Biorem Reports Second Quarter Results
MWN-AI** Summary
Biorem Inc. (TSXV: BRM) recently reported robust financial results for the second quarter and the first half of 2025, demonstrating significant growth in revenues and earnings. For the quarter ending June 30, 2025, the company achieved revenues of CAD 9.4 million, marking a striking 99% increase from the previous quarter and a 29% uptick compared to CAD 7.3 million recorded in the second quarter of 2024. Year-to-date revenues reached CAD 14.1 million, up 7% from CAD 13.2 million during the first half of 2024.
The growth in revenue is attributed to an increase in orders and a strengthened order backlog, which stood at CAD 61 million as of June 30, 2025, compared to CAD 57 million a year prior. Biorem secured CAD 7.4 million in new orders during the quarter, contributing to a total of CAD 24.1 million in year-to-date bookings.
Biorem's gross profit in the second quarter was CAD 2.5 million, representing 27% of revenue, which is an improvement from a gross profit of CAD 1.7 million (22.7% of revenue) in the same quarter of 2024. The company reported operating expenses of CAD 1.5 million, up from CAD 1.1 million in the prior year, mainly due to a CAD 400,000 provision for credit loss. EBITDA for the quarter was CAD 1.2 million, doubling the CAD 555,000 recorded in the prior year.
Net earnings for the quarter totaled CAD 745,000, with year-to-date earnings of CAD 782,000 compared to CAD 681,000 in the first half of 2024. Despite a decrease in cash reserves to CAD 7.7 million, the company's management remains optimistic about sustaining this growth trajectory, particularly through exports to markets in China, the Middle East, and Southeast Asia.
MWN-AI** Analysis
Biorem Inc. (TSXV: BRM) delivered impressive second-quarter results, showcasing robust growth with a 99% quarter-over-quarter increase in revenue, reaching CAD 9.4 million, and a 29% increase year-over-year. This surge is attributed to a strong order backlog, which amounts to CAD 61 million—up from CAD 57 million in the previous year. With year-to-date revenues of CAD 14.1 million, there is a clear positive trajectory for the company's financial performance.
One key highlight is the improved gross profit margin, now at 27%, compared to 22.7% in the same quarter last year. This upward trend, alongside a solid EBITDA of CAD 1.2 million, reinforces Biorem's capacity to translate revenue growth into profitability. Moreover, net earnings of CAD 745,000 demonstrate the company's effectiveness in controlling costs even amidst increased operating expenses, which include a CAD 400,000 credit loss provision for a specific project—a prudent move reflecting proactive risk management.
In light of these results, investors should consider Biorem as a strong buy given its expanding international presence, particularly in regions like China, the Middle East, and Southeast Asia. As the company expects to maintain this growth momentum into the second half of the year, influenced by robust bidding activity and an increasing demand for its air emissions control systems, the potential for sustained revenue and earnings growth looks promising.
Nevertheless, stakeholders should be mindful of operational challenges that could arise, particularly those linked to logistics and project specifics. Monitoring cash reserves, which decreased to CAD 7.7 million, is also essential for assessing the company’s liquidity as it navigates its growth phase. Overall, Biorem appears well-positioned for continued success, making it an attractive prospect for market participants looking to capitalize on clean technology advancements.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Canada NewsWire
GUELPH, ON , Aug. 25, 2025 /CNW/ - BIOREM Inc. (TSXV: BRM) ("Biorem" or "the Company") today announced its results for the three and six-month periods ended June 30, 2025 . Biorem's complete second quarter financial statements and MD&A have been filed on SEDAR ( www.sedar.com ).
