Shawcor Reports Lower Q3 Revenue, Progresses Transformation

Shawcor shares decline as company misses revenue expectations in Q3 while advancing business transformation.

Shares of Shawcor, the Canadian technology-based products company operating as Mattr Infratech, fell by 9.9% to 13.93 Canadian dollars ($10.09) in Tuesday morning trading following the company's announcement of lower revenue for the third quarter.

Adjusted earnings per share rose to C$1.13, surpassing expectations of a rise to C$0.62. However, revenue declined slightly to C$225.4 million from C$234.2 million, falling short of analysts' anticipated decline to C$229.6 million.

Shawcor has been actively reducing its debt and made a payment of C$9 million towards its credit facility in the quarter. Additionally, the company repaid an additional C$30 million on the credit facility after the quarter's end.

The company's transformation into an infrastructure products provider took a significant step forward in August with the signing of an agreement to sell a substantial part of its pipeline and pipe services segment to Tenaris for approximately C$220 million. The transaction is expected to close by the middle of the first quarter of 2024.

Chief Executive Mike Reeves emphasized that Shawcor remains focused on executing its strategy to achieve long-term growth, expand margins, and reduce volatility.