Good morning. Before we begin this morning's conference call, I would like to remind listeners that today's call includes forward-looking statements that involve estimates, judgments, risks, and uncertainties.

That may cause actual results to differ materially from those projected. The complete text of Mattr's statement on forward-looking information is included in 4.0 of the second quarter 26 earnings press release, in the MD and A that is available on SEDAR plus and on the company's website at matter.com.

For those joining via webcast, you may follow the visual presentation that accompanies this call. I will now turn it over to Mattr's President and CEO, Michael E.

Reeves.

Good morning, and thank you for attending our second quarter conference call. Today, Megan and I are joined by our Senior Vice President of Finance and CFO, Tim Holloway.

The second quarter represented a significant step forward for Mattr. We generated a new high watermark for revenue and adjusted EBITDA as once again, our global team delivered effectively against strategic and operational priorities.

Within Connection Technologies, our wire and cable businesses levered operational efficiency gains and particular strength in global mining markets. To report substantial sequential growth.

More broadly, the segment executed well against a favorable mix of mining, oil and gas, and data center demand while capturing further share gains within North American utility and infrastructure markets. Within composite technologies, Xerxes set new manufacturing efficiency and output records which drove new quarterly revenue records in both fuel and water products enabling year over year revenue growth of more than 15% during the first half of 26.

Accelerating order capture across the Xerxes portfolio including rising data center opportunities where we secured additional customer commitments during the quarter ensured a stable quarter end backlog at near record levels. Our FlexPipe team took full advantage of seasonally stronger American activity levels and modest late-quarter project acceleration by select customers.

While also delivering against a growing international backlog. In parallel, FlexPipe captured the first commercial revenue from its recently released 8-inch technology and secured incremental orders that expand our backlog into Q4 for this important growth driver.

Across Mattr, we remain focused on operational execution, technology development, and disciplined capital allocation. The actions we have taken over the past several years to modernize our manufacturing footprint and refine our portfolio to prioritize highly attractive end markets.

Are translating into strengthening financial performance. I could not be more proud of the Mattr team members who are making this possible.

Through their hard work, creativity, and dedication. Lastly, we were pleased to secure a GICS code reclassification late in Q2.

Mattr is now classified within the industrial sector, which we believe more appropriately reflects the critical infrastructure markets we serve, and should improve comparability with a broader group of industrial peers over time. Tim will now walk us through some additional financial details.

Thanks, Mike. Revenue in the second quarter of 26 increased significantly compared to both the prior year period and the first quarter, reflecting strong commercial execution across multiple businesses.

Higher production volumes and continued operational efficiency improvements. Adjusted EBITDA also increased substantially versus the prior year quarter driven by improved operational performance, favorable order capture, and delivery in several key end markets and a favorable product mix.

Connection Technologies delivered strong year over year growth in both revenue and adjusted EBITDA, primarily attributed to its wire and cable businesses. Performance was supported by robust mining activities, continued growth in data center application sales, and ongoing share gains in utility and infrastructure markets.

Composite Technologies delivered another strong quarter with meaningful increases in revenue and adjusted EBITDA, driven by record production levels robust fuel and water demand, and continued manufacturing improvements. Higher production throughput and improved manufacturing performance also enabled Xerxes to capture additional orders and establish new records for both shipments and revenue within its water business.

Overall, Mattr delivered record revenue and adjusted EBITDA in the second quarter. We are incredibly proud of the teams who have worked so hard over the years to reshape this organization and enable delivery of results like these.

Turning to cash flow. The second quarter delivered slightly negative operating cash flows, as necessary working capital investments offset strong operational results.

Strong late-quarter sales led to an increased accounts receivable balance, while inventories moved higher as we positioned the business for a robust second half of the year. Cash used in investing activities was primarily capital spending on property, plant and equipment, which was $6.3 million during the second quarter.

This cash outflow includes approximately $1.6 million that was previously accrued and then paid in the second quarter of 26. We continue to expect full year capital spending to be in the $35 million to $45 million range.

During the quarter, our strengthened outlook resulted in lowering of the net debt to adjusted EBITDA ratio and positioned the company to resume share repurchases. Under our NCIB at the end of the second quarter.

