NXT Energy Solutions (SFD) Q1 2025 earnings summary

Executive summary

• Achieved strongest quarterly results in nine years, driven by successful SFD survey execution and new business growth strategy focused on frequency, adjacency, and repeatability.

• Achieved strong Q1 2025 results driven by SFDⓇ survey bookings and execution, with significant revenue and net income growth compared to Q1 2024.

• Six new contracts announced since strategy inception, with a diversified client base and geographic reach across Africa, South and Southeast Asia, the Americas, and Turkey.

• Booked surveys for the remainder of 2025 and working on contracts for 2026, reflecting increased demand for SFDⓇ technology.

• Industry recognition increased, including winning the Best Exploration Technology Award at the 2024 Gulf Energy Awards.

Financial highlights

• SFD-related revenues reached CAD 12.6 million (or $12.46 million) in Q1 2025, up from CAD 600,000 (or $0.60 million) in Q1 2024.

• Net income was CAD 7.68 million (or $7.68 million), reversing a net loss of CAD 1.7 million (or $1.79 million) in Q1 2024.

• Net income per share was CAD 0.10 basic and CAD 0.08 diluted, compared to a loss of CAD 0.02 per share last year.

• Operating cash flow was positive at CAD 1.47 million, versus negative CAD 590,000 in Q1 2024.

• Cash and short-term investments stood at CAD 2.03 million as of March 31, 2025.

Outlook and guidance

• Full calendar for 2025 with high prospects for early 2026; focus remains on expanding pipeline in key geographies.

• Revenue growth expected to remain strong for the year, though quarter-over-quarter growth may not be linear due to project timing.

• New contract signed post-Q1 2025 for an SFDⓇ survey in Africa, scheduled to begin in Q3 2025.

• Continued emphasis on sustainable growth, prudent cost control, and business fundamentals.