H2O Innovation Inc.’s (CVE:HEO) Stock Price Climbs as the Company Taps Clean Water Needs

Q3 earnings surge as treatment projects order backlog grows

Samus Prasla | Green Investing and Sustainability Writer | May 11, 2016: Water is one of the key elements that drive our industrial sectors, yet many of us take it for granted. The water used in production processes gets contaminated with toxic chemicals and metal and radioactive particles. If this untreated water seeps into the water bodies, will affect our fresh water supply as well as the ecosystem. H2O Innovation Inc. (CVE:HEO) is one of the clean tech companies in Canada that designs and provides safe, integrated and customized water treatment solutions. It helps its clients meet the strict standards of the Environmental Protection Agency and American Water Works Association.

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H2O Innovation Inc Company Analysis

H2O Innovation uses various membrane filtration technologies that gives it a unique ability to develop custom-built solutions to treat domestic and industrial wastewater. All these solutions are designed to meet the purpose of end-users, which includes municipalities, energy and natural resource companies. Besides this, it also provides products and services that include a complete line of specialty chemicals, consumables and couplings that are corresponding to its membrane filtration and reverse osmosis systems.

Currently, H2O Innovation has a market cap of about $30 million based on just 21 million shares outstanding. Its recently-released Q3 financial results saw revenue rise 17.1% to $14.2 million, while net earnings for the quarter surged to $646,422 from $150,490 during the same period last year. H2O added that its Adjusted EBITDA is growing faster than its revenues, and the order backlog for the Company’s water treatment projects stood at $42.1 million as of April 28, 2016.

H2O Innovation is still in a position to maintain its significant backlog in water treatment projects despite the weak conditions in energy sector. During Q2/2016, the Company added $9.6 million in new orders. And, recently, H2O Innovation was awarded three new contracts worth $7.6 million.

Furthermore, the FiberFlex, Clearlogx, SPMC and Smartrek technology makes H2O Innovation stand out amongst industry competitors.

The Water Technology Company of the Year award at the 2016 Global Water Awards corroborates its ability to innovate and contribute to the water treatment industry.

H2O Innovation Inc also announced recently that its subsidiary, PWT, has entered into a distribution agreement with Chemsbro, one of the largest providers of integrated chemical solutions and specialty chemicals for water and wastewater treatment plants in Saudi Arabia. Through this business venture, H2O will be able expand its operations in the world’s biggest desalination market. The Company’s stock, meanwhile, has increased 29% so far in 2016 to its current price of $1.42.

H2O Innovation Inc. is a component company of the benchmark-beating Ubika Sustainability 20 index (See the other top-performing stocks here).

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