We expect to remain active and opportunistic on the recently renewed NCIB for the foreseeable future albeit at modest levels while debt repayment remains a priority. Although Q2 required modest incremental borrowings to support rapid growth the associated working capital needs stronger earnings, and rising cash generation are expected to drive continued deleveraging as the company progresses through the second half of 26.

I will now turn it back over to Mike.

Thank you, Tim. As we look across our key end markets, the demand landscape remains generally favorable.

Fundamentals in the mining, power generation and distribution, retail fuel, water management, and data center sectors are strong, and expected to remain so. I will address matters data center exposure on the next slide.

Within domestic oilfield markets, customer activity improved during the second quarter, although it remained below the prior year quarter. Looking ahead, we currently expect North American well completion activity will increase modestly again in Q3.

While global oil and refined product inventory levels point to a need for continued production growth, recent fluctuations in underlying commodity prices are likely to ensure any activity increases are gradual. We currently anticipate normal late-year slowing in North American activity as capital budgets are exhausted although the potential remains for some clients to pull incremental capital into 2026 which would offer some upside to our current outlook.

In parallel, we continue to see encouraging customer engagement and quoting activity in certain international markets. With our backlog strengthened by the large committed order we secured in early Q2.

Supported by an expanding product portfolio and enhanced production capacity, FlexPipe is well positioned to pursue international opportunities as they develop. Automotive markets remain subdued, global production expectations continuing to face pressure, particularly in Europe, Despite these market conditions, we continue to see average electronic content in newly launched vehicle platforms increase, creating ongoing opportunities for Mattr to continue delivering year over year auto related revenue growth.

We constantly monitor evolving trade commodity, and geopolitical developments and have not experienced any meaningful recent disruption to raw material availability. While go-forward trade policy remains a source of uncertainty, particularly following early Q3 U.

S. Tariff announcements, Mattr is positioned with robust mitigation protocols to limit business impact under all foreseeable scenarios.

Regardless of the external environment. Our priorities remain unchanged.

Executing for our customers, improving operational efficiency, advancing technology development, and growing in markets where we see sustainable demand and attractive returns. These initiatives continue to strengthen the business and were important contributors to our strong second quarter performance.

Briefly taking a closer look at the data center sector, we see that demand continues to develop positively across multiple business lines, including Xerxes, AmarCable, SureFlex, and DSG-Canusa. Data center applications are becoming an increasingly important contributor to Mattr's near and midterm growth, with current year sales expected to more than double versus 2025, and likely to represent around 5% of consolidated revenue this year.

Data centers are expected to be an important growth driver across both segments in the coming years, but our objective here, as in all end markets, is to pursue profitable growth, not simply market share gains. We prioritize those data center opportunities that leverage our technical differentiation yield sustainable margins.

and we will continue to lever our diverse end market exposure to ensure Mattr avoids becoming overly reliant on any 1 source of demand. Turning to our outlook.

The company's expectations for full year revenue and adjusted EBITDA have further increased since our last earnings release. Reflecting both stronger than expected second quarter performance and improving visibility for the balance of the year.

We currently believe third quarter business performance will be similar to the second quarter, Before normal seasonal slowing takes effect in Q4. In combination, this drives a current outlook for second half adjusted EBITDA, which is similar to the first half.

We believe normal fluctuations will cause Connection Technologies revenue in Q3 to have a less favorable mix than Q2, with lower deliveries into mining projects and higher deliveries into data center applications. In contrast, we anticipate composite technologies performance will move sequentially upwards in Q3, driven by rising shipments of Xerxes fuel and water products, improving FlexPipe domestic and international activity, and further operational efficiency gains.

Beyond Q3, we continue to have constructive view on demand across all primary markets in both segments. Within connections, we believe our mining, utility, nuclear, data center, and other infrastructure markets are in the early stages of multiyear upcycles.

In composites, Xerxes fuel and water customers are extending their planning horizons further than we have ever seen. With firm orders now in backlog for delivery throughout 2027.

And FlexPipe's addressable market continues to expand meaningfully. Through our investments to develop and release new products, including the recently launched 8-inch product, where customer order capture is accelerating, and backlog continues to build.

