Mattr Corp.

Thank you for standing by and welcome to the Matter Third Quarter 2025 Results Webcast and Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Megan McCachran, Vice President, Investor Relations, External Communications. Please go ahead.

Good morning. Before we begin this morning's conference call, I would like to take a moment to remind all listeners that today's call includes forward-looking statements that involve estimates, judgments, risks, and uncertainties. that may cause actual results to differ materially from those projected. The complete text of Matter's statement on forward-looking information is included in Section 4.0 of the third quarter 2025 earnings press release in the MD&A that is available on CDAR Plus and on the company's website at matter.com. For those joining via webcast, you may follow the visual presentation that accompanies this call. I'll now turn it over to Matter's President and CEO, Mike Reeves.

Good morning, and thank you for attending our third quarter conference call. Today, Megan and I are joined by our Senior Vice President of Finance and CFO, Tom Holloway. Q3 was the first full quarter following the conclusion of MATA's four-year fundamental transformation, which included the divestiture of nine businesses, the reshaping of our North American production footprint, and the onboarding of our recently acquired AmerCable business. With these complex strategic activities now complete, The organization is focused on levering its high-value portfolio of critical infrastructure products to enable progressively greater free cash generation and profit expansion. During the quarter, MATA delivered year-over-year revenue growth of 39% and adjusted EBITDA growth of 16%, primarily driven by the addition of AmeriCable to our connection technology segment. The company also continued to benefit from strong demand in composite technologies, with the segment delivering further progress on key technology development and operational efficiency initiatives during the quarter. Our teams remain nimble, resilient, and cost-conscious in the face of a challenging near-term business environment, and we continue to focus on those variables we can control. Across MATA, we are consistently prioritizing those actions and investments necessary to enable sustained technical differentiation, production flexibility, and progressively greater operational efficiency. Near-term business performance is likely to be impacted by continued economic weakness in certain key geographies, which we anticipate will incrementally moderate customer buying behavior during the seasonally slow year-end period, particularly in the Canadian, European automotive, and energy extraction markets. As a consequence, we anticipate typical fourth quarter lowering of revenue and adjusted EBITDA will be more pronounced than normal, representing a low point for the year. Consistent with our historical approach to balance sheet management, the company expects to primarily allocate capital to debt repayment in the near term. Tom will have some further comments on capital allocation later. Turning to review the performance of each segment during the recently completed quarter, Connection Technologies delivered year-over-year revenue and adjusted EBITDA growth of 105% and 62%, respectively. Wire and cable revenue moved modestly higher sequentially, with relatively stable AMR cable revenue enhanced by increased SureFlex sales, which set a new quarterly revenue record, accelerating delivery of backlog from its recently relocated manufacturing site and offering an early demonstration of the new location's productive output and efficiency potential. Wire and cable margins moved sequentially lower on a less favorable revenue mix, primarily the result of reduced sales into Canadian mining and global oil field applications partially offset by higher sales into data center and utility applications. In early Q3, U.S. tariffs were introduced, which directly impacted the primary copper supply chain of both SureFlex and Ammer Cable. Moving quickly and creatively, Matter's wire and cable team rapidly converted this supply chain from tariffed to non-tariffed sources. Although this conversion led to less favorable payment terms and an associated increase in working capital during the quarter, it avoided tens of millions of dollars in annualized tariff expense. Revenue from the segment's DSG Canoosa business was relatively flat sequentially. The business experienced sequential margin compression, driven primarily by higher freight and tariff expenses, as the finished goods inventory, proactively built prior to relocation of the business's North American manufacturing footprint, neared exhaustion, and output from the new Ohio site required supplementation with internationally produced products. While tariff and economic impacts remain a near-term concern for the segment, our talented teams have demonstrated their ability to mitigate external effects with speed and agility. Our commercial teams continue to offset slowing Canadian mining and industrial and global oil field activity by successfully capturing additional sales in utility, data center, and international mining markets. In parallel, we continue to closely watch for incremental copper-related tariff announcements, which could impact our business. The company expects fourth-quarter revenue and adjusted EBITDA within the segment will move sequentially lower, as stronger DSG Canoosa performance, driven by rising production from the Ohio site, is more than offset by significantly lower demand for wire and cable in the Canadian industrial stock and project sectors. These sectors have been hit particularly hard by the contraction of Canada's economy, with broadly lower industrial activity compounded by an aggressive inventory reduction drive from distributors serving the sectors. We anticipate Canadian industrial demand will remain similar to fourth quarter levels for several quarters. Looking past the near-term disruption of tariff-induced headwinds, We maintain our constructive long-term outlook for electrification-driven demand across the segment and are pleased with the progress of our strategic actions intended to improve operational efficiency and enhance exposure to utility, nuclear, global mining, data center, and broader U.S. industrial end markets. Turning to composite technologies, the segment's third-quarter revenue and adjusted EBITDA decreased by 4% and 2%, respectively, year over year. FlexPipe revenue and adjusted EBITDA moved lower sequentially as underlying oil field activity levels continued to decline in the face of a depressed oil price. Mostly offsetting this weakness, FlexPipe continued to drive customer adoption of new technology, with larger diameter products nearing 50% of North American revenue generation during Q3. This continued share gain enabled FlexPipe to limit year-over-year North American revenue contraction to 3%, despite a reduction in well completion activity of 16% during the same period. Productivity expansion from FlexPipe's new Texas site remains on schedule, and the business continues to anticipate the release of additional, larger diameter products around the year end, expanding FlexPipe's addressable market by 50% or more over time. Xerxes revenue in the third quarter was modestly lower sequentially as lower than planned production from new and newly refurbished manufacturing sites during Q2 impacted the volume of tanks available for Q3 shipment. These production constraints continue to improve as workforce proficiency across the Xerxes network rises with Q3 total tank production rising by over 10% compared to the prior quarter. Customer demand for Xerxes market leading solutions remains high with orders for products serving retail fuel, data center, fire suppression, and broader infrastructure markets exceeding revenue generation throughout the first three quarters of the year. At the end of Q3, the Xerxes order backlog stood at a new record high. During the third quarter, MATA acquired an intermediary which had historically facilitated the supply of metallic components to the segment. This acquisition secures a multi-decade exclusive supply agreement with the ultimate manufacturer, significantly reducing costs, lowering tariff exposure, enhancing supply chain control, and lowering business risk. The transaction involved minimal integration or onboarding activity and is expected to deliver an after-tax internal rate of return significantly above the company's 20% target. We anticipate segment revenue and adjusted EBITDA will move sequentially lower in the fourth quarter. As unfavorable oil prices prevail, a normal holiday season slowing of U.S. onshore activity reduces the shipment of FlexPipe products, while the onset of winter season ground conditions will lower the number of Xerxes tank shipments approaching year end. Looking beyond the fourth quarter, we believe the composite technology segment is positioned to outperform its markets in the coming years. as efficiency and increasing output from its newly established and upgraded Xerxes facilities, combined with the introduction of new flex pipe technology, are expected to create significant growth opportunities for the segment in the mid and long term. Tom will now walk us through some additional financial details.