Foremost Income Fund Reports Q2 2026 Results

Foremost delivered a strong second quarter in 2026, with revenue increasing 20% year-over-year to $72.5 million and EBITDA rising to $12.8 million. The improvement was led by Foremost Mobile Equipment (FME), while Foremost Energy Equipment (FEE) also improved meaningfully from the first quarter. For the quarter, the Fund generated revenue of $72.5 million, compared with $60.2 million in Q2 2025. Gross profit increased to $17.0 million from $14.5 million, while gross margin was 23%, compared with 24% in Q2 2025. EBITDA increased to $12.8 million from $11.4 million, and adjusted EBITDA increased to $12.8 million from $11.2 million. SG&A expenses were $5.6 million and accounted for 8% of revenue, consistent with Q2 2025. Administrative expenses remain near the low end of the Fund's historical range, reflecting continued discipline in managing overhead costs while supporting current activity levels. Foremost remains in a good financial position, ending Q2 with $54.6 million of cash, no long-term debt, and working capital of $121.9 million.

Foremost Mobile Equipment Revenue: $51.1 million in Q2 2026, compared with $39.5 million in Q2 2025. Gross Margin: $13.2 million, representing 26% of revenue, compared with $10.6 million and 27% of revenue in Q2 2025. FME was the primary contributor to the Fund's revenue growth in the quarter, with revenue increasing across all product lines compared with Q2 2025. Drill sales led the improvement, supported by continued operational efficiencies that increased production throughput and the division's ability to maintain pricing on drilling equipment. Truck, parts, and vehicle revenue also increased compared to the prior-year quarter. Trade conditions with the United States became more challenging during the quarter. FME derives a significant portion of its revenue from U.S. customers, and tariffs on certain steel derivative products and chassis-mounted work equipment now affect products shipped by Foremost into the U.S. Foremost continues to work with distributors and customers to mitigate the impact through pricing adjustments and alternative component sourcing. Despite this pressure, FME maintained a strong gross margin of 26%, modestly below the 27% achieved in Q2 2025. Demand for drilling equipment, hydrovacs, and aftermarket parts remains healthy.

Foremost Energy Equipment Revenue: $21.6 million in Q2 2026, compared with $20.8 million in Q2 2025. Gross Margin: $3.8 million, representing 18% of revenue, compared with $3.9 million and 19% of revenue in Q2 2025. FEE generated modest revenue growth compared with Q2 2025 and improved meaningfully from the first quarter, with gross margin rising from 11% to 18% on revenue of $21.6 million compared with $18.0 million in Q1 2026. The improvement was supported by increased vessel and gas-separation activity, higher ULC tank revenue, and work on a significant field project that beg...