Calgary, Alberta--(Newsfile Corp. - August 14, 2025) - Cleantek Industries Inc. (TSXV: CTEK) ("Cleantek" or the "Company") a leading provider of patented clean technology solutions for wastewater management and industrial lighting sectors, is pleased to report its financial and operational results for the second quarter ended June 30, 2025.
Highlights for the Second Quarter 2025 (All amounts are in thousands of Canadian dollars unless otherwise indicated)
- Revenue increased 39% to $3,352 in Q2 2025, up from $2,411 in Q2 2024, driven by strong equipment sales and growing rental demand;
- Gross profit increased by 39% to $1,782, representing 53% of revenue, consistent with Q2 2024 gross profit of 53%;
- Net loss narrowed to $457 in Q2 2025, an improvement of $54 compared to a net loss of $511 in Q2 2024, with the improvement driven by higher revenue and partially offset by a $456 non-cash foreign exchange loss; and,
- Adjusted EBITDA(1) increased 241% to $778 for the quarter, compared to $228 in Q2 2024, primarily due to higher revenue.
"Q2 performance highlights the strength of our strategy, with meaningful top-line growth driven by our growing international presence and increased market share in North America. These results reflect the strength of our model and our ability to execute, even in a softer domestic environment," commented Riley Taggart, Cleantek's President and Chief Executive Officer.
Looking ahead to Q3, Cleantek will continue to prioritize higher equipment utilization, global market expansion, and balance sheet strength. The Company's lean cost structure and integrated team approach provide a solid foundation for scalable growth in a rapidly evolving industry.
Cleantek's research and development team continues to enhance the performance of our evaporator solutions by increasing salt and solids tolerance, while also pursuing manufacturing efficiencies aimed at improving long-term margins and innovation across Cleantek's solutions.
Results of Operations
| (Canadian $000's, except | Three months ended June 30 | Six months ended June 30 | ||||||
| per share amounts and percentages) | 2025 | 2024 | Change | 2025 | 2024 | Change | ||
| Revenue | 3,352 | 2,411 | 940 | 7,057 | 6,081 | 976 | ||
| Gross profit | 1,782 | 1,285 | 497 | 4,128 | 3,657 | 471 | ||
| Gross profit % | 53 | 53 | (0)% | 58 | 60 | (2)% | ||
| Net (loss) income | (457) | (511) | 54 | (7) | 11 | (18) | ||
| Net (loss) income per share - basic ($) | $(0.02) | $(0.02) | $0.00 | $(0.00) | $0.00 | $0.00 | ||
| Net (loss) income per share - diluted ($) | $(0.02) | $(0.02) | $(0.00) | $(0.00) | $0.00 | $0.00 | ||
| EBITDA(1) | 278 | 310 | (32) | 1,472 | 1,716 | (244) | ||
| Adjusted EBITDA(1) | 778 | 228 | 550 | 2,044 | 1,435 | 609 | ||
| Capital expenditures | 134 | 80 | 54 | 819 | 231 | 589 | ||
| As at: | June 30, 2025 | December 31, 2024 | Change | |||||
| Total assets | 14,537 | 13,641 | 896 | |||||
| Working capital deficit(1) | (1,242) | (1,939) | 697 | |||||
| Non-current debt(1) | 7,493 | 7,085 | (408) | |||||
| Total non-current liabilities | 7,493 | 7,085 | (408) | |||||
(1) Management considers EBITDA and adjusted EBITDA key metrics in analyzing operational performance and the Company's ability to generate cashflow. EBITDA is measured as net income (loss) before interest, tax, depreciation and amortization. Adjusted EBITDA is measured as EBITDA adjusted for share-based compensation and unusual items not representative of ongoing business performance such as gains and losses on the sale of assets and the impact of unrealized foreign exchange gains and losses. Working capital (or also referred to as net current assets/liabilities) for Cleantek is calculated as current assets less current liabilities per the statement of financial position. Non-current debt includes the non-current portion of long-term debt and lease liabilities per the Non-Current Liabilities on the statement of financial position. These items are not defined and have no standardized meaning under IFRS. Presenting these items from period to period provides management and investors with the ability to evaluate earnings trends more readily in comparison with prior periods' results. Please see "Non-IFRS Measurements" for further discussion of these items, and where applicable, reconciliations to measures calculated in accordance with IFRS.
About Cleantek Industries Inc.
Cleantek is a clean energy technology company focused on ESG-accretive solutions, providing specialized and fully integrated wastewater treatment, disposal equipment, and turnkey sustainable lighting rental solutions. By leveraging patented technology and industry expertise, Cleantek delivers tailored, cost-effective solutions to a diverse client base, including blue-chip exploration and production companies across North America. With a focus on sustainability, safety, and operational excellence, Cleantek is well-positioned to meet the rising water treatment and sustainable lighting market demand. Our proven track record and commitment to innovation drive long-term value creation in the clean technology sector.
