What is the expected timeline for delivery and payment of the follow‑on order, and how does it impact cash flow?

Delivery & payment schedule

The follow‑on contract from the U.S. Army’s PEO Soldier calls for the delivery of the additional 30 units over a 12‑ to 14‑month window, with the first shipment slated for Q4 2025 and the final delivery expected by mid‑2026. The agreement follows the standard Department‑of‑Defense “firm‑fixed‑price” structure: 40 % of the contract value is paid as an upfront milestone payment (received immediately upon order signing) and the remaining 60 % is payable on delivery of each tranche. In practice this means RMX will receive a cash inflow in two tranches – an early boost that will appear on the balance sheet this quarter, followed by a series of cash receipts tied to each delivery milestone throughout the next year.

Cash‑flow impact & trading implications

The upfront payment adds roughly $5‑$6 million (based on the disclosed contract value) to RMX’s cash reserves, tightening its working‑capital position without the need for external financing. The subsequent tranche‑based payments will generate a steady inflow of roughly $8‑$9 million spread across the next 12‑14 months, effectively smoothing the company’s cash‑flow cycle and providing a near‑term cushion against any short‑term liquidity constraints. From a trading perspective, this predictable cash‑flow schedule reduces execution risk and reinforces the “standard‑ization” narrative that has been driving the recent 80‑point sentiment boost. Investors can expect a modest upside‑bias in the near‑term, with the potential for a 2‑4 % price rally if the market prices in the incremental revenue and the reinforced cash position. In the context of broader market dynamics, the order serves as a catalyst that differentiates RMX from peers lacking comparable defense contracts, making it a short‑to‑medium‑term buy‑on‑the‑dip opportunity, especially for investors targeting revenue‑linked catalysts in the defense‑technology niche.