📈 BluMetric Environmental $BLM - Wealth & Water
A Comprehensive Investment Breakdown of a Water Tech Innovator
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About Investment Thesis
Investment Thesis is a series of posts that provide a foundational understanding of listed wunderkind companies. The series aims to achieve a timeless understanding of the company's inner workings. Every month, content on an investment case will be posted as an article, podcast, or both.
In March 2025, we had the opportunity to sit down for an in-depth conversation with CEO Scott MacFabe and CFO Dan Hilton, covering key aspects of BluMetric’s business strategy and outlook.
This discussion added valuable context to our 45-minute take on this incredible multi-bagger.
While we're not releasing the full interview, we’ve included select quotes from both executives to offer deeper insight into their vision and priorities.
We genuinely hope you enjoy what we consider our most comprehensive write-up to date.
This content is intended for informational purposes only and should not be taken as investment advice. The author does not represent any third-party interest, and he may be a shareholder in the companies described in this series.
Please do your own research or consult with a professional advisor before making any financial decision. You will find a full disclaimer at the end of the post.
Context
The Business
Overview
Consulting
Tech
🔗 Partnerships, Contracts, and Custom Products
Overview
Canadian Army
Rheinmetall
Description
Business Impact
Actions Taken to Support Gemini’s Growth
Investment Case
Backlog
Performance
Capital Structure
⚖️ Valuation
🔍 Business Overview and Origin Story
BluMetric Environmental Inc. is a Canadian company that specializes in environmental consulting and the development of advanced technologies for treating water and wastewater. Its mission is to address some of the world's most complex environmental and water challenges, providing innovative and sustainable solutions in key sectors such as the military, mining, industry, and government.
Although BluMetric was founded in 2012, its history goes back more than 40 years, with the merger of two companies with extensive trajectories in the sector:
WESA Group (founded in 1989), which specializes in environmental consulting and regulatory compliance
Seprotech Systems (founded in 1985), dedicated to designing and implementing water treatment systems through technologies such as reverse osmosis, ultrafiltration, and nanofiltration
Since its creation, BluMetric has become a reference in water solutions. It combines consulting experience with cutting-edge technology to offer comprehensive solutions to high-impact clients.
In 2024, BluMetric took a significant step in its growth strategy by acquiring Gemini Water, a key American company that will allow it to expand into the large-scale water treatment market in North America.
This purchase will allow the company to strengthen its presence in the U.S., diversify its customer base, and accelerate its growth in the commercial and industrial sectors.
However, beyond this geographical expansion, the true growth driver of BluMetric comes from its Technology Division, with the development of the Advanced Sub-Unit Water Purification System (ASUWPS). This system, compact and of high added value, represents a unique scalability opportunity with superior margins and strong potential for global expansion.
As noted by the CFO, Dan Hilton, in the 4Q24 earnings presentation:
2024 to 2025 is an inflection point for the business
🌐 Industry Overview
BluMetric Environmental Inc. plays in two main arenas: environmental consulting and water tech manufacturing. Each side of the business has its own set of competitors with different specialties and strengths.
On the consulting side especially, the landscape is fast-moving and packed with players - new names pop up all the time. That said, keeping tabs on them isn’t too difficult. Since most of the work comes through public tenders and RFPs, it’s just a matter of tracking what’s out there and who’s bidding.
Worth noting - we quite literally worked at a Toronto-based firm where our day-to-day involved writing up tenders and obsessively tracking every single RF“X”s [Requests For “X”] (yep, RFIs, RFQs, RFPs - the whole alphabet soup) for big institutional clients. We're talking local, provincial, federal, and even supranational agencies.
So yeah... when it comes to this stuff, we definitely know what’s up. Talk about staying well within the circle of competence.