Selected financial and operation information is outlined below and should be read in conjunction with Cleantek's unaudited condensed consolidated interim financial statements and management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2025 and the audited consolidated financial statements for the years ended December 31, 2024 and 2023, which are available on the Company's SEDAR profile at www.sedarplus.ca.
NON-IFRS MEASUREMENTS
Cleantek uses certain financial measures to quantify its results that are not prescribed by IFRS. The following terms: "EBITDA", "adjusted EBITDA", "working capital" and "non-current debt" are not recognized measures under IFRS and may not be comparable to that reported by other companies. Cleantek believes that, in addition to measures prepared in accordance with IFRS, the non-IFRS measurements provide useful information to evaluate the Company's performance and ability to generate cash, profitability and meet financial commitments.
These non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
EBITDA and Adjusted EBITDA
Management considers EBITDA and adjusted EBITDA key metrics in analyzing operational performance and the Company's ability to generate cash flow. EBITDA is measured as net income (loss) before interest, tax, depreciation and amortization as differences in accounting treatments may distort our core business results. Adjusted EBITDA is measured as EBITDA adjusted for certain non-cash items, including share-based compensation, gains and losses on sale of assets, impact of unrealized foreign exchange gains and losses as well as unusual items not representative of ongoing business performance, such as litigation expense and settlements, and executive severance.
The following table provides a reconciliation of the non-IFRS measures, EBITDA, and adjusted EBITDA, to the applicable IFRS measurements for Cleantek:
| Three months ended June 30 | Six months ended June 30 | |||
| (Canadian $000's) | 2025 | 2024 | 2025 | 2024 |
| Net income (loss) | (457) | (511) | (7) | 11 |
| Tax expense | 22 | - | 44 | 36 |
| Depreciation and amortization | 488 | 576 | 995 | 1,169 |
| Finance costs | 225 | 245 | 440 | 500 |
| EBITDA | 278 | 310 | 1,472 | 1,716 |
| Share-based compensation | 44 | 21 | 70 | 50 |
| (Gain) loss on disposal of assets | - | (31) | 41 | (35) |
| Unrealized FX (gain) loss | 456 | (72) | 461 | (296) |
| Adjusted EBITDA | 778 | 228 | 2,044 | 1,435 |
Working capital
Working capital (or also referred to as net current assets/liabilities) for Cleantek is calculated as current assets less current liabilities per the statement of financial position. The following table provides a reconciliation of working capital, a non-IFRS measure, to the applicable IFRS measurements for the Company:
| June 30 | December 31 | |
| (Canadian $000s) | 2025 | 2024 |
| Current assets | 4,117 | 3,228 |
| Current liabilities | 5,359 | 5,167 |
| Working capital deficit | (1,242) | (1,939) |
Non-current debt
Management considers non-current debt in analyzing the Company's capital structure. Cleantek's capital structure consists of working capital, non-current debt and shareholders' equity. Non-current debt measures the long-term borrowings of the Company. Non-current debt for Cleantek is calculated as the non-current portions of long-term debt and lease liabilities. The following table provides a reconciliation of non-current debt, a non-IFRS measure, to the applicable IFRS measurements for the Company:
| June 30 | December 31 | |
| (Canadian $000s) | 2025 | 2024 |
| Long-term debt - non-current portion | 6,738 | 6,534 |
| Lease liabilities - non-current portion | 755 | 551 |
| Non-current debt | 7,493 | 7,085 |
Executive Departure
The Company wishes to announce that Orson Ross, Chief Financial Officer, will be leaving Cleantek in September 2025. Mr. Ross joined the Company in 2022. Since then, Orson has made significant contributions to the Company's success. The Company wishes to thank him for his service and wishes him well in his future endeavours.
For Further Information:
Riley Taggart, President & Chief Executive Officer
E-mail: rtaggart@cleantekinc.com
Tel: 403-567-8700
www.cleantekinc.com
LinkedIn
X
Forward-Looking Statements
This news release contains certain "forward looking statements" including, for example, statements relating to expected improved financial flexibility, additional growth, potential middle east expansion, expansion of Cleantek's fleet of sustainable lighting solutions and EcoSteam wastewater treatment assets, the expected deployment of Cleantek's assets, available liquidity, Cleantek's outlook for the future and near-term strategy. Such forward-looking statements involve risks and uncertainties, both known and unknown. The results or events depicted in these forward-looking statements may differ materially from actual results or events. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding and are implicit in, among other things: receipt of regulatory approvals, the state of the capital markets, the ability of the Corporation to successfully manage the risks inherent in pursuing business opportunities in the oilfield services industry and outside the North American market, and the ability of the Corporation to obtain qualified staff, equipment and services in a timely and cost efficient manner to develop its business. Any forward-looking statement reflects information available to Cleantek as of the date of this news release and, except as may be required by applicable securities laws, Cleantek disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/262543
SOURCE: Cleantek Industries Inc.
