CAC 2000 Limited is eyeing opportunities across the Caribbean as it looks to reduce its dependence on the Jamaican market and chart a return to profitability.

The air conditioning and energy solutions company recently disclosed that it has begun exploring regional expansion as part of a five-point strategy to strengthen operations, tap into new revenue streams, and build greater resilience against local economic shocks.

[We are] exploring opportunities in new Caribbean markets to diversify revenue streams and mitigate risks associated with domestic economic fluctuations,” the company said.

No specific territories have been disclosed, but the company’s focus is expected to align with areas where construction, commercial development, and energy efficiency initiatives are ramping up, such as tourism-dependent islands and markets investing in climate adaptation infrastructure.

CAC already does business in the Caribbean, including partnerships in markets such as Honduras and Antigua and Barbuda. The company had been planning to deepen its regional footprint for some time, but those efforts were delayed by the COVID-19 pandemic. With activity now picking up, CAC is revisiting those plans as part of its long-term strategy.

The strategy comes as CAC continues to dig itself out of a rough patch. For the six months ended April 30, 2025, the company posted a net loss of $56.1 million, slightly deeper than the $53.4 million loss recorded in the same period last year. Still, there was a glimmer of recovery in the second quarter, with CAC turning a $2.5-million profit compared to a $41-million loss in the April 2024 quarter.

Gross margins held steady despite a slight dip in revenues, $433.7 million this year versus $445.5 million last year, suggesting that the company has found some cost efficiencies. Cash flow from operations improved, though it remained negative at $16.4 million. Liquidity, however, was significantly better, with cash and cash equivalents standing at $76.7 million, up from $35.9 million a year earlier.

The company also continues to operate under tight financial conditions. Total borrowings stood at $430.8 million at the end of April, including a $250-million block of 13 per cent redeemable preference shares due in March 2026. CAC noted that a term loan from Bank of Nova Scotia was technically in breach of covenants as of October 2024, but the bank granted a waiver in February 2025, averting an early recall.

Even so, the company is investing in future growth.

Among the initiatives being pursued are smart HVAC systems with remote monitoring capabilities, which are expected to support energy efficiency targets in both residential and commercial spaces. CAC is also rolling out new e-commerce features that allow customers to book services and purchase products online, and it is developing new energy-saving solutions in response to rising electricity costs.

Internally, the company is also stepping up workforce development. Technical training and upskilling are being prioritised to ensure CAC can deliver more complex services and compete in regional markets.

— Karena Bennett