Slide 1: Earnings Release Presentation Q2 2024
Earnings Release Presentation Q2 2024
Slide 2: Forward Looking Information
Forward Looking Information Q2 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 Q2 2024
Maintaining disciplined capital allocation approach with Highlights Q2 2024 “all of the above” strategy Net-debt-to adjusted • Q2 Adjusted EBITDA of • All modernization, EBITDA <2x Organic Investment $42.8M expansion and optimization Given reduced operational Substantial committed (“MEO”) activities
Slide 4: Composite Technologies
Composite Technologies Q2 2024 • Q2-24 revenue of $153 million, new segment record • Strong North American Flexpipe performance despite ongoing rig count declines, continued uptake of larger diameter Flexpipe products, robust international deliveries • Significant seasonal increase in Xerxes busines
Slide 5: Xerxes Market Trends
Liquid fueling networks continue to Xerxes Market Trends modernize and expand Roadside fuel stations shifting to US Product Supplied - Finished Motor Gasoline larger footprints and 11000 travel centers, which consume larger, 10000 more complex, tanks 9000 8000 7000 May 2024 US gasoline 6000 consumpt
Slide 6: Connection Technologies
Connection Technologies Q2 2024 • Revenue of $89 million relatively flat vs. Q2-23 • Strong deliveries into North American infrastructure and utility end markets • North American production footprint modernization, expansion and optimization projects continue on time and on budget • Currently antici
Slide 7: Electrical Utility Market Trends
Connection Technologies Supporting global electrification by providing Electrical Utility Market Trends 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
Financial, Corporate & Other Q2 2024 Revenue and Adjusted EBITDA from Brazilian pipe coating operations is reported under Financial, Corporate & Other • Revenue of $13 million from Brazilian pipe coating operations in Q2-24, a 21% increase from Q2-23 • Brazilian operations fully booked through mid-
Slide 9: Financial Results
Financial Results Q2 2024 Composite Technologies $ In millions Q2 2024 Q2 2023 Change Consolidated Revenue of $254M Revenue 152.5 150.4 +1.4% Consolidated Adj. EBITDA $42.8M Adj. EBITDA 27.5 34.8 -20.9% Current Quarter vs Prior-year Quarter Highlights Adj. EBITDA Margin (%) 18.0 23.1 -510bps Composi
Slide 10: Cashflow and Debt
Cashflow and Debt Q2 2024 Consolidated Cash & Debt Net Debt $500 $437$421 $410 $400 $291 $307$281 $300 $266 $246 $222 $207 -82% $200 $163 $152 $119 $87 $79 $100 $8 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -$100 2020 2021 2022 2023 2024 -$200 -$102 -$82 • Net Debt to Adjusted EBITDA r
Slide 11: CAPEX
CAPEX Q2 2024 CAPEX ($CAD MM) Capital spend (including outstanding $160 $148 payments to suppliers) of $29.4 $10 $140 million in Q2, of which $27.5 million directed to growth capital – mostly $120 $90-$100 MEO projects $100 $76 $80 Total 2024 capex expectation $139 $54 $54 remains at $90 – $100M, of
Slide 12: Outlook
Outlook 2024 Macro & Strategic Operational • Continuing expansion of global • Modest revenue increase expected in Q3-2024 investment in electrification, before seasonal slowing in Q4-2024 communications, transportation, energy • Modernization, expansion and optimization project and water management
Slide 13: A Global Materials Technology Company Positioned for Growth
A Global Materials Technology Abundant growth Company Positioned for 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