Mr. Derek Webb reports

BIOREM REPORTS SECOND QUARTER EARNINGS OF $ 2 MILLION AND $0.12 EPS - REVENUE INCREASES 66% OVER SAME PERIOD IN PRIOR YEAR

Biorem Inc. has released the results for the three-month period ended June 30, 2026. Biorem's complete 2026 second quarter financial statements and MD&A (management's discussion and analysis) have been filed on SEDAR+.

Revenue for the quarter totalled $15.7-million, a $6.3-million or 66-per-cent increase from revenue of $6.8-million recorded during the second quarter of 2025, and a 130-per-cent increase over revenue of $6.8-million in the first quarter of 2026.

New order bookings in the quarter totalled $14.8-million, maintaining the company's order backlog at a near record of $75.5-million on June 30, 2026. A total of 20 new projects were secured during the quarter from clients across North America.

Gross profit in the quarter of $4.9-million, represented 31 per cent of revenue, compared with $1.4-million and 20 per cent of revenue in the first quarter of 2026. The increase in gross profit during the quarter was due to higher revenue in the quarter.

Operating expenses for the quarter were $2.2-million, which was an increase of $1-million from the operating expenses incurred for the same period ended in 2025. The increase in operating expenses was largely the result of increased variable sales expenses on the higher revenue recorded in the quarter.

"It was a very strong first half of the year for Biorem", said Derek S. Webb, president and chief executive officer. "Project execution has exceeded expectations, and we were able to successfully manage the challenges posed by tariffs, inflationary pressures, geopolitical issues and supply chain issues. We have been able to maintain or improve our margins and many projects are ahead of schedule.

"More importantly, our sales team continues to close strategic projects around the globe, maintaining our backlog at near-historical levels. With a large number of potential projects still in the pipeline, management is excited at the future potential for the organization."

The company's cash position stood at $7.2-million on June 30, 2026, compared with the $11.5-million held on Dec. 31, 2025. Working capital at the end of the quarter was $16.8-million, up $2.8-million from the $14-million held at Dec. 31, 2025, and relatively unchanged from the $14.5-million recorded at March 31, 2026. During the quarter, the company used $40,000 to purchase common shares for cancellation under the company's normal course issuer bid.

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 2,000 installed systems worldwide, Biorem offers state-of-the-art technology-based products and peace of mind for municipalities, industrial companies and their surrounding communities.