- 01Record $842k operating cash flow; third positive quarter.
- 02Receipts up 29% to $10.1m; 30th quarter of growth.
- 03Cash $4.8m; orders support work into 2027.
De.mem (ASX: DEM) has delivered its highest quarterly operating cash flow on record, generating $842,000 in the September quarter as customer receipts increased 29% from a year earlier.
The industrial water and wastewater treatment specialist collected approximately $10.1 million during the period, its second-highest quarterly total, supported by double-digit organic growth across its core operations.
Marking a third consecutive quarter of positive operating cash flow, the result extends De.mem’s run of year-on-year quarterly cash receipts growth to 30 successive quarters.
Cash at 30 September reached approximately $4.8m, up from $4.3m at the end of June, while new chemicals and equipment orders provided additional work extending into 2027.
The company expects its new orders to support activity into 2027, alongside continued growth in its established industrial water treatment and specialty chemicals operations.
Cash Generation Builds Momentum
Operating cash flow rose from $504,000 in the March quarter and $424,000 in June to $842,000 in September, bringing the nine-month total to $1.77m.
Customer receipts for the first nine months reached approximately $30.1m, representing growth of 28% against the corresponding period of 2025.
Over roughly seven-and-a-half years, De.mem has achieved a compound annual growth rate of approximately 24% in cash receipts, with more than 90% of receipts recurring.
That recurring base spans water treatment services, specialty chemicals, equipment maintenance, consumables, and membrane replacement sales to existing customers.
The positive cash result included approximately $180,000 of September-quarter expenditure on membrane and product development at its Singapore subsidiary.
WA Operations Strong
De.mem’s Western Australian operations contributed around 47% of group cash receipts during the quarter, including businesses supplying water treatment services and chemicals to mining customers.
The regional portfolio includes Core Chemicals, acquired in November 2025, which supplies specialist products used in gold extraction and recovery from refining waste streams.
Since completing that acquisition, De.mem has added customers and pursued cross-selling opportunities across its existing mining-sector relationships.
A new framework agreement to supply antiscalant chemicals to an Australian mining customer carries an estimated value of $800,000 over the next 12 months, with supply scheduled to begin in the December quarter.
The agreement can be terminated at convenience, while separate water treatment equipment orders worth approximately $350,000 in Australia and $380,000 in Germany are expected to be delivered in calendar 2027.
Membrane Expansion and Outlook
Alongside its industrial operations, De.mem is developing residential water filtration sales around its graphene oxide-enhanced ultrafiltration membrane technology.
The technology has demonstrated throughput improvements of up to 20% against conventional membranes and received certification under the US National Sanitation Foundation Standard 53 in 2024.
Distribution partnerships cover North America, Singapore, Indonesia, China, and Japan, with De.mem also pursuing Australian WaterMark certification to enable domestic drinking-water applications.
“The strong financial results highlight that we are successfully executing our strategy of building a unique, technology-backed, high margin recurring revenue business within the water treatment industry,” chief executive officer Andreas Kroell said.
“De.mem is well positioned to deliver a very strong CY 2026, underwritten by our recurring revenue model.”
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