Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Joining the Russell Indices. FTSE Russell recently included the company in its preliminary additions to the Russell 2000 and broader Russell 3000 indices as part of its annual reconstitution. The inclusion will become effective at market open on June 27, offering a notable validation milestone for the company.
An important milestone. We believe this development could be a meaningful catalyst for SKYX. In our view, inclusion in the Russell indices will drive greater visibility among institutional investors and has the potential to increase average daily trading volume in the shares, supporting improved liquidity and broader shareholder participation.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q1 results. The company reported Q1 revenue of $20.1 million, in line with our estimate of $20.4 million. An adj. EBITDA loss of $3.6 million was also largely in line with our loss estimate of $3.4 million.
Flexible production capabilities. In response to recent tariff-related uncertainty, the company established a partnership with U.S.-based Profab Electronics, enhancing its production flexibility. While elevated tariffs remain a policy risk, recent pauses have mitigated any near-term disruption to the company’s production partnerships in Southeast Asia.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Key Points: – US and China agreed to a 90-day truce slashing tariffs, sparking a major market rally. – Retailers and energy stocks surged as sectors hit hardest by tariffs saw renewed investor interest. – Investors should remain cautious, as the deal is temporary and economic data will shape the next move.
Markets exploded higher Monday as Wall Street celebrated a surprise truce between the United States and China, easing months of investor anxiety over escalating tariffs. The temporary agreement—which reduces reciprocal tariffs and establishes a 90-day negotiation window—was met with enthusiasm from institutional and retail investors alike. But while the relief rally was immediate and broad-based, the question remains: is this just a short-term bounce, or the start of a more durable rebound?
Under the new deal, the U.S. will slash tariffs on Chinese imports from 145% to 30%, while China will reduce its levies on American goods from 125% to 10%. That’s a dramatic step down in trade barriers, at least temporarily, and it caught markets off guard. The Dow Jones surged over 1,000 points, the S&P 500 gained 2.9%, and the tech-heavy Nasdaq led the charge with a nearly 4% jump.
Big Tech names that had been under pressure from trade war concerns—like Nvidia, Apple, and Amazon—posted strong gains. However, it wasn’t just megacaps moving higher. The broad nature of the rally suggests optimism is spilling over into sectors that were directly affected by tariffs, including retail, manufacturing, and commodity-linked industries.
Retailers in particular could be big winners. Analysts at CFRA and Telsey Advisory Group noted that the tariff pause may have “saved the holiday season,” allowing companies to import critical inventory at lower costs just in time for the back-to-school and Christmas shopping periods. Companies such as Five Below, Yeti, and Boot Barn all saw noticeable gains on the news.
Oil prices also responded positively, with West Texas Intermediate crude climbing over 2% as traders embraced a “risk-on” environment. This could bode well for small energy producers and service firms that had been squeezed by demand worries tied to trade tensions.
Still, not everyone is celebrating unconditionally. Federal Reserve Governor Adriana Kugler warned that tariffs, even at reduced levels, still act as a “negative supply shock” that may push prices higher and slow economic activity. With inflation data, retail sales, and producer prices all set to drop later this week, investors will soon get a better sense of the underlying economic landscape.
For investors, this is a critical moment to reassess market exposure. While the 90-day truce is a positive step, it’s a temporary one. Volatility could return quickly if trade talks stall or inflation surprises to the upside. Still, the sharp market reaction highlights that sentiment had grown too pessimistic—and that even incremental progress can unlock upside.
If the rally holds, it could mark a broader shift in market tone heading into summer. For now, the rebound has begun. Whether it continues depends on what comes next from Washington and Beijing.
First quarter sales of $170 million, EPS of $(0.09), Adjusted EBITDA of $5.8 million Significantly improved free cash flow enables further debt paydown Updates guidance for full year 2025
NEW ALBANY, Ohio, May 06, 2025 (GLOBE NEWSWIRE) — CVG (NASDAQ: CVGI), a diversified industrial products and services company, today announced financial results for its first quarter ended March 31, 2025.
During the quarter, the Company completed a strategic reorganization of its operations into three segments: Global Seating, Global Electrical Systems, and Trim Systems and Components. The results and comparisons presented below reflect continuing operations unless otherwise noted.
First Quarter 2025 Highlights(Results from Continuing Operations; compared with prior year, where comparisons are noted)
Revenues of $169.8 million, down 12.7%, primarily due to softening in global Construction and Agriculture markets and North America Class 8 truck demand.
Operating income of $1.4 million, adjusted operating income of $2.1 million, down compared to operating income of $4.5 million and adjusted operating income of $6.3 million. The decrease in operating income was driven primarily by lower sales volumes offset by reductions in SG&A expense.
Net loss from continuing operations of $3.1 million, or $(0.09) per diluted share and adjusted net loss of $2.6 million, or $(0.08) per diluted share, compared to net income from continuing operations of $1.4 million, or $0.05 per diluted share and adjusted net income of $2.8 million, or $0.08 per diluted share.
Adjusted EBITDA of $5.8 million, down 40.2%, with an adjusted EBITDA margin of 3.4%, down from 5.0%.
Free cash flow of $11.2 million, up $17.7 million, due to better working capital management. Net debt decreased $11.7 million compared to the year end 2024 level.
Gross margin expansion of 250 basis points versus Q4 2024 due to operational efficiency improvements and conclusion of one-time cost drivers from 2024.
James Ray, President and Chief Executive Officer, said, “Our first quarter results demonstrate sequential improvement in margins and free cash flow. Cash generation and debt paydown remain key priorities for CVG, as we look to build on our strong free cash performance in the first quarter through further margin improvement, working capital reduction, and reduced capital expenditures. We are beginning to see the benefits of efforts made in 2024, including strategic divestments of non-core businesses, to transform CVG. These divestitures, as well as our priority on improving operational efficiency, have allowed us to streamline operations, lower our cost structure, and drive cash generation to pay down debt. Despite industry-wide and global macroeconomic headwinds, we are prioritizing strong execution from the top down within CVG focused on cost mitigation, margin improvement, and operational efficiency.”
