TORONTO, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Mattr Corp. (“Mattr” or the “Company”) (TSX: MATR) reported today its operational and financial results for the three and six months ended June 30, 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 six months ended June 30, 2025, which are available on the Company’s website and at www.sedarplus.ca.

Highlights from the second quarter include¹:

• On a continuing operations basis, Mattr delivered revenue of $321 million and operating income of $10 million. Adjusted EBITDA² increased by 5% from prior year quarter to $42 million;
• The Connection Technologies segment's second quarter revenue increased by 99% to $177 million compared to $89 million in the prior year’s quarter while operating income was $11 million. Adjusted EBITDA from the segment was $22 million, a 28% increase compared to the second quarter of 2024. The segment's reported results are inclusive of Modernization, Expansion and Optimization (MEO)² costs of $7 million incurred during the quarter;
• The Composite Technologies segment's second quarter revenue decreased by 5% to $144 million compared to $153 million in the prior year’s quarter while operating income was $16 million. Adjusted EBITDA from the segment was $25 million, a 10% decrease compared to the second quarter of 2024;
• On a consolidated basis (including Continuing Operations and Discontinued Operations), Mattr reported a net operating loss of $7 million, Adjusted EBITDA of $39 million, diluted (Loss) Earnings Per Share (“EPS”) of ($0.11) and diluted Adjusted EPS² of $0.12;
• The Company completed its remaining North American production footprint MEO projects during the second quarter as scheduled and does not anticipate reporting MEO costs in future periods;
• On June 4, 2025, the Company completed its strategic portfolio transformation with the sale of its last remaining pipe coating subsidiary, Thermotite do Brasil (“Thermotite”), to Vallourec Tubular Solutions Ltda., a subsidiary of Vallourec S.A ("Vallourec"). The Company received aggregate proceeds of US$37.4 million ($51.0 million CAD at current exchange rates) which included the agreed-upon purchase price as well as initial working capital estimates, which included cash of US$17.6 remaining within the business; and
• The Company's previous Normal Course Issuer Bid (“NCIB”) was terminated on June 4, 2025, upon reaching the maximum allowable purchase limit. Effective June 30, 2025 the Company renewed its NCIB. During the quarter, the Company repurchased approximately 0.7 million common shares under its NCIB for a total consideration of $7 million. Subsequent to quarter-end, and as of July 31, 2025, the Company has repurchased an additional 100,000 shares for an aggregate purchase price of approximately $1.3 million.

_{^1. The Company’s consolidated financial statements for the three months ended June 30, 2025 report Continuing Operations as the Company’s Composite Technologies and Connection Technologies reporting segments and Financial and Corporate. Discontinued Operations include the Company's Thermotite business, its final remaining pipe coating business. Total consolidated figures include figures from both Continuing Operations and Discontinued Operations.
^2. 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.}

“Mattr successfully navigated continuing global economic uncertainty by levering its diversified portfolio of differentiated infrastructure products during the second quarter,” said Mike Reeves, Mattr’s President & CEO. “We continue to drive adoption of our newly released technologies and delivered another strong quarter from the recently acquired AmerCable business, with year-over-year revenue growth of 33% from our continuing operations.”

“In parallel, the Company has now concluded its strategic transformation, with the sale of Thermotite and the completion of its North American production network re-vitalization activities during the quarter. All new and upgraded facilities are now in service and increasing productive output. Our original expectation that these facilities will approach normalized initial levels of production during 2026 remains unchanged, with progress towards a stable, proficient workforce in each location expected to be the governing timeline factor. The Company experienced mixed workforce enhancement outcomes during the second quarter and has further refined recruiting and retention protocols intended to improve go-forward momentum in this respect.”

“The Company continues to navigate uncertainty in global trade and macro-economic conditions, which has moderated customer buying behavior, particularly in certain automotive, mining and energy extraction applications. While Mattr’s United States-Mexico-Canada Agreement compliant finished goods have largely been exempt from announced tariffs to date, recently implemented US tariffs on certain refined copper products are likely to have an impact on the Company's wire and cable business lines in coming quarters. In the face of ongoing trade disruption and expected slowing of US economic activity, customers across much of the critical infrastructure landscape remain cautious with their capital plans. As a consequence, we currently anticipate Mattr's third quarter revenue and Adjusted EBITDA will be modestly below the second quarter of 2025.”

