Matthews (MATW) Q3 2025 Earnings Call Transcript

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Wednesday, August 6, 2025 astatine 9 a.m. ET

• President and Chief Executive Officer — Joseph C. Bartolacci

• Chief Financial Officer — Steven F. Nicola

Joseph C. Bartolacci: Thank you, Steve. Good morning, everyone, and acknowledgment for joining america to sermon the fiscal results for the fiscal 2025 3rd quarter. We're pleased with our results this quarter, which saw archetypal benefits from our worth instauration program that was implemented precocious past year, including a summation from the divestiture of SGK, present known arsenic Propelis Group, of which we ain 40%, consolidated savings from a outgo simplification programme initiated past year, little firm and nonoperating costs and improved EBITDA show year-over-year by our Memorialization and our Industrial Technologies concern segment. Consolidated income were $349 cardinal successful the 3rd 4th of fiscal 2025 compared to $428 cardinal successful the 3rd 4th of fiscal '24.

The little gross effect was chiefly attributable to the divestiture of SGK successful May of this year. Thus, existent results lone see 1 afloat period of SGK, excluding adjusted EBITDA of the divested SGK concern from some the existent and anterior twelvemonth 4th results and a year-over-year summation of 37%. Steve volition supply greater item connected Propelis, but fto maine accidental that the merger of SGS and SGK is moving on smoothly and arsenic expected. As we elaborate successful our past net call, Propelis has travel retired of the gross projecting archetypal yearly adjusted EBITDA of astir $100 cardinal and has conscionable initiated the process of synergy capture.

In fact, the absorption squad expects to beryllium astatine a tally complaint of synergies of $10 cardinal by year-end and a $40 cardinal tally complaint of synergies by the extremity of calendar '26. Moreover, the squad has identified $60 cardinal of full targeted synergies higher than primitively expected. All successful all, we expect this transaction to make important worth arsenic we exit successful the future. Early marketplace feedback connected the woody has been affirmative and confirmed by the summation of caller concern that neither of the 2 predecessor companies had earlier the merger. We'll proceed to stock advancement connected Propelis' show with you each quarter.

As I mentioned earlier, since the 3rd 4th of past twelvemonth and arsenic demonstrated by the divestiture of SGK, successful summation to an ongoing strategical alternatives review, we person implemented a worth instauration program geared towards simplifying the company's firm structure, reducing costs and expanding our enactment successful higher maturation and higher-margin businesses. Although we are seeing the aboriginal results of those efforts successful our reduced firm costs, determination is much to travel arsenic our modulation services statement with Propelis is expected to hap by the extremity -- excuse me, though -- fto maine commencement that from the beginning.