Mr. Ray continued, “The actions we took last year position us well for the future. Change management is always difficult, and I would personally like to thank the entire CVG team for their efforts throughout the process. I would like to thank Bob Griffin, our current Chairman, for his contributions to CVG’s strategic goals and priorities over the years. I am also excited to continue working with Bill Johnson, a current board member who is expected to become the Chairman of the Board following Mr. Griffin’s retirement, effective May 15, 2025. While we acknowledge the current macroeconomic uncertainties and geopolitical environment, the transformation undertaken in 2024 makes CVG a lower cost, more nimble company, better positioned to navigate these challenges. We are committed to execution, delivery, and driving operational efficiency, while managing the potential impact of trade policy.”
Andy Cheung, Chief Financial Officer, added, “We are encouraged by the quarter-over-quarter improvement in our financial performance, as we start to see the benefits of our strategic portfolio realignment and operational efficiency efforts. However, given the economic environment and policy concerns, we are adjusting our outlook to reflect current market conditions. Our focused portfolio, now more closely aligned with our customers through our re-segmentation, positions us for improved value capture as end markets recover.”
First Quarter Financial Results from Continuing Operations (amounts in millions except per share data and percentages)
Consolidated Results from Continuing Operations
First Quarter 2025 Results
First quarter 2025 revenues were $169.8 million, compared to $194.6 million in the prior year period, a decrease of 12.7%. The overall decrease in revenues was due to lower sales as a result of a softening in customer demand across all segments.
Operating income in the first quarter 2025 was $1.4 million compared to $4.5 million in the prior year period. The decrease in operating income was attributable to the impact of lower sales volumes. First quarter 2025 adjusted operating income was $2.1 million, compared to $6.3 million in the prior year period.
Interest associated with debt and other expenses was $2.5 million and $2.2 million for the first quarter 2025 and 2024, respectively.
Net loss from continuing operations was $3.1 million, or $(0.09) per diluted share, for the first quarter 2025 compared to net income of $1.4 million, or $0.05 per diluted share, in the prior year period. First quarter 2025 adjusted net loss from continuing operations was $2.6 million, or $(0.08) per diluted share, compared to adjusted net income of $2.8 million, or $0.08 per diluted share.
On March 31, 2025, the Company had $32.4 million of outstanding borrowings on its U.S. revolving credit facility and no outstanding borrowings on its China credit facility, $20.2 million of cash and $102.5 million of availability from the credit facilities (subject to covenant limitations), resulting in total liquidity of $122.7 million.
First Quarter 2025 Segment Results
Global Seating Segment
Revenues were $73.4 million compared to $80.8 million for the prior year period, a decrease of 9.1%, due to lower sales volume as a result of decreased customer demand.
Operating income was $2.7 million, compared $2.8 million in the prior year period, a decrease of 3.0%, primarily attributable to lower sales volume and increased freight costs. First quarter 2025 adjusted operating income was $2.7 million compared to $2.8 million in the prior year period.
Global Electrical Systems Segment
Revenues were $50.5 million compared to $58.7 million in the prior year period, a decrease of 14.1%, primarily as a result of decreased customer demand.
Operating loss was $0.3 million compared to operating income of $0.4 million in the prior year period. The decrease in operating income was primarily attributable to lower sales volumes and unfavorable foreign exchange impacts. First quarter 2025 adjusted operating income was $0.2 million compared to $1.5 million in the prior year period.
Trim Systems and Components Segment
Revenues were $45.9 million compared to $55.1 million in the prior year period, a decrease of 16.6%, primarily as a result of decreased customer demand.
Operating income was $1.5 million compared to $4.2 million in the prior year period, a decrease of 63.5%. The decrease in operating income was primarily attributable to lower sales volume and increased freight costs. First quarter 2025 adjusted operating income was $1.6 million compared to $4.7 million in the prior year period.
Outlook
CVG updated the Company’s outlook for the full year 2025, based on current market conditions:
This outlook reflects, among others, current industry forecasts for North America Class 8 truck builds. According to ACT Research, 2025 North American Class 8 truck production levels are expected to be at 255,000 units. The 2024 actual Class 8 truck builds according to the ACT Research was 332,372 units.
Construction and Agriculture end markets are projected to decline approximately 5-15% in 2025. However, we expect the contribution from new business wins outside of Construction and Agriculture end markets in Electrical Systems to soften this decline.
GAAP to Non-GAAP Reconciliation
A reconciliation of GAAP to non-GAAP financial measures referenced in this release is included as Appendix A to this release.
Conference Call
A conference call to discuss this press release is scheduled for Wednesday, May 7, 2025, at 8:30 a.m. ET. Management intends to reference the Q1 2025 Earnings Call Presentation during the conference call. To participate, dial (800) 549-8228 using conference code 57416. International participants dial (289) 819-1520 using conference code 57416.
This call is being webcast and can be accessed through the “Investors” section of CVG’s website at ir.cvgrp.com, where it will be archived for one year.
A telephonic replay of the conference call will be available for a period of two weeks following the call. To access the replay, dial (888) 660-6264 using access code 57416#.
Company Contact Andy Cheung Chief Financial Officer CVG IR@cvgrp.com
Investor Relations Contact Ross Collins or Stephen Poe Alpha IR Group CVGI@alpha-ir.com
About CVG
CVG is a global provider of systems, assemblies and components to the global commercial vehicle market and the electric vehicle market. We deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries and communities we serve. Information about the Company and its products is available on the internet at www.cvgrp.com.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as “believe”, “anticipate”, “plan”, “expect”, “intend”, “will”, “should”, “could”, “would”, “project”, “continue”, “likely”, and similar expressions. In particular, this press release may contain forward-looking statements about the Company’s expectations for future periods with respect to its plans to improve financial results, the future of the Company’s end markets, changes in the Class 8 and Class 5-7 North America truck build rates, performance of the global construction and agricultural equipment business, the Company’s prospects in the wire harness, and electric vehicle markets, the Company’s initiatives to address customer needs, organic growth, the Company’s strategic plans and plans to focus on certain segments, competition faced by the Company, volatility in and disruption to the global economic environment and the Company’s financial position or other financial information. These statements are based on certain assumptions that the Company has made in light of its experience as well as its perspective on historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including those included in the Company’s filings with the SEC. There can be no assurance that statements made in this press release relating to future events will be achieved. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by such cautionary statements.