“Despite a challenging business environment, our talented teams have remained nimble, resilient, and cost-conscious. Our second quarter performance once again demonstrates that Mattr’s technically differentiated products, strong market positioning, and modernized manufacturing footprint create opportunities for market out-performance regardless of prevailing conditions. With a strong balance sheet, we remain committed to technology development, enhancing operational efficiency, extracting commercial synergies from our expanded wire and cable portfolio, and creating long-term value for our shareholders through accretive acquisitions and continued share repurchases under our NCIB.”

1.0 SECOND QUARTER HIGHLIGHTS

Despite continuing macroeconomic headwinds and tariff-related uncertainties, the Company delivered $321.0 million in revenue from Continuing Operations in the second quarter of 2025. This represents a $79.7 million or 33.0% increase from the same quarter of 2024, driven primarily by the addition of AmerCable® and higher sales of Xerxes® fuel and water products, partially offset by lower sales of composite pipe for ultimate use by international customers within Flexpipe® and lower shipments of Shawflex wire and cable products during the final relocation of the business's Canadian production footprint, which was completed during the quarter. The Company has now concluded its strategic North American production footprint MEO activities.

The Company’s operating income from Continuing Operations in the second quarter of 2025 was $10.4 million, a decrease of $16.8 million, or 61.6%, when compared to the second quarter of 2024. As expected, the year-over-year operating income benefit associated with the addition of AmerCable was partially offset by a less favorable relative sales mix in other business lines and higher levels of manufacturing overhead under-absorption in certain locations, including those sites recently established under its MEO strategy. The Company’s operating income in the second quarter of 2025 includes $3.4 million in costs associated with the acquisition of AmerCable, including the impact of the final $2.6 million of costs related to the non-cash inventory fair value adjustment, which was part of AmerCable purchase price accounting.

Additionally, the Company recorded an expense of $3.2 million in share-based incentive compensation against operating income from Continuing Operations during the second quarter of 2025 driven by the change in the Company's share price. Comparatively, operating income from Continuing Operations in the prior year’s second quarter included an expense of $1.6 million in share-based incentive compensation. Operating income was also impacted by increased depreciation in the second quarter of 2025 compared to the same period in the prior year as a result of the new manufacturing facilities becoming operational, as well as the inclusion of AmerCable’s financial results. In addition, operating income included the impact of $7.3 million in costs related to the Company’s now complete MEO projects, compared to $8.0 million of MEO cost recorded in the second quarter of 2024.

Adjusted EBITDA from Continuing Operations was $42.5 million during the second quarter of 2025, an increase of $2.1 million, or 5.1%, compared to the second quarter of 2024. Costs associated with the acquisition of AmerCable, share-based incentive compensation and depreciation are added back in the calculation of Adjusted EBITDA.

The Company completed the sale of its remaining pipe coating subsidiary, Thermotite, to Vallourec, on June 4, 2025. This transaction represents the Company’s final exit from the pipe coating business and the completion of the Company's strategic business portfolio realignment. The Company received proceeds of US$37.4 million ($51.0 million CAD at current exchange rates) which include the agreed-upon purchase price of US$17.5 million ($23.8 million CAD at current exchange rates) and initial working capital estimates which included cash of US$17.6 million ($24.2 million CAD at current exchange rates) remaining within the business. The final cash proceeds received by the Company in satisfaction of the contractual purchase price for the sale of Thermotite remains subject to completion of a customary final true up of the estimated working capital calculation as provided in the definitive purchase and sale agreement in respect of the transaction.

As at June 30, 2025, the Company had cash and cash equivalents totaling $52.9 million, a decrease from $502.5 million as at December 31, 2024, which included restricted cash. The decrease in cash compared to year-end 2024 was largely attributable to closing and funding the AmerCable acquisition.

The Connection Technologies segment includes the Company’s Shawflex, AmerCable and DSG-Canusa business lines, and delivered revenue of $176.5 million in the second quarter of 2025, an increase of $87.8 million when compared to the second quarter of 2024. Its operating income in the second quarter of 2025 was $10.5 million compared to $14.5 million in the second quarter of 2024. The segment delivered Adjusted EBITDA of $22.1 million during the second quarter of 2025, a $4.8 million increase versus the prior year quarter.

