BQE Water Reports Q3 2025 Results
Executive Summary
- BQE Water reported Q3 2025 GAAP revenue of $9.3 M and proportional (non‑GAAP) revenue of $10.7 M, up from $6.2 M and $9.5 M respectively in Q3 2024.
- Net income fell to $2.8 M ($2.15 EPS) from $3.5 M ($2.75 EPS) a year earlier; Adjusted EBITDA declined to $3.3 M from $4.4 M.
- Working capital rose 63% YoY to $20.5 M, driven by higher cash balances and increased headcount/investments in aquatic toxicology labs.
Key Details
- Revenue Highlights
- GAAP revenue Q3 2025: $9.315 M (vs. $6.165 M YoY).
- Proportional (non‑GAAP) revenue Q3 2025: $10.655 M (vs. $9.540 M YoY).
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Technical services revenue drove growth – record $22.6 M technical services revenue YTD vs. $3.868 M prior year.
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Profitability Metrics
- Gross margin Q3 2025: $4.705 M (up $1.037 M YoY).
- Net income Q3 2025: $2.783 M (down $734 K YoY).
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Adjusted EBITDA Q3 2025: $3.324 M (down $1.038 M YoY).
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Operating Cash & Balance Sheet
- Cash & cash equivalents: $17.0 M (up from $11.8 M).
- Working capital: $20.5 M (vs. $12.6 M Dec‑31‑2024).
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Total assets: $33.9 M; shareholders’ equity: $27.1 M.
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Joint Venture Performance
- JCC‑BQE (China) copper recovered fell 67% YoY to 394 lb in Q3 2025 vs. 1,174 lb prior year; water treated down 48%.
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Share of joint‑venture income declined to $275 K (Q3) from $1.577 M a year earlier.
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Operational Highlights
- Commissioned new selenium plant in South Dakota and SART plant in China – both began generating recurring revenue Q4 2025.
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Ongoing projects: Eagle Mine (Yukon), Quebec sulfate‑removal system, multiple engineering design contracts across North America, Brazil, Chile, Mexico.
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Outlook & Guidance
- Expect “strong finish” to 2025 with two engineering projects completing before year‑end and several new design projects slated for Q1 2026.
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Anticipated short‑term margin pressure from increased headcount, incentive compensation, and capital investment in an aquatic toxicology lab; long‑term revenue growth expected from pipeline of engineering projects.
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Dividend
- Annual dividend of $1.7 M (based on 2024 results) was received in Q3 2025.
Notable Quotes
“The third quarter continued our solid growth in technical services revenues to a record… 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.” – David Kratochvil, President & CEO
All forward‑looking statements are subject to risks and uncertainties detailed in the company’s MD&A.