MTL: Highlights from the RBC Canadian Industrials Conference

Research evidence excerpt

MTL: Highlights from the RBC Canadian Industrials Conference

ctivity taking shape, with LNG and pipeline construction representing the largest source of

unpriced upside optionality. Pipelines were highlighted as the critical enabler for unlocking downstream freight demand, though

management acknowledged that the market still needs to progress from MOU to FID before volumes materialize. On LNG

specifically, management highlighted the $40B Alaska LNG project as the most visible near-term opportunity, reaffirming the

project is at its final bidding stage and underscoring its multi-year revenue stream potential as a catalyst not currently reflected

in our estimates. Overall, the discussion reinforced our view of S&I as a longer-term strategic play on the broader infrastructure

build out thesis.

M&A activity

Disciplined Capital Deployment with an Attractive Pipeline. Management characterized the current M&A environment as active

and strategically rich, highlighting bolt-on opportunities in S&I as the primary area of focus to fill gaps in the network following

the Cole Group acquisition last year. Notably, management indicated a preferred leverage range of 2.0x-2.5x Net Debt to EBITDA,

and approximately $150MM of dry powder available to fund future acquisitions, which we view positively given the attractive

M&A pipeline. M&A remains the primary near-term growth driver in our view, while organic growth should pick up as nation-

building projects take hold.

All values in CAD unless otherwise noted. Priced as of prior trading day's market close, EST (unless otherwise noted).

Disseminated: May 19, 2026 19:59EDT; Produced: May 19, 2026 19:59EDT

For Required Non-U.S. Analyst and Conflicts Disclosures, see page 2