CEMATRIX's Record Quarter and Warrants Expiry Clear the Way for Accretive Growth
Specialty contractor posts all-time highs in revenue, EBITDA, and cash flow while eliminating the last dilution overhang, setting up a potential M&A catalyst.
CEMX.TO · Earnings Call · 2026-07-30
A Record Quarter Points to Structural Change
CEMATRIX delivered a blowout Q2 2026, with revenue of $18.7 million, a 76% year-over-year surge, and adjusted EBITDA of $5 million — a record for the quarter. The company's cash generation has been equally strong: CFO Marie-Josee Cantin noted, “So we had $16 million in our bank as of June 30. That's more than what we had at the end of December earnings as well as our good collections.” — Marie-Josee Cantin, Chief Financial Officer · 2026-07-30 This cash hoard, combined with a $61.5 million backlog and record sales momentum, underscores a business that is not only growing but also converting earnings into liquidity. The cash flow from ops improvement is a direct result of disciplined working capital management and favorable customer mix, as CEO Randy Boomhour explained when asked about the sharp drop in days sales outstanding: “Nothing new is being done. We're always doing the same things. It's just, I think we got lucky in terms of quality of customers that we're dealing with in terms of payment terms.” — Randy Boomhour, President and Chief Executive Officer · 2026-07-30The Warrants: A Quiet Overhang Removed
A major overhang has just been lifted. All outstanding $0.60 warrants (and the small $0.45 tranche) have now expired unexercised, save for 10,000 shares. Randy confirmed, “I believe that to be true, Glen. But until we hear officially from our transfer agent, I can't say for 100%, but I would be very surprised if someone was exercising a $0.60 warrant when we're trading at $0.51.” — Randy Boomhour, President and Chief Executive Officer · 2026-07-30 This removes a persistent dilution threat and signals confidence that the equity is undervalued — a sentiment that management has reiterated. The company has also been buying back stock, repurchasing 2 million shares since the NCIB began, though MJ clarified that not all were this year. With the warrants gone, the share count is cleaner, and the path to an accretive acquisition becomes more straightforward.Growth Levers: Utilization, Pipeline, and Tariff Watch
Management's emphasis on higher utilization as a margin driver is a recurring theme, and this quarter demonstrated the operating leverage. Randy noted that crews were "flat out" in Q2 but there is still capacity to win more work. The large project — the North Carolina tunnel grouting job — remains a key backlog driver, and the pipeline is expanding. He said, “We're seeing more activity. We're winning more of that activity, and we're really optimistic.” — Randy Boomhour, President and Chief Executive Officer · 2026-07-30 The company is also carefully evaluating cement tariffs, which could affect border states pricing, but Randy downplayed near-term margin impact:Most large projects that we do, we lock in the price of cement with our providers so that we have cost certainty there. They've always honored those commitments. So we don't actually expect any negative impact on our margins in the short term.