"Building on our strong growth throughout the year, we closed out the fourth quarter achieving new records across nearly every key metric in our annual results. We ended the year delivering $35.5 million revenue (up 107%) and grew net income to $8.1 million (up 68%), to achieve a net margin of 23%. During the fourth quarter, we completed the operating season at Eagle Mine discharging over 1 million cubic meters of clean water for emergency treatment and mobilized our team to be ready to operate the 20-year operations service contract at the Britannia Mine treatment plant," said David Kratochvil, President & CEO of BQE Water. "It will be another growth year in 2026 for BQE, as we anticipate continuing our emergency treatment at Eagle, restarting/resuming operations at the 7 sites we operated in 2025, and taking over operations at 4 additional treatment plants in BC, Quebec, and the Yukon."
FINANCIAL HIGHLIGHTS
Record GAAP Revenues of $35.5 million and Proportional Revenues of $39.9 million in 2025, an increase of $18.4 million (107%) and $15.1 million (61%) respectively compared to 2024.
Gross margin of $15.3 million in 2025 compared to $8.4 million in 2024, an increase of $6.9 million (81%).
Record net income for the year of $8.1 million compared to $4.8 million in the prior year, an increase of $3.3 million (68%).
Earnings per share (basic) of $6.23 in 2025 compared to $3.78 in 2024.
Adjusted EBITDA of $8.2 million in 2025 compared to $5.6 million the year prior, an increase of $2.6 million (47%).
Increased working capital (current assets less current liabilities) by $8.8 million, or 70% year-over-year, to $21.4 million as at December 31, 2025.
Grew net cash and cash equivalents by $7.2 million, or 61% year-over-year, to $19.0 million as at December 31, 2025.
Selected financial results for the 3 and 12 months ended December 31, 2025, are as follows:
(in '000s)
3 months ended Dec. 31
12 months ended Dec. 31
2025
2024
2025
2024
$
$
$
$
Revenues under GAAP
7,504
5,088
35,541
17,178
Proportional Revenues
8,424
5,765
39,934
24,798
Net income
1,647
1,214
8,063
4,806
Adjusted EBITDA
548
(2)
8,230
5,583
COMMENTARY AND OUTLOOKBuilding on our strong growth and record-setting performance in 2024, we achieved new records across nearly every key metric in 2025. Our 2025 financial results highlight our enviable position as a well capitalized clean technology company delivering strong revenue growth and profitability. We ended the year with $21.4 million in working capital (up 70% year-over-year), delivered Proportional Revenue of $39.9 million (up 61%), and grew net income to $8.1 million (up 68%), to achieve a net margin of 23%. We are very proud of what we accomplished.
Key Developments in 2025One very important development for us in 2025 was the Eagle Mine project in the Yukon. Strategically, Eagle Mine allowed us to showcase BQE Water's capabilities to industry and regulators in the context of a high-stakes environmental disaster in Canada. We proved our ability to solve tough technical problems and deliver results quickly under difficult conditions and tight schedules. It also showcased our culture with our staff committing themselves to the project, collaborating with others, and developing partnerships with indigenous communities and businesses to ensure project success.
It must be said that we would not have been able to execute at Eagle Mine without our experienced operating crew from Minto Mine. Although our team did not operate at Minto in 2025, we successfully redeployed our team and talent to a project that offered much higher potential for growth and visibility in the industry in the following ways:
The Eagle project allowed our Yukon operating team to triple in size and our relationship with the First Nation of Na-Cho Nyäk Dun to strengthen. We believe this puts us in a very strong position for water treatment projects across the Yukon in the future.
By highlighting the importance and benefits of having water treatment and toxicological expertise and testing capability in-house and under one roof, the Eagle project was the main driver behind our investment and expansion into aquatic toxicology. We believe our expansion into aquatic toxicology has created a truly disruptive differentiator for us. We are the only company offering compliance with both water quality and toxicity criteria in the mining market.
The Eagle project created truly unique opportunities for accelerated talent development. Young engineers who gained experience in the field last year are now integrated into our engineering design projects.
Since the emergency response treatment at Eagle Mine was truly a one-off project, representing nearly half of our technical services revenues in 2025, it may prove difficult to replace with new smaller projects in the near term. Nevertheless, the project was transformational and led to the development of processes, structures, intellectual property, and valuable resources critical for our continued growth in the years to come.
