Ottawa, Ontario–(Newsfile Corp. – February 25, 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 December 31, 2025.
Consolidated Financial Highlights
Revenue for the fiscal quarter was $20.3 million for the period ended December 31, 2025, compared to $14.0 million for the same period in 2024, representing an increase of 45%.
Gross margin for the quarter ended December 31, 2025, was 28% compared to 33% for the same quarter in the previous year.
Adjusted EBITDA (see definition below) for the quarter ended December 31, 2025, was $0.9 million, compared to $1.3 million in the same quarter of the previous year.
Net loss for the quarter ended December 31, 2025, was $67 thousand compared to net income of $378 thousand in the same quarter of the previous year.
Working capital (see definition below) as at December 31, 2025, was $10.7 million, compared to $9.3 million as at December 31, 2024.
Net cash (see definition below) as at December 31, 2025, was $1.8 million, compared to net cash of $3.7 million at December 31, 2024.
During the fiscal quarter, the Company successfully completed its acquisition of Ontario-based DS Consultants Ltd. (“DS Consultants”) on December 10, 2025, and completed a brokered offering for gross proceeds of $15.0 million.
“We started this fiscal year with a record revenue quarter before taking into full consideration our largest acquisition to date,” stated Scott MacFabe, CEO of BluMetric Environmental Inc. “BluMetric has hit another milestone as we take advantage of key investments to capitalize on secular tailwinds within our Military, Mining, and Caribbean markets. This diversified approach, along with the integration of DS Consultants, is expected to help us achieve a solid balance of Professional Services and WaterTech revenues, while giving us a platform for organic growth and improved profitability.”
Business Highlights and Outlook
In the fiscal quarter, BluMetric saw revenue growth (45% increase year-over-year) while remaining within its target gross margin range. The revenue growth was mainly driven by the acquisition of DS Consultants, the production of the Rheinmetall Mission Ready Water systems, and higher activity in the Company’s Mining market. This was growth offset by a slight decrease in revenues from WaterTech USA (Gemini Water) as the entity transitions to higher volume, smaller projects after completing the flagship St. Kitts Bird Rock facility.
The Company recognized $1.5 million of revenue from DS Consultants as the acquisition closed on December 10, 2025. The winter months are historically a slower period for DS Consultants. BluMetric will see full contribution in fiscal Q2 2026 and onward and aims to support the acquisition’s progressive annual EBITDA targets of $4.0, $5.0, and $6.0 million over the next three years, respectively.
The Military market revenues increased by 225% due to the production of the Rheinmetall contract and these systems are expected to be fully delivered in fiscal Q3 2026. Canada’s recently announced Defence Industrial Strategy presents a unique opportunity for BluMetric to capitalize on the country’s larger-scale commitments and emphasis on procurement from Canadian firms. Furthermore, Mining revenues increased by 72% due to increased industry activity as economics become more favourable for developers and producers. BluMetric expects the Mining market momentum to continue this fiscal year.
BluMetric continues to remain focused on driving not only revenue growth but also profitable expansion through greater scale and operating leverage. This strategy is supported by several favourable trends such as ongoing water scarcity and infrastructure development in North America, rising military spending fueled by geopolitical tensions, and the onset of a new mining cycle with higher commodity prices.
The Company believes that the continued combination of its unique water technologies, growing demand for resilient and decentralized water solutions, and expert personnel, better positions the Company. This remaining fiscal year will provide an opportunity for the Company to demonstrate its continued ability to drive execution and achieve its long-term growth and earnings goals.
Financial Highlights Table
Three Months Ended December 31, 2025
Three Months Ended December 31, 2024
($000)
($000)
Revenue
20,291
13,967
Gross profit
5,651
4,611
Gross margin
28%
33%
Operating expenses
5,994
3,834
Operating expenses, net of depreciation and amortization1
5,177
3,392
Depreciation and amortization
817
442
Acquisition costs
333
–
Restructuring costs
240
–
Operating profit (loss)
(343)
777
Finance costs
97
84
Earnings (loss) before income tax
(773)
693
Income tax expense (recovery)
(706)
315
Net earnings (loss)
(67)
378
Earnings (loss) per share – basic
(0.00)
0.01
Earnings (loss) per share – diluted
(0.00)
0.01
EBITDA2
339
1,310
Adjusted EBITDA3
912
1,310
Free cash flow4
(206)
618
Working capital5
10,742
9,253
Net cash (debt)6
1,789
3,706
Note 1: 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 2: 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.
Note 3: 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 4: 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 5: 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 6: 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.
BluMetric to Host Investor Conference Call BluMetric will host a conference call on Thursday, February 26, 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/48WP8gF 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.
Lastly, the Board of Directors has approved an amended and restated stock option plan (the “2026 Plan”). Under the 2026 Plan, the maximum number of shares which may be issued as stock options is increased from 5,500,000 to 7,500,000, representing approximately 13.75% of BluMetric’s issued and outstanding shares as of the date of approval. The 2026 Plan is subject to approval by the Company’s shareholders and final approval of the TSX Venture Exchange. At the Company’s annual and special meeting of shareholders scheduled for March 31, 2026, shareholders will be asked to consider and, if deemed appropriate, approve the 2026 Plan.
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 335 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.
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.
