Biorem corrects Dec. 31 order backlog figure in NR

• Full Year 2025 Performance: Biorem reported record fiscal 2025 results with revenue of $42.4 million (up 13% YoY) and net earnings of $4.8 million (up 60% YoY).
• Q4 Strength: Fourth-quarter revenue surged to $16.9 million compared to $9.3 million in Q4 2024, with gross profit margins expanding significantly from 17.1% to 35%.
• Liquidity Improvement: Cash position nearly doubled year-over-year, rising from $5.2 million to $11.5 million at December 31, 2025.
• Backlog Correction: A subsequent correction notice adjusted the December 31, 2025 order backlog figure upward from $54.4 million (initially reported) to $65.3 million.
• Order Bookings: Total annual order bookings reached $54.4 million, a 32% increase over 2024 ($41.3 million).

• Positive Fundamentals: The margin expansion in Q4 (17.1% to 35%) is the most significant fundamental improvement, suggesting operational leverage and successful cost management initiatives are materializing.
• Governance Risk: The need for a correction on the backlog figure ($54.4M vs $65.3M) indicates internal reporting errors or control weaknesses. While the correction was upward (positive), it undermines confidence in the precision of initial guidance.
• Backlog Trend: Despite the correction, the year-end backlog ($65.3 million) is lower than the Q3 2025 peak reported in November ($71 million). This indicates project completions outpaced new bookings in Q4, which is normal but requires monitoring for sustained growth.
• Market Expectation: The stock price rallied significantly from May 2025 lows to a February 2026 high of $2.79 prior to this release. Much of the "record" narrative was likely priced in following the Q3 announcement, making this confirmation routine rather than a surprise catalyst.

• Overview: Biorem Inc. operates in the environmental technology sector, focusing on air pollution control and water treatment solutions through manufacturing and service groups.
• Flagship Project/Segment: The company highlights its "Service Group" as a key driver of recurring revenue, alongside diverse technologies for industrial applications.
• Development: The company is transitioning from pure project-based work to include more recurring service revenue, evidenced by the margin expansion in Q4 2025.