Bri-Chem (BRY) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales rose 7% YoY to $20.5M, while adjusted EBITDA increased to $1.0M from $706K and net earnings were $157K versus a $488K loss.

• H1 sales were essentially flat at $40.4M; adjusted EBITDA reached $1.5M versus $264K in H1 2024.

Financial highlights

• Q2 operating earnings increased 24% YoY to $772K, partly due to lower bad debt expense.

• Q2 adjusted net earnings were $60K, or $0.01 per diluted share, versus an adjusted net loss of $584K, or $0.02 per share, in Q2 2024.

• H1 net loss narrowed to $255K from $1.994M; adjusted net loss narrowed to $558K from $2.351M.

• Q2 gross margin dollars decreased $152K YoY, primarily due to unfavorable product mix in fluid blending and packaging.

Outlook and guidance

• Canadian drilling fluids demand is expected to remain soft through Q3, with possible recovery in Q4 as customers prepare 2026 drilling programs.

• U.S. fluid distribution sales are expected to remain stable, supported by the Permian Basin and gradual improvement in California and the Rockies.

• North American rig activity is forecast to remain flat or decline slightly through year-end, with potential gradual recovery in early 2026.