De.mem Targets Record CY2026 Results after 1H Cash Flow Turnaround

De.mem Limited (ASX: DEM) is targeting record results for CY2026 after generating $20 million in cash receipts during the first half and extending its run of quarterly growth against prior corresponding periods.

The decentralised water treatment group produced positive operating cash flow of $928,000 in the first half, compared with an outflow of about $1.9m in CY2022.

Cash increased from $4m at the end of December 2025 to $4.3m at 30 June 2026, while more than 90% of receipts continue to come from recurring sources.

De.mem considers the first-half performance supportive of another annual record after cash receipts reached $32.2m in CY2025, with the second half typically accounting for about 55% of full-year receipts.

Recurring Revenue Growth

The June quarter marked 29 consecutive quarters in which cash receipts exceeded the prior corresponding period, with the group reporting a compound annual growth rate of about 24% over seven years.

De.mem’s model combines membrane systems with specialty chemicals, pumps, equipment, and long-term services, allowing project work to feed recurring maintenance, consumables, and plant operating revenue.

Its industrial offering spans packaged membrane systems, membrane modules, seawater desalination, chemical dosing equipment, pumps, and water treatment chemicals across metropolitan and regional Australia.

The group describes itself as the only ASX-listed provider with a fully diversified decentralised wastewater treatment offering and a national presence, targeting an Australian addressable market it estimates at $2.3 billion.

Expanding National Platform

De.mem acquired Core Chemicals in October 2025 for total consideration of $2.68m, with 85% payable in cash and 15% in De.mem shares through two milestone-linked tranches.

Core Chemicals supplies process chemicals and services intended to improve gold extraction and recovery from refining waste streams.

The business generated about $4m in revenue and $730,000 in pre-tax profit before acquisition and is tracking approximately 15% above its pre-acquisition revenue level.

De.mem sees cross-selling potential among Australian gold operations not currently supplied by Core Chemicals, which services 18 mines in Western Australia at average annual revenue of about $222,000 per customer.

Across six earlier bolt-on acquisitions completed since 2019, De.mem reports average revenue growth of about 70%, supporting a strategy of adding specialised regional businesses to its broader product and service platform.

Broader Residential Reach

De.mem is also rolling out standardised domestic water filtration systems built around its graphene oxide enhanced membrane technology, which is designed to increase throughput and reduce cartridge size compared with conventional hollow fibre membranes.

The systems are manufactured in Singapore and sold through distribution partnerships covering Singapore, North America, Indonesia, China and Japan.

An Australian launch of the product remains subject to final WaterMark certification.

A new Singapore filter cartridge order worth about $100,000 adds to the commercial rollout as De.mem pursues further distribution opportunities in South-East Asia and India, broadening its equipment and recurring maintenance channels beyond established industrial operations.