Download PDF

1. Company Snapshot

1.a. Company Description

Shawcor Ltd.operates as a material sciences company that serves the infrastructure, energy, and transportation markets worldwide.It operates through three segments: Composite Systems, Automotive and Industrial, and Pipeline and Pipe Services.


The Composite Systems segment manufactures flexible composite that are used for oil and gas gathering, and other applications; fiberglass reinforced plastic underground storage tanks for the retail fuel, water and wastewater, and oil and gas markets.The Automotive and Industrial segment manufactures heat-shrinkable products, including thin, medium, and heavy-walled tubing; sleeves and molded products, as well as heat-shrink accessories and equipment; and low-voltage wires and cables for control, instrumentation, thermocouple, power, and industrial applications.The Pipeline and Pipe Services segment offers ultrasonic and radiographic pipeline girth weld inspection services to pipeline operators and construction contractors.


The company was formerly known as Shaw Industries Ltd.and changed its name to Shawcor Ltd.in 2001.


Shawcor Ltd.was founded in 1930 and is headquartered in Toronto, Canada.

Show Full description

1.b. Last Insights on MATR

Shawcor Ltd.'s recent performance was driven by the successful sale of its subsidiary, Thermotite, to Vallourec Tubular Solutions Ltda. for $24 million CAD. This transaction marks the company's exit from the pipe coating business, allowing Shawcor to focus on its core operations. The sale of Thermotite is expected to generate a one-time gain, contributing to the company's financial performance. Additionally, the company's ability to divest a non-core asset demonstrates its strategic focus and commitment to maximizing shareholder value.

1.c. Company Highlights

2. Mattr's Q3 2025 Earnings: A Mixed Bag with Growth and Challenges

Mattr reported a revenue of $314.9 million for Q3 2025, representing a 39% year-over-year increase, primarily driven by the addition of AmerCable to the Connection Technologies segment. Adjusted EBITDA from continuing operations was $34 million, a 16% increase. The company's EPS came in at $0.05, beating estimates of -$0.02667. The Connection Technologies segment delivered impressive year-over-year revenue and adjusted EBITDA growth of 105% and 62%, respectively. However, the Composite Technologies segment saw a decline in revenue and adjusted EBITDA by 4% and 2%, respectively.

Publication Date: Nov -24

📋 Highlights
  • Revenue & EBITDA Growth: Q3 2025 revenue grew 39% YoY to $314.9M, with adjusted EBITDA up 16% to $34M, driven by AmerCable’s 105% revenue surge and 62% EBITDA growth in Connection Technologies.
  • Composite Segment Decline: Composite Technologies revenue and EBITDA fell 4% and 2% YoY, respectively, amid industry-wide Canadian industrial demand weakness affecting both projects and stock products.
  • Debt Management Prioritization: Net debt/EBITDA stood at 3.9x, with plans to reduce leverage to target ratios by 2026, including revised 2025 capex of $50-60M vs. $40-50M in 2026.
  • Supply Chain Strategic Move: Acquisition of a Vietnam intermediary secured multi-decade supply exclusivity, cutting costs and business risk, with potential $1-2M quarterly tariff mitigation benefits.
  • Future Margin Expansion: Flexpipe’s large-diameter pipes now dominate 50% of NA market, with $10M+ 2026 revenue projections, while Xerxes’ $100M all-time backlog supports 6-9 months of forward revenue.

Segment Performance

The Connection Technologies segment's strong performance was largely due to the inclusion of AmerCable, which contributed significantly to revenue and adjusted EBITDA growth. In contrast, the Composite Technologies segment faced challenges, with revenue and adjusted EBITDA declining year-over-year. CFO Tom Holloway mentioned that the company revised down full-year 2025 capital spending expectations to $50-60 million, indicating a more cautious approach to investments.

Outlook and Challenges

Mattr expects fourth-quarter revenue and adjusted EBITDA to move sequentially lower due to economic weakness in certain key geographies. The company is also concerned about the potential impact of tariffs on Shawflex Canadian-made wire and cable shipped into the U.S. Despite these challenges, Mattr remains confident in its ability to manage through the current market dynamics and is focused on reducing debt and achieving its target leverage ratio range in 2026.

Valuation and Growth Prospects

With a P/E Ratio of 10.64 and an EV/EBITDA of 10.41, the market appears to be pricing in moderate growth expectations. Analysts estimate next year's revenue growth at 3.3%. Mattr's net debt to adjusted EBITDA ratio stands at 3.9x, or 2.8x if lease liabilities are excluded, indicating a need for debt reduction. The company's ROIC of 13.17% suggests a relatively healthy return on invested capital.

Strategic Initiatives

Mattr has made strategic acquisitions, including the purchase of an intermediary to secure a multi-decade exclusive supply agreement, which is expected to reduce costs and lower business risk. The company is also focused on simplifying its supply chain and expects margin accretion from recent acquisitions, particularly in Xerxes and Flexpipe margins.

