The Quebec company H2O Innovation announced on Wednesday that it had won four new contracts, bringing the order book for its water treatment technologies and services segment to a level never before reached.
With these contracts worth $13.6 million, the Water Treatment Technologies and Services (WTS) segment’s backlog increases to a record high of $76.7 million.
The $13.6 million is the largest announced by the company since contracts worth $29.9 million were won in the operation and maintenance segment (O
The 13.6 million amount is also twice as large as the average of 7 million for the other seven contract announcements made so far this year by the company, he said in a note sent to his clients on Wednesday.
Regarding the O segment
Keeping in mind that the order book O
Two of the four new water treatment projects concern industrial customers (one project in Kentucky, in the United States, and one project in Quebec). One of the industrial contracts is with a manufacturer of components for lithium batteries in Bécancour, which, according to Frédéric Tremblay, could constitute a new growth market for H2O.
For this project, H2O will provide a system that will be used to treat water from the St. Lawrence River to provide ultrapure water for industrial processes.
“The fact that our clients entrust us with these projects demonstrates the need to have more versatile and adaptable systems,” comments the co-founder and big boss of H2O Innovation, Frédéric Dugré, in a press release.
After starting Wednesday’s session higher, H2O Innovation shares fell back to close the session down 3%, at $2.65, on the Toronto Stock Exchange. The stock has thus moved further away from its recent high of $3.37 reached earlier this summer.
H2O Innovation nevertheless continues to be unanimously appreciated on Bay Street. The nine analysts who officially follow the company’s activities all recommend buying the stock.
In the eyes of Frédéric Tremblay, the recent decline in the stock offers an interesting entry point for investors.