Bri-Chem Announces 2025 Third Quarter Financial Results

Edmonton, Alberta--(Newsfile Corp. - November 14, 2025) - Bri-Chem Corp. (TSX: BRY) ("Bri-Chem" or "Company"), a leading North American oilfield chemical distribution and blending company, is pleased to announce its 2025 third quarter financial results.

⁽¹⁾ Non-GAAP financial measure. Refer to "Non-GAAP Financial Measures" in this press release.

Key Q3 2025 highlights include:

• Consolidated sales for the three months ended September 30, 2025 were $18.2 million, representing a 17% decrease from the prior year. The decrease is primarily due to decreased sales in the fluids distribution division in tandem with lower rig counts in North America.

• Consolidated gross margin for the three months ended September 30, 2025 decreased by $180 thousand compared to the same period last year. The gross margin dollar decrease is primarily related to the decreased realized margin percentage Canada for blending & packaging division.

• Adjusted EBITDA for the third quarter 2025 increased by $247 thousand when compared to the same period in the prior year and operating earnings increased by $342 thousand for the three months ended September 30, 2025 compared to the prior year due to a decrease in bad debt expense.

• Adjusted net earnings per diluted share for the three months ended September 30, 2025 was nil per share compared to adjusted net loss of $0.02 per diluted share for same period last year.

• Working capital, as at September 30, 2025, was $10.8 million compared to $13.7 million on September 30, 2024, a decrease of 21%. The decrease in working capital relates to a significant decrease in accounts receivables and inventory which was offset by decreased bank indebtedness.

Summary for the three months ended September 30, 2025:

Consolidated sales for the three months ended September 30, 2025 were $18.2 million compared to $22 million for the same period in 2024, representing a $3.8 million decrease over the comparable period. Revenue was impacted by lower fluid distribution sales, arising from the sale of a customer to a competitor and the subsequent discontinuation of services to the new group.

Bri-Chem's Canadian drilling fluids distribution division generated sales of $2.3 million for the three months ended September 30, 2025, which was lower than the comparable prior period by 41%. The number of Canadian active operating land rigs in Q3 2025 averaged 176, compared to 206 in the same period last year representing a decrease of approximately 15% (Source: Baker Hughes). Bri-Chem's United States drilling fluids distribution division generated sales of $9.5 million for the three months ended September 30, 2025, compared to sales of $11.7 million for the comparable period in 2024, representing a quarterly decrease of 19%. The active number of US operating land rigs in Q3 2025 averaged 525, compared to a 2024 Q3 average of 565 representing a decrease of approximately 7% (Source: Baker Hughes).

Bri-Chem's Canadian blending and packaging division generated sales of $3.7 million for the three months ended September 30, 2025, compared to Q3 2024 sales of $4.6 million, representing a quarterly decrease of 19%. The decrease in sales relates to 3^rd party contract work realized in 2024 that was diminished or discontinued in the current period. US blending and packaging sales for the three months ended September 30, 2025 were $2.7 million compared to $1.8 million in the prior year. The 49% increase is due to an increase in cementing activities in the California region.

Operating earnings for the three months ended September 30, 2025 was $576 thousand which is an increase from earnings of $234 thousand in the same period in the prior year. Adjusted EBITDA was $836 thousand for Q3 2025 compared to $588 thousand for Q3 2024. The increase is primarily driven by a lower expense realized across operating expenses as Management continues to streamline operations and reduce overhead. Adjusted EBITDA as a percentage of sales was 5% for the quarter, which is an increase from 3% in Q3 2024.

OUTLOOK

Bri-Chem anticipates a measured but improving operating environment as the North American energy sector adjusts to ongoing commodity price volatility, evolving political and regulatory pressures, and a cautious yet gradually recovering capital spending cycle. According to the latest Baker Hughes forecasts, total rig activity in both Canada and the United States is expected to remain relatively stable through the remainder of 2025, with modest growth emerging in early 2026 as producers begin to increase drilling and completion programs in response to improved price stability and demand fundamentals.

In Canada, drilling activity is projected to follow historical seasonal trends, with winter drilling providing a moderate uplift in fluids demand through early 2026. However, overall volumes are expected to remain below pre-pandemic averages due to restrained capital budgets and project deferrals in certain basins. By mid-2026, a return to more normalized activity levels is anticipated as operators gain confidence in forward pricing and regulatory clarity improves.