These demand factors, combined with high conviction in the value our differentiated technologies bring to customers and significant remaining opportunities for increased operational efficiency, underpin our confidence that Mattr remains well positioned to deliver meaningful growth and EBITDA margin expansion over the coming years. I will now turn the call over to the operator and open it up for any questions you may have for myself, Tim, or Megan.

Hi. Good morning.

Thank you for taking my question. So my first 1 is, historically, the composite segment's EBITDA has had a higher torque to sequential growth rates like we saw in Q2.

This quarter gross margins were up almost 300 basis points quarter over quarter, but EBITDA margins only 60 basis points Could you give us some color on what was perhaps behind that and what could have been perhaps holding segment margins back?

Yeah. Good morning.

So I think the important thing to remember about the composite segment is that there is 2 fairly different businesses within there. Xerxes, where underground tanks are sold into fuel and water applications, and FlexPipe, selling into oilfield applications.

And historically, FlexPipe has maintained a higher EBITDA margin than Xerxes, as a consequence, the relative mix of revenues coming from those 2 businesses tends to influence the EBITDA margin for the segment overall. We have seen Xerxes margins work their way upwards over the course of the last few quarters, and we are very pleased with that trajectory.

But still, the relative mix of revenue makes a difference. So in Q2, we saw Xerxes become a bigger relative share.

Of revenue in that segment versus the prior year. And at the same time, we saw FlexPipe begin to deliver into that large international order that we communicated at our last earnings call.

And that order has a slightly lower margin profile than their traditional North American. So those are the 2 primary factors.

I would tell you that pricing leverage in both businesses remains strong. So I am not concerned by the relative movements that I have just discussed.

I think both Xerxes and FlexPipe are on trends that will yield continued margin expansion for the segment. Okay.

Great. that is great color.

And now touching on Xerxes. Xerxes is delivering record sales.

Presumably as you continue to unlock more capacity. That will just keep happening.

Where are you on achieving that 10% productive capacity gain? For the year.

Yeah. I think our outlook for full year productive gains in Xerxes has moved to 10% to 15%.

Year over year. So the team are doing a very, very effective job.

Of improving operational efficiency, driving higher productive outputs, which allows our commercial teams to win more work and deliver more work. So all in all, I think the Xerxes team is on a very good trajectory.

Demand is very strong, and we expect it to stay that way for multiple years. The most important thing is that the relative improvement in productive output this year is not a 1-year event.

When we look across our network, we have many opportunities to continue this trajectory, and I would expect that over the next several years, we see similar rates of growth So excited by Xerxes and to have them set new records in both revenue and EBITDA contribution in Q2 and yet have so many opportunities in front of them. I think it is an exciting moment in time for that business.

Okay. Great.

And then the commentary on oil and gas activity, picking up in Q3 from select customers is quite encouraging. Is that based on conversations you are having right now?

Or is that based on industry forecasts? And the reason I am asking or the reason for the caution is that over the last few years, we have had some head fakes with respect to activity and bottoming.

So just wanted to get some clarity on that. No.

I think you are absolutely right. The market has been a little difficult to predict over the several years.

As we sit here today, we are well within the window where customer orders for Q3 would already be in backlog. So I think our outlook for the quarter is 1 that comes with high confidence.

Generally speaking, what we have observed is select customers, certainly not all customers, be willing to modestly accelerate their pace of spend and activity in US land. That has pulled activity levels in Q3 to a modestly higher point than we were observing in Q2, which is good.

What we need to see is whether those same customers or others are willing to actually expand their full year capital spending program for 2026. If they do, then we would expect to see activity at least remain stable Q3 to Q4 or perhaps move modestly upwards.

If they choose to stay fully disciplined, then this acceleration into Q3 would leave a little bigger than normal air gap in late Q4 as budgets are exhausted. So the outlook that we have provided you is assuming the latter of those 2 scenarios.

And if we see positive movement in terms of customer decision making, then obviously that yields some upside to the outlook we have given you.

Okay. Thank you for the color.

I will turn it over.

Perfect. Well, we appreciate your time today to walk through our Q2 results.

Very excited to be setting new revenue and EBITDA records across the business. And look forward to doing this again in 90 days and talking about what we expect to be a very strong Q3.

Have a great day, everybody.