CEMATRIX Announces 2025 Second Quarter Financial Results

Executive Summary

• CEMATRIX Corporation reported its consolidated financial results for the second quarter ended June 30, 2025, marking what the CEO described as the best Q2 in company history.
• The company achieved significant growth in revenue and profitability, with Q2 revenues increasing 66% year-over-year to $10.6 million and adjusted EBITDA turning positive at $2.4 million, compared to a loss in the prior year period.
• The company reduced its outstanding share count for the first time in its history through a Normal Course Issuer Bid (NCIB) and reported a strong cash position of $8.6 million, while announcing new contracts and project starts both during and subsequent to the quarter.

Key Details

• Q2 2025 Financial Performance (Three Months Ended June 30, 2025):
  • Revenue: $10.6 million (vs. $6.4 million in Q2 2024, +66%).
  • Gross Margin: $4.1 million (vs. $1.1 million in Q2 2024, +273%).
  • Gross Margin Percentage: 39% (vs. 17% in Q2 2024).
  • SG&A Expenses: $2.4 million (vs. $2.2 million in Q2 2024).
  • Operating Income: $1.8 million (vs. $(1.1) million loss in Q2 2024).
  • Adjusted EBITDA: $2.4 million (vs. $(0.5) million loss in Q2 2024).
  • Cash Flow from Operations (before working capital adjustments): $2.4 million (vs. $(0.5) million in Q2 2024).
• Six Months Ended June 30, 2025 Performance:
  • Revenue: $17.3 million (vs. $14.9 million in 2024, +16%).
  • Gross Margin: $5.6 million (vs. $3.6 million in 2024, +56%).
  • Gross Margin Percentage: 32% (vs. 24% in 2024).
  • Operating Income: $1.1 million (vs. $(0.8) million loss in 2024).
  • Adjusted EBITDA: $2.4 million (vs. $0.5 million in 2024).
  • Cash Flow from Operations: $2.3 million (vs. $0.4 million in 2024).
• Balance Sheet and Capital Management:
  • Cash position at quarter-end: $8.6 million.
  • NCIB Activity: Purchased over 700,000 shares under the previously announced Normal Course Issuer Bid, resulting in the first reduction of outstanding share count in company history.
  • Leverage: Described as low; balance sheet characterized as very healthy.
• Operational Highlights & Contract Wins:
  • During Q2: Announced $9.7 million in new contracts (April 17, 2025) and $5.7 million in new contracts (May 21, 2025).
  • Subsequent to Q2: Announced start of North Carolina project (July 9, 2025) and $5.1 million in new contracts (July 21, 2025).
• Outlook:
  • Management expects to be "very busy" in the third quarter of 2025.
  • Company remains on track for a record year.
• Upcoming Events:
  • Management webinar scheduled for August 7, 2025, at 1:00 p.m. ET to discuss results and provide a corporate update.

Notable Quotes

• Randy Boomhour, President and CEO: “We are extremely proud of the quarter, the best Q2 in the history of our Company... The key message looking forward for our stakeholders is that we expect to be very busy in the third quarter of this year and we continue to remain on track for a record year.”
• Marie-Josée Cantin, CFO: “This past quarter generated cash flow from operating activities (before working capital adjustments) of $2.4 million and we ended the quarter with a cash position of $8.6 million... In addition, under our previously announced NCIB we were able to purchase over 700,000 shares of CEMATRIX and as a result for the first time in our history, we reduced our outstanding share count.”