Blumetric Environmental (BLM) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue rose to CAD 14.7 million, up from CAD 8 million in Q3 2024, driven by WaterTech USA (Gemini) acquisition and strong organic growth, with revenues more than doubling since acquisition.

• Military market revenues surged 76% year-over-year, supported by new contracts and ongoing production for Rheinmetall Canada.

• Professional services segment faced project delays and lower utilization due to government transitions, impacting profitability, but a rebound began at the end of Q3.

• Management retained professional services staff during downturns to ensure readiness for contract rebounds, prioritizing long-term growth over short-term cost cuts.

• Working capital improved to CAD 8.5 million and net cash to CAD 3.4 million as of June 30, 2025.

Financial highlights

• Q3 2025 revenue was CAD 14.7 million, up 81% year-over-year; nine-month revenue reached CAD 44.6 million, up from CAD 23.8 million.

• Gross margin declined to 36% from 44% year-over-year, mainly due to WaterTech sales mix shift.

• Operating expenses increased to CAD 5.6 million from CAD 3.4 million, mainly from Gemini and higher non-billable labor.

• EBITDA for Q3 2025 was CAD 308,000, down from CAD 356,000 in Q3 2024; nine-month EBITDA rose to CAD 2.2 million from CAD 1.5 million.

• Net loss of CAD 451,000 reported, compared to net earnings of CAD 27,000 a year ago.

Outlook and guidance

• Management expects Q4 and Q1 to be seasonally strong for professional services, with utilization already at an all-time high.

• EBITDA margins are expected to improve in Q4, with a target of 6-7% for the quarter; 10% remains an aspirational long-term goal.

• Full-year 2025 EBITDA is projected to surpass 2024 levels.

• Anticipated benefits from investments in ERP, production capacity, and ongoing assessment of Professional Services acquisitions.

• Continued growth expected in Military and WaterTech segments, supported by new contracts.