Industry Solutions & Projects now named Lynxeo. Adjusted EBITDA reached a record high of €804 million in 2024, up by a solid +21.0% versus €665 million in 2023. This strong performance underscored the profitability enhancements across all business segments. The adjusted EBITDA margin reached an all-time high of 11.4%, surpassing the previous year's strong performance of 10.2%. This achievement illustrates the Group's strategic focus on operational excellence, selectivity and value-driven growth. Electrification businesses achieved 12.9% adjusted EBITDA margin, outperforming the 2023 achievement of a 12.5% margin. In 2024, specific operating items amounted to a negative €22 million. They included €19 million related to share-based payment expenses, and €3 million related to additional costs on long-term projects impacted by past reorganizations. EBITDA including share-based payment expenses - as per the 2021 Capital Markets Day definition -amounted to €785 million in 2024, versus €652 million in 2023. The Group's EBITDA margin stood at 11.1% in 2024, in line with the Group's 2021 Capital markets day target of 10%-12%. ROCE (including the 12-month contribution of La Triveneta Cavi and AmerCable) pursued its strong trajectory, reaching 21.1% for the Group, and 26.3% for the Electrification businesses. Operating margin totaled €566 million in 2024, representing 8.0% of sales at standard metal prices (versus 6.6% in 2023). The Group ended 2024 with operating income of €513 million, compared with €374 million in 2023. The main changes were as follows: Reorganization costs amounted to €62 million in 2024, compared with €49 million in 2023, partly due to the transformation of the PWR-Transformation business and business separation of Lynxeo. Other operating items represented an income of €10 million in 2024, versus an expense of €9 million in 2023, of which: The core exposure effect amounted to a positive €44 million in 2024, versus a negative €12 million in 2023, reflecting the increase in copper prices over the year. Acquisition-related costs of €22 million in 2024, mainly related to the acquisition of La Triveneta Cavi. In 2023, acquisition-related costs of €10 million were mainly related to the acquisition of Reka Cables in Finland. The net financial expense amounted to €116 million in 2024, compared with €83 million during the same period last year. The increase primarily reflects the successful issue of two bonds, a €575 million bond maturing in 2029 and a €350 million bond maturing in 2030, as well as negative foreign exchange impacts. Income tax expense stood at €115 million, up from €68 million in 2023. The tax rate amounted to 29% of income before tax in 2024. Net income amounted to a record €283 million in 2024, versus €223 million in 2023, up +26.6%, representing €6.39 per share. CASH FLOW AND NET DEBT AT DECEMBER 31, 2024 Normalized free cash flow stood at €454 million in 2024, reflecting the Group's solid operating performance. Calculated based on normalized free cash flow, the adjusted EBITDA to cash conversion rate was 56%. Cash from operations was a strong €670 million in 2024, versus €511 million in 2023. Change in working capital amounted to €178 million, versus €287 million in 2023 which was supported by the positive impact of cash collection in the PWR-Transmission segment and sustained efforts on inventory reduction. Thus, operating working capital represented 0.5% of the Group's annualized full year sales at December 31, 2024 (0.3% at December 31, 2023), well below its normative level of ≤6%. Normalized free cash flow also included a negative reorganization cash impact of €72 million in 2024, versus a negative €98 million in 2023. Recurring capital expenditure amounted to €257 million in 2024, representing 3.6% of Group's standard sales. Normalized free cash flow included financial interest for €88 million, versus €73 million in 2023, and other investing impacts for a positive €4 million, versus a negative €16 million in 2023. Free cash flow before M&A and equity operations was €313 million in 2024, versus €234 million in 2023, and included strategic capital expenditure in the PWR-Transmission business for €121 million, corresponding mainly to the ongoing investment in a third cable-laying vessel, and to the finalization of the expansion of the Halden plant in Norway. The other differing items between Normalized free cash flow and Free cash flow before M&A corresponded to normative project tax cash-out for €19 million (€28 million in 2023). Net cash flow from M&A amounted to a net outflow of €532 million in 2024, primarily related to the acquisition of La Triveneta Cavi in June. In 2023, this figure was a net outflow of €79 million related to the acquisition of Reka Cables. Equity operations represented a net outflow of €164 million including the payment of the 2023 dividend of €2.30 per share for a total amount of €102 million, and share buybacks for €33 million. There was a net outflow of €9 million related to unfavorable foreign exchange fluctuations and new lease liabilities. Net debt increased to €681 million at December 31, 2024, from €214 million at December 31, 2023, representing a 0.85x leverage ratio (net debt / adjusted EBITDA) and 0.95x leverage ratio as per the covenant definition2. The Board of Directors resolved to propose to the Annual General Meeting of May 15, 2025, a dividend payment of €2.60 per share in respect of 2024, resulting in a +13% increase