Predictable revenue flows boost H2O’s investibility
Published May 12th, 2016
A greater emphasis on revenue predictability enabled TSX-listed water treatment company H2O Innovation to post a robust set of third-quarter results on Monday, which saw its shares rise by 6.7% to close at their highest level since October 2015.
The organic growth registered by the group’s specialty products and services business line meant that it accounted for almost two thirds of sales in the last quarter, more than offsetting a 15% decline in revenues from water treatment projects.
H2O Innovation’s adjusted EBITDA margin grew by 140 basis points year on year to 8.8%, based on Q3 revenues of Can$14.2 million (US$11.0 million; up 17.1%).
“The outstanding financial results […] proves the scalability of our business model and the value created by our proprietary technologies,” CEO Frédéric Dugré commented in a prepared statement.
New project bookings and a weaker Canadian dollar mean the company’s backlog stands at Can$42.1 million (US$32.6 million).