SHARC Energy Announces Q3 2026 Financial Results and Record $10.1M Backlog

The largest customer order in the company's history is expected to begin contributing revenue in the second half of 2027.

Rhea-AI Summary

SHARC Energy (INTWF) reported third-quarter 2026 revenue of C$0.83 million, unchanged from a year earlier, while its net loss widened. Gross margin fell to 32.3% from approximately 39%, and net loss reached C$0.87 million versus C$0.74 million. Nine-month revenue declined to C$1.6 million from C$2.7 million, with net loss widening to C$2.7 million from C$2.5 million.

At October 30, order backlog was C$10.1 million, up 87% from August 25, while the sales pipeline fell 24% to C$13.6 million. Equipment orders secured since the start of 2026 totaled approximately C$10.6 million. A City of Surrey purchase order exceeding C$5.0 million is expected to contribute revenue from the second half of 2027 into 2028 as milestones are achieved. Quarter-end cash was C$1.80 million, following a C$2.5 million convertible debenture financing completed during the first nine months; working capital remained negative at approximately C$0.09 million.

8 points · 3 major

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1 major · 8 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointCity of Surrey purchase order exceeded C$5.0 million, the company's largest customer order.
• Major pointEquipment orders secured since the start of 2026 totaled approximately C$10.6 million across multiple markets.
• Major pointCompleted convertible debenture financing raised C$2.5 million during the first nine months of 2026.
• Moderate pointOrder backlog reached C$10.1 million at October 30, up 87% from August 25, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Surrey revenue is expected from the second half of 2027 into 2028 as project milestones are achieved.

3 minor points

• Minor pointQuarter-end cash increased to C$1.80 million from C$0.26 million at December 31, 2025.
• Minor pointNegative working capital narrowed to approximately C$0.09 million from approximately C$0.17 million at December 31, 2025.
• Minor pointDeferred revenue increased, reflecting customer advances received for future projects.

Negative

• Major pointConvertible debenture financing added C$2.5 million in debt convertible into shares.
• Moderate pointNine-month revenue fell to C$1.6 million from C$2.7 million in the corresponding 2025 period.
• Moderate pointNine-month net loss widened to C$2.7 million from C$2.5 million in the corresponding 2025 period.
• Moderate pointQ3 gross margin declined to 32.3% from approximately 39% in Q3 2025.
• Moderate pointQ3 net loss widened to C$0.87 million from C$0.74 million in Q3 2025.
• Moderate pointQ3 adjusted EBITDA loss widened to C$0.64 million from C$0.54 million in Q3 2025.
• Moderate pointNine-month adjusted EBITDA loss widened to C$2.1 million from C$1.7 million in the corresponding 2025 period.
• Moderate pointSales pipeline fell 24% to C$13.6 million at October 30 versus August 25, 2026.

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VANCOUVER, British Columbia, Oct. 30, 2026 (GLOBE NEWSWIRE) -- SHARC International Systems Inc. (CSE: SHRC) (FSE: IWIA) (OTCQB: INTWF) ("SHARC Energy" or the “Company”) is pleased to announce it has filed financial results for the three and nine months ended September 30, 2026. All figures are in Canadian Dollars and in accordance with IFRS unless otherwise stated.

Third Quarter Financial Highlights:

• As of October 30, 2026, subsequent to quarter-end, the Company reported a Sales Pipeline¹ of $13.6 million and Sales Order Backlog² of $10.1 million. These figures represent a decrease of 24% to the Sales Pipeline and an increase of 87% to the Sales Order Backlog from the Company’s August 25, 2026 disclosure. The combined Sales Pipeline and Sales Order Backlog remains strong at approximately $23.6 million.
• Since the beginning of 2026, the Company has secured approximately $10.6 million in SHARC Energy equipment orders, representing an increase of 212% from the $3.4 million Sales Order Backlog reported in the Company’s final disclosure of 2025. The orders span multiple geographic markets and end-use applications and reflect the continued maturation of the Company’s Sales Pipeline.
• Revenue for the three months ended September 30, 2026 (“Q3 2026”) was $0.83 million, compared with $0.83 million for the three months ended September 30, 2025 (“Q3 2025”), The Company continues to experience quarter-to-quarter revenue variability resulting from the timing of project milestones, production schedules and equipment deliveries due to larger and more complex projects.
• Gross margin for Q3 2026 was 32.3%, compared with approximately 39% in Q3 2025. Gross margins continue to vary on product mix, project scope, geography and the stage of completion of individual projects.
• During Q3 2026, the Company reported a net loss of $0.87 million and an Adjusted EBITDA³ loss of $0.64 million, compared with a net loss of $0.74 million and Adjusted EBITDA loss of $0.54 million during Q3 2025.
• Revenue for the nine months ended September 30, 2026 was $1.6 million, compared with $2.7 million during the corresponding period of 2025. The Company reported a net loss of $2.7 million and an Adjusted EBITDA loss of $2.1 million, compared with a net loss of $2.5 million and Adjusted EBITDA loss of $1.7 million for the first nine months of 2025.
• The Company ended the quarter with $1.80 million of cash and negative working capital of approximately $0.09 million, compared with cash of $0.26 million and negative working capital of approximately $0.17 million at December 31, 2025.
  

