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Cleantek Industries Reports Second Quarter 2026 Financial Results with Record Revenue

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Cleantek Industries (OTC: GLKFF, TSXV: CTEK) reported record Q2 2026 revenue of $5,126k, up 53% from $3,352k in Q2 2025, driven mainly by higher equipment sales under its HALO International Program. The company returned to profitability with net income of $518k, or $0.02 per basic and diluted share, versus a net loss of $456k a year earlier.

Equipment sales rose to $2,205k from $668k, while rental and service revenue increased 9% to $2,921k. Adjusted EBITDA grew to $1,426k from $779k. Cleantek delivered 20 HALO SE Crown Mount systems under its largest contract to date, completed its first commercial sale in South America, and improved its financial position to a working capital surplus of $3,115k at June 30, 2026, from a $482k deficit at year-end 2025, despite a modest decline in gross margin to 51% from 53%.

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Positive

  • Record Q2 2026 revenue of $5,126k, up 53% year-over-year
  • Equipment sales grew to $2,205k from $668k in Q2 2025
  • Rental and service revenue increased 9% to $2,921k
  • Adjusted EBITDA rose to $1,426k from $779k in Q2 2025
  • Net income of $518k versus prior-year net loss of $456k
  • YTD 2026 revenue of $8,640k, up 22% from $7,057k
  • Working capital swung to a $3,115k surplus from a $482k deficit
  • Delivered 20 HALO SE Crown Mount units under largest contract to date
  • Completed first commercial sale into the South American market

Negative

  • Q2 2026 gross margin declined to 51% from 53% in Q2 2025
  • YTD 2026 gross margin of 54% fell from 58% in YTD 2025
  • Cash used in operating activities of $271k for the six-month period
  • HALO International Program operates in a region with ongoing geopolitical developments

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Calgary, Alberta--(Newsfile Corp. - August 14, 2026) - Cleantek Industries Inc. (TSXV: CTEK) ("Cleantek" or the "Company") today announced its financial results for the three and six months ended June 30, 2026.

The Company reported its highest quarterly revenue of $5,126, an increase of 53% over the second quarter of 2025, and returned to profitability with net income of $518, compared to a net loss of $(456) in the prior-year quarter. The strong performance reflects the growing contribution of the Company's international expansion under the HALO International Program and the continued strength of its core operations.

Q2 2026 HIGHLIGHTS

  • Record quarterly revenue of $5,126, an increase of 53% from $3,352 in the second quarter of 2025.
  • Equipment sales of $2,205, up from $668, driven by deliveries under the HALO International Program.
  • Rental and service revenue of $2,921, an increase of 9% over the prior-year quarter.
  • Adjusted EBITDA of $1,426, compared to $779 in the prior-year quarter, prior to any adjustment for accrued bonus compensation.
  • Net income of $518, or $0.02 per share (basic and diluted), compared to a net loss of $(456).
  • Delivered 20 HALO SE Crown Mount lighting systems under the HALO International Program, the largest single contract in the Company's history.
  • Completed the Company's first commercial sale into the South American market.
  • Strengthened the balance sheet to a working capital surplus of $3,115 at June 30, 2026, compared to a deficit of $(482) at December 31, 2025.

"Our second quarter results reflect the strength of Cleantek's business and our ability to execute on our growth strategy," said Riley Taggart, Chief Executive Officer of Cleantek Industries. "Record revenue, a return to profitability, and the successful delivery of our largest contract to date demonstrate the growing demand for our technologies. With continued international expansion and a strong pipeline of opportunities, we are well positioned to build on this momentum through the balance of 2026."

SELECTED FINANCIAL INFORMATION

(Canadian $000's, unaudited, except per share amounts)


Q2 2026Q2 2025YTD 2026YTD 2025
Revenue5,1263,3528,6407,057
Gross profit2,6151,7824,6904,128
Gross profit %51%53%54%58%
Net income (loss)518(456)735(7)
Net income (loss) per share - basic$0.02$(0.02)$0.03$(0.00)
Net income (loss) per share - diluted$0.02$(0.02)$0.02$(0.00)
EBITDA¹1,3012792,2791,472
Adjusted EBITDA¹1,4267792,4272,045
Capital expenditures397134812819

 

¹ EBITDA and Adjusted EBITDA are non-IFRS financial measures that do not have standardized meanings under IFRS. See the Company's Management's Discussion and Analysis for the three and six months ended June 30, 2026 for definitions and reconciliations to the most directly comparable IFRS measures.

SECOND QUARTER REVIEW

Total revenue for the second quarter of 2026 was $5,126, an increase of $1,774, or 53%, compared to $3,352 in the second quarter of 2025. For the six months ended June 30, 2026, total revenue was $8,640, an increase of $1,583, or 22%, compared to $7,057 in the corresponding period of 2025. The increase in both periods was primarily attributable to higher equipment sales under the HALO International Program, while rental and service revenue also increased 9% to $2,921 despite typical seasonal softness in Western Canada.

