Calgary, Alberta--(Newsfile Corp. - May 21, 2026) - Cleantek Industries Inc. (TSXV: CTEK) ("Cleantek" or the "Company"), a leading provider of patented energy technology solutions that reduce cost and carbon intensity in the wastewater management and industrial lighting sectors, is pleased to provide a business update and unaudited financial highlights for the three months ended March 31, 2026.

During the quarter, the Company increased investments in strategic growth initiatives and upcoming projects expected to drive future revenue growth, including expenditures tied to its previously announced large international HALO SE project scheduled to commence in Q2 2026.

"Our first quarter results reflect a deliberate investment phase for the Company," said Riley Taggart, Chief Executive Officer. "We have continued to deploy capital and resources toward the construction of our international sales units. While these investments impacted near-term results, they are aligned with our broader strategic objectives and expected future demand."

Q1 2026 HIGHLIGHTS

• Manufacturing of HALO SE Crown Mount units for the international contract is actively underway at the Company's Crossfield, Alberta facility; revenue recognition is anticipated to commence in late Q2 2026 and continue through Q3 2026. The HALO International Program is expected to represent the largest single-contract revenue event in the Company's history.

• Revenue of $3,514 for Q1 2026, with core North American rental activity remaining steady at $3,349.

• Net income of $217, maintaining profitability through a quarter of elevated pre-revenue investment activity.

• Adjusted EBITDA of $1,001 (28% margin), with near-term compression reflecting upfront costs associated with scaling for international contract delivery.

• Working capital improved to a surplus of $835 at March 31, 2026, from a deficit of $(482) at December 31, 2025, supported by inventory and prepaid build for the HALO International Program and a significant reduction in the bank operating line balance.

• Shares outstanding as at May 21, 2026: 29,485,376.

SELECTED FINANCIAL INFORMATION

(Canadian $000's, unaudited, except per share amounts)

¹ Non-IFRS measure. See Non-IFRS Measurements section.

CAPITAL STRUCTURE

(Canadian $000's, unaudited)

Working capital improved by $1,317 quarter-over-quarter, driven by inventory and prepaid build for the HALO International Program and a reduction in the bank operating line balance from $1,046 to $245. Non-current debt increased to $7,581, reflecting net drawdowns on the BDC manufacturing facility to fund fleet additions and contract-related capital expenditures. Shareholders' equity increased to $3,097, driven by Q1 net income and a $183 foreign currency translation adjustment.

OPERATIONAL PRIORITIES AND OUTLOOK

Cleantek enters the balance of 2026 with a contracted international revenue catalyst in active execution, a North American rental base operating at stable utilization, and the expansion of international opportunities. The Company's near-term operational priorities include:

• Executing on delivery and installation of up to 60 HALO SE Crown Mount lighting systems under the HALO International Program, with revenue recognition anticipated commencing in late Q2 2026;

• Sustaining and growing North American rental utilization across the lighting and wastewater treatment fleets;

• Advancing the EcoSteam program, which continues to generate positive customer response and positions Cleantek to address growing operator demand for emissions-reduced wastewater treatment;

• Expanding international sales and rental activity in markets where the HALO SE Crown Mount has demonstrated performance; and

• Evaluating acquisition and merger opportunities that expand product offering, customer reach, or geographic presence, with a longer-term objective of accessing broader capital markets including a potential TSX uplisting.

Management maintains the Company's EBITDA outlook for 2026, citing a growing list of opportunities and improving market conditions across several key operating regions.

"We continue to see encouraging activity levels within our target markets," added Riley Taggart. "Our focus remains on disciplined growth, operational execution, and positioning the Company to capitalize on opportunities currently in development."

ABOUT CLEANTEK INDUSTRIES

Cleantek is an energy technology company providing specialized and fully integrated wastewater treatment, disposal equipment, and turnkey sustainable lighting rental solutions. By leveraging patented technology and industry expertise, Cleantek delivers tailored, cost-effective solutions to a diverse client base, including blue-chip exploration and production companies across North America. The Company is focused on operational execution, technology innovation, and expanding its presence across key industrial markets while continuing to deliver long-term value for customers and shareholders.

The Company's financial statements and MD&A are available on SEDAR+ at www.sedarplus.ca.

NON-IFRS MEASUREMENTS

EBITDA and Adjusted EBITDA are non-IFRS measures used by management to evaluate operating performance and cash flow generation. EBITDA is defined as net income before finance costs, income taxes, and depreciation and amortization. Adjusted EBITDA is EBITDA further adjusted for share-based compensation, unrealized foreign exchange gains and losses, and episodic items not indicative of recurring earnings capacity, including gains and losses on disposal of property and equipment, gains and losses on termination of right-of-use assets, litigation expenses and settlements, executive severance, and gains on debt forgiveness. These measures do not have standardized meanings under IFRS and may not be comparable to similar measures presented by other issuers.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements, including statements relating to anticipated revenue recognition under the HALO International Program, expected EBITDA recovery, fleet expansion, international market development, and potential acquisition and capital markets activity. Forward-looking statements involve known and unknown risks and uncertainties, and actual results may differ materially. Cleantek disclaims any obligation to update forward-looking statements except as required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/298497

Source: Cleantek Industries Inc.