Mattr Poised for Growth as Infrastructure Spending Fuels Demand for Electrification Solutions and More

Mattr Corp. (formerly ShawCor Ltd.) is well-positioned in critical infrastructure supply chains as it reports 33% revenue growth following a key acquisition.

The market has historically applied a “transformation discount” due to execution risks during the firm’s multi-year business restructuring. With the AmerCable acquisition integration proceeding successfully and the divestiture of non-core assets completed, this discount should compress as operational improvements materialize.

The company benefits from North American infrastructure spending allocated for grid modernization and electrification. This secular growth driver supports higher valuation multiples for companies positioned in critical infrastructure supply chains.

Meanwhile, the stock trades at a moderate 17.8 times the company’s forward earnings forecast. That valuation appears attractive given the combination of completed transformation, strong end-market fundamentals, and conservative earnings multiples that fail to fully reflect the company’s repositioning toward resilient infrastructure markets.

MATTR CORP. (Toronto symbol MATR; www.mattr.com) is the new name for ShawCor Ltd. (old symbol SCL) following the completion of its major transformation. Under that plan, the company sold most of its pipeline coating business to Tenaris S.A. (New York symbol TS) in 2024 for $241.2 million.

The remaining firm has two main businesses. Connection Technologies (59% of revenue in the latest quarter) makes specialized wires, cables and tubes for automakers and makers of industrial equipment; and Composite Technologies (41%) makes plastic pipes, underground liquid storage tanks and stormwater management systems.

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North America is Mattr’s biggest market, accounting for 84% of its revenue, followed by Europe (14%) and Asia (2%).

In January 2025, Mattr acquired AmerCable Inc. for $280 million U.S. (about $407 million Canadian). Based in Arkansas, this firm makes a variety of power cables and wires for industrial customers.

Growth Stocks: Upgrading and modernization plan should boost profits

About 30% of Mattr’s revenue comes from cross-border sales of finished goods. While its products comply with the USMCA trade agreement, Mattr expects tariffs will weigh on its revenue growth. Even so, the company’s plan to invest $60 million to $70 million in 2025 to modernize its facilities will lower its long-term operating costs.

Mattr’s revenue in the three months ended June 30, 2025, rose by 33.0%, to $321.0 million from $241.3 million a year earlier. That beat the consensus forecast of $309.3 million.

The AmerCable purchase lifted sales of wire and cable products by 98.9%, which offset a 5.3% decline in sales of plastic pipes.

If you exclude unusual items, earnings fell 61.3%, to $0.12 a share (or a total of $7.1 million) from $0.31 a share (or $21.0 million). That missed the consensus estimate of $0.14 a share.
Mattr has now completed its plan to upgrade and modernize some of its plants, which will lower its long-term operating costs. Those savings will help the company offset the impact of U.S. tariffs on copper, steel and aluminum on its sales.

For all of 2025, Mattr will probably earn $0.65 a share, and the stock trades at a moderate 17.8 times that estimate.

Recommendation in The Successful Investor: Mattr Corp. is a buy for highly aggressive investors.

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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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