versus the prior year, progressively increasing the dividend as a mark of its confidence in the Group's prospects. SUSTAINABILITY As a leader in electrification, Nexans is dedicated to shaping the future of its industry while prioritizing sustainability and safety throughout its operations. The Group unveiled its 2028 Environment, Social and Governance roadmap up to 2028 at its Capital Markets Day. Significant progress was achieved in 2024: Decarbonization initiatives yielding positive results: 38% reduction in Scope 1 & 2 GHG emissions (42% reduction target in 2028) and 40% reduction in Scope 3 GHG emissions (30% reduction target in 2028); Circular economy as a key strategic focus: copper recycled content reached 21% in 2024 (25% target in 2028); Gender diversity in graded positions at the core of human resources strategy: 16% of women in senior management in 2024 (30% target in 2028); Employee engagement at the heart of Nexans' performance: a continuous Engagement Rate improvement since 2021, reaching 78% in 2024 (≥78% target in 2028); Ethical business practices fully embraced: 100% completion rate of compliance awareness training achieved in 2024. Nexans' environmental performance continued to be recognized by leading non-financial rating agencies, positioning the Group among the top performers in its industry. Nexans has maintained a high CDP Climate rating of A- and, in its first year of water-related scoring, achieved a strong B rating. Moreover, the Group's Ecovadis score was in the upper part of the Top 5% for 2024. These results underscore Nexans' unwavering commitment to sustainability as a core pillar of its strategy. 2024 PERFORMANCE BY SEGMENT | PWR-TRANSMISSION (18% OF TOTAL STANDARD SALES) (in millions of euros) 2023 2024 Q4 2024 Sales at standard metal prices 870 1,287 389 Organic growth +0.8% +50.3% +41.9% Reported growth -9.2% +47.9% +40.3% Adjusted EBITDA 83 142Adjusted EBITDA as a % of standard sales 9.5% 11.0%PWR-Transmission standard sales came in at €1,287 million in 2024, up +50.3% organically compared to 2023, boosted by the completion of the Halden, Norway, plant capacity expansion at the beginning of the year, which doubled XLPE technology capacities. In the fourth quarter of 2024, Nexans achieved organic growth of +41.9% compared to the fourth quarter of 2023. The segment's adjusted EBITDA reached €142 million in 2024, up +72.3% compared to the same period last year. The adjusted EBITDA margin showcased a significant increase to 11.0% in 2024, versus 9.5% in 2023. As expected, the margin upturn throughout the year was supported notably by Revolution Wind successful installation campaign, Inspection Maintenance and Repair (IMR) projects as well as continued execution of the Great Sea Interconnector project. Customer activity remained dynamic, and in line with the Group's risk-reward selectivity approach, the segment's adjusted backlog reached €7.4 billion at December 31, 2024, up +21.4% compared to December 31, 2023. The strong order intake was notably fueled by a substantial contract for the Gotland electricity connection project, an important contract for East Anglia TWO offshore wind project in the southern North Sea, and the LanWin 2 final award as part of the frame-agreement with TenneT for around €1 billion. This record-high adjusted backlog is more than 90% subsea-driven (subsea interconnection and offshore wind projects) and provides multi-year visibility with around 90% of the topline of the business secured for the 2024-2028 period. The robust visibility of manufacturing and installation asset loads has been extended through 2030, with both Charleston and Halden plants more than 90% loaded up to 2028. Construction of Nexans' third cable-laying vessel, Nexans Electra, is on-track and will be completed in 2026. This state-of-the-art vessel is a strategic asset that will significantly enhance capacity to address the substantial growth in the business' backlog. The Group also unveiled a strategic €90 million investment at its facilities in France and Belgium to increase the production of advanced 525kV onshore cables meeting the requirements of the TenneT frame agreement. | PWG-GRID (18% OF TOTAL STANDARD SALES) (in millions of euros) 2023 2024 Q4 2024 Sales at standard metal prices 1,186 1,243 320 Organic growth +4.5% +3.1% +7.6% Reported growth +9.0% +4.8% +7.7% Adjusted EBITDA 156 170Adjusted EBITDA as a % of standard sales 13.2% 13.6%Standard sales in the PWR-Grid segment rose organically by +3.1% compared with 2023 to €1,243 million. Fourth quarter 2024, saw strong organic sales growth of +7.6% compared to the same quarter last year. Europe benefited from increased demand and the securing of new frame-agreements. The Middle East and Africa region was boosted by renewable energy projects. North America was stable with a good second half, while South America encountered some project delays. The Accessories business was a solid contributor throughout the year. Adjusted EBITDA rose by a sharp +9.0% year-on-year to €170 million supported by selectivity on new frame-agreements, operational excellence and the contribution of the Reka Cables acquisition completed in April 2023. The adjusted EBITDA margin reached an unprecedented 13.6% in 2024 compared with 13.2% in 2023, reflecting selective growth and successful business transformation. | PWR-CONNECT (29% OF TOTAL STANDARD SALES) (in millions of euros) 2023 2024 Q4 2024 Sales at standard metal prices 