Full Year 2024 Matrix Composites & Engineering Ltd Earnings Call Transcript
Key Points
- Matrix Composites & Engineering Ltd (ASX:MCE) reported an 80% increase in revenue, reaching $85 million, the highest since 2016.
- The company achieved a significant EBITDA growth to $11 million, exceeding consensus forecasts.
- Matrix has a strong market position in the SURF market, with a 30-35% market share and a robust pipeline of $33 million in orders.
- The company's financial position has improved, with cash on hand increasing to $23 million and no term debt.
- Matrix is diversifying its revenue streams, with significant contributions from non-oil and gas sectors, including marine, defense, and offshore renewables.
- The company's revenue is heavily reliant on the subsea buoyancy business, which contributed 87% of total revenue.
- The drilling market, a traditional revenue source, shows no new rig builds on the horizon, limiting growth opportunities.
- The company's growth in the corrosion technologies division was impacted by the absence of large projects, leading to a year-on-year revenue decline.
- Matrix's financial performance is subject to the lumpiness and timing of SURF contracts, which can skew results towards the second half of the year.
- The company faces challenges in maintaining high margins, as the mix of projects, particularly in the drilling sector, can affect overall profitability.
Thank you very much, and welcome to Matrix's 2024 full year results presentation. I'm here with -- I'm Aaron Begley, the CEO; and I'm here with Brendan Cocks our CFO. So for those that are following the full year results presentation that's up on the platform, I'll direct you to turn directly to page 3, where I'll start the presentation from.
So we thought we'd open this presentation by talking about our growth proposition. Matrix is a composites technology company and manufacturer, lifestyle manufacturer based in Western Australia, and with the facility in Henderson, which is the world's largest syntactic foam production plant.
Our markets spread across oil and gas, industrial, marine, defense and others. And we demonstrated recently very strong revenue expansion based on deleveraging of our capacity and our technology in Henderson into drilling markets in the oil and gas sector and increased diversification into sectors such as marine, defense and others.
We
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