Victoria, British Columbia--(Newsfile Corp. - March 25, 2026) - ALUULA Composites Inc. (TSXV: AUUA) (OTCQB: AUUAF) ("ALUULA" or the "Company") today reported its financial results for the three-months ended January 31, 2026 ("Q1 2026"). All currency amounts noted are in Canadian dollars.

"I am happy to report another strong quarter, with Q1 2026 sales exceeding $2 million for the third consecutive quarter and gross margins within our target range of 40-45% despite investments in future capacity," said Sage Berryman, CEO and President of ALUULA. "The continued commercialization in our pack and bag vertical and the deepening of key strategic relationships, including our supply agreement with Airseas, illustrates the diversification we are aiming for as well as the sustained demand across multiple verticals for ALUULA materials. Significant market opportunities are on the horizon as we transition to 1.5-meter-width production, while simultaneously positioning ALUULA to serve larger customers and programs that will serve as the foundation for scalable, long-term growth."

Key Q1 2026 Highlights

• Sales for Q1 2026 were $2,330,926, compared to $1,261,529 in Q1 2025, representing an 85% increase and the third consecutive quarter above $2 million.

• Performance Outdoor channel sales increased 83% quarter over quarter.

  • Windsport, the Company's most mature vertical, grew 26% year over year, in line with management expectations.

  • Pack and bag vertical sales increased 573% compared to Q1 2025, as our customer base placing commercialized orders increased from one to seven.

• Commercial Industrial channel sales increased 162% compared to Q1 2025, primarily driven by the timing of an order from a key wind power customer.

• Gross margin for Q1 2026 was 42%, within the Company's targeted 40-45% range, reflecting margin management discipline during a period of capacity investment.

• Sales order book pending production exceeded $3.5 million at January 31, 2026.

• Net and comprehensive loss from continuing operations was $367,848 in Q1 2026, in line with management expectations and driven primarily by capacity investments and fewer productive manufacturing days in the quarter.

• Established a new R&D facility dedicated to advancing emerging technologies and supporting the planned transition to wider-width manufacturing.

• Increased production staff by 54% to support capacity initiatives at the current 0.925-meter facility and in preparation of the planned 1.5-meter manufacturing facility.

• Approved for listing on the OTCQB Venture Market under the ticker "AUUAF" which was pursued to support trading and enhance accessibility for U.S.-based investors.

• Subsequent to the quarter, ALUULA completed a private placement of 4,273,475 units raising $14.1 million. As a result of this private placement, 2,136,735 warrants (expiring February 24, 2028 at a price of $4.29) were issued to investors along with 221,454 broker warrants (expiring August 24, 2028 at a price of $3.30).

• Concurrently, certain board members exercised 4,750,000 20:1 warrants and 40,984 stock options for total proceeds of $500,000.

Outlook

ALUULA continues to build on the strong foundation established in previous years as an emerging leader in advanced composite materials. As recognition of its quality and sustainability grows, leading brands in their respective industries are placing follow-on orders, and interest in new, high value applications remains strong. This demand supports a solid and growing sales order book that the Company is focused on fulfilling through consistent, high-quality production while continuing to invest in product development and material innovation.

With growth capital (before expenses) of $14.6m secured after the quarter end, the Company is advancing plans for a new manufacturing facility designed to produce materials at the industry standard 1.5-meter width. Through a staged buildout, this facility will significantly increase capacity relative to the limitations of the current site, providing an expanded footprint that will enable ALUULA to better serve larger customers and programs. The Company anticipates that operational expenses and margins may be impacted as ALUULA invests in scaling this capacity development during this fiscal year.

Stock Options Granted to Executive Team

The Company also announces that pursuant to the share option plan, it has granted 467,302 to certain members of the executive team; 350,000 to the President and CEO, 58,651 to the CSO, and 58,651 to the CCO. Each option is exercisable into one common share at a price of $2.75 per share until March 24, 2031.

Financial Statements and Management's Discussion and Analysis

This earnings press release should be read in conjunction with ALUULA's audited consolidated financial statements for the year ended October 31, 2025, and the related management discussion and analysis, which can be found on ALUULA's website and its issuer profile on the System for Electronic Document Analysis and Retrieval Plus at www.sedarplus.ca.

About ALUULA Composites

ALUULA is an ultra-light, high performance and recycle-ready composite materials brand that enhances the performance of outdoor gear as well as commercial and industrial equipment. Proudly owned and manufactured on the Canadian west coast, ALUULA's innovation is driven by a deep understanding that equipment does not need to sacrifice performance for sustainability. ALUULA's materials are known for their unique construction capabilities and their ability to make products lighter, stronger, and more sustainable.

aluula.com | TSXV: AUUA ; OTCQB: AUUAF

ALUULA's Brand Partners

The term "brand partners" does not refer to formal partnerships with our customers. The term refers to marketing relationships with our customers who use ALUULA's technology as a brand ingredient in their products.

TSX Venture Exchange

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

The information in this news release includes certain information and statements about management's view of future events, expectations, plans, and prospects that constitute forward-looking statements, including, but not limited to: the Company's list of brand partners growing; the Company's advancement of its materials development; the Company's future focus on Commercial Industrial and defense applications; the Company achieving its mission; future customer opportunities. These statements are based on assumptions subject to significant risks and uncertainties as described in the Company's management discussion and analysis. Because of these risks and uncertainties and as a result of a variety of factors, including the timing and receipt of all applicable regulatory, corporate third-party approvals, the actual results, expectations, achievements, or performance may differ materially from those anticipated and indicated by these forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.

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