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BLM — BluMetric Environmental News Story

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Canada's BluMetric Environmental Q3 revenue jumps on acquisitions, WaterTech growth

Canada's BluMetric Environmental Q3 revenue jumps on acquisitions, WaterTech growth


Overview

  • Canada water technology firm's fiscal Q3 revenue rose 43% yr/yr, driven by acquisitions and WaterTech USA

  • Adjusted EBITDA for fiscal Q3 more than tripled yr/yr as operating leverage improved

  • Net loss widened due to higher non-cash depreciation, amortization and share compensation costs


Outlook

  • Company expects Q4 to be the strongest quarter for Professional Services due to seasonality

  • BluMetric is expanding WaterTech USA's manufacturing capacity to meet U.S. and Caribbean demand

  • Company is pursuing more Mining sector work and preparing to bid for larger Military contracts


Result Drivers

  • WATERTECH USA AND ACQUISITIONS - Revenue growth was mainly driven by WaterTech USA, acquisition of DS Consultants and Whitteker Environmental, and improved Professional Services utilization

  • MINING SECTOR DEMAND - Mining market revenues increased 63% in the fiscal quarter, reflecting increasing demand for higher-value technical and consulting services in Northern Ontario and Quebec

  • INVESTMENTS AND OVERHEAD - Investments in WaterTech USA's O&M services and larger overhead to support growth partly offset operating leverage gains


Company press release: ID:nNFCqmQwr


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

C$20.92 mln

Q3 Loss Per Share

C$0.01

Q3 Net Earnings

-C$756,000

Q3 Adjusted EBITDA

C$1.06 mln

Q3 Operating Loss

C$836,000


Analyst Coverage

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

  • The average consensus recommendation for the environmental services & equipment peer group is "buy."

  • Wall Street's median 12-month price target for Blumetric Environmental Inc is C$3.00, about 172.7% above its August 26 closing price of C$1.10

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago


Reuters Recommended Reads

  • Aug 25 - Canada's Atlas Engineered Products Q2 revenue jumps, partly on acquisitions

  • Aug 26 - Filtration maker Donaldson Company Q4 sales beat on volume growth, Facet contribution

  • Aug 26 - China's Sany Heavy Equipment H1 revenue rises on mining, international sales strength


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


(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.)

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