Mattr Corp.

Mattr said Q2 2026 delivered record revenue and record adjusted EBITDA, with both up significantly versus the prior year and revenue also higher sequentially versus Q1. Management did not provide exact revenue, EPS, gross margin, or adjusted EBITDA figures in the transcript. Composite Technologies posted another strong quarter with meaningful revenue and adjusted EBITDA growth, while Xerxes achieved new quarterly revenue, shipment, and production records. For the full year, management said its expectations for revenue and adjusted EBITDA have increased again since the last earnings release, with Q3 expected to be similar to Q2 and Q4 to reflect normal seasonal slowing. Tim Holloway said Q2 operating cash flow was slightly negative due to working capital investment, capital spending was $6.3 million, full-year capex is expected to be $35 million to $45 million, and the company expects continued deleveraging through the second half of 2026.

CEO Michael Reeves framed the quarter as a meaningful step forward and said Mattr’s restructuring and manufacturing investments are translating into stronger financial performance. He highlighted broad-based demand strength in mining, power, fuel, water, and data centers, plus first commercial revenue from FlexPipe’s new 8-inch technology and rising international backlog. His tone was upbeat but disciplined: he emphasized profitable growth, technical differentiation, and avoiding overreliance on any single end market.

CFO Tim Holloway emphasized that record quarterly results were driven by higher production volumes, continued operational efficiency improvements, favorable product mix, and strong end-market execution. He said operating cash flow was slightly negative because working capital rose, with receivables increasing on late-quarter sales and inventories building for a stronger second half; investing cash outflow was mainly PP&E spending of $6.3 million, including about $1.6 million previously accrued. He reiterated full-year capex of $35 million to $45 million and said the stronger outlook lowered the net debt to adjusted EBITDA ratio, allowing the company to resume share repurchases under its NCIB, though debt repayment remains the priority.

Analysts focused on why Composite Technologies’ EBITDA margin did not rise as much as gross margin; management said the mix shift toward Xerxes, which has lower margins than FlexPipe, and early international FlexPipe orders with a slightly lower margin profile explained most of it. Management said pricing leverage remains strong and that both businesses should still see margin expansion over time. The analyst also asked about the Xerxes capacity gain target, and Reeves said full-year productive gains now look like 10% to 15% year over year. On oil and gas, management said the Q3 outlook is relatively high-confidence because orders are already in backlog, but they cautioned that any uplift depends on whether customers expand 2026 capital budgets or merely pull spending forward, which could create a larger late-year slowdown.