Mr. Derek Webb reports

BIOREM REPORTS RECORD ORDER BACKLOG, - $11.3 MILLION OF REVENUES IN THE QUARTER AND QUARTERLY EPS OF $0.07

Biorem Inc. has released its results for the three- and nine-month periods ended Sept. 30, 2025. Biorem's complete third quarter financial statements and MD&A (management's discussion and analysis) have been filed on SEDAR+.

Biorem reported quarterly revenues for the third quarter of $11.3-million, an increase of 19 per cent over the previous quarter but 24 per cent below the record $14.9 reported in the same quarter in 2024. Year-to-date revenues totalled $25.4-million compared with the $28.1 for the first nine months of 2024. Revenues in the quarter were directly related to customers construction timelines and delivery schedules and not a reflection of the company's current order backlog or ability to deliver.

During the quarter the company booked $17-million in new orders resulting in another record order backlog of $71-million on Sept. 30, 2025. This compares with an order backlog of $50.9-million on June 30, 2025, and $48.4-million as of Sept. 30, 2024.

The company expects order bookings to continue to grow as delivery of projects from the order backlog continues generating strong revenue and earnings growth over the next 12 months.

"A multipronged effort by the sales team across the various product categories has resulted in strong order bookings and order backlog growth," said Derek S. Webb, president and chief executive officer. "We are extremely pleased with adoption rates of our new products and services. It demonstrates that the adjustments in strategy undertaken in the last couple of years correctly determined the needs of our customers and is providing the reliable performance that the market has come to expect from Biorem.

"With a historic order backlog and continued bookings growth anticipated, Biorem is continuing on it's growth trajectory. We are excited at all of the future opportunities as we continue to execute the strategy."

Gross profit for the quarter was $3.2-million or 28 per cent of revenue compared with $5.0-million of gross profit representing 33 per cent of revenue recorded during the third quarter of 2024. Total operating expenses (net of other income) for the quarter were $1.6-million against $2.0 in the same period the prior year. The decrease in operating expenses in 2025 was primarily due to lower sales and marketing costs and general and administrative expenses. EBITDA for the quarter was $1.7-million compared with $3.1-million of EBITDA in the third quarter of 2024.

The company reported net earnings for the quarter of $1.6-million or seven cents per share. Year to date the company reported earnings of $1.9-million compared with a net earnings of $2.9-million and earnings per share of 18 cents for the first nine months of 2024.

Cash on hand on Sept. 30, 2025, increased to $8.4-million. Earnings from operating activities during the quarter generated $1.7-million of cash and net increases in non-cash working capital items used $807,000 of cash reserves. Working capital on Sept. 30, 2025, increased to $11.7-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 odours, 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.