Blumetric Environmental (BLM) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue was CAD 34.8 million, nearly flat year-over-year, with Q4 revenue up 8% to CAD 11.1 million from CAD 10.3 million.

• Gross margin improved to 40% for the year, up from 35% in the prior year, driven by higher billing rates and reduced subcontractor use.

• Net earnings for the year were CAD 64,000, down from CAD 507,000, with operating cash flow turning positive at CAD 57,000.

• Acquisition of Gemini Water in Q4 expands U.S. and Caribbean presence, with integration and ramp-up underway.

• Record order backlog carried into 2025, with significant contracts in military and commercial water tech markets.

Financial highlights

• Q4 revenue was CAD 11.1 million, up from CAD 10.3 million year-over-year.

• Adjusted EBITDA for the year was CAD 2 million, consistent with the prior year, despite higher operating expenses.

• Operating expenses rose to CAD 13.4 million from CAD 11.3 million, reflecting investments in business development, marketing, and acquisition costs.

• Net debt at year-end was CAD 157,000, compared to net cash of CAD 2.2 million the previous year, due to the Gemini acquisition and IP investments.

• Working capital decreased to CAD 5.5 million from CAD 11.1 million, mainly due to the Gemini Water acquisition.

Outlook and guidance

• Fiscal 2025 expected to benefit from Gemini Water revenue and military contract manufacturing ramp-up.

• Management anticipates a pro forma top line of at least CAD 50 million and CAD 4 million EBITDA, though this is not formal guidance.

• Strong demand for water tech and decentralized water solutions expected to drive growth.

• U.S. manufacturing footprint to double in Gainesville, Florida to meet demand.

• Military market pipeline remains strong but contract closures are slower than expected.