Consolidated revenue in the segment's wire and cable businesses (Shawflex and AmerCable) increased compared to the prior year, primarily due to the inclusion of AmerCable's results in the current period. AmerCable's strong performance across all end markets during the quarter was partially offset by lower sales in Shawflex, a result of temporary production disruptions associated with the final relocation of its Canadian manufacturing plant, which is now complete. Shawflex also experienced moderating order volume from US customers during the quarter, as tariff-related cost uncertainty impacted their willingness to purchase from Canadian sources.

DSG-Canusa revenue remained relatively flat to the prior-year period despite macroeconomic headwinds which include continued relative weakness in global automotive production.

Connection Technologies segment operating income results included a final $2.6 million impact from non-cash inventory fair value adjustment as part of AmerCable purchase price accounting (there was no equivalent impact in the prior year period), which is added back for Adjusted EBITDA purposes.

The year-over-year increase in segment Adjusted EBITDA was primarily driven by the positive contribution of AmerCable in the current period. This was partially offset by less favourable product mix, increased under-absorption of manufacturing overhead costs tied to the segment's newly established production sites, and the impact of $7.3 million of non-capitalizable MEO costs associated with the bifurcation and relocation of its North American footprint, compared to $0.7 million of MEO cost recognized within the segment in the prior year period.

The Composite Technologies segment contains the Company's Flexpipe and Xerxes business lines and delivered revenue of $144.4 million in the second quarter of 2025, a decrease of $8.1 million, or 5.3%, compared to the second quarter of 2024. Operating income for the segment in the second quarter of 2025 was $16.2 million, a $4.3 million decrease from the $20.5 million reported in the second quarter of 2024.

Flexpipe revenue declined compared to the same period in the prior year, due to lower sales of composite pipe for ultimate use by international customers within Flexpipe. The specific shipment terms associated with orders ultimately destined for international customers may cause such sales to be recognized as North American revenue. This decline was partially offset by continued new customer capture in North America, including record quarterly sales of large diameter products, despite approximately 6% lower North American well completion activity versus the prior year.

Xerxes delivered stronger second quarter revenue compared to the prior year period, primarily driven by increased sales of Fiberglass Reinforced Plastic (FRP) tanks for retail fuel applications and growing demand for Hydrochain products in stormwater management.

Adjusted EBITDA for the Composite Technologies segment in the second quarter of 2025 was $24.9 million, a decrease of $2.6 million from the $27.5 million reported in the second quarter of 2024. This decrease was primarily a result of reduced revenue, a shift in relative sales mix as Xerxes contributed a larger share of segment revenue compared to the prior year, and increased under-absorption of manufacturing overhead costs tied to certain production facilities including the newly established production sites. This was partially offset by the absence of MEO costs in the second quarter of 2025, compared to $7.3 million of MEO costs incurred during the second quarter of 2024 for the setup of two new production sites.

Discontinued Operations generated revenue of $1.7 million and a $3.1 million Adjusted EBITDA loss during the second quarter of 2025 compared to $12.6 million in revenue and $2.4 million of Adjusted EBITDA during the second quarter of 2024.

2.0 OUTLOOK

Subsequent to the quarter, the US government announced a 50% tariff on imports of a range of copper-related products. Copper and copper-derivative products are the single largest material input cost for the Company, primarily within the wire and cable businesses of its Connection Technologies segment. While the Company is exploring various strategies to mitigate the impact of these tariffs, it anticipates these tariffs are likely to increase the Company's input costs and raise the total cost paid by US customers for the Company's wire and cable products. Possible changes in customer purchasing patterns tied to the cost implications of these newly announced US tariffs are not yet clear.