1,679 2,073 551 Organic growth -6.3% +1.4% +4.2% Reported growth -8.6% +23.5% +40.2% Adjusted EBITDA 229 283Adjusted EBITDA as a % of standard sales 13.6 % 13.7%Standard sales in the PWR-Connect segment amounted to €2,073 million in 2024, up +1.4% organically. Europe suffered from lower demand in some residential markets, despite sustained momentum in commercial and infrastructure segments. Near East & Africa and South America remained very strong while North America (Canada) rebounded in the second half of the year. In fourth-quarter 2024, Nexans achieved organic growth of +4.2% compared to fourth quarter 2023 and +0.5% compared to the third quarter of 2024. The 2024 figures reflect the contributions of La Triveneta Cavi, starting from June 1, 2024, and Reka Cables, since April 2023. These acquisitions are integral to Nexans' Electrification strategy, expanding the Group's capabilities and reinforcing its market position in key regions. Adjusted EBITDA reached €283 million in 2024, up +23.8% year-on-year. Adjusted EBITDA margin was a robust 13.7%, thanks to structural performance improvement initiatives, selectivity and value-added solutions. | NON-ELECTRIFICATION (Industry & Solutions) (24% OF TOTAL STANDARD SALES) (in millions of euros) 2023 2024 Q4 2024 Sales at standard metal prices 1,750 1,701 406 Organic growth +13.7% -2.5% +2.1% Reported growth +12.3% -2.8% +1.9% Adjusted EBITDA 185 207Adjusted EBITDA as a % of standard sales 10.6% 12.2%In the Industry & Solutions segment, standard sales for 2024 amounted to €1,701 million, reflecting a low organic decrease of -2.5% year-on-year, while fourth-quarter 2024, up +2.1% compared to fourth-quarter 2023. The performance reflects a slowdown in the Automation market in Europe, which was partially offset by a stable Shipbuilding, Rollingstock and Nuclear business. The Auto-harnesses business was stable during the year. Adjusted EBITDA for the segment increased by +11.9% and reached €207 million, resulting in an adjusted EBITDA margin of 12.2% in 2024, compared to 10.6% the previous year. This improvement reflected a positive mix and pricing effect resulting from the successful transformation of the business. | OTHER ACTIVITIES (11% OF TOTAL STANDARD SALES) (in millions of euros) 2023 2024 Q4 2024 Sales at standard metal prices 1,026 774 186 Organic growth -17.9% -14.4% -14.9% Reported growth -21.2% -24.5% -17.3% Adjusted EBITDA 13 2The Other activities segment – corresponding for the most part to copper wire sales and corporate costs that cannot be allocated to other segments – reported standard sales of €774 million in 2024. Standard sales were down -14.4% organically year-on-year, mainly linked to the Group's strategy to reduce copper wire external sales through tolling agreements in order to mitigate their dilutive effect. The segment's adjusted EBITDA decreased to €2 million in 2024, versus €13 million in 2023, reflecting notably temporary higher corporate costs related to the business separation of Lynxeo. 2025 OUTLOOK In 2025, following the divestment of AmerCable in January 2025 and in line with the new 2025-2028 strategic roadmap unveiled in November 2024, Nexans expects to achieve, excluding non-closed acquisitions or divestments: Adjusted EBITDA of between €770 and 850 million Free Cash Flow of between €225 and 325 millionSIGNIFICANT EVENTS SINCE THE END OF DECEMBER January 2, 2025 – Nexans announced the completion of the sale of AmerCable, a leading manufacturer of electrical power, control and instrumentation cables for harsh environments, to Mattr, for an enterprise value of US$280 million. The 2024 press release and presentation slides are available in the Investor Relations Results section at Nexans - Financial results. A conference call is scheduled today at 9:00 a.m. CEST. Please find below the access details: Webcast Sell-side analysts wishing to participate to the Q&A session at the end of the conference need to pre-register to receive connection details (dial-in numbers and passcode) by email. ~ ~ ~ FINANCIAL CALENDARApril 30, 2025: Q1 2025 financial informationMay 15, 2025: Annual General MeetingJuly 30, 2025: Half-year 2025 earningsOctober 23, 2025: Q3 2025 financial information About Nexans For over a century, Nexans has played a crucial role in the electrification of the planet and is committed to electrifying the future. With approximately 28,500 people in 41 countries, the Group is paving the way to a new world of safe, sustainable and decarbonized electricity that is accessible to everyone. In 2024, Nexans generated €7.1 billion in standard sales. The Group is a leader in the design and manufacturing of cable systems and services across four main business areas: PWR-Transmission, PWR-Grid, PWR-Connect and Industry & Solutions. Nexans was the first company in its industry to create a Foundation supporting sustainable initiatives, bringing access to energy to disadvantaged communities worldwide. The Group is recognized on the CDP Climate Change A List as a global leader on climate action and has committed to Net-Zero emissions by 2050 aligned with the Science Based Targets initiative (SBTi). Nexans. Electrify the Future. Nexans is listed on Euronext Paris, compartment more information, please visit Contacts Investor relations Communication Audrey BourgeoisTel.: +33 (0)1 78 15 00 Mael Evin (Havas Paris)Tel.: +33 (0)6 44 12 14 Attachment Nexans_Full-year 2024 earnings Press releaseSign in to access your portfolio
