Canada's CEMATRIX Q2 revenue jumps 76% on project timing

Overview

• Canada specialty construction contractor's Q2 revenue rose 76% yr/yr to record C$18.7 mln

• Adjusted EBITDA for Q2 more than doubled yr/yr to record C$5.0 mln

• Company benefited from timing of large projects and expects Q3 similar to last year

Outlook

• Company expects Q3 results to be similar to last year's third quarter

• CEMATRIX anticipates strong activity through construction season until winter

• Company says it remains on track for a strong year in 2026

Result Drivers

• LARGE PROJECT TIMING - Co said Q2 results benefited from two large projects that started and finished in the quarter

• HIGHER VOLUMES - Co said gross margins improve with higher revenue volumes and successful project execution

• COST STRUCTURE CHANGES - Co said lower SGA costs reflected ongoing cost structure changes

Company press release: ID:nNFC5L3xSR

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• Wall Street's median 12-month price target for CEMATRIX Corp is C$0.75, about 53.1% above its July 28 closing price of C$0.49

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• July 29 - Canada's FLINT Q2 revenue rises 37% on contract wins

• July 28 - Orion Group Q2 adjusted EPS and EBITDA miss estimates; lowers FY outlook

• July 27 - Germany's Hochtief H1 operational net profit rises on infrastructure demand; raises guidance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)