Canada's CEMATRIX Q3 revenue falls 22% on project delays

Overview

• Canada specialty construction contractor's Q3 revenue fell 22% yr/yr due to delayed project starts

• Q3 gross margin dropped to 23% from 34% a year earlier

• Company expects Q4 revenue to be among its highest, projecting C$18-22 mln for the quarter

Outlook

• CEMATRIX expects Q4 revenue between C$18 mln and C$22 mln

• Company says it remains on track for a record year of financial performance in 2026

Result Drivers

• PROJECT DELAYS - Co said delayed start of several large projects reduced Q3 revenue and impacted results

• GROSS MARGIN DECLINE - Co attributed lower Q3 gross margin to reduced revenue volume and absence of unique contract structure seen in prior yr

• COST STRUCTURE CHANGES - Co said lower SG&A costs contributed positively to results

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

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

• The average consensus recommendation for the construction materials peer group is "buy"

• Wall Street's median 12-month price target for CEMATRIX Corp is C$0.85, about 70% above its October 27 closing price of C$0.50

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

Reuters Recommended Reads

• Oct 27 - Orion Group Holdings Q3 results beat estimates on concrete segment growth, acquisition of J.E. McAmis

• Oct 28 - Sterling Infrastructure Q3 revenue, profit more than doubles, driven by E-Infrastructure growth

• Oct 27 - Logistics firm Landstar System's Q3 revenue rises 25%, beats estimates

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.)