Ottawa, Ontario--BluMetric Environmental Inc. (TSXV: BLM) (OTCQX: BLMWF) announces its financial results for the fiscal quarter ended December 31, 2025.
Consolidated Financial Highlights
"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 a remarkable revenue growth of 45% year-over-year while maintaining its target gross margin range. This growth was primarily driven by the acquisition of DS Consultants, the production of the Rheinmetall Mission Ready Water systems, and heightened activity in the Company's Mining sector. However, this growth was partially offset by a slight decrease in revenues from WaterTech USA (Gemini Water) as it transitions to higher volume, smaller projects following the completion of the flagship St. Kitts Bird Rock facility.
The Company recognized $1.5 million of revenue from DS Consultants, which closed on December 10, 2025. Typically, the winter months are a slower period for DS Consultants, but BluMetric anticipates a full contribution in fiscal Q2 2026 and beyond, with progressive annual EBITDA targets of $4.0, $5.0, and $6.0 million over the next three years.
Revenue from the Military market surged by 225%, driven by the Rheinmetall contract, with full delivery of these systems expected in fiscal Q3 2026. Canada's recently unveiled Defence Industrial Strategy provides BluMetric a unique opportunity to leverage the country's larger-scale commitments and focus on procurement from Canadian firms. Moreover, Mining revenues rose by 72% due to increased industry activity as economic conditions become more favorable for developers and producers. BluMetric anticipates this momentum to prevail throughout the fiscal year.
BluMetric remains committed to not only driving revenue growth but also ensuring profitable expansion through enhanced scale and operating leverage. This strategy is underpinned by several favorable trends, including ongoing water scarcity and infrastructure development in North America, increased military spending driven by geopolitical tensions, and the onset of a new mining cycle with rising commodity prices.
The Company believes that the combination of its innovative water technologies, increasing demand for resilient decentralized water solutions, and expert personnel positions it well for future success. This fiscal year presents an opportunity for the Company to demonstrate its capacity for execution and to achieve its long-term growth and earnings objectives.
Important Notes
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.
For the complete results, visit sedarplus.ca.
BluMetric will host an investor 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, register and enter your phone number at this link at least 15 minutes before the call's start time or later to receive an instant automated callback.
Shareholders will also be asked to approve the amended stock option plan at the upcoming annual meeting scheduled for March 31, 2026.
About BluMetric Environmental Inc.: BluMetric Environmental Inc. is a publicly traded water technology and environmental engineering firm, designing and delivering sustainable solutions for complex water and environmental challenges. With over 335 employees across 16 offices and 3 manufacturing facilities, BluMetric has been serving clients in North America and the Caribbean for over 50 years. For more information, visit www.blumetric.ca.
Some statements in this release are forward-looking and are subject to risks and uncertainties. Readers are cautioned not to place undue reliance on these statements. For more details on risks, refer to the Company's continuous disclosure documents available on SEDAR+.