Blumetric Environmental (BLM) investor relations material

Executive summary

• Q2 fiscal 2026 revenue rose 15% year-over-year to CAD 18.3 million, driven by the DS Consultants acquisition and increased Military and Government market activity, despite it being the seasonally weakest quarter for professional services.

• Military market revenue surged 78% year-over-year, mainly from the Rheinmetall contract and Mission Ready Water systems production.

• WaterTech USA revenues were lower due to project completion and commissioning phases, but strong order bookings and pipeline remain.

• Net loss for the quarter was CAD 1.13 million, compared to a net loss of CAD 60,000 in the prior year.

Financial highlights

• Revenue: CAD 18.3 million (Q2 2026) vs. CAD 15.9 million (Q2 2025).

• Gross margin for Q2 2026 was 27%, down from 31% in Q2 2025.

• Adjusted EBITDA was a loss of CAD 0.626 million, down from a positive CAD 0.6 million last year.

• Net cash balance at quarter-end: CAD 2.86 million, with total cash availability of CAD 6.9 million.

• Working capital stood at CAD 9.94 million.

Outlook and guidance

• Q3 and Q4 are expected to be the strongest revenue and EBITDA quarters, with all business units running at high utilization.

• Anticipated profitability in Q3 and Q4, supported by seasonal upswing and cost reductions.

• Strong order bookings and visibility for WaterTech; plans to double U.S. manufacturing footprint.

• Growth supported by water scarcity, infrastructure development, rising military spending, and a new mining cycle.