Cleantek Industries Inc. Announces Fourth Quarter and Full Year 2025 Results

• Cleantek Industries Inc. reported Q4 2025 revenue of $3,426k (up 17% YoY) and Adjusted EBITDA of $1,534k (up 26% YoY).
• Full Year 2025 Revenue reached $13,765k compared to $11,787k in 2024.
• International equipment sales surged 246%, rising from $460k to $1,591k year-over-year.
• The company highlighted a January 2026 contract for up to 60 HALO SE Crown Mount units in the UAE as a key revenue catalyst.
• Gross profit margin compressed to 57% in Q4 2025 from 63% in Q4 2024, despite revenue growth.
• Net Income was $600k for Q4 2025, down from $1,466k in the prior year due to non-recurring gains (debt forgiveness/FX) in the previous period.
• Management reiterated FY 2026 guidance provided in February: Revenue of $21.5-$22.5M and Adjusted EBITDA of $7.2-$7.5M.

• The earnings release confirms the aggressive growth trajectory outlined in the January contract award and February guidance, validating management's execution capability.
• However, the news is largely consistent with prior expectations set by the Feb 3 Guidance ($21.5-22.5M revenue) and Jan 22 Contract announcement; it does not introduce new surprises that would warrant a re-rating beyond current levels.
• The margin compression (63% to 57%) is a negative signal within positive top-line growth, suggesting cost pressures or mix shifts that could limit profitability expansion despite the scale increase.
• The stock price has already reacted significantly to the contract and guidance news (rising from ~$0.48 in Jan to $0.83 in Feb), meaning much of this "positive" information is likely priced in at current levels ($0.67).
• Debt strategy involves adding leverage to fund the UAE contract, increasing financial risk for a small-cap company with existing non-current debt of ~$7.1M.

• Cleantek Industries Inc. operates in the clean technology sector, focusing on industrial lighting and wastewater treatment solutions.
• Flagship Project: HALO SE Crown Mount lighting systems designed for zero-emission, high-intensity industrial environments; currently expanding into international markets via the UAE contract.
• Secondary Asset: EcoSteam wastewater treatment units with a target of 25 units deployed in the Northeastern US.
• The company is transitioning from a North American rental model to an international equipment sales and installation model.