BQE Water (BQE) Q4 2025 earnings summary

Executive summary

• Achieved record GAAP revenue of CAD 35.5 million for 2025, up 107% year-over-year, and proportional revenue of CAD 39.9 million, up 61% from 2024.

• Net income rose to CAD 8.1 million, a 68% increase compared to the prior year, with a net margin of 23%.

• Significant growth driven by emergency water treatment at Eagle Mine and expansion of technical and operational services across North America.

• Operations team expanded significantly, now three to four times larger than a year ago, supporting growth in recurring revenue.

• Internal reorganization doubled business development capacity, integrated global teams, and strengthened operational capacity.

Financial highlights

• Recurring water treatment fees reached CAD 7.3 million; chemical services contributed CAD 28.3 million, with two Yukon projects totaling CAD 20 million.

• Adjusted EBITDA was CAD 8.2 million, up 47% from the previous year.

• Working capital increased by 70% year-over-year to CAD 21.4 million; net cash and cash equivalents grew to CAD 19 million.

• Gross margin increased to $15.3 million (up 81% year-over-year).

• Earnings per share (basic) were $6.23, up from $3.78 in 2024.

Outlook and guidance

• Management expects balanced growth across operations and technical services in 2026, with feasibility studies and longer-term projects replacing smaller, short-term work.

• Expect continued emergency treatment at Eagle Mine through June 2026 and resumption of operations at seven sites.

• New multi-year contracts signed for Britannia Mine (20 years), Nunavik Nickel Project (3 years), and a Quebec lead smelter (2 years).

• Margins for new operations contracts in 2026 expected to be similar to 2025, despite a blend of various margin profiles.

• Cautions that replicating recent growth rates may be challenging.