Slide 1: Earnings Release Presentation Q1 2024
Earnings Release Presentation Q1 2024
Slide 2: Forward Looking Information
Forward Looking Information Q1 2024 This presentation contains forward-looking information within the Additional information on the risks and uncertainties on the meaning of applicable securities laws. Words such as "may", "will", Company’s business can be found in the Company’s current Annual "shou
Slide 3: Highlights Q1 2024
Maintaining disciplined Highlights Q1 2024 capital allocation approach with “all of the above” strategy Net-debt-to adjusted • Q1 Adjusted EBITDA of • Continue to evaluate EBITDA <2x Organic Investment $30.1M strategically aligned Given reduced operational Substantial committed inorganic investments
Slide 4: Composite Technologies Q1 2024
Composite Technologies Q1 2024 • Q1-24 revenue of $119 million, a 10% decrease vs. Q1-23 as Xerxes business navigated pronounced seasonality • Continued to see strong uptake of larger diameter Flexpipe products in North America, as well as meaningful international deliveries • Currently anticipate m
Slide 5: Xerxes Market Trends
Xerxes Market Trends Liquid fueling networks continue to modernize and expand Many data centers require large-scale storage Roadside fuel solutions for water and fuel stations shifting to Global spending on the construction of data centers is larger footprints and forecast to reach $49 billion by 20
Slide 6: Connection Technologies Q1 2024
Connection Technologies Q1 2024 • Revenue of $91 million increased by 15% vs. Q4-2023 • Strong deliveries into North American utility end markets • Currently anticipate marginal revenue rise in Q2-24 • North American production footprint modernization, expansion and optimization projects continue on
Slide 7: Electrical Utility Market Trends
Connection Technologies Supporting global Electrical Utility Market Trends electrification by providing specialty wire, cable and integrated heat shrink solutions for severe >70% environments and applications – extending of US Electrical Utility lifespan and lowering risk Grid is >25 years old >25%
Slide 8: Financial, Corporate & Other Q1 2024
Financial, Corporate & Other Q1 2024 Revenue and Adjusted EBITDA from Brazilian pipe coating operations is reported under Financial, Corporate & Other • Revenue of $14 million from Brazilian pipe coating operations in Q1-24, a 25% increase from Q1-23 • Contributions from Brazilian operations partial
Slide 9: Financial Results Q1 2024
Financial Results Q1 2024 Composite Technologies In millions Q1 2024 Q1 2023 Change Consolidated Revenue of $224M Revenue 119.3 132.5 -10.0% Consolidated Adj. EBITDA $30.1M Adj. EBITDA 15.0 26.7 -43.8% Current Quarter vs Prior-year Quarter Highlights Adj. EBITDA Margin (%) 12.6 20.2 -760bps Composit
Slide 10: Cashflow and Debt Q1 2024
Cashflow and Debt Q1 2024 Consolidated Cash & Debt Net Debt $500 $437$421 $410 $400 $291 $307$281 $300 $266 -80% $246 $222 $207 $200 $163 $152 $119 $87 $100 $8 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -$100 2020 2021 2022 2023 2024 -$200 -$102 -$82 • Net Debt to Adjusted EBITDA ratio at
Slide 11: CAPEX Q1 2024
CAPEX Q1 2024 CAPEX ($CAD MM) Capital spend (including outstanding $160 $148 payments to suppliers) of $24.8 $10 $140 million in Q1, of which $23.1 million directed to growth capital. $120 $100 $76 $80 $139 $60 $54 Total 2024 capex expectation $41 $42 $45 remains at $90 – $100M, of which $40 $24 $25
Slide 12: Outlook 2024
Outlook 2024 Macro & Strategic Operational • Continuing expansion of global • Sequential revenue increase expected in Q2-2024 investment in electrification, • Anticipate additional step-up in revenue in Q3-2024, as communications, transportation, low Composite Technologies activity rises further emi
Slide 13: A Global Materials Technology Company Positioned for Growth
A Global Materials Technology Company Positioned for Growth Abundant growth opportunities and established customer base comprised of investment grade counterparts High-quality customers with low concentration in all segments Portfolio simplified to prioritize infrastructure and Global material techn
Slide 14: Thank you.
@ = Thank you. Infrastructure Technologies