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  • H2O Innovation (HEO) reported revenue of $38.4 million for Q1, up 9.7 per cent year-over-year
  • Growth was strongest in the company’s WTS business pillar
  • Adjusted EBITDA increased by $0.5 M year-over-year
  • The company ended the quarter with a consolidated backlog of $122.8 million and a net debt of $3.4 million
  • H2O Innovation is a complete water solutions company focused on providing best-in-class technologies and services to its customers
  • Shares in H2O Innovation Inc. (HEO) are up 1.22 per cent, trading at $2.48 per share

H2O Innovation (HEO) reports revenue of $38.4 million for Q1, setting the tone for the 2022 fiscal year with 9.7 per cent growth.

Frédéric Dugré, president and CEO of H2O Innovation, commented on the first quarter results.

“We are starting our new fiscal year on a strong financial basis,” he said, “supported by sustained business drivers: growing capital equipment backlog, sales network expansion with new distributors and account managers, start-up of new O&M projects in Rhode Island and Mississippi, and continuous recurrent revenues at high margins.”

The company’s three business pillars—water technologies and services (WTS), specialty products, and operation and maintenance services (O&M)—each experienced significant growth throughout the quarter.

Revenue from WTS grew 44.4 per cent after a busy season of growing service activities and completing several projects.

And although revenues from specialty products remained fairly stable for the first quarter of fiscal year 2022, EBAC increased by 30.4 per cent compared to the same quarter of last fiscal year.

The O&M business pillar showed organic growth of 9.8 per cent, offset by an unfavourable USD exchange rate and temporary reduction of the gross profit margin.

Adjusted EBITDA increased by $0.5 M year-over-year, driven by increases in consolidated revenue and improvement in gross profit margins.

“All pieces of our business puzzle are clicking together and generates an increasing number of business synergies and operational efficiency,” remarked Mr. Dugré. “On top of that, our financial position remains strong with a very low level of debt, which allows us to stay opportunistic for acquisitions.”

The company ended the quarter with a consolidated backlog of $122.8 million and a net debt of $3.4 million.

H2O Innovation is a complete water solutions company focused on providing best-in-class technologies and services to its customers.

Shares in H2O Innovation Inc. (HEO) are up 1.22 per cent, trading at $2.48 per share as of 10:15 am ET.

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