Other Information
Throughout this document, certain numbers in the tables or elsewhere may not sum due to rounding. Rounding may have also impacted the presentation of certain year-on-year percentage changes.
Key Points: – AMETEK will acquire FARO Technologies for $920M, paying $44/share in cash—a 40% premium. – FARO brings $340M in annual sales and advanced 3D metrology tools to AMETEK’s precision portfolio. – The deal is expected to close in H2 2025, strengthening AMETEK’s presence in industrial and tech-driven sectors.
AMETEK, a global leader in electronic instruments and electromechanical devices, has announced it will acquire FARO Technologies in an all-cash deal valued at approximately $920 million. The acquisition is set to enhance AMETEK’s portfolio in precision measurement and 3D imaging, reinforcing its strategy of expanding into high-growth technology segments.
Under the terms of the agreement, AMETEK will pay $44 per share in cash for FARO, representing a roughly 40% premium to FARO’s previous closing price. The deal implies an equity value of $846 million and an enterprise value of $920 million. The acquisition is expected to close in the second half of 2025, pending customary closing conditions and regulatory approvals.
FARO Technologies, headquartered in Lake Mary, Florida, is a prominent provider of 3D measurement, imaging, and realization technology. Its suite of products includes portable measurement arms, laser scanners, and laser trackers used widely across manufacturing, engineering, construction, and public safety applications. The company reported approximately $340 million in sales for 2024, making it a valuable addition to AMETEK’s electronic instruments segment.
“This acquisition aligns well with our strategy of investing in differentiated technology businesses with strong market positions and attractive growth characteristics,” said David Zapico, Chairman and CEO of AMETEK. “FARO’s innovative 3D measurement and imaging solutions will strengthen our presence in precision metrology and expand our reach into new markets and applications.”
FARO’s technologies are used in sectors ranging from aerospace and automotive to architecture and law enforcement—markets that AMETEK sees as key growth areas. The deal reflects AMETEK’s broader aim to build out its capabilities in high-precision, high-performance technologies that deliver value across complex industrial environments.
While FARO shares jumped 36% in pre-market trading following the announcement, AMETEK shares remained flat, reflecting a neutral reaction from investors. However, analysts noted that the acquisition could offer long-term synergies, particularly as AMETEK integrates FARO’s product line and customer relationships into its existing operations.
AMETEK has a track record of strategic, bolt-on acquisitions that complement its core businesses. The company recently reported better-than-expected earnings for Q1 2025, driven by improved margins and resilient demand despite ongoing inflationary pressures and global trade uncertainties. CEO David Zapico noted that AMETEK’s strong U.S. manufacturing footprint positions it well to benefit from shifting supply chain dynamics and tariff-related opportunities.
“The current trade environment is creating strategic openings for manufacturers like AMETEK,” Zapico said last week. “This acquisition allows us to serve a broader range of customers looking for advanced measurement technologies built in America.”
FARO will operate under AMETEK’s Electronic Instruments Group, a division known for producing advanced monitoring, testing, and analytical equipment for industries that demand high accuracy and reliability.
The acquisition further solidifies AMETEK’s position as a leader in precision instrumentation, while giving FARO the resources and scale to accelerate innovation and expand its market reach. With both companies emphasizing long-term value and technical excellence, the deal appears well-aligned for success.
Key Points: – Astec Industries will acquire TerraSource Holdings for $245 million in cash, expanding its scale, global reach, and aftermarket parts business. – Astec posted a 6.5% increase in net sales to $329.4 million and more than quadrupled net income to $14.3 million year-over-year. – The acquisition is expected to be earnings accretive from day one, with $10 million in expected run-rate synergies and a 5.9x adjusted EBITDA multiple.
Astec Industries (NASDAQ: ASTE) reported a robust start to the year, posting solid first-quarter earnings and announcing a definitive agreement to acquire TerraSource Holdings, LLC in a $245 million cash deal. The acquisition, expected to close in early Q3 pending regulatory approvals, will significantly expand Astec’s scale, aftermarket revenue, and presence in adjacent material processing markets.
The Tennessee-based manufacturer of infrastructure and materials processing equipment posted Q1 net sales of $329.4 million, a 6.5% increase from the same period last year. Net income surged to $14.3 million, or $0.62 per diluted share, from $3.4 million, or $0.15 per share, in the prior year. Adjusted net income came in at $20.3 million, or $0.88 per share, while adjusted EBITDA jumped 86% to $35.2 million. Free cash flow was reported at $16.6 million.
“We are pleased to report another strong quarter in line with our plans to deliver consistency, profitability, and growth,” said Astec CEO Jaco van der Merwe. “The TerraSource acquisition adds scale and accretive margins, opens access to new markets, and strengthens our aftermarket parts offering—all aligned with our disciplined growth strategy.”
TerraSource, a material processing equipment manufacturer with over $150 million in annual revenue, brings a robust aftermarket business to the table. Roughly 60% of its revenues and 80% of its gross profit are derived from aftermarket parts—a key area of focus for Astec as it looks to increase recurring revenue and margin stability.
Astec said the deal, financed through cash on hand and new committed financing, is expected to be accretive to earnings immediately. With expected run-rate synergies of $10 million within two years and tax benefits of approximately $15 million, the transaction represents an adjusted EBITDA multiple of 5.9x.
From a segment standpoint, Astec’s Infrastructure Solutions division led Q1 performance with $236 million in sales, up 16.7% year-over-year, benefiting from strong demand in road building and concrete plants. The Materials Solutions division, however, saw a 12.7% decline to $93.4 million due to softer domestic equipment sales, though dealer interest remained high.
CFO Brian Harris emphasized the financial strength behind the transaction, noting that “TerraSource enhances our financial profile with expanded margins and quality of earnings. The acquisition aligns with our strategy and positions us for long-term growth.”