In the United States, rig counts are expected to stabilize and gradually strengthen over the next year, led by consistent investment in the Permian Basin and incremental growth in other key regions such as the Rockies and Mid-Continent. These trends are expected to support steady demand for Bri-Chem's drilling fluid distribution business and create opportunities for incremental market share gains in select basins.

Against this backdrop, Bri-Chem will continue to prioritize liquidity preservation, disciplined working capital management, and cost efficiency to sustain margin performance in a competitive pricing environment. The Company's proactive financial management and strong banking relationships will remain central to its ability to navigate market fluctuations and pursue growth selectively where returns justify investment.

Following Bri-Chem's Annual General Meeting in September 2025, the Company welcomed a new Board of Directors with a renewed mandate to drive operational performance, strengthen governance, and enhance long-term shareholder value. Collectively, the new Board brings over 100 years of combined experience in the chemical industry, offering deep sector knowledge and valuable insights that will help guide Bri-Chem's strategic direction and operational focus in the years ahead.

In conjunction with this leadership transition, Bri-Chem will undertake a comprehensive strategic review of all business units. This initiative is designed to evaluate performance, profitability, and long-term alignment with the Company's core objectives. The outcomes of this review are expected to shape future organizational priorities, improve capital allocation, and position Bri-Chem as a leaner, more profitable, and strategically focused entity heading into 2026 and beyond.

Management remains committed to operating with agility and discipline as it monitors commodity price trends, customer spending behaviors, and regulatory developments across North America. With a renewed strategic focus, strengthened leadership, and a stabilizing market outlook, Bri-Chem is well positioned to capture value as industry conditions gradually improve over the coming year.

About Bri-Chem

Bri-Chem has established itself, through a combination of strategic acquisitions and organic growth, as the North American industry leader for wholesale distribution and blending of oilfield drilling, completion, stimulation and production chemical fluids. We sell, blend, package and distribute a full range of drilling fluid products from 23 strategically located warehouses throughout Canada and the United States. Additional information about Bri-Chem is available at www.sedarplus.ca or at Bri-Chem's website at www.brichem.com.

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information or forward-looking statements (collectively, "forward-looking statements"). These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking statements and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially.

Although the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. By their nature, such forward-looking statements are subject to various risks and uncertainties, which could cause actual results to differ materially from the anticipated results or expectations expressed herein. These risks and uncertainties, include, but are not limited to general economic conditions, prevailing and anticipated industry conditions, access to debt and equity financing on acceptable terms, levels and volatility of commodity prices, maintained demand for drilling fluids, market forces, ability to achieve geographic expansion through new warehouse locations, anticipated impact of new warehouse locations, ability to obtain equipment from suppliers, ability to maintain negotiating power with suppliers and customers, ability to obtain and retain skilled personnel, competition from other industry participants and regulatory conditions. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this press release or otherwise. Except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Non-GAAP Financial Measures

Bri-Chem uses certain measures in this press release which do not have any standardized meaning as prescribed by International Financial Reporting Standards ("IFRS"). These measures, which are derived from information reported in the Company's financial statements, may not be comparable to similar measures presented by other reporting issuers. Investors are cautioned that these measures should not be construed as an alternative to net earnings and operating earnings determined in accordance with IFRS, and these measures should not be considered to be more meaningful than IFRS measures in evaluating the Company's performance. These measures have been described and presented in this press release in order to provide shareholders and potential investors with additional information regarding the Company. These Non-IFRS measures are identified and defined as follows:

Adjusted Net Earnings (Loss), Adjusted Net Earnings (Loss) per share, Adjusted EBITDA, and Adjusted EBITDA per share.

Adjusted Net Earnings (Loss) are defined as net earnings/(loss) before non-recurring events, net of corporate income taxes ("Adjusted Net Earnings"). Adjusted Net Earnings (Loss) per share is defined as Adjusted Net Earnings (Loss) divided by diluted weighted average common shares. Management believes that in addition to net earnings, Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) per share are useful supplemental measures that represent normalized net earnings (loss) from the business so that financial statement users can make insightful comparisons between current periods and historical results.

Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, impairment charges, share-based payments, and non-recurring events ("Adjusted EBITDA"). Adjusted EBITDA per share is defined as Adjusted EBITDA divided by diluted weighted average common shares. Management believes that in addition to net earnings, Adjusted EBITDA and Adjusted EBITDA per share are useful supplemental measures of operating performance that normalize financing, depreciation, income tax, and other non-recurring charges which are not controlled at the operating level. The following table provides a reconciliation of Net Earnings under IFRS, as disclosed in the interim financial statements, to Adjusted Net Earnings and Adjusted EBITDA:

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