CEMATRIX Announces 2026 First Quarter Financial Results

• CEMATRIX Corporation reported Q1 2026 revenues of $7.3 million, an 11% increase year-over-year compared to Q1 2025.
• Gross margins declined significantly to 9% from 22% in the previous year, resulting in gross profit of only $0.7 million against $2.0 million in SG&A expenses.
• Operating income widened to a loss of ($1.3 million) compared to ($0.7 million) in Q1 2025.
• The company secured $17.0 million in new projects during the first quarter, contributing to an increased backlog.
• Cash balance stands at $15.7 million with no long-term debt obligations.
• Working capital experienced a positive change of $5.2 million due to early collection of outstanding accounts receivables.
• Management attributes margin compression to a project mix featuring larger-scale projects, expecting margins to improve with higher revenue volumes in the remainder of the year.

• The earnings release is routine but contains material negative signals regarding profitability quality compared to historical performance.
• Gross margin contraction from 22% (Q1 2025) to 9% (Q1 2026) represents a fundamental deterioration in operating leverage, despite revenue growth.
• While the top-line growth and backlog are positive, the inability to convert that revenue into gross profit at previous rates suggests lower earnings quality or aggressive pricing on large projects.
• The company's strong liquidity ($15.7M cash) and lack of debt mitigate immediate solvency risks, preventing this from being an existential threat.
• Management guidance for a record Q2 is critical; failure to offset the Q1 margin compression would validate concerns about long-term profitability sustainability.

• CEMATRIX Corporation operates as a specialty construction contractor producing on-site cellular concrete solutions across North America.
• Subsidiaries include CCI (Canada), MixOnSite USA Inc., and Pacific International Grout Company.
• Flagship projects involve load-reducing fill, flowable fill, grouting applications for tunnels, and lightweight fill projects for infrastructure.
• The company has demonstrated strong sales momentum with over $50 million in new contract awards during fiscal year 2025.
• Geographic scope includes both Canada and the United States, expanding cross-border footprint through highway, retaining wall, and utilities projects.