EcoSynthetix Reports 2025 Fourth Quarter and Year End Results

BURLINGTON, ON, Feb. 19, 2026 /CNW/ - EcoSynthetix Inc. (TSX: ECO) ("EcoSynthetix" or the "Company"), a renewable chemicals company that produces a portfolio of commercially proven bio-based products, today announced its financial and operational results for the three months (Q4 2025) and twelve months (FY 2025) ended December 31, 2025. Financial references are in U.S. dollars unless otherwise indicated.

Highlights
(Comparison periods in each case are the three months and twelve months ended December 31, 2024)

• Recorded net sales of $5.9 million, up $0.5 million or 9%, and $20.8 million, up $2.3 million or 12%, in Q4 2025 and FY 2025 respectively.
• Recorded Adjusted EBITDA¹ of $0.5 million, up $0.4 million, and $0.4 million, up $1.3 million, in Q4 2025 and FY 2025 respectively.
• Won two new commercial accounts in Europe for SurfLock™ strength aids in the tissue end market through a recently added distributor relationship in Q4 2025. Eight new mills adopted usage of SurfLock™ in 2025.
• Received additional purchase orders for SurfLock from a leading global pulp manufacturer in Q4 2025, including an order to support production trials at a second mill.
• Experienced increased demand across all strategic end markets, achieving the highest annual sales to date in wood composites, personal care, tissue and pulp.
• Achieved climate positive operations in 2025, driven by increased customer adoption of our low carbon products, resulting in the avoidance of more than 125% of the Company's associated carbon emissions.
• Purchased and cancelled 117,833 and 463,468 common shares in Q4 2025 and FY 2025, respectively, under the normal course issuer bid for total consideration of $0.4 million and $1.4 million.
• Maintained a strong balance sheet with cash and term deposits of $29.6 million as at December 31, 2025.

"We have successfully broadened and deepened our penetration into our key strategic end markets of pulp, tissue, wood composites and personal care. The strong double-digit growth we experienced in each of these end markets has allowed us to lap the deterioration in our legacy end markets," said Jeff MacDonald, CEO of EcoSynthetix. "The business is in a better position today, with stronger demand from the key accounts and partners in each end market. In 2025, we also expanded our sales and distribution channels with new commercial accounts and sales infrastructure in new countries. Our bio-based technology offers comparable or better performance and value to conventional petroleum-based binders with carbon footprint and all-natural advantages. The performance benefits we offer pulp and tissue manufacturers and our personal care partner, Dow, can have a significant economic impact to them. The carbon footprint advantage we offer our key strategic wood composites account, plays directly into that retailer's market-leading sustainability program. As adoption of our bio-based polymers build, we're supporting these accounts as they increase usage rates in their initial facilities and convert other lines to our biopolymer platform."

Financial Summary

Net Sales

Net sales were $5.9 million and $20.8 million for Q4 2025 and FY 2025, respectively, compared to $5.4 million and $18.5 million for the corresponding periods in 2024. The $0.5 million increase, or 9% improvement in the quarterly period was primarily due to a higher average selling price, driven by improved product mix. The $2.3 million increase, or 12% improvement, in the annual period was primarily due to higher volumes of $1.6 million, or 9%, and a higher average selling price which increased sales $0.7 million, or 3%. The increase in volume during the annual period was primarily due to increased demand for the Company's products sold into the wood composites, pulp and tissue end markets, while the higher average selling price was driven by improved product mix.

Gross Profit

Gross profit was $2.0 million and $6.0 million for Q4 2025 and FY 2025, respectively, compared to $1.6 million and $5.3 million for the corresponding periods in 2024. The 27% improvement in the quarterly period, was primarily due a higher average selling price, partially offset by higher manufacturing costs, both attributable to changes in product mix. The $0.7 million increase, or 14%, in the annual period was primarily due to a higher average selling price and increased sales volumes, partially offset by higher manufacturing costs associated with product mix.

Gross profit as a percentage of sales was 33.9% and 29.0% for Q4 2025 and FY 2025, respectively, compared to 28.9% and 28.6% in the corresponding periods last year. Gross profit as a percentage of sales adjusted for manufacturing depreciation was 38.1% and 33.6% for Q4 2025 and FY 2025, respectively, compared to 34.4% and 33.2% for the corresponding periods in 2024. The improvements in these measures in both periods were primarily attributable to a higher average selling price, partially offset by higher manufacturing costs.

Selling, General and Administrative

Selling, general and administrative expenses (SG&A) were $1.7 million and $6.2 million for Q4 2025 and FY 2025, respectively, compared to $1.8 million and $6.5 million for the corresponding periods in 2024. The improvement in the annual period was primarily due to asset relocation costs incurred in the prior year.

