BQE Water (BQE) Q3 2025 earnings summary

Executive summary

• Achieved record technical services revenues of $22.6 million for the nine months ended September 30, 2025, with strong Q3 performance driven by new plant commissions in the USA and China.

• Recurring revenue from operations decreased year-over-year due to contract restructuring and the loss of contribution from Minto Mine, partially offset by strong technical services at Eagle Mine and a new Quebec operation.

Financial highlights

• Q3 2025 GAAP revenue was $9.3 million, up from $6.2 million in Q3 2024; proportional revenue was $10.7 million, up from $9.5 million.

• Gross margin increased to $4.7 million from $3.7 million year-over-year.

• Net income for Q3 2025 was $2.8 million, down from $3.5 million in Q3 2024; EPS (basic) was $2.15, down from $2.75.

• Adjusted EBITDA for Q3 2025 was $3.3 million, down from $4.4 million in Q3 2024.

• Working capital rose to $20.5 million at September 30, 2025, from $12.6 million at December 31, 2024.

Outlook and guidance

• Anticipates a strong finish to 2025 with two engineering projects completing and several new major projects starting, expected to generate future recurring revenue.

• New recurring revenue expected from recently commissioned plants in South Dakota and Shandong, China.

• Investments in organizational structure and aquatic toxicology lab will increase costs and may temporarily reduce margins, but are expected to support long-term growth.