Author: Atrium Research September 24, 2026
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
Ben Pirie | Equity Research Analyst | [email protected] | 647-688-9661
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What you need to know:
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BQE hosted a conference call yesterday, providing various strong updates on the business and operations. H2 is expected to show strong growth.
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The pipeline has 40 active projects, including 17 high-impact ones. Two long-term plants are currently under construction, with the first commissioning in October.
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For Q3, we are expecting proportional revenue to grow 24% YoY to $13.2M and adjusted EBITDA to be $3.1M (23% margin).
Yesterday, BQE Water (BQE:TSXV, BTQNF:OTCPK) hosted a conference call to discuss its financial results and provide corporate updates. The discussion was positive in our view, hinting at strong operations revenue and margins in H2. Our research note on the Q2 financials from August 28ᵗʰ can be found here. We are tweaking our estimates slightly lower to align with the messaging. We are maintaining our BUY rating and target price of $108.00/share on BQE.
Conference Call Takeaways
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2025 was a banner year due to the emergency response at Eagle and the one-time equipment sale to ERDC. 2026 is a year of consolidating from the rapid growth and building a foundation for the future. Aiming for flat revenue for 2026 which would still be strong growth if we remove those one-off projects.
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Pipeline has 40 active projects across various stages, all 40 of which have already spent money with BQE.
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17 are “high impact projects” meaning they have recurring revenue potential, strategic value, or high marketing value for the Company. 80% of these high-impact projects require BQE’s IP. 33% are for selenium, 25% for cyanide recycle/destruction, 20% for sulphate removal.
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Short-term operations projects are a mix: some are an entry point to long-term operations, some will remain short-term.
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Two plants under construction for long-term operations; one should start commissioning in October and the other later in Q4.
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Bill C39 – too early to tell the long-term impacts; management believes the need for social acceptance is still strong.
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More operations services in H2 with high margins, similar to last year. BQE’s investments in staff will lead to a 25% increase in advisory services revenue capacity (~$9.5M starting in Q4).
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Still focusing on aquatic toxicology integration, which is going well; it will be fully integrated by year-end. BQE has a few M&A targets identified and is working with some of its disciplined engineering targets on various projects.
Q3 Financials Preview BQE will be reporting Q3 financials by the end of November. We are expecting the following results:
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Proportional revenue of $13.2M (+24% YoY, +38% on the two-year stack). This includes GAAP revenue of $11.7M (+25% YoY).
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Gross margin of 48% compared to 51% in Q3/25.
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Adjusted EBITDA of $3.1M (23% margin, declining slightly YoY).
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Net Income of $2.3M or $1.73/share.
Insider Buying Songlin Ye, VP of Asia, has made two open-market purchases this month. On September 2ⁿᵈ, he bought 200 shares at $68.70/share ($13,740), and on September 23ʳᵈ another 102 shares at $71.99/share ($7,343), bringing his total position to 6,700 shares.
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Atrium Research Ratings System
BUY: The stock is expected to generate returns of over 20% over the next 24 months.
HOLD: The stock is expected to generate returns of 0-20% over the next 24 months.
SELL: The stock is expected to generate negative returns over the next 24 months.
NOT RATED (N/R): Atrium does not provide research coverage on the respective company.
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