We opened this week’s Skull Session with Derek Webb, President and Chief Executive Officer of Biorem, Inc. (OOTC:BIRMF) (TSXV:BRM), to review Q4 2025 results and discuss how the company is positioned heading into 2026. The session also marked the first appearance of Lukas Milosic (@Pixelresearch_ on X), a private investor and author of the Pixel Research substack, who joined us to ask questions.
Q4 and Full-Year 2025 Results
Q4 revenue came in at $16.9 million versus $9.0 million in the prior year, with EPS of $0.16 versus $0.01. For the full year, revenue was $42 million versus $37 million, with EPS of $0.26 versus $0.19.
Webb opened by reminding us that quarter-over-quarter comparisons are the wrong lens for BIRMF given the inherent lumpiness of capital equipment projects. He stated the company ended 2025 with a backlog exceeding $65 million, its highest on record, and that full-year results reflected new highs across revenue, profitability, cash generation, and bookings.
Building the Service Business
A key theme in the discussion was the service group initiative. When roughly $26 million in 2025 bookings pushed out into future periods, management replaced a significant portion of that shortfall with approximately $10 million in service projects, described as high-margin and fast-delivery in nature.
Webb explained that BIRMF has over 2,500 installations in the field and has been systematically building out a dedicated service organization since 2024, adding a senior service manager, a field technician, and an inside sales coordinator, along with formal CRM (customer relationship management) integration.
For 2026, the service group is being tracked as a separate financial unit, and Webb said it had already generated approximately $6.5 million in bookings early in the year. He framed the long-term service opportunity as potentially significant, citing the U.S. market for consumable dry scrubber adsorbents alone as a $200 to $300 million annual market across one product line.
Middle East and Macro Environment
The discussion then shifted to the Middle East, which Webb described as having generated approximately $20 million in bookings over the prior 12 to 18 months. A $9 million bid with a repeat customer is currently active, and Webb added that all projects in the region continue through the ongoing conflict with no disruption to shipping.
He expressed cautious optimism that business will remain on track absent a significant escalation involving refinery infrastructure.
On the broader macro environment, Webb acknowledged that transportation costs and supply chain pressures are real challenges, but pointed to the company’s globally diversified manufacturing footprint and both its Canadian and U.S. subsidiaries as tools for managing those risks, noting the team has navigated similar disruptions through COVID and prior inflationary cycles.
Visibility and What to Watch
We came away from the call with increased confidence in near-term earnings visibility. Webb indicated that roughly 75% of backlog typically converts within 12 to 18 months, the company maintains a 99.99% contract retention rate, and the pipeline of funded and shovel-ready projects awaiting award currently sits above $100 million.
Applying the company’s historical win rate of 35% to 52% on public tenders, Webb suggested a reasonable expectation of approximately $40 million flowing to BIRMF from that pool over the next 12 months.