CAC 2000 Limited is pursuing debt refinancing to stabilise its working capital position as losses deepen on sharply lower revenues, underscoring persistent liquidity challenges at the air-conditioning contractor.
For the three months ended January 2026, CAC 2000 posted revenue of $81.5 million, a 57 per cent decline from $190.4 million in the corresponding period a year earlier, while recording a net loss of $80.9 million, compared with a $58.6-million loss in the same quarter of the prior year. The quarterly results follow a difficult full year in which the company posted a net loss of $176.2 million for the year ended October 2025 against a profit of $22.3 million the year before, as annual revenues fell to $753.5 million from $1.2 billion.
CEO Gia Abraham acknowledged the downturn but attributed it to liquidity constraints rather than weak demand. “Revenue came in at $81.5 million — well below where we want to be and significantly down on the prior year. The shortfall is not a demand issue … . What constrained us this quarter was working capital — our ability to mobilise and execute on that pipeline,” she said in the company’s first-quarter report.
The company said it has more than $1.4 billion in open projects and contracts but insufficient liquidity to execute them, effectively throttling revenue generation. Chairman Steven Marston, in the annual report, attributed the root cause to a heavy concentration of government contracts that exposed the company to prolonged payment cycles, with government receivables ageing well beyond 300 days.
Despite the steep revenue decline, CAC 2000 reported an improvement in gross margin to 30.4 per cent from 26.1 per cent, reflecting tighter cost discipline and pricing management. However, overheads and finance costs continue to weigh heavily. Administrative expenses remained elevated at roughly $85.6 million, largely offsetting gross profit of $24.8 million.
Abraham said the loss profile reflects a structural mismatch between fixed costs and depressed activity levels. “The loss reflects a cost base — overhead and finance costs — that does not move in lockstep with revenue,” she said, adding that restoring working capital would enable a recovery in both revenues and earnings.
Cash flow dynamics reveal both progress and underlying strain. The company ended the quarter with cash holdings of $50.3 million, broadly flat compared to the prior year despite operating losses, supported by aggressive receivables collection.
The company holds a contract to outfit 22 government locations with solar photovoltaic systems and upgraded air conditioning. Abraham described the balance sheet trajectory as positive but incomplete. “The balance sheet is moving in the right direction,” she said, while cautioning that sustained working capital access is required to convert pipeline activity into revenue.
DEBT OVERHANG ADDS PRESSURE
CAC 2000’s liquidity constraints are compounded by a heavy debt load. Total borrowings include roughly $406.7 million in current loans and $59.2 million in non-current obligations, alongside trade payables of J$427.4 million. The company has previously disclosed a $250-million preference share maturity and ongoing discussions with lenders to restructure obligations. It has also faced pressure from high finance costs and covenant breaches.
Against that backdrop, management has identified refinancing as the central plank of its recovery strategy. “Our near-term focus is on two things: refinancing our existing debt obligations and unlocking the project working capital,” Abraham said, adding that discussions with financiers are ongoing.
OUTLOOK TIED TO LIQUIDITY RESOLUTION
CAC 2000’s recovery hinges on resolving liquidity bottlenecks rather than rebuilding demand, with management insisting that underlying project flow remains strong.
“Once working capital is restored, the revenue recovery is a matter of execution. The projects are contracted,” Abraham said.
However, until refinancing is secured and working capital stabilised, the company is likely to remain under pressure, with losses persisting despite operational improvements.
neville.graham@gleanerjm.com
Photo caption: Chief Executive Gia Abraham
