CHAR Technologies (YES) Q3 2025 earnings summary

Executive summary

• Focus shifted to core Build-Own-Operate (BOO) projects, exiting consulting operations to streamline for growth and efficiency.

• Thorold facility construction advanced, with BMI Group investing $2M and later $8M for a 50/50 joint venture.

• Strategic partnerships and government grants secured, including $6.6M from Natural Resources Canada and $2.5M from Québec for new projects.

• Commercial biocarbon and renewable natural gas (RNG) production targeted, with pilot and pelletization milestones achieved.

Financial highlights

• Revenue for Q3 2025 was $437,806, down from $995,461 in Q3 2024, reflecting the shift away from consulting.

• Net loss from continuing operations increased to $1,995,140 in Q3 2025 from $1,197,968 in Q3 2024, mainly due to higher professional fees and lower grant income.

• Gross profit declined to $51,316 in Q3 2025 from $85,413 in Q3 2024.

• Total assets as of June 30, 2025, were $14,777,335, with liabilities at $13,977,818 and shareholders’ equity at $799,517.

• Cash position was $964,858 at June 30, 2025, up slightly from $948,689 at September 30, 2024.

Outlook and guidance

• Thorold facility’s Phase 1 commercial biocarbon production is funded and on track, with Phase 2 RNG production targeting financial close by Q4 2025 and commissioning by Q3 2026.

• Expansion plans include replicating the Thorold model at new sites in Ontario and Québec, leveraging government and private funding.

• Management expects sufficient liquidity through 2025 via cash, working capital, and access to capital markets and grants.