Another key development for us in 2025 was the completion of the Selen-IX™ project at the Wharf Mine. This project enabled the mine to discharge compliant water into the environment within 14 months of the start of detailed engineering, and showed the entire industry that BQE Water and its selenium removal technology offers fast and robust methods of selenium mitigation.
The increase in 2025 revenue over 2024 came from a combination of technical services and growth from existing operations. We achieved: (1) modest but strategically important expansions of our scope of operations services at all of our US sites in the second half of 2025 by reaffirming our role in the success of these long-term operations; (2) a higher than usual volume of water at Raglan Mine leading to a longer than usual treatment season; (3) the completion of the ERDC Valley Tailings plant; and (4) successful demonstration of Selen-IX™ at pilot scale at a mine in the US.
2025 also included an important internal reorganization at the Company. Triggered by growing pains and the realization that our internal structure, last modified during the pandemic, was no longer optimal for the business, we completed a company-wide talent assessment. This assessment established an organizational structure designed to increase productivity, accelerate talent development, and allow the Company to support its goal to double in size in three years. Highlights of the reorganization include:
Business development capacity doubled.
New leadership roles for IP capture and development, talent development and performance management, and corporate environmental health & safety.
Integration of the project delivery team, combining engineering, automation, commissioning, treatability testing, aquatic toxicology testing, operations support, and project management office sub-groups.
Team members in Latin America are now fully integrated into the rest of the Company in all functions including business development, engineering design, laboratory and pilot testing.
Outlook for 2026We presently have good visibility and certainty over several larger technical services contracts and expect strong results in the first half of 2026 in this area; specifically:
Operations services for the emergency treatment system at Eagle Mine will continue until June 2026. Since we do not have an agreement to operate the system for more than 6 months, we will continue to report this project under technical services.
Engineering design for the long-term treatment system at the Eagle Mine will complete at the end of Q1 2026.
Technical services-related engineering design/procurement/site installation and commissioning of an ion exchange system at a rhenium recycling facility in Canada. Once completed, the operation of this system is expected to involve BQE personnel in a support capacity.
Detailed engineering, automation, and field construction support to assist with the implementation of SART at the New Britannia mill in Manitoba. Once completed, the operation of this system is expected to involve BQE personnel in a technical supervisory capacity.
Technical services including detailed engineering, procurement assistance, and site installation assistance for cyanide destruction and for SART integration into a tailings re-processing demonstration facility in Mexico.
Feasibility study for SART integration into an existing gold-silver mine in Mexico.
Advisory services related to water management and treatment for five different projects across Canada.
On the operations services front, we anticipate strong growth in 2026. Projects where we have signed new multiyear agreements include:
20-year contract with the BC government to operate the mine water treatment plant at the Britannia Mine.
Three-year contract with Canadian Royalties to operate the mine water treatment plant at Nunavik Nickel Project through our joint venture between BQE Water and Nuvumiut Development.
Two-year contract to operate a sulphate removal system at a lead smelter and refinery in Quebec.
In addition to these already signed contracts, we are in active discussions about further potential operations services agreements starting in 2026 at four additional sites across Canada. We also anticipate that our new aquatic toxicology laboratory will become operational and be able to perform a range of specialized investigative tests in Q2 2026. Despite indications that 2026 will be another strong year, we must caution that maintaining the same rate of growth experienced over the last two years may prove difficult.
Positioning and Outlook Beyond 2026There has been no direct impact on BQE Water from the US trade tariffs to date. That said, the global geopolitical changes that have occurred have already influenced, and will continue to influence, our business in the medium- and long-term.
Focus on the development of critical minerals projects in Canada and gaining security of supply of certain minerals in the Western world in general is providing tailwinds broadly for the mining sector. Unlike previous commodity cycles, the need for establishing a secure supply of minerals may act as a shield to commodity price volatility.
While shortened permitting timelines and financial support by western governments accelerate industrial development, we have not seen any relaxation in the environmental standards and/or lessening of the importance of social acceptability criteria applied to new projects. In fact, over the last 12 months, we have seen a notable increase in the volume of proposals and/or technical services already delivered in ...
