BluMetric Announces Q3 2026 Financial Results
Rhea-AI Summary
BluMetric (OTCQX: BLMWF) reported Q3 2026 revenue of CA$20.9 million, up 43% year-over-year, driven by WaterTech USA, contributions from DS Consultants and Whitteker Environmental (CA$5.98 million impact), and higher Professional Services utilization. Gross margin rose to 37% from 36%, while Adjusted EBITDA increased to CA$1.06 million from CA$0.31 million.
The company posted a Q3 net loss of CA$0.76 million, compared with a CA$0.45 million loss, mainly due to CA$1.89 million of non-cash depreciation, amortization and share-based compensation, partly offset by a CA$0.30 million income tax recovery. Free cash flow improved to CA$0.66 million and working capital reached CA$9.50 million, with net cash at CA$1.16 million. Mining market revenue grew 63%, while Government and Military revenues declined on contract timing and the completion of the Rheinmetall project. BluMetric also signed a lease for a new 49,000 sq. ft. Gainesville, Florida facility, nearly doubling WaterTech USA’s manufacturing footprint starting October 1, 2026.
Positive
- Revenue +43% YoY in Q3 2026 to CA$20.9 million
- Gross margin improved to 37% from 36% in Q3
- Adjusted EBITDA rose to CA$1.06 million from CA$0.31 million
- Free cash flow increased to CA$0.66 million from CA$0.27 million
- Mining market revenue grew 63% in the quarter
- New 49,000 sq. ft. Gainesville facility nearly doubles WaterTech USA capacity
Negative
- Q3 net loss widened to CA$0.76 million from CA$0.45 million
- Nine‑month net loss increased to CA$1.96 million from CA$0.13 million
- Operating expenses rose to CA$8.63 million from CA$5.61 million in Q3
- Nine‑month EBITDA declined to CA$0.61 million from CA$2.22 million
- Net cash decreased to CA$1.16 million from CA$3.42 million
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Delivered
Ottawa, Ontario--(Newsfile Corp. - August 26, 2026) - BluMetric Environmental Inc. (TSXV: BLM) (OTCQX: BLMWF) ("BluMetric" or "the Company"), an engineering WaterTech and full-service environmental consulting firm, announces its financial results for the fiscal quarter ended June 30, 2026.
Q3 2026 Select Financial Highlights
(in CA$ thousands, unaudited)
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Additional Context | |
| Revenue | 20,920 | 14,671 | Increased |
| Gross margin | Improved gross margin from revenue mix and higher Professional Services utilization, and represents a significant improvement over previous three fiscal quarters | ||
| Adjusted EBITDA1 | 1,059 | 308 | Higher YOY as the Company achieved operating leverage with increased revenues and gross profit. EBITDA was offset by investments in WaterTech USA's O&M services, and larger overhead to support the Company's continued growth |
| Net earnings (loss) | (756) | (451) | Mainly driven by |
| Free Cash Flow2 | 658 | 271 | Reflects improvements in both EBITDA and operating cash flow generation |
| Working capital3 | 9,497 | 8,520 | Remains strong to execute on growth plan |
| Net cash4 | 1,160 | 3,422 | Decrease reflects customer payments timing |
"We are proud of our execution this period, which led to another revenue record for the quarter," stated Scott MacFabe, CEO of BluMetric Environmental Inc. "A number of our investments have started to pay off as shown with our higher operating leverage, while simultaneously making investments in WaterTech. As BluMetric enters its highest utilization fiscal quarter for Professional Services, our goal is to finish the fiscal year strong and demonstrate the success of our M&A integration strategy."
Business Highlights and Outlook
In the fiscal quarter, BluMetric saw significant revenue growth (
WaterTech USA's (Gemini Water) revenue growth was supported by the build phase of several projects, which skew toward higher revenue generation. Subsequent to the quarter, the Company signed a 49,000 sq. foot lease for an expanded facility in Gainesville, Florida. The new lease will commence on October 1, 2026, and nearly doubles WaterTech USA's manufacturing footprint. The Company believes the expansion is critical to supporting existing and future potential demand for its desalination and wastewater treatment products and services for the U.S. and Caribbean markets.
To date, BluMetric has been carrying the costs of its new O&M division to establish the first initial contracts and execute a higher-margin, more recurring service line for WaterTech USA. Along with the first O&M contract for its St. Kitts Bird Rock project, the Company continues to be in discussions with multiple clients to implement service agreements across groups of existing equipment installations.
Furthermore, the Mining market revenues increased
As BluMetric enters the last quarter in its fiscal year, it is focused on executing what it expects to be its seasonally strongest quarter for Professional Services. DS Consultants in particular, has historically generated a significant amount of its revenues and EBITDA during fourth fiscal quarter. For WaterTech, the Company is in a transition phase as it prepares for manufacturing capacity expansion in Florida and aims to secure its next flagship Military contracts. In addition, the new ERP implementation went live and is expected to help with further efficiencies and M&A integration.
Overall, the Company believes that it is well positioned with its unique water technologies, growing demand for resilient and decentralized water solutions, and expert personnel. Water is becoming ever scarcer, and the environment more volatile, requiring the expertise of the Company's personnel and technologies. BluMetric strives to demonstrate excellence in its execution, operations, and build a foundation for further longer-term growth.
