H2O Innovation Inc. - HEOFF STOCK NEWS

H2O Innovation reported a 52% revenue increase to $63.9 million for Q2 FY2023, driven by 27% organic growth. Adjusted EBITDA surged 69.9% to $6.5 million, reflecting strong operational performance amid economic challenges. The company also reported a 63.4% growth in its backlog, reaching $206.2 million. However, net earnings decreased to $0.6 million from $0.8 million year-over-year, impacted by higher expenses and finance costs. The management's outlook remains positive, with a robust strategy for maintaining growth and mitigating risks in the water industry.

H2O Innovation has announced a new operation and maintenance (O&M) service contract valued at $7.1 million, expanding its O&M backlog to $149.6 million. The new two-year contract, effective January 2023, is for a commercial customer in Georgia, where H2O Innovation previously installed a wastewater reuse system. Furthermore, the company has renewed a five-year O&M contract in Alberta for 11 water treatment systems and extended two additional contracts in New Hampshire and New York for two and three years, respectively. These developments reinforce H2O Innovation's strategy of cross-selling and customer retention.

H2O Innovation has announced the award of five new water projects valued at $5.5 million, expanding its Water Technologies & Services (WTS) backlog to $54.8 million. The contracts include a significant project for a data center in the US, which features a 2.0 MGD treatment system achieving over 98% water recovery. Additional contracts involve water treatment systems in Iowa and Kentucky, focusing on reverse osmosis and greensand filtration. The company is also providing a temporary treatment system for an Indigenous community in Canada facing boil water advisories. The projects highlight H2O Innovation's commitment to sustainability and water accessibility.

H₂O Innovation Inc. (TSX: HEO) will release its financial results for Q2 FY2023 on February 14, 2023, at 8:00 a.m. EST. This will be followed by a conference call at 10:00 a.m. EST, where financial analysts and investors can listen to a presentation from management and participate in a Q&A session. The company focuses on innovative water solutions, operating under three main areas: Water Technologies & Services, Specialty Products, and Operation & Maintenance, aiming to deliver advanced technologies and services in the water sector.

H2O Innovation has secured a new operation and maintenance (O&M) service contract worth $29.9 million in Texas, boosting its O&M backlog by 24% to $156.2 million. This three-year contract involves a wholesale water treatment facility in Calhoun County, which produces 6.0 MGD of potable water. Additionally, an existing five-year contract has been renewed, further solidifying H2O Innovation's market position. The press release indicates a commitment to growth and investment in Texas, although it also includes forward-looking statements about potential risks such as labor shortages and inflation impacting operations.

H2O Innovation held its Annual General Meeting of Shareholders on December 6, 2022, where the board re-elected directors including Frédéric Dugré as CEO. They welcomed new member Caroline Lemoine, strengthening the board's diversity. Shareholders appointed Ernst & Young as auditor for the fiscal year ending June 30, 2023. Management updated the 3-Year Strategic Plan, narrowing revenue targets for fiscal years 2023 to 2025, with projections increasing from $220-250M in 2023 to $280-350M by 2025. Adjusted EBITDA objectives were set at over 10% for 2023, aiming for 11% by 2025.

H₂O Innovation has partnered with National Bank of Canada to establish its first Blue Loan, designed to fund growth in water technology manufacturing and services. This initiative is complemented by an increase in its revolving credit facility to $65 million, reflecting a proactive approach to addressing global water challenges. The Blue Loan aligns with International Finance Corporation's Blue Finance guidelines, focusing on ocean-friendly projects. H₂O Innovation aims to enhance water reuse and reduce carbon emissions while addressing water scarcity and climate change impacts.

H2O Innovation has announced the award of two significant water treatment projects valued at a total of $12.1 million, increasing its Water Technologies & Services (WTS) backlog to $55.1 million. The first project for the City of Grants Pass, Oregon, involves a seven-train ultrafiltration system aimed at providing 22.5 MGD of drinking water. The second project focuses on expanding an existing UF-RO system in Sherman, Texas, increasing its capacity to 14.0 MGD, with completion expected within the next 12 months. CEO Frédéric Dugré expressed confidence in the growth opportunities within the water treatment sector.

H2O Innovation invites shareholders to its Annual General Meeting on December 6, 2022, at 10:30 a.m. ET, held at its Quebec City office and accessible via webcast or phone. Shareholders will vote on board elections and auditor appointments for the fiscal year ending June 30, 2023. Management will also provide an operational update post-meeting. H2O Innovation operates in water solutions, focusing on three areas: Water Technologies & Services, Specialty Products, and Operation & Maintenance, aimed at simplifying water management.