Despite a 28% year-over-year drop in backlog—down to $402.6 million—Astec remains confident in its ability to convert new demand as infrastructure markets evolve and financing capacity improves across contractor and dealer channels.
The TerraSource acquisition adds meaningful scale and global reach for Astec, reinforcing its position as a top-tier provider of material and infrastructure solutions. The company is expected to maintain its adjusted EBITDA guidance of $105 million to $125 million for the full year, excluding the pending deal.
With strong financials, a growing aftermarket footprint, and a major acquisition in play, Astec is positioning itself for long-term gains amid rising global infrastructure needs. Investors responded favorably in early trading, with Astec shares ticking higher following the announcement
Key Points: – Taiwan Semiconductor Manufacturing Co. (TSMC) plans to invest $100 billion in US chip plants over the next four years. – The investment aligns with efforts to establish the US as a leader in artificial intelligence and semiconductor production. – The announcement follows US tariffs on semiconductor imports and ongoing efforts to reduce reliance on foreign chip manufacturing.
Taiwan Semiconductor Manufacturing Company (TSMC) is preparing to make a historic $100 billion investment in US chip manufacturing, a move expected to bolster America’s position in the global semiconductor race. President Donald Trump is set to formally announce the initiative, which aims to expand domestic production capacity over the next four years.
The investment will fund multiple new semiconductor fabrication plants, reinforcing efforts to establish the United States as a key hub for artificial intelligence and high-performance computing. This move is seen as a major step in reducing US dependence on foreign chip suppliers, particularly amid growing geopolitical tensions that have raised concerns over supply chain vulnerabilities.
TSMC, the world’s largest contract chipmaker, plays a crucial role in supplying semiconductors to major technology firms such as Nvidia and Apple, both of which heavily rely on cutting-edge chips for artificial intelligence applications. The company has already established a presence in the US with its Arizona-based facilities, where it committed an initial $12 billion in 2020. Since then, its investment in the region has swelled to approximately $65 billion, with plans for a third factory already in motion.
The additional $100 billion investment signals a broader commitment to US-based production, which could help mitigate risks associated with global supply chain disruptions. This initiative aligns with the Trump administration’s strategy to strengthen domestic manufacturing and reduce reliance on imports, particularly from Asia.
President Trump has long accused Taiwan of undercutting US chip manufacturing, advocating for tariffs on semiconductor imports as part of his broader trade policy. However, the latest investment from TSMC could help reshape this dynamic by bringing production closer to home, potentially easing tensions while reinforcing economic ties between the US and Taiwan.
Industry experts view this investment as a significant step toward securing US semiconductor supply chains. The recent CHIPS and Science Act, which provides funding to semiconductor companies expanding in the US, has played a role in attracting further investment from industry leaders. In January, TSMC’s Chief Financial Officer, Wendell Huang, expressed confidence that the US government would continue supporting the company’s expansion efforts.
While TSMC’s massive investment will primarily benefit large-scale semiconductor production, smaller cap chip manufacturers may experience mixed effects. On one hand, increased competition from a well-funded industry giant could challenge their market position. However, these companies may also benefit from enhanced supply chain infrastructure, new partnership opportunities, and greater government incentives aimed at bolstering domestic production.
For investors, this development could signal a bullish outlook for the semiconductor sector. Larger players like Nvidia, Intel, and AMD may see increased demand for domestically produced chips, while smaller firms could attract interest based on their role in supporting new manufacturing initiatives. Market analysts will be watching closely to assess which companies stand to gain the most from this significant shift in semiconductor production.
The expansion of US-based semiconductor manufacturing is expected to create thousands of high-skilled jobs while positioning the country as a leader in AI-driven innovation. Analysts believe the move will help stabilize chip supply and reduce costs for American companies reliant on advanced semiconductors.
With formal announcements expected in the coming days, industry stakeholders and policymakers will closely watch how this investment unfolds. The next steps will likely involve site selection, workforce training initiatives, and government incentives to ensure the success of these new facilities.
As TSMC deepens its US footprint, the semiconductor industry braces for a transformative shift that could redefine global supply chains for years to come.
Key Points: – US manufacturing PMI dipped to 50.3 in February, signaling continued but slowing growth. – Concerns over new tariffs on imports from Canada, Mexico, and China are creating uncertainty for manufacturers. – Prices for raw materials surged to their highest levels since June 2022, potentially impacting production costs.
The US manufacturing sector remained stable in February, though concerns over looming tariffs threatened to disrupt recent gains. While the Institute for Supply Management (ISM) Manufacturing Purchasing Managers’ Index (PMI) registered at 50.3—just above the threshold for expansion—key indicators such as new orders and employment showed signs of weakness.
The report indicated that while the manufacturing industry is maintaining momentum, companies are growing increasingly uneasy about potential tariffs on goods imported from Canada, Mexico, and China. The uncertainty surrounding these trade policies has led to a slowdown in new orders, as customers hesitate to commit to long-term contracts.
Tariffs Fuel Uncertainty and Price Increases Manufacturers reported that trade tensions and prospective retaliatory measures from key US partners were affecting business sentiment. Firms in the chemical and transportation equipment industries, in particular, noted disruptions caused by a lack of clear guidance on tariff implementation. The uncertainty has also impacted investment decisions, with businesses pausing expansion plans.
At the same time, prices for manufacturing inputs surged to their highest levels since June 2022. The ISM’s price index jumped to 62.4 from 54.9 in January, reflecting the growing cost of raw materials. Many manufacturers are concerned that rising costs will eventually be passed on to consumers, potentially reversing recent efforts to stabilize inflation.
Employment and Supply Chain Challenges Employment in the sector contracted after briefly expanding in January. The manufacturing employment index fell to 47.6, suggesting that firms are pulling back on hiring in response to economic uncertainty. With weaker demand and higher costs, companies are taking a cautious approach to workforce expansion.
Supply chains, which had been recovering from disruptions in previous years, also showed signs of strain. The ISM supplier deliveries index increased to 54.5, indicating longer wait times for materials. This is typically a sign of strong demand, but in this case, it reflects supply chain bottlenecks and manufacturers front-loading inventory in anticipation of potential tariff impacts.
