Canada's CEMATRIX Q1 revenue rises, remains on track for a strong full year

Overview

• Canada specialty construction contractor's Q1 revenue rose 11% yr/yr to C$7.3 mln

• Gross margin fell to 9% from 22% due to larger project mix

• Company expects stronger results in coming quarters due to seasonality

Outlook

• Company expects a record second quarter in 2026

• CEMATRIX anticipates improved gross margins with higher revenue volumes for the remainder of 2026

• Company remains on track for a strong full year in 2026

Result Drivers

• PROJECT MIX - Co said lower gross margin was due to a higher proportion of larger projects in Q1

• COST STRUCTURE CHANGES - SG&A expenses declined as past cost structure changes began to show positive effects, per CEO Boomhour

• SEASONALITY - Co said first quarter is typically slowest due to timing of project starts and seasonality

Company press release: ID:nGNX5VGwkB

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 33.9% above its April 28 closing price of C$0.56

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.