BQE Water (BQE) Q4 2024 earnings summary

Executive summary

• Revenues decreased 5% to $17.2M in 2024, but Proportional Revenues hit a record $24.8M, up 9% year-over-year.

• Net income rose 81% to $4.8M, with EPS up 78% to $3.78; Adjusted EBITDA increased 20% to $5.6M.

• Working capital grew 20% to $12.6M, and cash and equivalents increased 48% to $11.8M at year-end.

• Recurring revenue from water treatment operations reached a record, while technical services revenue declined 32%.

Financial highlights

• Gross margin was 49% in 2024, compared to 50% in 2023.

• Share of income from joint ventures increased to $2.5M from $419K year-over-year.

• Operating expenses decreased 3% to $8.8M; general and admin expenses rose 16% to $3.2M.

• Share-based payment expenses more than doubled to $1.0M, reflecting higher non-cash compensation.

• Income tax recovery of $1.3M recognized, mainly from deferred tax assets for prior year losses.

Outlook and guidance

• Strong visibility on several large technical services contracts for H1 2025, including major plant installations and commissioning.

• Minto Mine contract ended, but Eagle Gold Mine emergency response expected to offset lost revenue.

• Renewed 5-year contract for US operations at lower fees, but with increased certainty and longevity.

• Management remains cautious due to geopolitical, commodity price, and capital market risks.