Blumetric Environmental (BLM) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 17% year-over-year to CAD 8.1 million, driven by reduced wildfire disruptions, new project wins, and operational enhancements.

• Gross margin improved to 44% from 35% in the prior year, attributed to lower subcontractor usage, higher billing rates, and reclassification of indirect labour costs.

• EBITDA reached CAD 0.3 million, reversing a prior year loss of CAD 0.7 million, and net income was positive at CAD 26,000 compared to a net loss of CAD 729,000 in Q3 2023.

• Working capital improved to CAD 11.3 million, while net cash declined to CAD 1.7 million from CAD 3.9 million year-over-year.

• Continued investment in cleantech expansion, manufacturing, personnel, and inventory to support future growth.

Financial highlights

• Q3 2024 revenue: CAD 8.1 million, up from CAD 6.9 million year-over-year.

• Gross profit for Q3 2024 was CAD 3.6 million, up from CAD 2.5 million in Q3 2023.

• EBITDA: CAD 0.3 million, compared to a loss of CAD 0.7 million in the prior year.

• Free cash flow for the quarter was CAD 0.2 million, up from negative CAD 1.0 million year-over-year.

• Working capital: CAD 11.3 million, up from CAD 10.4 million year-over-year.

Outlook and guidance

• Preparing for a manufacturing ramp-up in Q4, typically the strongest quarter seasonally.

• Fiscal 2025 expected to be strong, with significant production for the Rheinmetall contract (CAD 11 million remaining value) scheduled for early to mid-2025.

• Management expects cleantech expansion and new capabilities to drive future growth, with ongoing M&A assessments.

• Higher costs and overhead incurred to build cleantech sales and manufacturing are expected to support a higher revenue run rate.