Blumetric Environmental (BLM) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 FY2026 revenue of CAD 20.3 million, 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 CAD 1.5 million in revenue for 20 days; full impact expected in future quarters.

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

• Military market revenue surged 225% year-over-year due to Rheinmetall contract deliveries, with completion expected by end of Q3.

• Strategic focus on balancing growth between professional services and WaterTech, aiming for CAD 100 million annual revenue and 10% EBITDA margin.

Financial highlights

• Q1 FY2026 revenue: CAD 20.3 million, up from CAD 14 million in Q1 FY2025, a 45% increase.

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

• Adjusted EBITDA: CAD 0.9 million, down from CAD 1.3 million prior year, impacted by higher operating expenses and lower gross margin.

• Net loss: CAD 67,000 vs. net earnings of CAD 378,000 prior year.

• Net cash balance: CAD 1.8 million at Dec 31, 2025, down from CAD 3.7 million a year earlier; total cash availability of CAD 5.8 million.

Outlook and guidance

• Expect full benefit of DS Consultants acquisition in Q2 and beyond, targeting annual EBITDA of CAD 4–6 million from DS over next three years.

• Anticipate continued strength in mining and military markets, with strong pipeline for WaterTech USA and Caribbean projects.

• Q3 and Q4 projected to be strongest quarters, with seasonality favoring higher professional services deployment.

• Management reiterates ambition for CAD 100 million top line and 10% EBITDA margin as scale and operational discipline improve.

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