Blumetric Environmental (BLM) Q2 2026 earnings summary

Executive summary

• Q2 fiscal 2026 revenue increased 15% year-over-year to CAD 18.3 million, driven by the acquisition of DS Consultants, Rheinmetall Mission Ready Water systems production, and increased Government market activity, despite seasonal weakness and a longer winter impacting professional services.

• WaterTech USA revenues declined due to project completions and commissioning phases, but new contracts, strong order bookings, and a robust pipeline support future growth; manufacturing capacity in Gainesville is being doubled to 50,000 sq ft.

• Military market revenues surged 78% year-over-year, mainly from the Rheinmetall contract, with strong quoting activity and expectations for further long-term contracts; full delivery expected by end of Q3 2026.

• Government market revenues grew 31% year-over-year, benefiting from improved appropriations and rebounding from last year's prorogation impact.

• Management expects Q3 and Q4 to be the strongest revenue and EBITDA quarters, with all business segments running at high utilization.

Financial highlights

• Q2 2026 revenue: CAD 18.3 million (up from CAD 15.9 million year-over-year).

• Gross margin for Q2 2026 was 27% (down from 31% in Q2 2025), attributed to higher-margin professional services.

• Adjusted EBITDA was a loss of CAD 0.626 million, down from a positive CAD 0.6 million last year, due to off-season DS Consultants results and lower WaterTech USA margins.

• Net loss of CAD 1.13 million, compared to a net loss of CAD 60,000 in Q2 2025.

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

Outlook and guidance

• Q3 and Q4 expected to be the highest revenue and EBITDA quarters, with strong utilization across all divisions and Professional Services entering peak season.

• Anticipated profitability in Q3 and Q4, supported by seasonal upswing, cost reductions from integration efforts, and improved operating leverage from recent investments.

• Continued focus on integrating DS Consultants, expanding U.S. manufacturing, and capitalizing on military and mining market opportunities.

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