Ottawa, Ontario--(Newsfile Corp. - May 27, 2026) - BluMetric Environmental Inc. (TSXV: BLM) (OTCQX: BLMWF) ("BluMetric" or "the Company"), an engineering WaterTech and full-service environmental consulting firm, announces its financial results for the fiscal quarter ended March 31, 2026.
Q2 2026 Select Financial Highlights
(in CA$ thousands, unaudited)
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | Additional Context | |
| Revenue | 18,277 | 15,926 | Increased 15% YOY (mainly driven by DS Consultants), while fiscal Q2 typically weakest revenue quarter in Professional Services due to winter seasonality, and WaterTech USA revenue generation lower due to executing completion and commissioning phase of projects |
| Gross margin | 31% | 27% | Improved gross margin and within target range |
| Adjusted EBITDA1 | (626) | 600 | Lower YOY due to higher operating expenses from DS Consultants, lower utilization due to seasonality, investments in recurring O&M services, and increased business development |
| Net earnings (loss) | (1,134) | (60) | $862 associated with non-cash depreciation and amortization, and lower mainly due to higher overhead and carrying costs to deliver higher expected revenue quarters |
| Free Cash Flow2 | (649) | (129) | Reflects investment requirements during scale-up |
| Working capital3 | 9,943 | 8,612 | Slight improvement and remains strong to execute on growth plan |
| Net cash4 | 2,859 | 2,219 | Positive and 28% increase due to payments timing, along with access to $6,859 in available liquidity |
"We were able to deliver 15% revenue growth during our seasonally weakest revenue quarter in the fiscal year for Professional Services," stated Scott MacFabe, CEO of BluMetric Environmental Inc. "Our goal for the remaining fiscal year is to deliver on our growth plan and achieve operating leverage from recent investments. We expect to see significantly higher revenue generation from Professional Services as they enter the Spring season and have strong order bookings and visibility from our WaterTech business."
Business Highlights and Outlook
In the fiscal quarter, BluMetric saw revenue growth (15% increase year-over-year) and improvements to its gross margin by 400 basis points. The revenue growth was mainly driven by the acquisition of DS Consultants (impact of $3,893), the production of the Rheinmetall Mission Ready Water systems, and higher activity in the Company's Government market. This was growth offset by lower utilization in Professional Services (including DS Consultants) due to a longer winter season and seasonality, impacting activity levels.
In addition, WaterTech USA (Gemini Water) saw lower revenues as the entity executed on the completion and commissioning phase of several projects where revenue is primarily driven by onsite revenues and lower component and parts sales. As evidenced by recent contract announcements, WaterTech USA has a strong pipeline and has recently showcased its flagship St. Kitts Bird Rock facility at a key Caribbean water conference. The Company plans to double its U.S. manufacturing footprint to 50,000 sq. feet to accommodate existing market demand.
The Military market revenues increased by 78% due to the production of Rheinmetall systems and are expected to be fully delivered by the end of fiscal Q3 2026. The Company has secured several contracts to backfill manufacturing capacity as the Rheinmetall deliveries conclude and continues to see record quoting levels for Military contracts. Furthermore, Government revenues increased by 31% due to the absence of government prorogation that impacted activity levels last year.
As BluMetric enters the remaining fiscal year, the Company remains focused on executing on what is expected to be its next two highest revenue quarters. This will allow for improved profitability and to showcase the results of its continued investments in growth and more recurring revenue. This growth is supported by several tailwinds such as ongoing water scarcity and infrastructure development in North America, rising military spending fueled by geopolitical tensions, and a new mining cycle with higher metals prices.
The Company believes that the continued combination of its unique water technologies, growing demand for resilient and decentralized water solutions, and expert personnel, well positions the Company. BluMetric strives to demonstrate excellence in its execution, operations, and build a foundation for further longer-term growth.