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¹ Sales Pipeline is a non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q3 2026 MD&A.
² Sales Order Backlog is a non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q3 2026 MD&A.
³ Adjusted EBITDA is a non-IFRS measure. Please see discussion of Alternative Performance Measures and Non-IFRS Measures in the Q3 2026 MD&A.

Fred Andriano, Interim CFO and Chairman of the Board of SHARC Energy, said "The Company strengthened its financial position during the first nine months of 2026 through the completion of a $2.5 million convertible debenture financing, increasing cash to approximately $1.8 million at September 30, 2026. We also recorded significant growth in deferred revenue, reflecting customer advances received on future projects and providing improved visibility into future revenue conversion."

"As we continue pursuing larger commercial, municipal and infrastructure opportunities, quarterly results will continue to be influenced by project schedules and revenue recognition milestones. Our focus remains on disciplined capital management, liquidity preservation and the successful execution of customer projects."

Shane Dungey, Interim Chief Executive Officer and Executive Vice Chair of SHARC Energy, commented “The third quarter reflected our continued focus on executing our commercial strategy and developing opportunities across the wastewater energy transfer market. 

Subsequent to quarter-end, we secured the largest purchase order in SHARC Energy's history through the City of Surrey District Energy Sewer Heat Recovery Project. The project represents an important addition to our order backlog and demonstrates the application of our technology in larger-scale district energy infrastructure. This project brings us to $10.6 million in secured equipment orders in 2026 across multiple end markets, which reflects the range of applications for our technology and our focus on converting sales opportunities into contracted projects. We remain committed to successfully executing these projects while aligning operational resources and working capital with project delivery schedules.”

Q3 2026 Key Highlights and Subsequent Events

• Sales Order Backlog and Sales Pipeline. As of October 30, 2026, the Company reported a Sales Order Backlog of approximately $10.1 million and a Sales Pipeline of approximately $13.6 million.
• Approximately $10.6 million of Equipment Orders Secured in 2026. Since the beginning of 2026, the Company has secured approximately $10.6 million in SHARC Energy equipment orders. Projects include two substantial Vancouver-based district energy systems, a major U.S. West Coast airport, a Calgary wastewater treatment plant, a multi-family senior housing retrofit on Staten Island, New York, and the Naval Postgraduate School’s historic Hotel Del Monte in Monterey, California. These projects demonstrate both geographic and sector diversification across SHARC Energy’s addressable markets

• Record Purchase Order. SHARC Energy received a purchase order valued at more than $5.0 million from the City of Surrey for its District Energy Sewer Heat Recovery Project. The purchase order represents the largest customer order in the Company's history and is expected to contribute to revenue beginning in the second half of 2027 and continuing into 2028 as project milestones are achieved
  
  

For complete financial information for the three and nine months ended September 30, 2026, please see the Condensed Consolidated Interim Financial Statements and Management Discussion and Analysis (“MD&A”) filed on SEDAR at www.sedar.com.

About SHARC Energy  
SHARC International Systems Inc. is a world leader in wastewater based thermal energy transfer. SHARC Energy's systems exchange thermal energy with wastewater, generating one of the most energy-efficient and economical systems for heating, cooling & hot water production for commercial, residential and industrial buildings along with thermal energy networks, commonly referred to as “District Energy”.

SHARC Energy is publicly traded in Canada (CSE: SHRC), the United States (OTCQB: INTWF) and Germany (Frankfurt: IWIA) and you can find out more on our SEDAR profile.

Learn more about SHARC Energy: Website | Customers | LinkedIn | YouTube | PIRANHA | SHARC

ON BEHALF OF THE BOARD

Fred Andriano
Chairman

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements 
Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified using words such as “anticipate”, “plan”, “estimate”, “expect”, “may”, “will”, “intend”, “should”, and similar expressions. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Forward-looking statements are provided for the purpose of assisting readers in understanding management’s expectations and plans and may not be appropriate for other purposes. SHARC Energy’s actual results could differ materially from those anticipated in this forward-looking information because of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Company. SHARC Energy believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. Any forward-looking information contained in this news release represents the Company’s expectations as of the date hereof and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether because of new information, future events or otherwise, except as required by applicable securities legislation.

For investor inquiries, please contact:
Shane Dungey
Chief Executive Officer (Interim)
SHARC Energy
Telephone: 403.389.9911
Email: shane.dungey@sharcenergy.com

For media inquiries, please contact:
John Louis Fahie
Marketing
SHARC Energy
Telephone: 604.475.7710 Ext.109
Email: johnlouis.fahie@sharcenergy.com

FAQ

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What were SHARC Energy's Q3 2026 financial results?

SHARC Energy reported C$0.83 million in revenue and a C$0.87 million net loss for the three months ended September 30, 2026. Revenue was unchanged from Q3 2025, while the net loss widened from C$0.74 million. Gross margin declined to 32.3% from approximately 39%.

How large is SHARC Energy's City of Surrey order, and when is revenue expected?

The City of Surrey purchase order for its District Energy Sewer Heat Recovery Project is valued at more than C$5.0 million. SHARC Energy expects revenue contributions beginning in the second half of 2027 and continuing into 2028 as project milestones are achieved. It is the company's largest customer order.

Why does SHARC Energy expect quarterly revenue to vary?

SHARC Energy attributes quarterly revenue variability to project milestones, production schedules and equipment deliveries associated with larger and more complex projects. The company expects project schedules and revenue recognition milestones to continue influencing quarterly results as it pursues larger commercial, municipal and infrastructure opportunities.