Looking Ahead With the Trump administration expected to finalize tariff decisions in the coming days, manufacturers remain on edge. Industries reliant on imported steel, aluminum, and electronic components could face the greatest challenges, particularly as suppliers adjust pricing in response to trade policy changes.
The ISM report follows a series of economic data releases that suggest the US economy may have lost momentum in early 2025. Weak consumer spending, a widening goods trade deficit, and a decline in homebuilding all point to a more cautious economic outlook. Some economists now believe that GDP could contract in the first quarter.
As the manufacturing sector braces for potential headwinds, all eyes remain on the White House’s next moves regarding tariffs. The coming weeks will be critical in determining whether February’s stability can be sustained or if rising costs and trade uncertainty will trigger a broader slowdown.
NEW ALBANY, Ohio, Feb. 26, 2025 (GLOBE NEWSWIRE) — Commercial Vehicle Group (the “Company” or “CVG”) (NASDAQ: CVGI) will hold its quarterly conference call on Tuesday, March 11, 2025, at 8:30 a.m. ET, to discuss fourth quarter and full year 2024 financial results. CVG will issue a press release and presentation prior to the conference call.
Toll-free participants dial (800) 549-8228 using conference code 45919. International participants dial (289) 819-1520 using conference code 45919. This call is being webcast and can be accessed through the “Investors” section of CVG’s website at ir.cvgrp.com where it will be archived for one year.
A telephonic replay of the conference call will be available until March 25, 2025. To access the replay, toll-free callers can dial (+1) 888 660 6264 using access code 45919#, and toll callers in North America and other locations can dial (+1) 289 819 1325.
About CVG
At CVG, we deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries, and communities we serve. Information about the Company and its products is available on the internet at www.cvgrp.com.
Investor Relations Contact: Ross Collins or Stephen Poe Alpha IR Group CVGI@alpha-ir.com
Key Points: – GM announced a $6B share buyback and a 25% dividend increase to $0.15 per share – Investors reacted positively, pushing GM stock up over 5% in morning trading – Company maintains strong R&D spending of $8B+ while navigating potential tariff challenges
General Motors announced a significant boost to shareholder returns on Wednesday, unveiling a new $6 billion share repurchase program and increasing its quarterly dividend. The move comes just weeks after investors expressed disappointment when the automaker’s Q4 earnings call failed to include new capital return initiatives.
GM’s quarterly dividend will rise by $0.03 to $0.15 per share, marking the company’s first dividend increase since 2023. The $6 billion share repurchase authorization includes plans for a $2 billion accelerated share repurchase (ASR) program to be implemented in the near term.
Investors responded positively to the announcement, sending GM shares up more than 5% in morning trading to $49.22.
CEO Mary Barra emphasized the company’s strong execution across all three pillars of its capital allocation strategy. These include reinvesting for profitable growth, maintaining a strong investment-grade balance sheet, and returning capital to shareholders.
This latest buyback program follows GM’s previous $6 billion share repurchase plan and the $10 billion ASR program introduced in late 2023. The earlier initiatives coincided with a 33% dividend increase that took effect in January 2024.
During GM’s most recent earnings call, CFO Paul Jacobson had indicated the company would explore prudent ways to expand shareholder returns. In today’s announcement, he expressed confidence in the business plan and balance sheet strength, noting GM would remain agile in responding to potential policy changes.
Despite the increased focus on shareholder returns, GM confirmed its commitment to continued investment in its core business. The company expects 2025 capital spending to remain between $10-11 billion, including investments in battery manufacturing joint ventures. Research and product development spending is projected to exceed $8 billion for the year.
For fiscal 2025, GM has forecast profits between $13.7 billion and $15.7 billion, with diluted and adjusted earnings per share of $11-12. The company noted these projections don’t account for potential impacts from tariffs that might be implemented by the Trump administration on imported vehicles or parts.
While GM is clearly a large-cap stock, its shareholder-friendly actions could signal a broader trend that might eventually benefit small-cap stocks and the Russell 2000 index. Historically, when large corporations increase dividends and buybacks, it often reflects growing confidence in economic conditions that eventually filters down to smaller companies. The Russell 2000 has underperformed larger indices in recent years, but increased capital returns across the market could indicate improving liquidity conditions that typically benefit smaller firms more dramatically.
Additionally, GM’s ability to maintain robust capital returns while facing potential tariff challenges demonstrates corporate resilience that could reassure investors about smaller domestic manufacturers’ prospects. Many Russell 2000 companies are more domestically focused than their large-cap counterparts, potentially insulating them from international trade disruptions.
The shareholder return increases demonstrate GM’s financial strength despite ongoing challenges in the automotive industry, including electrification costs, competition, and potential trade policy changes. The company’s willingness to boost returns while maintaining substantial investments in future technologies suggests management’s confidence in its long-term business strategy.
As GM navigates the evolving automotive landscape, this balanced approach to capital allocation appears designed to keep both long-term investors and those seeking immediate returns satisfied while the company continues its transition toward an electric future.
Revenue increased 7.3% to $47.0 million driven by continued strength in key end-markets
Gross profit margin improved 260 basis points to 24.8% of sales, net margin increased 300 basis points to 3.4% of sales, and adjusted EBITDA margin1 expanded 180 basis points to 8.6% of sales
Net income per diluted share increased 600% to $0.14 in the third quarter; adjusted net income per diluted share1 increased 38% to $0.18
Orders of $24.8 million, driven by demand from defense, space, and aftermarket; YTD Book-to-Bill ratio of 1.0x and a backlog of $385 million2
Strong balance sheet with no debt, $30.0 million in cash, and access to $43 million under its revolving credit facility at quarter end to support growth initiatives
Reiterated full year guidance for Sales and adjusted EBITDA1
BATAVIA, N.Y.–(BUSINESS WIRE)– Graham Corporation (NYSE: GHM) (“GHM” or the “Company”), a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries, today reported financial results for its third quarter for the fiscal year ending March 31, 2025 (“fiscal 2025”).
