This Cellular Concrete Leader Says It Could Benefit From the Anticipated $1 Trillion Infrastructure Bill

Image Courtesy of Cematrix

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Cellular concrete is one of the fastest-growing construction material markets in the world. According to a recent study by Global Market Insights Inc, the cellular concrete market revenue is anticipated to record a valuation of $3 billion by 2027.

When compared to regular concrete, cellular concrete is more lightweight, insulating, strong, self-leveling, highly flowable, energy-absorbing, and cleaner for the environment.

It has many applications, including the backfill of overpasses, bridges, mechanically stabilized earth (MSE) panels and tunnels, and base support for highways, runways, and facilities that are constructed over weak and unstable soils.

Though the market is booming, there are very few cellular concrete companies that are currently traded publicly. One such company is CEMATRIX Corp. CVX CTXXF.

About CEMATRIX

CEMATRIX states that it is one of the world leaders in cellular concrete technology and a North American leader in on-site manufacturing and placement of cellular concrete.

The company uses a number of proprietary technologies to provide the infrastructure construction market with more cost-effective solutions to significant construction issues.

CEMATRIX manufactures cellular concrete that is a technologically advanced construction material, which is generally greener and more environmentally friendly than the legacy products it replaces. The company is focused on supplying environmentally friendly products and pursuing acquisitions that might expedite CEMATRIX’s goal of reducing our carbon footprint to zero by 2030.

The company’s customers include engineering companies, commercial contractors, and public-private partnerships. Some of the companies include Stantec Inc. STN, Jacobs Engineering Group J, McNally Bharat Engineering Co. Ltd. MBECL, KBR Inc. KBR, LafargeHolcim Ltd. LHN, Skanska AB SKA and Michaels Cos. Inc. MIK, to name a few.

A Serious Competitor

CEMATRIX says that it sets itself apart from the competition with its advanced material mix design that optimizes strengths, densities, and other characteristics. The company’s advanced processing equipment can produce up to 250 cubic meters of cellular concrete per hour. It also uses advanced foaming agents and additives that offer higher strengths at lower densities than competing companies.

The company states that it is known for:

1. Being one of the world leaders in cellular concrete technologies including material mix designs, foaming agents, equipment, processes, applications engineering, and engineering design support.
2. Being the only Cellular concrete tunnel grout supplier in North America and probably the world, that has 3 dry mix units and support equipment, including tunnel trains specifically designed for heavy cellular concrete grout in long and problematic tunnels
3. Being one of the only full-service cellular concrete suppliers engaged in ongoing research and development (R&D) with MSE Panel companies and Canadian highway construction through a collaboration with the University of Waterloo, City of Waterloo, and the National Research Council Canada (NRC).
4. Being one of the only full-service cellular concrete providers engaged in ongoing R&D of material mixes, foaming agents, additives, and processes.

Expansion Plans

CEMATRIX says it plans to continue growing organically through regional expansion, particularly in the U.S. and through strategic acquisitions. The company is currently looking for acquisition opportunities in the U.S., especially those with an environmental focus.

Recently, CEMATRIX renewed its marketing and supply agreements with and continues to develop its strong alliance with the largest cement company in the world — LafargeHolcim.

With this partnership, CEMATRIX significantly reduces its raw material cost and can create more competitive pricing in the industry. It also considerably reduces the customer acquisition cost through joint marketing and expanded sales opportunities.

The company has acquired 2 of the largest suppliers in the U.S. over the last 3 years — MixOnSite and Pacific International Grout Co. — which has significantly expanded its business. It has also landed 2 of the largest projects in the space in the U.S. — a USD $12.3 million highway project in North Carolina and a USD $23.3 million tunnel project in St. Louis.

Poised for Possible Growth

CEMATRIX believes that it has significant growth opportunities as its dedication toward the environmental aspects of the infrastructure market bodes well with President Joe Biden’s plan to sign a $1 trillion infrastructure bill. With this bill, many roads, highways, and bridges that are failing will be replaced, which could spell great news for companies like CEMATRIX as it stands to seize this lucrative infrastructure replacement market.

Although the company has a backlog of $91.2 million, according to its last news release, the company has a strong bid pipeline in excess of $365 million. It expects to see exponential growth soon, potentially bringing it back into profitability by 2022 as it continues to generate cash flow.

To learn more about CEMATRIX, visit its website here.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.