BQE Water (BQE) Q1 2025 earnings summary

Executive summary

• Achieved record GAAP and Proportional Revenues in Q1 2025, driven by substantial growth in technical services and large project advancements.

• Provided emergency water treatment at Eagle Gold Mine and advanced several projects to plant design and construction phases.

• Anticipates strong results in the next two quarters as major projects progress and new recurring revenue streams emerge.

Financial highlights

• GAAP revenue reached $7.4M and Proportional Revenue $7.9M in Q1 2025, up from $2.5M and $3.4M in Q1 2024.

• Technical services revenue hit a record $5.5M, up from $719K year-over-year.

• Gross margin increased to $3.2M from $1.1M year-over-year.

• Net income was $1.7M versus a loss of $486K in Q1 2024; EPS of $1.34 compared to a loss per share of $0.39.

• Adjusted EBITDA was $1.9M, up from a loss of $121K year-over-year; working capital rose 14% to $14.4M since December 2024.

Outlook and guidance

• Expects strong results in the next two quarters as large projects are completed and new recurring revenue streams begin.

• Commissioning of new SART and Selen-IXTM plants in China and the US expected to drive recurring operations revenue.

• Technical services revenue growth anticipated to offset reduced operations revenue from US contract renewals.

• Visibility and certainty over existing operations and large technical services contracts for the remainder of 2025.