“Our strong performance through the first three quarters of our fiscal year reflects continually improving execution across our business. Customer demand for our diversified product portfolio is robust, driving margin expansion through improved product mix and operational efficiency. The progress we have shown to date, coupled with advancing discussions on both new programs and expansions with existing customers, reinforces our confidence in achieving our long-term growth targets,” said Daniel J. Thoren, Chief Executive Officer.
____________________ 1Adjusted EBITDA margin, Adjusted Net Income per Diluted Share and Adjusted EBITDA are non-GAAP measures. See attached tables and other information for important disclosures regarding Graham’s use of these non-GAAP measures. 2Orders, backlog and book-to-bill ratio are key performance metrics. See “Key Performance Indicators” below for important disclosures regarding Graham’s use of these metrics.
Quarterly net sales of $47.0 million increased 7.3%, or $3.2 million. Sales to the defense market grew by $2.7 million, or 11.1% from the prior year period, driven by the addition of new defense programs, the ramp-up of existing programs, better execution, and the timing of key project milestones. Additionally, higher chemical/petrochemical sales contributed $2.7 million to growth, driven by increased sales of capital equipment. Aftermarket sales to the refining, chemical/petrochemical, and defense markets of $9.7 million remained strong and were 2.4% higher than the prior year. See supplemental data for a further breakdown of sales by market and region.
Gross profit for the quarter increased $2.0 million to $11.7 million compared to the prior-year period of $9.7 million. As a percentage of sales, gross profit margin increased 260 basis points to 24.8%, compared to the fiscal third quarter of 2024. This increase was driven by leverage on higher volume, better execution, and improved pricing, partially offset by higher incentive compensation compared to the prior year period.
Additionally, the third quarter of fiscal 2025 gross profit benefited $0.3 million from a $2.1 million grant received from the BlueForge Alliance earlier this fiscal year to reimburse Graham for the cost of the Company’s defense welder training programs in Batavia and related equipment. To date, the Company has received $1.5 million of funding under this grant.
Selling, general and administrative expense (“SG&A”), including amortization, totaled $9.7 million, or 20.6% of sales, up $0.9 million compared with the prior year. This increase reflects the Company’s continued investments in its people, processes, and technology to drive long-term sustainable growth.
Included in other operating income for the third quarter of fiscal 2025 was a $0.2 million reversal of a previously accrued contingent earnout liability for P3. The reversal was due to delayed orders/projects that extended beyond the earnout period.
Cash Management and Balance Sheet Cash provided by operating activities totaled $27.9 million for the nine-month period ending December 31, 2024, an increase of $8.4 million from the comparable period in fiscal 2024. As of December 31, 2024, cash and cash equivalents were $30.0 million, up from $16.9 million at the end of fiscal 2024.
Capital expenditures of $13.8 million for the first nine months of fiscal 2025 were focused on capacity expansion, increasing capabilities, and productivity improvements. The Company increased its expected fiscal 2025 capital expenditures to be in the range of $15.0 million to $19.0 million from its previous expectations of $13.0 million to $18.0 million due to a faster pace of execution on the capital projects in process. All major capital projects are on time and on budget.
The Company had no debt outstanding at December 31, 2024 with $43 million available on its revolving credit facility after taking into account outstanding letters of credit.
Orders, Backlog, and Book-to-Bill Ratio See supplemental data filed with the Securities and Exchange Commission on Form 8-K and provided on the Company’s website for a further breakdown of orders and backlog by market. See “Key Performance Indicators” below for important disclosures regarding Graham’s use of these metrics.
As expected, orders for the third quarter of fiscal 2025 declined to $24.8 million given the higher level of orders earlier in the fiscal year. Orders tend to be lumpy given the nature of our business (i.e. large capital projects) and in particular, orders to the defense industry, which span multiple years and are larger in size. Orders for the nine-month period ended December 31, 2024, were $144.2 million, resulting in a year-to-date book-to-bill ratio of 1.0x. After-market orders for the refining, petrochemical, and defense markets remained strong and totaled $13.0 million for the third quarter of fiscal 2025, an increase of 51% over the prior year.
Backlog at quarter end was $384.7 million, down 3.6% over the prior-year period and down 5.5% sequentially. Approximately 45% to 50% of orders currently in backlog are expected to be converted to sales in the next twelve months and another 35% to 40% are expected to convert to sales within one to two years. The majority of orders expected to convert beyond twelve months are for the defense industry, specifically the U.S. Navy.
Fiscal 2025 Outlook The Company’s outlook for 2025 was updated as follows:
Webcast and Conference Call GHM’s management will host a conference call and live webcast on February 7, 2025 at 11:00 a.m. Eastern Time (“ET”) to review its financial results as well as its strategy and outlook. The review will be accompanied by a slide presentation, which will be made available immediately prior to the conference call on GHM’s investor relations website.
A question-and-answer session will follow the formal presentation. GHM’s conference call can be accessed by calling (201) 689-8560. Alternatively, the webcast can be monitored from the events section of GHM’s investor relations website.
A telephonic replay will be available from 3:00 p.m. ET today through Friday, February 14, 2025. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13750971 or access the webcast replay via the Company’s website at ir.grahamcorp.com, where a transcript will also be posted once available.
About Graham Corporation Graham is a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries. Graham Corporation and its family of global brands are built upon world-renowned engineering expertise in vacuum and heat transfer, cryogenic pumps, and turbomachinery technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems. Graham Corporation routinely posts news and other important information on its website, grahamcorp.com, where additional information on Graham Corporation and its businesses can be found.
Safe Harbor Regarding Forward Looking Statements This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “expects,” “future,” “outlook,” “anticipates,” “believes,” “could,” “guidance,” ”may”, “will,” “plan” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, profitability of future projects and the business, its ability to deliver to plan, its ability to continue to strengthen relationships with customers in the defense industry, its ability to secure future projects and applications, expected expansion and growth opportunities, anticipated sales, revenues, adjusted EBITDA, adjusted EBITDA margins, capital expenditures and SG&A expenses, the timing of conversion of backlog to sales, orders, market presence, profit margins, tax rates, foreign sales operations, customer preferences, changes in market conditions in the industries in which it operates, changes in general economic conditions and customer behavior, forecasts regarding the timing and scope of the economic recovery in its markets, and its acquisition and growth strategy, are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission (the “SEC”), included under the heading entitled “Risk Factors”, and in other reports filed with the SEC.
Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.
Non-GAAP Financial Measures Adjusted EBITDA is defined as consolidated net income (loss) before net interest expense, income taxes, depreciation, amortization, other acquisition related expenses, and other unusual/nonrecurring expenses. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of sales. Adjusted EBITDA and Adjusted EBITDA margin are not measures determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP. Nevertheless, Graham believes that providing non-GAAP information, such as Adjusted EBITDA and Adjusted EBITDA margin, is important for investors and other readers of Graham’s financial statements, as it is used as an analytical indicator by Graham’s management to better understand operating performance. Moreover, Graham’s credit facility also contains ratios based on Adjusted EBITDA. Because Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures and are thus susceptible to varying calculations, Adjusted EBITDA, and Adjusted EBITDA margin, as presented, may not be directly comparable to other similarly titled measures used by other companies.
Adjusted net income and adjusted net income per diluted share are defined as net income and net income per diluted share as reported, adjusted for certain items and at a normalized tax rate. Adjusted net income and adjusted net income per diluted share are not measures determined in accordance with GAAP, and may not be comparable to the measures as used by other companies. Nevertheless, Graham believes that providing non-GAAP information, such as adjusted net income and adjusted net income per diluted share, is important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current fiscal year’s net income and net income per diluted share to the historical periods’ net income and net income per diluted share. Graham also believes that adjusted net income per share, which adds back intangible amortization expense related to acquisitions, provides a better representation of the cash earnings of the Company.
Forward-Looking Non-GAAP Measures Forward-looking adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. The Company is unable to present a quantitative reconciliation of these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort largely because forecasting or predicting our future operating results is subject to many factors out of our control or not readily predictable. In addition, the Company believes that such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the Company’s fiscal 2025 financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with purchase accounting, quarter-end, and year-end adjustments. Any variation between the Company’s actual results and preliminary financial estimates set forth above may be material.
Key Performance Indicators In addition to the foregoing non-GAAP measures, management uses the following key performance metrics to analyze and measure the Company’s financial performance and results of operations: orders, backlog, and book-to-bill ratio. Management uses orders and backlog as measures of current and future business and financial performance, and these may not be comparable with measures provided by other companies. Orders represent written communications received from customers requesting the Company to provide products and/or services. Backlog is defined as the total dollar value of net orders received for which revenue has not yet been recognized. Management believes tracking orders and backlog are useful as they often times are leading indicators of future performance. In accordance with industry practice, contracts may include provisions for cancellation, termination, or suspension at the discretion of the customer.
The book-to-bill ratio is an operational measure that management uses to track the growth prospects of the Company. The Company calculates the book-to-bill ratio for a given period as net orders divided by net sales.
Given that each of orders, backlog, and book-to-bill ratio are operational measures and that the Company’s methodology for calculating orders, backlog and book-to-bill ratio does not meet the definition of a non-GAAP measure, as that term is defined by the U.S. Securities and Exchange Commission, a quantitative reconciliation for each is not required or provided.
As part of its established succession plan, President & CEO, Daniel J. Thoren to transition to Executive Chairman and Strategic Advisor effective June 2025
Matthew J. Malone, current Vice President and General Manager for Graham subsidiary Barber-Nichols, appointed to President & COO effective February 2025; expected to assume CEO role of Graham Corporation in June 2025
Executing according to succession plan previously approved by the Board of Directors; deepens bench strength of the Executive Leadership Team, ensures a smooth leadership transition, positions the business for continued growth and success
The Company reiterates its sales and Adjusted EBITDA guidance as provided on November 8, 2024
BATAVIA, N.Y.–(BUSINESS WIRE)– Graham Corporation (NYSE: GHM) (“GHM” or the “Company”), a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries, today announced key leadership changes as part of its established succession plan.
Daniel J. Thoren, President and Chief Executive Officer, will transition to the role of Executive Chairman, effective June 10, 2025 and will remain active in the operations of the Company for the foreseeable future. As part of the transition, Mr. Thoren will serve as a strategic advisor, focusing on guiding strategy and helping the Company grow through business development. With this change, Jonathan W. Painter, Chairman of the Board of Directors, will transition to Lead Independent Director.
In alignment with this plan, the Board of Directors has approved the appointment of Matthew J. Malone as President and Chief Operating Officer, reporting to Mr. Thoren, effective February 5, 2025. In this role, Mr. Malone will oversee, guide and lead each of the Company’s business units. Prior to this appointment, Mr. Malone has served as Vice President and General Manager of Barber-Nichols since 2021. Concurrently, Michael E. Dixon, Director of Sales and Marketing of Barber-Nichols, will be promoted to General Manager of Barber-Nichols reporting to Mr. Malone, effective February 5, 2025.
The Company further announced its intention for Mr. Malone to assume the role of Chief Executive Officer on June 10, 2025, and the expectation of his appointment to the Board of Directors. At that time, Mr. Dixon is expected to assume the role of Vice President of Graham Corporation and General Manager of Barber-Nichols.
Jonathan W. Painter, Chairman of the Board of Directors said, “I am pleased to announce these leadership appointments in accordance with our planned succession strategy, which demonstrates the bench strength of our executive team and reflects Graham’s commitment to developing exceptional talent. I would like to personally thank Dan for his leadership and tremendous accomplishments while serving as CEO since August of 2021 and we look forward to continuing to work with him in this next chapter, while he steps back from the day-to-day demands of public company leadership.”
Mr. Thoren said, “I am grateful to have led Graham as CEO and am proud of the great work we have completed during my tenure. Today’s appointments further highlight the strong talent we have attracted and developed across the entire organization, and I am pleased with the opportunity this transition has created within the Company. Matt Malone has demonstrated outstanding leadership capabilities throughout his time with Barber-Nichols and Graham, and his deep understanding of our business makes him the ideal choice to lead the Company into its next chapter of growth. Similarly, Mike Dixon’s promotion to lead Barber-Nichols reflects his deep industry knowledge, product expertise and institutional knowledge of Barber-Nichols. I look forward to working alongside Matt, Mike, and the rest of the executive team to ensure we achieve our long-term strategic objectives and have complete confidence that under this new leadership structure, our company will continue to thrive and create value for our stakeholders.”
