CEMATRIX (CVX) Q4 2024 earnings summary

Executive summary

• 2024 revenue was $35.4M (CAD 35.4 million), with adjusted EBITDA of $3.3M and cashflow from operations of $4.9M; cash on hand at year-end was $10.3M.

• 2024 marked the second-best year in company history, despite a 34% revenue decrease year-over-year due to project delays.

• Gross margin and cashflow improved, with strong adjusted EBITDA and reduced costs.

• Forecasting a record year in 2025 for both revenue and EBITDA, supported by strong backlog, project schedules, and infrastructure spending trends.

• Leadership transition with Randy Boomhour named President and CEO; Jeff Kendrick retired.

Financial highlights

• Full-year 2024 revenue was $35.4M, down 34% from 2023; Q4 revenue was $10.4M, down 47% year-over-year.

• Gross margin improved to 29% in Q4 2024 (up 2% year-over-year) and 27% for the year (up 5% year-over-year).

• Adjusted EBITDA was $1.4M in Q4 and $3.3M for the year, both down over 30% year-over-year.

• Cashflow from operations increased to $4.9M, up over 870% year-over-year.

• Operating income for 2024 was $0.5M, down 82% year-over-year.

Outlook and guidance

• 2025 is expected to be a record year for both revenue and EBITDA, based on backlog, project schedules, and infrastructure market growth.

• Q1 2025 is expected to be slow, but full-year 2025 is forecasted to be the best in company history.

• No formal guidance on EPS or EBITDA provided, but management reiterates strong expectations for 2025.

• No new capital raises required for operations; capital deployment focused on organic growth and acquisitions.

• Some margin compression is expected in 2025 due to a higher mix of large projects, but margins should remain strong.