BQE Water (BQE) Q2 2026 earnings summary

Executive summary

• Q2 2026 GAAP revenue was CAD 9.2 million (USD 9.2M), with proportional revenue at CAD 11.3 million (USD 11.3M), both down from Q2 2025 due to the absence of one-time equipment sales and fewer short-term operations.

• Net income for Q2 2026 was CAD 1.8 million, slightly down from CAD 1.9 million in Q2 2025; Adjusted EBITDA was CAD 2.4 million versus CAD 2.5 million last year.

• Five new long-term and three new short-term operations were added, expanding operational reach.

• The year is characterized as a consolidation period following exceptional growth in 2025, with a focus on building internal capacity and integrating recent acquisitions.

• Aquatic toxicology laboratory became fully operational, supporting regulatory compliance and investigative work.

Financial highlights

• Recurring water treatment revenue rose to CAD 3.1 million, up by CAD 1.9 million year-over-year.

• Short-term operations revenue was CAD 4.2 million, up from CAD 3.7 million in Q2 2025.

• Advisory and design services revenue dropped to CAD 1.9 million from CAD 6.5 million, reflecting the absence of last year’s one-time equipment sale.

• Gross margin increased 15% to $4.3M in Q2 2026 from $3.7M in Q2 2025.

• Working capital as of June 30, 2026, was CAD 21 million, slightly down from CAD 21.4 million at year-end 2025.

Outlook and guidance

• No formal guidance provided, but management expects 2026 results to be in line with 2025, with low probability of significant deviation.

• Two new Canadian plants are expected to be commissioned in Q4 2026 and Q1 2027, contributing to recurring revenue.

• Several large engineering studies and plant commissionings planned for H2 2026.

• Short-term operations revenue expected to rise in Q3 and Q4 with resumed and new contracts.

• Management remains cautious of geopolitical and market uncertainties.