Matt Malone brings over 15 years of engineering and executive experience to his new role as President and Chief Operating Officer. Mr. Malone joined Barber-Nichols in 2015 as a Project Engineer focused on rocket engine turbopump design and development. He was promoted to Navy Program Manager in 2018, overseeing key U.S. Navy programs and was appointed Vice President of Operations at Barber-Nichols in 2020 and then General Manager in 2021. Earlier in his career, he held a variety of engineering and management positions at GE Transportation. Mr. Malone earned his B.S. in Mechanical Engineering with honors in design optimization from Pennsylvania State University and his M.S. in Mechanical Engineering from Georgia Institute of Technology.
Mike Dixon has been an integral part of Barber-Nichols for the past six years, most recently serving as Director of Sales and Marketing. During his tenure, he has played a pivotal role in expanding the Company’s technical capabilities and securing major contracts in the space and aerospace, and defense sectors. Prior to joining the Company, he held roles of increasing responsibility at Sundyne and began his career at ESS Metron. Mr. Dixon holds a B.S. in Mechanical Engineering from Northern Illinois University.
Financial Update and Fiscal Third Quarter 2025 Earnings Call
The Company today reiterated its sales and Adjusted EBITDA guidance as provided on November 8, 2024. The Company will provide additional details on its fiscal third quarter 2025 results during its earnings conference call scheduled for February 7, 2025.
About Graham Corporation
Graham is a global leader in the design and manufacture of mission critical fluid, power, heat transfer and vacuum technologies for the defense, space, energy, and process industries. Graham Corporation and its family of global brands are built upon world-renowned engineering expertise in vacuum and heat transfer, cryogenic pumps, and turbomachinery technologies, as well as its responsive and flexible service and the unsurpassed quality customers have come to expect from the Company’s products and systems. Graham Corporation routinely posts news and other important information on its website, grahamcorp.com, where additional information on Graham Corporation and its businesses can be found.
Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “expects,” “future,” “guidance,” “will,” “plan” and other similar words. All statements addressing operating performance, events, or developments that Graham Corporation expects or anticipates will occur in the future, including but not limited to, expected future management personnel changes and the timing of such changes, expected expansion and growth opportunities, anticipated adjusted EBITDA, and its growth strategy, are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Graham Corporation’s most recent Annual Report filed with the Securities and Exchange Commission (the “SEC”), included under the heading entitled “Risk Factors”, and in other reports filed with the SEC.
Should one or more of these risks or uncertainties materialize or should any of Graham Corporation’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on Graham Corporation’s forward-looking statements. Except as required by law, Graham Corporation disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.
Key Points: – Mattr’s acquisition of AmerCable strengthens its presence in North America and broadens its product offerings. – The acquisition is immediately accretive to EPS and expected to bring recurring revenue and stability. – Addition of AmerCable’s medium-voltage cable capabilities complements Mattr’s Shawflex line, supporting growth in electrification and infrastructure.
Mattr Corp. (TSX: MATR), a leader in materials technology, has announced an agreement to acquire AmerCable Incorporated, a premier U.S.-based manufacturer of highly engineered wire and cable solutions. The acquisition, valued at $280 million USD, is expected to close by the end of 2024, subject to regulatory approvals. This strategic move positions Mattr to enhance its footprint in the U.S. and expand its product offerings in the growing global electrification market.
This acquisition will integrate AmerCable’s capabilities with Mattr’s Connection Technologies segment, allowing Mattr to better serve its North American clients by increasing its manufacturing capacity for medium and low-voltage electrical power, control, and instrumentation cables. Through AmerCable’s facilities in Arkansas and Texas, Mattr is poised to strengthen its North American manufacturing network, which includes its Shawflex brand in Canada.
The acquisition is aligned with Mattr’s strategy of diversifying its portfolio and building a more extensive geographic presence. Mattr CEO Mike Reeves highlighted that this acquisition will support the ongoing modernization of critical infrastructure in North America, bringing enhanced capabilities in low and medium voltage cable solutions essential to the electrification movement.
AmerCable’s products are designed for mission-critical applications, where durability and reliability are paramount. Its robust production network in the U.S. adds complementary capabilities to Mattr’s existing Shawflex brand, offering an expanded product range. In particular, AmerCable’s medium-voltage solutions will broaden Mattr’s offerings, making it a key provider of both high-tech and durable cable systems for extreme operating environments.
The acquisition is expected to be immediately accretive to Mattr’s earnings per share (EPS) and is projected to create substantial long-term value for Mattr shareholders. CFO Tom Holloway noted that AmerCable’s addition would boost Mattr’s financial performance and is expected to bring added stability through recurring revenues, thanks to AmerCable’s long-term relationships with key blue-chip clients.
The transaction value of $280 million USD represents a compelling valuation, with a purchase price set at approximately 5.0 times AmerCable’s Adjusted EBITDA for the 12-month period ending June 2024. Post-transaction, AmerCable will add around $75 million CAD in TTM Adjusted EBITDA, reinforcing Mattr’s commitment to margin growth within its Connection Technologies segment.
In addition to enhancing its financial profile, the acquisition will also improve Mattr’s raw material procurement efficiency and create opportunities for cross-selling and innovation by leveraging the shared technical expertise of both companies. This move is expected to accelerate Mattr’s position in high-growth markets, driven by the rise of electrification and infrastructure renewal.
With AmerCable’s production sites in Arkansas and Texas complementing Mattr’s facilities in Vaughan, Ontario, the combined network will provide a platform for organic and acquisition-driven growth opportunities across North America. The transaction has received unanimous board approval from both Mattr and Nexans, AmerCable’s previous parent company, with the anticipated close set for year-end.
Mattr will host a shareholder and analyst conference call to discuss further details on the acquisition and its strategic implications on November 8, 2024.
