Bri-Chem Announces 2026 Second Quarter Financial Results

Edmonton, Alberta--(Newsfile Corp. - August 14, 2026) - Bri-Chem Corp. (TSX: BRY) ("Bri-Chem" or "Company"), a leading North American oilfield chemical distribution and blending company, is pleased to announce its 2026 second quarter financial results. Three months ended Six months ended June 30 Change June 30 Change (in '000s except per share amounts) 2026 2025 $ % 2026 2025 $ % Financial performance Sales $ 15,505 $ 20,534 $ (5,029 ) (24%) $ 32,072 $ 40,443 $ (8,371 ) (21%) Adjusted EBITDA (1) 184 1,045 (861 ) (82%) 996 1,511 (515 ) (34%) As a % of revenue 1% 5%     3% 4%     Operating earnings 29 772 (743 ) (96%) 672 748 (77 ) (10%) Adjusted net (loss) / earnings (1) (479 ) 60 (539 ) (895%) (281 ) (558 ) 277 (50%) Net (loss) / earnings $ (470 ) $ 157 $ (627 ) (400%) $ (384 ) $ (255 ) $ (129 ) 51% Per diluted share                 Adjusted EBITDA (1) $ 0.01 $ 0.04 $ (0.03 ) (76%) $ 0.04 $ 0.06 $ (0.02 ) (35%) Adjusted net (loss) / earnings (1) $ (0.02 ) $ 0.01 $ (0.03 ) (245%) $ (0.01 ) $ (0.02 ) $ 0.01 (48%) Net (loss) / earnings $ (0.02 ) $ 0.02 $ (0.04 ) (252%) $ (0.01 ) $ (0.01 ) $ - 0% Financial position                 Total assets         $ 41,314 $ 53,404 $ (12,089 ) (23%) Working capital         5,421 11,136 (5,716 ) (51%) Long-term debt         - 6,399 (6,399 ) (100%) Shareholders equity         $ 20,632 $ 19,405 $ 1,227 6%   (1) Non-GAAP financial measure. Refer to "Non-GAAP Financial Measures" in this press release. Key Q2 2026 highlights include: Consolidated sales for the three months ended June 30, 2026 were $15.5 million, representing a 24% decrease from the prior year. The decrease is primarily due to decreased sales in the US fluids distribution division and decreased activity levels attributable to a few specific customers. Consolidated gross margin for the three months ended June 30, 2026 decreased by $981 thousand compared to the same period last year. The gross margin dollar decrease is primarily related to the decrease in US fluid distribution sales in the quarter. Adjusted EBITDA for the second quarter 2026 decreased by $861 thousand when compared to the same period in the prior year and operating earnings decreased by $743 thousand for the three months ended June 30, 2026 compared to the prior year primarily due to a decrease in margin realized in the quarter. Adjusted net loss per diluted share for the three months ended June 30, 2026 was $0.02 per share compared to adjusted net earnings of $0.01 per diluted share for same period last year. Working capital, as at June 30, 2026, was $5.4 million which is a decrease of 51% decrease over the same period in the prior year. The decrease in working capital relates to classification of long-term debt as current in Q2 2026 that was not in Q2 2025. Summary for the three months ended June 30, 2026: Consolidated sales for the three months ended June 30, 2026 were $15.5 million compared to $20.5 million for the same period in 2025, representing a $5 million decrease over the comparable period. Revenue was impacted by lower US fluid distribution sales, due to decreased activity levels attributable to a few specific customers. Bri-Chem's Canadian drilling fluids distribution division generated sales of $1.8 million for the three months ended June 30, 2026, which was lower than the comparable prior period by 1%. The $9 thousand decrease in sales quarter over quarter is the result of decreased sales to a specific customer in tandem with record rainfall in June in Alberta, which was offset by large increases of sales activity from further incumbent customers. Bri-Chem's United States drilling fluids distribution division generated sales of $7.4 million for the three months ended June 30, 2026, compared to sales of $12.3 million for the comparable period in 2025, representing a quarterly decrease of 40%. US fluids and distribution sales decreased, due to decreased activity levels attributable to a few specific customers. The active number of US operating land rigs in Q2 2026 averaged 539, compared to a 2025 Q2 average of 556 representing a decrease of approximately 3% (Source: Baker Hughes). Bri-Chem's Canadian blending and packaging division generated sales of $3.6 million for the three months ended June 30, 2026, compared to Q2 2025 sales of $4 million, representing a quarterly decrease of 10%. The decrease in sales relates to excessive rainfall in the current period. US blending and packaging sales for the three months ended June 30, 2026 were $2.8 million compared to $2.5 million in the prior year. The 12% increase is due to an increase in sales to new and returning customers. Operating earnings for the three months ended June 30, 2026 was $29 thousand which is a decrease from the operating earnings of $772 thousand in the same period in the prior year