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 and/or Canadian governments. 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 appropriate. Broad 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 completed its disposition of non-core assets and the Modernization, Expansion and Optimization of its North American production network, resulting in the elimination of MEO costs going forward. Due to the completion of the Company’s North American production footprint MEO strategy, the
• Company intends to discontinue reporting MEO costs in its disclosure beginning with its results from the third quarter of 2025. It continues to ramp production from its new and upgraded facilities towards more normalized levels of operational performance, with a primary focus on delivering value from its restructured operational footprint while also ensuring efficient onboarding of AmerCable following its acquisition.
• The Company currently anticipates Shawflex and AmerCable branded wire and cable revenue in the third quarter of 2025 will be modestly below the second quarter of 2025, although this could vary if changes in copper price or tariffs occur during the period. Business profitability is also expected to be modestly lower sequentially, as the elimination of MEO costs is offset by lower gross margins resulting from a less favorable revenue mix, with lower deliveries into specific mining and energy applications, and newly implemented copper tariff costs, partially offset by higher deliveries into industrial and infrastructure applications. Production from the new Shawflex facility in Vaughan is expected to evolve favorably over the remaining course of 2025 and into 2026. The Company purchases copper and refined copper products in the US and Canada. It is therefore subject to COMEX exchange price volatility, which has 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 expects to be impacted by the recently announced US tariffs on certain copper products, which are likely to increase the Company's input costs and raise the total cost paid by US customers for the Company's wire and cable products. Possible changes in customer purchasing patterns tied to the cost implications of these newly announced US tariffs are not yet clear. The Company continues to monitor tariff policies and related impacts, including the potential for reciprocal tariffs levied on certain copper products by the Canadian government, which would also likely have unfavorable impacts on the Company.
• The Company currently anticipates sales of its DSG-Canusa products in the third quarter of 2025 will be similar to the second quarter, as lower activity from certain automotive customers is expected to be offset by new customer capture and new product introduction. Business profitability is expected to improve sequentially, as the impact of MEO costs is eliminated. The business remains focused on hiring and training efforts at its recently established Ohio site, within which workforce proficiency is still being developed. While workforce capabilities and related production efficiencies within this facility progressed slower than anticipated during the second quarter, the Company has taken incremental steps to enhance site performance over the remainder of 2025 and continues to expect it will reach normalized levels of efficiency during 2026.
• The Company currently anticipates North American Flexpipe customer activity will decelerate throughout the second half of 2025 amid tariff uncertainty and lower commodity prices, with large international project activity likely to remain limited until 2026. As a result, the Company currently expects sales of its Flexpipe products in the third quarter of 2025 will be lower than the second quarter of 2025, with a corresponding sequential reduction in business profitability. The recent addition of a second manufacturing site in Texas, which enables increased production of larger diameter products, has caused the business to carry incremental manufacturing under-absorption during the first half of 2025. This inefficiency is expected to evolve favorably over the next several quarters, as workforce proficiency continues to rise, ultimately reaching normalized levels during 2026 as originally anticipated.
• The Company currently anticipates sales of its Xerxes fuel and water products in the third quarter of 2025 will be similar to the second quarter of 2025, as customer activity remains high and ground conditions remain favorable. Business profitability is also expected to be sequentially similar. The Xerxes business has required Mattr’s most significant 2025 workforce expansion, including the need to staff its newly established South Carolina site while also rebuilding the workforce across its entire production network following right-sizing activities in prior years, which were taken in response to customer permitting challenges. While workforce proficiency and related production efficiency across Xerxes progressed slower than anticipated during the second quarter, the Company has taken incremental steps to further enhance recruitment, training and competency development across all manufacturing sites, and anticipates gradual performance improvement over the remainder of 2025. The Company continues to expect all locations, including the new facility in South Carolina, will reach normalized levels of efficiency and overhead absorption during 2026.

• 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 during the second half of 2025. Key AmerCable related factors impacting Connection Technologies segment results to date, and going forward, include:
  • The Company incurred approximately $0.8 million of expenses related to the acquisition of AmerCable in the second quarter, and expects additional expenses of $1-2 million over the remainder of 2025. These costs are added back for the calculation of Adjusted EBITDA.
  • No further costs associated with the non-cash inventory fair value adjustment as part of AmerCable purchase price accounting are expected. These costs had been added back for the calculation of Adjusted EBITDA in the first and second quarters of 2025.
  • The recognition of intangible assets, including goodwill, customer relationships and trade names as part of the AmerCable purchase price 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.

