Blumetric Environmental (BLM) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue rose to CAD 14.7 million from CAD 8 million year-over-year, driven by WaterTech USA (Gemini) acquisition and strong organic growth.

• Military market revenues surged 76% due to new contracts, including a CAD 3.8 million deal with Thales Canada for Navy water systems.

• Professional services segment faced lower utilization and profitability due to project delays and increased non-billable labor, but a rebound began at the end of Q3.

• EBITDA for the quarter was CAD 308,000, down from CAD 356,000 year-over-year, mainly due to lower utilization in professional services.

• Net loss for the quarter was CAD 451,000, compared to breakeven last year.

Financial highlights

• Revenue for Q3 2025: CAD 14.7 million, up from CAD 8 million in Q3 2024; nine-month revenue at CAD 44.6 million versus CAD 23.8 million prior year.

• Gross margin declined to 36% from 44% year-over-year, reflecting a higher share of WaterTech sales.

• Operating expenses increased to CAD 5.6 million from CAD 3.4 million, mainly due to Gemini acquisition and higher non-billable labor.

• Net loss per share for Q3 2025 was $(0.01), compared to $0.00 last year.

• Net cash position of CAD 3.4 million as of June 30, 2025, compared to net debt of CAD 157,000 a year ago.

Outlook and guidance

• Management expects Q4 and Q1 to be seasonally strong for professional services, with utilization at an all-time high.

• EBITDA margins are projected to improve in Q4, with expectations of 6-7% for the quarter; 10% remains a longer-term aspirational target.

• Full-year 2025 EBITDA is expected to surpass 2024 levels.

• Continued focus on expanding WaterTech footprint in the Caribbean and southern U.S., and pursuing accretive acquisitions.

• Ongoing assessment of Professional Services acquisitions to strengthen operations.