Biorem Reports Record Revenues and Earnings before tax for 2025

• Most Recent Release (April 20, 2026): Biorem reported fiscal 2025 record revenues of $42.4 million (+13% YoY) and net earnings of $4.8 million (+60% YoY). Q4 2025 revenue was $16.9 million with gross margins expanding significantly to 35% from 17.1% in the prior year quarter. Cash position strengthened to $11.5 million from $5.2 million at end of 2024.
• Previous Release (November 17, 2025): Reported Q3 2025 revenue of $11.3 million (down YoY) and net earnings of $1.6 million (down YoY). Order backlog was reported at a record $71 million as of September 30, 2025.
• Key Discrepancy: While the April release highlights record full-year performance, the order backlog decreased from $71 million (Sep 30, 2025) to $54.4 million (Dec 31, 2025), a contraction of approximately 23% in one quarter despite Q4 bookings of $13.3 million and revenue recognition of $16.9 million.

• Positive Factors: The full-year earnings beat expectations with a 60% increase in net earnings. Gross margin expansion to 35% in Q4 indicates improved operational efficiency or pricing power, reversing the trend seen in Q3 where margins were compressed (28%). Cash reserves nearly doubled year-over-year ($5.2M to $11.5M), reducing immediate liquidity risk.
• Negative/Risk Factors: The order backlog contraction from $71 million to $54.4 million is a significant hidden risk not fully explained in the headline metrics. If bookings were $13.3 million and revenue was $16.9 million, the theoretical backlog reduction should have been minimal ($3.6M), yet it dropped by ~$16.6 million. This suggests potential order cancellations or delays not explicitly detailed.
• Conclusion: The earnings growth and margin expansion are material positives that likely outweigh the backlog concern in the short term, but the backlog drop warrants close monitoring for sustainability of future revenue.

• Overview: Biorem Inc. operates in the environmental engineering sector, focusing on water treatment technologies and manufacturing solutions. The company emphasizes American-based manufacturing and a diverse supply chain to mitigate geopolitical risks.
• Flagship Project/Operations: The core business involves equipment sales and service contracts (Service Group). Recent news highlights "new technologies and product offerings" driving demand.
• Development: The company has transitioned from Q3 revenue declines to strong Q4 growth, indicating a successful turnaround or seasonal acceleration in project completions.