CEMATRIX (CVX) Q4 2024 earnings summary

Executive summary

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

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

• Improved margins and reduced costs led to strong adjusted EBITDA and record positive cash flow from operations.

• Forecasting a record year in 2025, supported by strong backlog, project schedules, and infrastructure spending trends in North America.

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

Financial highlights

• 2024 revenue was CAD 35.4 million, down from CAD 53.3 million in 2023; Q4 2024 revenue was CAD 10.4 million, down 47% from Q4 2023.

• Gross margin improved to 27% for 2024 (up from 22% in 2023); Q4 gross margin was 29% (up from 27%).

• Adjusted EBITDA for 2024 was CAD 3.3 million (down 33% year-over-year); Q4 adjusted EBITDA was CAD 1.4 million.

• Operating income for 2024 was CAD 0.5 million (down 82% year-over-year); Q4 operating income was CAD 0.6 million.

• Cash flow from operations was CAD 4.9 million in 2024, up over 870% 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 spending.

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

• Some margin compression is expected in 2025 due to a higher mix of large projects, which are more competitive and lower margin.

• No formal guidance on EPS or EBITDA provided, but management is confident in continued growth.

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