3. NewsRoom

Card image cap

Kernwood Limited Says it Exceeded a 10% Holding In Mattr Corp.

Dec -02

Source:

Card image cap

KERNWOOD LIMITED EXCEEDS A 10% HOLDING IN MATTR CORP.

Dec -01

Source:

Card image cap

How Recent Shifts Are Changing the Narrative for Mattr’s Stock Outlook

Nov -29

Source:

Card image cap

Alan Hibben Bought 12% More Shares In Mattr

Nov -20

Source:

Card image cap

Additional Considerations Required While Assessing Mattr's (TSE:MATR) Strong Earnings

Nov -19

Source:

Card image cap

Mattr Downgraded to Sector Perform at ATB

Nov -17

Source:

Card image cap

Looking at the Evolving Narrative for Mattr as Analyst Sentiment Shifts

Nov -15

Source:

Card image cap

Mattr Corp (MTTRF) Q3 2025 Earnings Call Highlights: Record Revenue Growth Amid Economic Challenges

Nov -13

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.70%)

6. Segments

Composite Technologies

Expected Growth: 7%

Composite Technologies from Shawcor Ltd. growth driven by increasing demand for composite pipes in oil and gas, and renewable energy industries. Rising adoption of composite materials in infrastructure projects, and growing need for corrosion-resistant pipes in harsh environments also contribute to growth. Additionally, Shawcor's strategic acquisitions and investments in R&D further support the segment's expansion.

Connection Technologies

Expected Growth: 9%

Shawcor's Connection Technologies segment growth is driven by increasing demand for deepwater and ultra-deepwater oil and gas projects, rising adoption of subsea production systems, and growing need for reliable and efficient connection solutions. Additionally, the segment benefits from its diversified customer base, strategic acquisitions, and investments in research and development.

Financial, Corporate, and Others

Expected Growth: 6%

{'Financial': 'Strong cash flow generation and effective capital allocation enabled debt reduction and dividend payments.', 'Corporate': 'Strategic acquisitions and divestitures optimized the business portfolio, enhancing profitability and competitiveness.', 'Others': 'Increasing demand for energy infrastructure and pipeline projects, driven by global energy transition and decarbonization efforts.'}

7. Detailed Products

Pipeline Coatings

Shawcor's pipeline coatings provide corrosion protection and insulation for onshore and offshore pipelines, ensuring the safe and efficient transportation of oil and gas.

Pipe Coating Services

Shawcor's pipe coating services provide a range of coating solutions for pipes, including FBE, 3LPE, and 3LPP, to protect against corrosion and abrasion.

Tank Coatings

Shawcor's tank coatings provide corrosion protection and lining solutions for storage tanks, ensuring the safe storage of oil, gas, and other liquids.

Insulation Systems

Shawcor's insulation systems provide thermal insulation solutions for pipes, tanks, and equipment, reducing energy loss and improving process efficiency.

Composite Systems

Shawcor's composite systems provide lightweight, corrosion-resistant solutions for oil and gas, water, and wastewater applications.

Automated Welding Systems

Shawcor's automated welding systems provide high-quality, efficient welding solutions for pipe fabrication and pipeline construction.

Pipeline Inspection Services

Shawcor's pipeline inspection services provide advanced inspection and integrity management solutions for pipelines, ensuring safe and efficient operation.

8. Shawcor Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Shawcor Ltd. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the availability of alternative products and services.

Bargaining Power Of Customers

Shawcor Ltd.'s customers have limited bargaining power due to the company's strong market position and the lack of alternative suppliers.

Bargaining Power Of Suppliers

Shawcor Ltd. has a moderate level of dependence on its suppliers, but the company's strong relationships with its suppliers mitigate the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including the need for specialized equipment and expertise.

Intensity Of Rivalry

The intensity of rivalry in the industry is high due to the presence of several established competitors, leading to a competitive market environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 24.15%
Debt Cost 10.92%
Equity Weight 75.85%
Equity Cost 14.84%
WACC 13.89%
Leverage 31.84%

11. Quality Control: Shawcor Ltd. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Profire Energy

A-Score: 5.6/10

Value: 5.2

Growth: 7.1

Quality: 8.0

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
NACG

A-Score: 4.8/10

Value: 7.9

Growth: 7.7

Quality: 3.4

Yield: 3.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
MRC Global

A-Score: 4.5/10

Value: 6.8

Growth: 5.2

Quality: 2.9

Yield: 0.0

Momentum: 6.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
RPC

A-Score: 4.5/10

Value: 7.0

Growth: 5.8

Quality: 5.1

Yield: 4.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Shawcor

A-Score: 3.6/10

Value: 7.3

Growth: 3.0

Quality: 3.6

Yield: 0.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
ProPetro Holding

A-Score: 2.3/10

Value: 5.4

Growth: 3.8

Quality: 2.1

Yield: 0.0

Momentum: 1.0

Volatility: 1.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.58$

Current Price

7.58$

Potential

-0.00%

Expected Cash-Flows