CAC 2000 turns quarterly profit after four losing periods amid debt and revenue pressures

CAC 2000 Ltd has moved back into the black for the first time in four reporting quarters, booking a modest profit in the three months to April 2026 as leadership pushes harder on overdue collections, debt servicing, and cash stabilisation during a long-running business overhaul. The Junior Market-listed air-conditioning and energy services group reported net earnings of $3.7 million for the period, a 49 per cent increase from the $2.5 million recorded in the same quarter a year earlier.

The figure marks a notable shift from a stretch of quarterly deficits that ended with a $176.2-million loss for the financial year closed in October 2025. Even with that improvement, CAC still posted a net loss of $69.8 million for the six months, compared with a $56.1-million shortfall in the prior-year period, as turnover contracted significantly. Efforts to secure additional comment from outgoing chief executive Gia Abraham were unsuccessful.

Revenue for the half-year fell 47.9 per cent to $226.1 million from $433.7 million in the comparable stretch of 2025, while second-quarter sales declined 40.6 per cent to $144.6 million. Stricter cost management and a stronger sales mix nonetheless lifted margins enough to deliver the quarterly surplus. In remarks issued with the results, management identified “improved margins and disciplined cash management” as the key forces behind the earnings rebound.

Gross profit margin for the six months rose to 41.7 per cent from 34 per cent a year earlier, while the second quarter produced a gross margin of 48 per cent. Protecting liquidity and improving collections have become central elements of the turnaround plan. Officials said revenue patterns reflected “the company’s continued focus on credit quality and cash-generating activity”, pointing to a deliberate pullback from transactions that could further strain already tight cash reserves.

That priority is evident in the cash-flow statement. CAC recorded positive operating cash flow of $43.8 million over the six months, a marked turnaround from a $16.4-million operating outflow in the earlier period. Management credited the improvement to tighter working-capital oversight, including lower trade receivables and better handling of payables.

The collections drive matters all the more given the company’s heavy debt load. Total borrowings stood at $447.3 million as at 30 April. Leadership said it remains in discussions with lenders over covenant terms and confirmed that waiver letters from BNS Investment are in place through 31 October 2026. Those arrangements offer interim relief while CAC works through its liabilities and seeks to rebuild profitability and shareholder equity, which ended the period at $118.5 million, down from $308.7 million a year earlier.

Investors were also informed of a leadership change. In a notice to the Jamaica Stock Exchange on 1 July, CAC said Abraham would step down as chief executive on that date after five years in the role and 25 years with the company. She said the move was for personal reasons. Abraham will remain on the board and support selected internal assignments during the handover. The board has named executive chairman Steven Marston to take on the chief executive role while retaining the chairmanship. The company said Marston worked alongside Abraham through the transition to preserve operational continuity.

Marston’s immediate task is to hold on to the fragile quarterly profit, quicken receivables recovery, keep creditors aligned, and steer CAC 2000 toward more stable earnings growth. Management said near-term focus areas remain “accelerating receivables collections, sustaining margin discipline, and managing the company’s debt obligations in conjunction with its lending partners”.