Blumetric Environmental (BLM) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 FY2026 revenue of CAD 20.3M, up 45% year-over-year, driven by the DS Consultants acquisition, WaterTech Canada’s ASUWPS unit delivery, and strong mining and military market activity.

• DS Consultants acquisition closed December 10, contributing $1.5M revenue in Q1; full impact expected in Q2 and beyond.

• Completed a $15M brokered offering, expanding service capabilities and financial flexibility.

• Professional services division utilization normalized, rebounding from prior year lows.

• Strategic focus on balancing growth between professional services and WaterTech segments, leveraging scale and favorable industry trends.

Financial highlights

• Q1 FY2026 revenue: CAD 20.3M (vs. CAD 14M prior year); DS Consultants contributed CAD 1.5M.

• Gross margin: 28% (down from 33% prior year), mainly due to higher material and subcontractor costs in WaterTech.

• Adjusted EBITDA: CAD 0.9M (vs. CAD 1.3M prior year), impacted by higher operating expenses and lower gross margin.

• Net loss: CAD 67K (vs. net earnings of CAD 378K prior year).

• Net cash balance: CAD 1.8M at Dec 31, 2025 (vs. CAD 3.7M prior year); total cash availability CAD 5.8M.

Outlook and guidance

• Expect full benefit of DS Consultants acquisition in Q2 and onward, targeting annual EBITDA of CAD 4M, 5M, and 6M over next three years.

• Pathway to CAD 100M annual revenue and 10% EBITDA margin; high single-digit EBITDA targeted for current year.

• Q3 and Q4 anticipated to be strongest quarters due to seasonality and scale of acquisitions.

• Military and mining markets expected to remain strong; pipeline for WaterTech USA robust.

• Expects to capitalize on Canada's Defence Industrial Strategy and ongoing water infrastructure investments.