CEMATRIX (CVX) Investor Update summary

Financial Performance and Outlook

• Achieved $35.4 million revenue, $3.3 million adjusted EBITDA, and $4.9 million cash flow from operations in 2024, with $8.6 million cash and no long-term debt as of June 30, 2025.

• Q2 2025 revenue reached $10.6 million, a 66% increase over Q2 2024; YTD revenue up 16% to $17.3 million.

• Gross margin improved to 39% in Q2 2025 from 17% in Q2 2024, with operating income rising to $1.8 million from a $1.1 million loss.

• Backlog reached $76.4 million at Q2 2025, with $43.6 million in new project awards since the start of the year.

• Compound annual revenue growth rate since 2017 is 24%, with positive cash flow and EBITDA for three consecutive years.

Market Position and Growth Strategy

• Leading provider of lightweight, cost-effective, and durable cellular concrete solutions for infrastructure, with over 25 years of experience and a strong reputation.

• Largest presence in the U.S. Midwest and East Coast, with 70-80% of business in the U.S. and 20-25% in Canada.

• Competitive advantages include proprietary foaming agent, advanced equipment fleet, and sustainability versus legacy products.

• No significant customer concentration; customer mix changes year to year.

• M&A focus is on acquiring large cellular concrete companies or related businesses in North America, targeting 4-6x EBITDA multiples.

Operational Insights and Risk Management

• Revenue recognition occurs as product is placed in the ground, typically within a month for most projects.

• Seasonality impacts revenue, with higher activity in Q3 and Q4; Q3 utilization is currently very high.

• No current supply chain or tariff risks; inflationary pressures mainly affect labor, but cost controls are in place.

• Only debt is a $1.6 million equipment loan, with $100,000 as short-term debt.

• Share buyback program initiated, with 700,000 shares repurchased and a conservative approach to further buybacks to preserve capital for acquisitions.