Financial Highlights Table
(in CA$ thousands, except per share data, unaudited)
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | Six Months Ended March 31, 2026 | Six Months Ended March 31, 2025 | |
| Revenue | 18,277 | 15,926 | 38,568 | 29,893 |
| Gross profit | 5,627 | 4,307 | 11,279 | 8,918 |
| Gross margin | 31% | 27% | 29% | 30% |
| Operating expenses | 7,383 | 4,297 | 13,404 | 8,131 |
| Operating expenses, net of depreciation and amortization5 | 6,521 | 3,805 | 11,725 | 7,197 |
| Operating profit (loss) | (1,755) | 10 | (2,098) | 787 |
| Finance costs | 117 | 71 | 214 | 155 |
| Earnings (loss) before provision for income tax | (1,913) | (61) | (2,713) | 632 |
| Income tax expense (recovery) | (779) | (1) | (1,485) | 314 |
| Net earnings (loss) | (1,134) | (60) | (1,200) | 318 |
| Earnings (loss) per share - basic | (0.02) | 0.00 | (0.02) | 0.01 |
| Earnings (loss) per share - diluted | (0.02) | 0.00 | (0.02) | 0.01 |
| EBITDA6 | (679) | 600 | (339) | 1,910 |
| Adjusted EBITDA | (626) | 600 | 287 | 1,910 |
| Free cash flow | (649) | (129) | (824) | 489 |
| Working capital | 9,943 | 8,612 | ||
| Net cash | 2,859 | 2,219 |
Note 1: Adjusted EBITDA is a non-IFRS measure and is calculated as net income before interest expense, income taxes, depreciation of property and equipment, and amortization of intangible assets net of acquisition costs and non-cash share compensation. The Company uses this measure as part of assessing operating performance. There is no direct comparable IFRS measure for Adjusted EBITDA.
Note 2: Free cash flow is a non-IFRS measure and is calculated as operating cash flows less net capital expenditures and net payment of lease obligations.
Note 3: Working capital is a non-IFRS measure and is calculated by subtracting current liabilities from current assets. There is no directly comparable measure under IFRS.
Note 4: Net cash (debt) is a non-IFRS measure and is calculated as cash less total funded debt excluding lease liabilities. The Company uses this measure as part of assessing liquidity. There is no directly comparable measure under IFRS.
Note 5: Operating expenses, net of depreciation and amortization is a non-IFRS measure and is calculated as operating expenses less depreciation and amortization. The Company uses this measure as part of assessing operating performance. There is no direct comparable IFRS measure.
Note 6: EBITDA is a non-IFRS measure and is calculated as net income before interest expense, income taxes, depreciation of property and equipment, and amortization of intangible assets. The Company uses this measure as part of assessing operating performance. There is no direct comparable IFRS measure for EBITDA.
The full results are available at sedarplus.ca.
Pursuant to the Company's Board compensation policy, BluMetric has granted options of 1,078,000 common shares to Employees and Executives of the Company. These options are granted effective May 27, 2026, vest over two years, and are exercisable into common shares of BluMetric at a price of $0.81 per share for a period of seven years.
BluMetric to Host Investor Conference Call
BluMetric will host a conference call on Thursday, May 28, 2026, at 9:00 AM ET (6:00 AM PT) to discuss the results. To join the conference call without operator assistance, it's important to register and enter your phone number at https://emportal.ink/4raxHzp at least 15 minutes before the call's start time or later to receive an instant automated callback.
You can also dial directly to be entered into the call by an Operator. Please dial 1-888-699-1199 (Toll-Free North America) or 1-416-945-7677 (Local).
The replay of the conference call will be available on the Company's investor relations website at blumetric.ca.
About BluMetric Environmental Inc.
BluMetric Environmental Inc. is a publicly traded water technology and environmental engineering firm. BluMetric designs, fabricates, and delivers sustainable solutions to complex water and environmental challenges. The Company is supported by more than 345 employees across 16 offices and 3 manufacturing facilities, with over 50 years of history. Headquartered in Ottawa, Ontario, BluMetric's team of industry experts serves Commercial and Industrial, Government, Military, and Mining clients in North America and the Caribbean.
For more information, visit www.blumetric.ca or please contact:
| Scott MacFabe, Chair and CEO BluMetric Environmental Inc. Tel: 1-877-487-8436 x242 Email: smacfabe@blumetric.ca | Dan Hilton, CFO BluMetric Environmental Inc. Tel: 1-877-487-8436 x550 Email: dhilton@blumetric.ca |
| Brandon Chow, Principal & Founder Panolia Investor Relations Inc. Tel: 1-647-598-8815 Email: brandon@panoliair.com |
Forward-Looking Statements
Some of the statements in this press release, including those relating to the Company's quarterly and annual results, future products, opportunities and cost initiatives, strategies, and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, are forward-looking statements within the meaning of applicable Canadian securities laws. Forward-looking statements include, without limitation, the information concerning possible or assumed future results of operations of the Company. These statements are not historical facts but instead represent only the Company's expectations, estimates, and projections regarding future events. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's most recent annual MD&A and the Company's continuous disclosure documents that can be found on SEDAR+ at www.sedarplus.ca. The Company does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events 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 release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/299109
Source: BluMetric Environmental Inc.