Financial Highlights Table
(in CA$ thousands, except per share data, unaudited)
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Nine Months Ended June 30, 2026 | Nine Months Ended June 30, 2025 | |
| Revenue | 20,920 | 14,671 | 59,488 | 44,564 |
| Gross profit | 7,792 | 5,213 | 19,071 | 14,131 |
| Gross margin | ||||
| Operating expenses | 8,628 | 5,608 | 22,004 | 13,740 |
| Operating expenses, net of depreciation and amortization5 | 7,008 | 5,051 | 18,705 | 12,249 |
| Operating profit (loss) | (836) | (395) | (2,933) | 391 |
| Finance costs | 110 | 83 | 324 | 238 |
| Earnings (loss) before provision for income tax | (1,058) | (478) | (3,743) | 153 |
| Income tax expense (recovery) | (302) | (27) | (1,787) | 286 |
| Net earnings (loss) | (756) | (451) | (1,956) | (133) |
| Earnings (loss) per share – basic | (0.01) | (0.01) | (0.04) | (0.00) |
| Earnings (loss) per share – diluted | (0.01) | (0.01) | (0.04) | (0.00) |
| EBITDA6 | 946 | 308 | 607 | 2,217 |
| Adjusted EBITDA | 1,059 | 308 | 1,346 | 2,217 |
| Free cash flow | 658 | 271 | (166) | 760 |
| Working capital | 9,497 | 8,520 | ||
| Net cash | 1,160 | 3,422 |
Note 1: Adjusted EBITDA is a non-IFRS measure and is calculated as net income before interest expense, income taxes, depreciation of property and equipment, and amortization of intangible assets net of acquisition and restructuring costs and non-cash share compensation. The Company uses this measure as part of assessing operating performance. There is no direct comparable IFRS measure for Adjusted EBITDA.
Note 2: Free cash flow is a non-IFRS measure and is calculated as operating cash flows less net capital expenditures and net payment of lease obligations.
Note 3: Working capital is a non-IFRS measure and is calculated by subtracting current liabilities from current assets. There is no directly comparable measure under IFRS.
Note 4: Net cash (debt) is a non-IFRS measure and is calculated as cash less total funded debt excluding lease liabilities. The Company uses this measure as part of assessing liquidity. There is no directly comparable measure under IFRS.
Note 5: Operating expenses, net of depreciation and amortization is a non-IFRS measure and is calculated as operating expenses less depreciation and amortization. The Company uses this measure as part of assessing operating performance. There is no direct comparable IFRS measure.
Note 6: EBITDA is a non-IFRS measure and is calculated as net income before interest expense, income taxes, depreciation of property and equipment, and amortization of intangible assets net of non-cash share compensation. The Company uses this measure as part of assessing operating performance. There is no direct comparable IFRS measure for EBITDA.
The full results are available at sedarplus.ca.
BluMetric to Host Investor Conference Call
BluMetric will host a conference call on Thursday, August 27, 2026, at 9:00 AM ET (6:00 AM PT) to discuss the results. To join the conference call without operator assistance, it's important to register and enter your phone number at https://emportal.ink/4rGG9WV at least 15 minutes before the call's start time or later to receive an instant automated callback.
You can also dial directly to be entered into the call by an Operator. Please dial 1-888-699-1199 (Toll-Free North America) or 1-416-945-7677 (Local).
The replay of the conference call will be available on the Company's investor relations website at blumetric.ca.
About BluMetric Environmental Inc.
BluMetric Environmental Inc. is a publicly traded water technology and environmental engineering firm. BluMetric designs, fabricates, and delivers sustainable solutions to complex water and environmental challenges. The Company is supported by more than 360 employees across 16 offices and 3 manufacturing facilities, with over 50 years of history. Headquartered in Ottawa, Ontario, BluMetric's team of industry experts serves Commercial and Industrial, Government, Military, and Mining clients in North America and the Caribbean.
For more information, visit www.blumetric.ca or please contact:
| Scott MacFabe, Chair and CEO | Dan Hilton, CFO |
| BluMetric Environmental Inc. | BluMetric Environmental Inc. |
| Tel: 1-877-487-8436 x242 | Tel: 1-877-487-8436 x550 |
| Email: smacfabe@blumetric.ca | Email: dhilton@blumetric.ca |
| Brandon Chow, Principal & Founder | |
| Panolia Investor Relations Inc. | |
| Tel: 1-647-598-8815 | |
| Email: brandon@panoliair.com |
Forward-Looking Statements
Some of the statements in this press release, including those relating to the Company's quarterly and annual results, future products, opportunities and cost initiatives, strategies, and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, are forward-looking statements within the meaning of applicable Canadian securities laws. Forward-looking statements include, without limitation, the information concerning possible or assumed future results of operations of the Company. These statements are not historical facts but instead represent only the Company's expectations, estimates, and projections regarding future events. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's most recent annual MD&A and the Company's continuous disclosure documents that can be found on SEDAR+ at www.sedarplus.ca. The Company does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/311644