• Given the factors discussed above, the Company currently anticipates revenue and Adjusted EBITDA from Continuing Operations in the third quarter of the year will be modestly below the second quarter of 2025.
• While the Company expects to maintain its “all of the above” approach to capital allocation, with the acquisition of AmerCable and its large organic MEO projects completed, the Company's capital deployment in the second half of 2025 is expected to focus more heavily on debt repayment and activity under its NCIB. The Company continues to anticipate 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, including the now-completed 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 and cash generation, the Company currently expects to move back below its normal target ratio in 2026.
  
  

3.0 CONFERENCE CALL AND ADDITIONAL INFORMATION

Mattr will be hosting a Shareholder and Analyst Conference Call and Webcast on Thursday, August 14th, 2025 at 9:00 AM ET, which will discuss the Company’s Second Quarter 2025 Financial Results. To participate via telephone, please register at https://register-conf.media-server.com/register/BI0cbab6c9d7ec48959b6b391abdf6635d and a telephone number and pin will be provided.

Alternatively, please go to the following website address to participate via webcast: https://edge.media-server.com/mmc/p/a649cc2b. 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 MacEachern
VP, Investor Relations & External Communications
Tel: 437-341-1848
Email: meghan.maceachern@mattr.com
Website: www.mattr.com

Source: Mattr Corp.
Mattr.ER

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 timing for the finalization of net working capital adjustments for the sale of Thermotite to Vallourec; the impact of tariffs implemented by the U.S. administration; the increased production from the Company’s new and upgraded facilities and the value provided by such facilities; the expected timeline to achieve normalized initial levels of production and the factors governing such timeline; the efficient onboarding of AmerCable following its acquisition; revenue and Adjusted EBITDA in the third quarter of the year; Shawflex and AmerCable branded wire and cable revenue in the third quarter of 2025; the level and volatility of copper prices and its impact on gross margins; the effectiveness of the Company’s mitigation efforts for the impact of copper price volatility; business profitability in the Shawflex, AmerCable, DSG-Canusa, Flexpipe and Xerxes businesses; anticipated MEO costs and revenue mix; deliveries into mining and energy applications and industrial and infrastructure applications; the favourable evolution of production from the new Shawflex facility in Vaughan over the remaining course of 2025 and into 2026; sales of DSG-Canusa products in the third quarter of 2025; the offset of lower activity from certain automotive customers by new customer capture and new product introduction; continued hiring and training efforts at the Company’s recently established DSG-Canusa Ohio site; enhance site performance at the DSG-Canusa Ohio site over the remainder of 2025 and anticipated timing for normalized levels of efficiency at such site; North American Flexpipe customer activity throughout the second half of 2025; the timing for new, large international project activity; sales of Flexpipe products in the third quarter of 2025; improved efficiency at the Flexpipe manufacturing site in Texas; timing for normalized levels of efficiency at the Flexpipe manufacturing site in Texas; sales of Xerxes fuel and water products in the third quarter of 2025; Xerxes customer activity; the impact of favourable ground conditions on Xerxes fuel and water products; the timing for all Xerxes locations to reach normalized levels of efficiency and overhead absorption; the timing to achieve benefits from expected industrial sector commercial synergies in the AmerCable segment; the amount of additional expenses that will be incurred related to the acquisition of AmerCable; the expectation that the Company will incur no further costs associated with the non-cash inventory fair value adjustment as part of the AmerCable purchase price; the Company’s approach to capital allocation and expected capital deployment, including debt repayment and activity under the Company’s NCIB; the anticipated total full year capital expenditures; the expectation that company will move back below its target ratio following the acquisition of AmerCable; the Company’s focus on maximizing the conversion of operating income into cash; the management of long-term debt; and the exploration of organic and inorganic investment opportunities.

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 Company.

EBITDA and Adjusted EBITDA

EBITDA 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)/loss 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.

Adjusted EBITDA Margin

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 generated.

Adjusted Net Income (attributable to shareholders)

Adjusted 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 structures.

Adjusted Earnings Per Share (“Adjusted EPS”)

Adjusted 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 Net debt-to-Adjusted EBITDA

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.

Total Interest Coverage Ratio

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.

Modernization, Expansion and Optimization (“MEO”) Costs

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.sedarplus.ca and on the “Investor Center” page of the Company’s website at: https://investors.Mattr.com/Investor-Center/default.aspx.

Dated: August 13, 2025