CEMATRIX (CVX) Q3 2024 earnings summary

Executive summary

• 2024 is projected to be the second-best year ever despite significant project delays, with delayed projects expected to start in early 2025, setting up a strong rebound year.

• Project delays were due to external factors, but none were lost; the backlog and sales pipeline remain robust.

• Q3 2024 revenue was CAD 10.1 million, down from CAD 20.4 million in Q3 2023; nine-month revenue was CAD 25 million, a 26% decrease from 2023.

• Net loss for Q3 2024 was CAD 0.5 million, compared to net income of CAD 1.8 million in Q3 2023; nine-month net loss was CAD 0.8 million.

• Company uplisted to the Toronto Stock Exchange on July 15, 2024.

Financial highlights

• Q3 revenue was CAD 10.1 million, down 50% from CAD 20.4 million in Q3 2023; year-to-date revenue was CAD 25 million, a 26% decrease from 2023.

• Gross margin improved to 27% in Q3 (up from 23% in 2023) and 26% year-to-date (up from 19%).

• Adjusted EBITDA was positive: CAD 1.4 million in Q3 (down 56% year-over-year), CAD 1.8 million year-to-date (down 14%).

• Cash on hand at September 30 was CAD 9.9 million, up significantly from CAD 1.9 million a year ago.

• Shareholders' equity rose to CAD 35.4 million from CAD 28.7 million at year-end 2023.

Outlook and guidance

• Most delayed projects are scheduled to begin in early 2025, supporting a strong outlook for next year.

• 2025 is forecast to be a rebound year, with a strong backlog and sales pipeline of CAD 74.7 million and CAD 400–450 million, respectively.

• Management continues to focus on sustainable profitable growth and capital reinvestment.