Gross profit for the quarter was $2,615 (2025 - $1,782), representing 51% of revenue (2025 - 53%). The decrease in gross profit percentage reflects a shift in revenue mix toward equipment sales, which carry lower margins than rental revenue. Adjusted EBITDA was $1,426 (2025 - $779), and net income was $518 (2025 - net loss of $(456)). For the six months ended June 30, 2026, Adjusted EBITDA was $2,427 (2025 - $2,045) and net income was $735 (2025 - net loss of $(7)).

During the quarter, the Company delivered 20 HALO SE Crown Mount lighting systems to an international customer in the Middle East under the HALO International Program, representing its largest single contract to date, and completed its first commercial sale into the South American market. Effective June 30, 2026, the Company amended its distribution arrangement for the program such that its regional distributor assumed responsibility for local execution and installation, together with the associated performance guarantee, while the Company supplies units on a delivered basis and retains responsibility for product design, manufacturing, warranty, and technical support.

At June 30, 2026, the Company had a working capital surplus of $3,115, compared to a working capital deficit of $(482) at December 31, 2025. The improvement reflects investment in inventory and materials to support international deliveries, together with a reduction in the bank operating line. Cash used in operating activities was $271 for the six-month period, reflecting the working capital build to fund contract deliveries.

OUTLOOK

Cleantek enters the second half of 2026 with strong momentum as it continues to execute on the HALO International Program, under which 20 of up to 60 contracted units had been delivered as at June 30, 2026. Based on current production and delivery scheduling, the Company is optimistic that the balance of the contracted units will be delivered before year-end 2026.

While the HALO International Program operates in a region subject to ongoing geopolitical developments, the Program has experienced minimal disruption to date. Cleantek remains focused on expanding its international presence, growing its recurring rental and service business, and executing strategic initiatives that support long-term shareholder value.

ABOUT CLEANTEK INDUSTRIES INC.

Cleantek Industries Inc. is a Canadian technology company providing equipment rental, field services, and proprietary industrial technology solutions to the oil and gas and construction industries across North America and international markets. The Company's HALO lighting systems and EcoSteam wastewater and heating solutions help improve operational efficiency and reduce operating costs across industrial operations. Cleantek's common shares trade on the TSX Venture Exchange under the symbol "CTEK".

FOR FURTHER INFORMATION

Riley Taggart, President & Chief Executive Officer
Email: rtaggart@cleantekinc.com | Tel: 403-567-8700
www.cleantekinc.com

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements, including statements relating to the delivery of units under the HALO International Program, the potential deployment of additional units in the South American market, the advancement of the Company's EcoSteam fleet conversion and utilization program, the evaluation of strategic acquisition opportunities, and the Company's expectations regarding future revenue, capital expenditures, and liquidity. Forward-looking statements are based on assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including fluctuations in oil and gas industry activity levels, customer concentration, the timing of international contract deliveries, foreign exchange movements, access to capital, and general economic conditions. Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by applicable securities laws, the Company undertakes no obligation to update forward-looking statements.

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 news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/309564

FAQ

How did Cleantek Industries (GLKFF) perform financially in Q2 2026?

Cleantek reported record Q2 2026 revenue of $5,126k and net income of $518k. According to Cleantek, revenue rose 53% year-over-year, driven by HALO equipment sales, while Adjusted EBITDA increased to $1,426k from $779k in Q2 2025.

What drove Cleantek Industries' record revenue in Q2 2026 (GLKFF)?

Record revenue was mainly driven by higher equipment sales under the HALO International Program, which reached $2,205k. According to Cleantek, this was supported by 9% growth in rental and service revenue to $2,921k and expanded international activity.

Did Cleantek Industries (GLKFF) return to profitability in Q2 2026?

Yes, Cleantek returned to profitability with Q2 2026 net income of $518k, or $0.02 per share. According to Cleantek, this compares with a net loss of $456k in Q2 2025, reflecting stronger revenue and higher Adjusted EBITDA.

What is the status of Cleantek Industries' HALO International Program as of June 30, 2026?

By June 30, 2026, Cleantek had delivered 20 of up to 60 contracted HALO units. According to Cleantek, these deliveries included its largest single contract to date in the Middle East, with remaining contracted units targeted for delivery before year-end 2026.

How did Cleantek Industries' balance sheet change by Q2 2026 (GLKFF)?

Cleantek reported a working capital surplus of $3,115k at June 30, 2026, versus a $482k deficit at December 31, 2025. According to Cleantek, the improvement reflects inventory and materials investment for international deliveries and reduced use of the bank operating line.

What were Cleantek Industries' margins and EBITDA in Q2 2026?

Q2 2026 gross margin was 51% on gross profit of $2,615k, slightly below 53% a year earlier. According to Cleantek, Adjusted EBITDA increased to $1,426k from $779k, while the margin shift reflected a greater share of lower-margin equipment sales.

What growth initiatives did Cleantek Industries (GLKFF) advance in Q2 2026?

Cleantek advanced international growth by delivering 20 HALO SE Crown Mount systems under its largest contract and entering South America with its first commercial sale. According to Cleantek, it also amended its distribution arrangement to focus on design, manufacturing, warranty, and technical support.