Mattr Corp: Revenue Rose 8.5% and Earnings Beat Estimates

A strategic focus on critical infrastructure markets positions Mattr as a key player in sectors including energy, transportation, and water management. Its Composite Technologies segment continues to innovate and the Connection Technologies segment complements this with specialized cables and heat-shrink solutions for industrial applications.

Earnings will likely improve significantly, while the stock trades at a low 7.5 times the company’s forward earnings forecast.

MATTR CORP. (Toronto symbol MATR) is the new name for ShawCor Ltd. (old symbol SCL) following its completion of a major transformation. Under that plan, the company sold its pipeline coating and related businesses in 2023 for $442 million.

The remaining firm has two main businesses. Composite Technologies (60% of revenue) makes plastic pipes, underground liquid storage tanks and stormwater management systems. Customers include oil and gas producers and fuel station operators. The other business, Connection Technologies (40%), makes specialized wires, cables and tubes for automakers and makers of industrial equipment.

Overall, North America is the company’s biggest market, accounting for 87% of its revenue, followed by Europe (11%) and Asia (2%).

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Mattr’s revenue in the three months ended December 31, 2024, rose 8.5%, to $207.8 million from $191.5 million a year earlier. That’s due to higher sales of plastic pipes (up 6.9%) and wire and cable products (up 10.8%). The latest revenue figure also topped the consensus forecast of $192.0 million.

If you exclude unusual items, Mattr lost $0.02 a share (or a total of $1.4 million) in the latest quarter compared to a profit of $1.47 a share (or $102.9 million). That’s due to higher sales of less-profitable products, as well as the costs related to building new facilities. Even so, the latest earnings were better than the consensus estimate of a $0.05-a-share loss.

Growth Stocks: Mattr’s cross-border business should be unaffected by tariffs

In January 2025, Mattr completed its acquisition of AmerCable Inc. for $280 million U.S. (about $404 million Canadian). Based in Arkansas, this firm makes a variety of power cables and wires for industrial customers.

The new operations should increase Mattr’s revenue in 2025 by over 40% to $1.3 billion. As well, earnings will probably improve about 90%, to $1.30 a share, and the stock trades at just 7.5 times that estimate.

About 30% of Mattr’s revenue comes from cross-border sales of finished goods. However, the company points out that all its products comply with the USMCA trade agreement. If governments impose tariffs, Mattr expects it can pass along the higher costs to its customers.

Recommendation in The Successful Investor: Mattr Corp. (formerly Shawcor Ltd.) is a buy.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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