Research and Development

Research and development (R&D) costs were $0.4 million in Q4 2025, in line with the prior year period and $1.6 million for FY 2025, compared to $2.0 million in the corresponding period in 2024. The change in the annual period was primarily attributable to higher product scale-up costs incurred in the prior year, as well as lower asset depreciation. R&D expense as a percentage of sales was 7% and 8% in Q4 2025 and YTD 2025, respectively, compared to 7% and 11% in the corresponding periods in 2024. The Company's R&D efforts continue to focus on further enhancing value for our existing products and expanding addressable opportunities.

Adjusted EBITDA¹

Adjusted EBITDA was $0.5 million for Q4 2025 and $0.4 million for FY 2025, compared to $0.1 million and an Adjusted EBITDA loss of $0.9 million in the corresponding periods last year. The improvements in each period of $0.4 million and $1.3 million, respectively, were primarily due to higher gross profit, adjusted for non-cash items, as well as lower operating costs in the annual period. 

Net Income (Loss)

Net income was $0.2 million, or $0.00 per common share, for Q4 2025 compared to a net loss of $0.2 million, or $0.00 per common share, for the same period last year. Net loss was $0.4 million, or $0.01 per common share, for FY 2025 compared to a net loss of $1.4 million, or $0.02 per common share, for FY 2024. The improvements for each period were primarily due a reduction in loss from operations, partially offset by a decrease in net interest income due to declining interest rates.  

Liquidity

Cash on hand and term deposits were $29.6 million as at December 31, 2025, compared to $32.2 million as at December 31, 2024. The Company purchased and cancelled 117,833 and 463,468 common shares under the NCIB during Q4 2025 and FY 2025, respectively, for consideration of $0.4 million and $1.4 million.

Notice of Conference Call

EcoSynthetix will host a conference call Friday, February 20, at 8:30 am ET to discuss its financial results. Jeff MacDonald, CEO, and Robert Haire, CFO, will co-chair the call. All interested parties can instantly join the call by phone, by following the URL https://emportal.ink/4qPezGo to easily register and be connected into the conference call automatically or the conventional method by dialling (416) 945-7677 or (888) 699-1199 with the conference identification of 88814#. Please dial in 15 minutes prior to the call to secure a line. A live audio webcast of the conference call will also be available at www.ecosynthetix.com or https://app.webinar.net/OevLwVYga79. The presentation will be accompanied by slides, which will be available via the webcast link and the Company's website. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast.

¹Non-IFRS Financial Measures

This press release makes reference to certain non-IFRS measures. These non-IFRS measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing a further understanding of results of operations of EcoSynthetix from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the financial information of EcoSynthetix reported under IFRS. The Company uses non-IFRS measures such as Adjusted EBITDA to provide investors with a supplemental measure of operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Management also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess the Company's ability to meet its capital expenditure and working capital requirements.

Adjusted EBITDA is not a measure recognized under IFRS and does not have a standardized meaning prescribed by IFRS. See "IFRS and Non-IFRS Measures." The Company presents Adjusted EBITDA because the Company believes it facilitates investors' use of operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures (affecting relative interest expense), the book amortization of intangibles (affecting relative amortization expense) and the age and book value of property and equipment (affecting relative depreciation expense). The Company also presents Adjusted EBITDA because it believes it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance. Adjusted EBITDA as presented herein are not recognized measures under IFRS and should not be considered as an alternative to operating income or net income as measures of operating results or an alternative to cash flows as measures of liquidity. Adjusted EBITDA is defined as consolidated net income (loss) before net interest expense, income taxes, depreciation, amortization, gain or loss on disposals of property, plant and equipment and other non-cash expenses and charges deducted in determining consolidated net income (loss).

The following table reconciles net income (loss) to Adjusted EBITDA (loss) for the three and twelve months ended December 31, 2025, and December 31, 2024:

About EcoSynthetix Inc. (www.ecosynthetix.com)

EcoSynthetix offers a range of sustainable engineered biopolymers that allow customers to reduce their use of harmful materials, such as formaldehyde and styrene-based chemicals. The Company's flagship products, DuraBind™, Surflock™, Bioform™, and EcoSphere®, are used to manufacture wood composites, personal care, paper, tissue and packaging products, and enable performance improvements, economic benefits and carbon footprint reduction. The Company is publicly traded on the Toronto Stock Exchange (T:ECO).

Forward-Looking Statements

Certain statements in this Press Release constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of the Company, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward looking statements. The forward-looking statements in this Press Release include, but are not limited to, statements regarding the Company's plans to execute its commercial strategy, deliver meaningful growth across all three product categories, convert high-value strategic prospects into customers, and other statements regarding the Company's plans and expectations in 2026. These statements reflect our current views regarding future events and operating performance and are based on information currently available to us, and speak only as of the date of this Press Release. These forward-looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Those assumptions and risks include, but are not limited to, the Company's ability to successfully allocate capital as needed and to develop new products, as well as the fact that our results of operations and business outlook are subject to significant risk, volatility and uncertainty. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including the factors identified in the "Risk Factors" section of the Company's Annual Information Form dated February 17, 2026. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, we do not intend and do not assume any obligation to update these forward-looking statements.

SOURCE EcoSynthetix Inc.

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