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 strategy focused on frequency, adjacency, and repeatability.

• Six new contracts announced since strategy inception, with diversified geographic focus and client base.

• Industry recognition increased, including winning the Best Exploration Technology Award at the 2023 Gulf Energy Awards and being a finalist at the Platts Global Energy Transition Award.

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

Financial highlights

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

• Net income of CAD 7.68 million (USD 7.68 million) in Q1 2025, compared to a net loss of CAD 1.7 million (USD 1.79 million) in Q1 2024.

• Net income per share was CAD 0.10 basic and CAD 0.08 diluted, versus a loss of CAD 0.02 per share in Q1 2024.

• Cash flow from operating activities was CAD 1.47 million (USD 1.47 million), compared to negative CAD 590,000 (USD 0.59 million) in Q1 2024.

• Cash and short-term investments at quarter-end were CAD 2.03 million (USD 2.03 million); net working capital improved to CAD 610,000 (USD 0.61 million) from negative CAD 6.68 million at year-end 2024.

Outlook and guidance

• Strong revenue year expected, with a full calendar for 2025 and high prospects for early 2026.

• No specific revenue guidance provided due to contract confidentiality, but management anticipates continued strong performance.

• Focus remains on executing announced contracts and expanding the sales funnel.

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