Bri-Chem (BRY) investor relations material

Executive summary

• Q2 sales fell 24% YoY to $15.5M; adjusted EBITDA declined to $184K from $1.045M, mainly on lower U.S. fluid distribution sales and margins.

• Q2 net loss was $470K, versus net earnings of $157K a year earlier; adjusted net loss was $479K, versus adjusted net earnings of $60K.

Financial highlights

• Q2 consolidated sales were $15.505M, down $5.029M (24%) YoY; H1 sales were $32.072M, down $8.371M (21%).

• Q2 gross margin dollars declined $981K YoY, primarily due to lower U.S. fluid distribution sales.

• Q2 operating earnings were $29K, down $743K YoY; H1 operating earnings were $672K, down $77K (10%).

• Adjusted EBITDA was $184K in Q2, down $861K YoY; H1 was $996K, down $515K (34%).

• H1 net loss was $384K versus $255K; adjusted net loss was $281K versus $558K.

Outlook and guidance

• North American drilling conditions are expected to remain relatively stable through the rest of 2026, with limited overall activity growth; seasonal Canadian gains are expected to be largely offset by lower U.S. activity.

• Priorities include improving revenue quality and profitability, cutting overhead, evaluating the operating footprint, managing inventory, optimizing product mix, and protecting cash flow.

• Management expects strategic execution and a leaner, more flexible cost structure to support improved profitability as market conditions evolve; sustainable profitability remains the target.