Blumetric Environmental (BLM) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose to CAD 15.9 million from CAD 7.1 million year-over-year, driven by WaterTech USA and Gemini Water's integration, with strong demand for desalination systems in the Caribbean.

• Gross margin declined to 27% from 43% due to a sales mix shift toward WaterTech.

• EBITDA for Q2 2025 was CAD 0.6 million, up from CAD 0.4 million in Q2 2024; net loss was CAD 60,000 versus net earnings of CAD 117,000 last year.

• Working capital improved to CAD 8.6 million and net cash position to CAD 2.2 million as of March 31, 2025.

• Major contracts executed, including Rheinmetall Canada and Department of National Defence, with expansion in the Caribbean.

Financial highlights

• Q2 2025 revenue: CAD 15.9 million, up from CAD 7.1 million year-over-year.

• Gross margin for Q2 2025: 27% (down from 43% year-over-year).

• Operating expenses increased to CAD 4.3 million from CAD 2.9 million, mainly due to Gemini acquisition and non-billable labor.

• EBITDA for Q2 2025: CAD 0.6 million (up from CAD 0.4 million in Q2 2024).

• Net cash position of CAD 2.2 million as of March 31, 2025, with total cash availability of CAD 6.3 million.

Outlook and guidance

• Management expects margin improvement in the second half of 2025 as professional services utilization recovers and large projects ramp up.

• Targeting 35% gross margin and over 10% EBITDA margin at CAD 100 million revenue run rate.

• O&M contracts and recurring revenue streams are expected to grow as installed base expands.

• Military market opportunities expected to accelerate with new Canadian defence spending.

• Anticipates fluctuations in revenue mix between WaterTech and Professional Services quarter-to-quarter.