Mr. Derek Webb reports

BIOREM REPORTS RECORD REVENUES AND EARNINGS BEFORE TAX FOR 2025

Biorem Inc. has released results for the three-month and 12-month periods ended Dec. 31, 2025. Biorem's complete fiscal 2025 year-end financial statements and MD&A (management discussion and analysis) have been filed on SEDAR.

12 months ended Dec. 31, 2025

For the 12 months ended Dec. 31, 2025, revenues grew 13 per cent to a record $42.4-million, compared with $37.4-million for the same 12 months in 2024. Net earnings for the year grew 60 per cent to $4.8-million, compared with net earnings of $3-million in 2024. Earnings per share for the year increased by 58 per cent to 30 cents per share against earnings per share of 19 cents basic and 19 cents fully diluted reported in 2024.

Gross profit for the year was $12.8-million, a 27-per-cent increase from gross profit of $10.1-million recorded for the year ended Dec. 31, 2024.

Total operating expenses for the year were $6.3-million, compared with $5.7-million of operating expenses in 2024. The $600,000 increase in operating expenses year over year was due to a increase in commission expenses on the increased revenues and increased compensation expenses.

The company grew its cash position to $11.5-million on Dec. 31, 2025, and its working capital of $14.1-million, compared with $5.2-million of cash and $10.3-million of working capital on Dec. 31, 2024. The increase in cash on hand was after the use of $570,000 of cash in term loan repayments, $100,000 used to repurchase shares for cancellation under a normal course issuer bid and a $268,000 investment in new manufacturing equipment

Total order bookings for the year were $54.4-million, a 32-per-cent increase in bookings over the bookings in 2024 of $41.3-million. The company's order backlog stood at $54.4-million on Dec. 31, 2025, compared with $56.1-million on Dec. 31, 2024.

"Over all, we were very pleased with the progress made in 2025," said Derek S. Webb, president and chief executive officer. "The market has responded well to our suite of new technologies and product offerings, demonstrating strong demand for solutions that exceed performance requirements."

"Investments made during 2025 for our service group have already produced tangible results in terms of recurring revenue," continued Mr. Webb. "Biorem is well positioned for growth, thanks to strong bidding activity, a solid order backlog, diverse technologies and strong market demand.

"While geopolitical, tariff and inflationary pressures are expected to continue to challenge companies like ours in 2026, we believe our diverse supply chain, American-based manufacturing and a strong balance sheet will ensure we are well positioned to weather this dynamic situation."

Three months ended Dec. 31, 2025

Revenue in the fourth quarter of 2025 was $16.9-million compared with $11.2 million in the previous quarter and $9.3-million in the fourth quarter of 2024. Revenue in a quarter can fluctuate significantly due to customers scheduling and revenues in the fourth quarter were a reflection of this. Orders booked in the quarter totalled $13.3-million.

Gross profit of $5.9-million in the fourth quarter amounted to 35 per cent of revenue, which was significantly higher than the 28.1-per-cent gross profit margin in the previous quarter and the 17.1 per cent achieved in the same quarter the prior year. The increase in gross profit and gross margin percentage is the result of the significantly higher revenues in the quarter.

Total operating expenses (net of other income) for the quarter were $2.2-million, a 41-per-cent increase over the operating expenses of $1.3-million incurred during the fourth quarter of 2024.

EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $3.8-million, compared with EBITDA of $425,000 in the fourth quarter of 2024.

Net earnings for the quarter were $2.7-million compared with net earnings of $194,000 in the fourth quarter of 2024.

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 odours, volatile organic compounds (VOCs), and hazardous air pollutants (HAPs). With sales and manufacturing offices across the continent, a worldwide sales representative network and more than 2,000 installed systems around the world, Biorem offers state-of-the-art technology-based products and peace of mind for municipalities, industrial companies and their surrounding communities.