BQE Water Reports Q3 2025 Results

VANCOUVER, BC, Nov. 27, 2025 /CNW/ – BQE Water Inc. (TSXV:BQE), a leader in the treatment and management of mine impacted waters, is pleased to release its interim consolidated financial results for the three and nine months ended September 30, 2025.

“The third quarter continued our solid growth in technical services revenues to a record of $22.6 million for the nine-months of the year. During the quarter, we completed the commissioning of a new selenium plant in the USA and a new SART plant in China, both of which have begun to generate new recurring operations revenue in Q4 2025,” said David Kratochvil, President & CEO of BQE Water. “We anticipate a strong finish to 2025 with two engineering projects coming to completion before the end of the year and several new major engineering design projects set to kick off, with each of these projects having the potential to generate new recurring revenue.”

FINANCIAL HIGHLIGHTS

Revenues under GAAP and Proportional Revenues of $9.3 million and $10.7 million in Q3 2025 respectively, compared to $6.2 million and $9.5 million in Q3 2024.
Gross margin of $4.7 million in Q3 2025 compared to $3.7 million in Q3 2024, a $1.0 million increase.
Net income of $2.8 million in Q3 2025 compared to $3.5 million in Q3 2024, a $734,000 decrease.
Earnings per share (basic) of $2.15 in Q3 2025 compared to $2.75 in Q3 2024.
Adjusted EBITDA of $3.3 million in Q3 2025 compared to $4.4 million in Q3 2024, a $1.1 million decrease.
Working capital of $20.5 million at September 30, 2025, compared to $12.6 million at December 31, 2024, a 63% increase.

Selected financial results for the three and nine months ended September 30, 2025 are as follows:

COMMENTARY AND OUTLOOK
We are pleased to have delivered another strong quarter in Q3 2025. On a year-to-date basis, the Company generated record GAAP and Proportional Revenues and also ended the quarter with record working capital. Particularly strong technical services revenue continued to drive our strong performance in Q3 2025, partly offset by lower recuring revenue from water treatment operations and a significantly lower contribution from our JCC-BQE joint venture. As always, we remind readers not to rely on any given quarter or two to forecast upcoming quarters. Our performance in Q2 and Q3 2025 resulted from several factors that may re-occur in the future but not necessarily in a predictable way.

Strong Growth in Technical Services Revenue Offset by Decreases in Water Treatment Operations Revenue
The Company’s main strategy is to generate recurring revenues from operations of water treatment plants. On a year-to-date basis, our recurring revenue from operations decreased by $2.8 million relative to the same period in 2024. As discussed in the Company’s prior two MD&A’s, the decrease was caused by no contribution from Minto Mine in 2025, and the restructuring of two operating contracts in the US, which led to a reduced scope of services over a term extension of seven more years.

On the other hand, we have been operating at two sites that have contributed significantly to our technical services revenue for over a year. These two sites include water treatment operations at the Eagle Mine in the Yukon and a new operation in Quebec where we operate a sulphate removal system to achieve compliance with regulations. These projects generated a combined $10.0 million of additional technical services revenue on a year-to-date basis in 2025 when compared to the prior year. Although the nature of our services for these two projects is operations at site, we do not classify them as recurring operations revenue because we do not have multi-year contracts. However, in both cases, our operations services have been renewed multiple times in the last 12 months and we are optimistic future renewals are likely given the requirement for water treatment services in 2026 and our track record and value proposition. It should be noted that these projects have also generated technical services revenue such as engineering design and lab testing. The Eagle Mine project also provides opportunities for new revenue sources from water quality monitoring, including aquatic toxicity and supplying equipment to the project.

Q3 2025 technical services revenue was also particularly strong as we completed the commissioning of the new selenium plant at the Coeur Wharf Mine in South Dakota and completed a field pilot of our Selen-IX™ technology at a mine in the Midwest, US. Piloting and commissioning are two project stages that contribute significant revenue, but they are sporadic in nature. By comparison, smaller contracts consisting of preliminary engineering assessments or lab testing contribute much lower technical services revenue, but they are valuable indicators for our long-term growth.

Lower Copper Recovery from Our China Joint Venture
Year-to-date sales of recovered metals from our JCC-BQE joint venture decreased substantially when compared to the same period in 2024. Here we sell high grade copper and zinc concentrates produced by mine water treatment plants owned and operated by the joint venture. While we aimed to take advantage of the historically high metals prices and our related operating leverage, our year-to-date share of net income from the JCC-BQE joint venture was $741,000, down from $3.0 million in the prior year period and an historic low.

The main reason for the decrease in our share of revenue and net income from the JCC-BQE joint venture on a year-to-date basis was the lack of metals available for recovery reporting to the treatment plants. The simultaneous drop in recoverable copper and zinc at all three plants that treat water from different sources indicates this was weather related rather than an irreversible depletion of recoverable metals. Nevertheless, the inventory of recoverable metals contained in the waste rock piles that serve as the sources of these metals are expected to gradually deplete over the long term. We expect lower Q4 2025 results from the joint venture as we enter the seasonally dry season.

We are pleased to report that our annual dividend of $1.7 million, which was based on 2024 annual results, was received in Q3 2025.

Outlook for Year End and Q1 2026
We continue to anticipate a strong finish to 2025 with several active engineering projects coming to completion before the end of the year and several new major engineering design projects set to kick off in the Yukon, BC, Manitoba, Ontario, and Mexico in the next three to six months. These new projects have the potential to generate recurring revenue in the future. In addition, there will be some new recurring revenue coming from the projects commissioned in South Dakota and in Shandong, China this year that will lift the base of operating revenue slightly.

We have optimized and strengthen our Company’s organizational structure to enable the Company to deliver the next phase in its growth. One investment, announced earlier this year, is in aquatic toxicology and involves the acquisition of talent as well as physical lab space and equipment. The cost of the new aquatic toxicology lab will be more fully reflected from Q1 2026 onwards. Similarly, as a result of our organization optimization and continued strategy for revenue growth, the Company’s cost base will increase over the next two quarters due to an increase in headcount and incentive compensation to retain our valuable talent. These new investments may temporarily decrease our operating margins in the short term, but we anticipate ongoing revenue growth with our robust project pipeline ahead.

OPERATIONAL SERVICES HIGHLIGHTS
Our operational services consist of the operation or technical supervision of water treatment plants, which generate recurring revenues from three main sources: sales of recovered metals, water treatment fees and operations support fees. The Company’s operations by source of revenue are as follows:

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