FINANCIAL HIGHLIGHTS:
in Canadian dollars,'000's except earnings per share | |||||
Three-months ended | Six-months ended | ||||
June 30 | June 30 | ||||
2025 | 2024 | 2025 | 2024 | ||
Revenue | 9,431 | 7,300 | 14,161 | 13,218 | |
Gross profit | 2,550 | 1,657 | 3,660 | 3,437 | |
Operating expenses | 1,496 | 1,145 | 2,512 | 2,409 | |
Ebitda* | 1,163 | 555 | 1,392 | 1,177 | |
Net earnings | 745 | 340 | 782 | 681 | |
EPS-basic | 0.046 | 0.021 | 0.046 | 0.043 | |
EPS-fully diluted | 0.040 | 0.018 | 0.040 | 0.037 | |
Earnings before interest,taxes and amortization, a non-IFRS measure |
Biorem's revenues for the second quarter were $9.4 million , a 99% increase over the previous quarter and 29% increase over the $7.3 million of revenues reported in the same quarter in 2024. Year to date revenues totalled $14.1 million , a 7% increase over the $13.2 million reported for the first six months of 2024. The increase in revenues for the first six months of 2025 compared to the prior year is entirely due to the Company's increase in orders received and resulting order backlog.
During the quarter the Company booked $7.4 million in new orders bringing year to date bookings to $24.1 million resulting in an order backlog of $61 million on June 30, 2025 compared to an order backlog of $57 million on June 30, 2024 .
The Company expects this backlog to support strong revenues and earnings in the second half of the year.
"We were able to successfully overcome the logistical challenges we experienced earlier in the year, allowing us to accelerate shipments to our international customers during the second quarter", said Derek S. Webb , President and CEO. "This has helped meet our initial forecasts for delivery and minimizes the impact to our customers' schedules. We expect to continue this pace in the second half of the year as we continue to export to China , the Middle East and South East Asia ."
"Bidding activity continues to be robust and management is pleased at the size of the outstanding opportunities in the domestic and international market segments. We expect our focus on offering both technologies and integrated service solutions to continue to produce tangible results and drive growth over the next several quarters."
Gross profit for the quarter was $2.5 million or 27% of revenue compared to $1.7 million of gross profit representing 22.7 % of revenue recorded during the second quarter of 2024. Total operating expenses (net of other income) for the quarter were $1,496,000 against $1,144,000 in the same period the prior year. The increase in operating expenses in 2025 was primarily due to the booking of a $400,000 credit loss provision for a specific project. Ebitda for the quarter was $1.2 million compared to $555,000 of ebitda in the second quarter of 2024.
The Company had net earnings for the quarter of $745,000 , with year-to-date earnings of $782,000 compared to net earnings of $681,000 for the first half of 2024.
Cash on hand at June 30, 2025 decreased to $7.7 million . Earnings from operating activities during the quarter generated $1.2 million of cash and net increases in non-cash working capital items used $2.5 million of cash reserves. Working capital at June 30, 2025 stood at $10 million .
About BIOREM Inc.
BIOREM is a leading clean technology company that designs, manufactures and distributes a comprehensive line of high-efficiency air emissions control systems used to eliminate odors, volatile organic compounds (VOCs), and hazardous air pollutants (HAPs). With sales and manufacturing offices across the continent, a dedicated research facility, a worldwide sales representative network and more than 1,600 installed systems worldwide, BIOREM offers state-of-the-art technology-based products and peace of mind for municipalities, industrial companies and their surrounding communities. Additional information on Biorem is available on our website at www.biorem.biz .
SOURCE Biorem Inc.
View original content: http://www.newswire.ca/en/releases/archive/August2025/25/c1029.html
FAQ**
What specific factors contributed to the 99% increase in revenue for Biorem Inc. BRM:CC in the second quarter of 2025 compared to the previous quarter?
How does the increase in order backlog to $61 million for Biorem Inc. BRM:CC impact the company's revenue and earnings expectations for the second half of 2025?
Can you elaborate on the $400,000 credit loss provision mentioned in the report for Biorem Inc. BRM:CC and how it might affect future operating expenses?
With the cash on hand decreasing to $7.7 million, what strategies does Biorem Inc. BRM:CC plan to implement to improve cash flow in upcoming quarters?
**MWN-AI FAQ is based on asking OpenAI questions about Biorem Inc. (TSXVC: BRM:CC).
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