Calgary, Alberta--(Newsfile Corp. - November 12, 2026) - Foremost Income Fund ("Foremost" or the "Fund") announces its financial results for the three and nine-month period ended September 30, 2026.

Overview
The Fund is an unincorporated open-end mutual fund trust conducting its business through three operating segments: Foremost Energy Equipment (FEE), Foremost Mobile Equipment (FME), and Corporate. FEE, with its focus on the oil and gas industry in Western Canada, consists of two active manufacturing and service locations across Alberta. The locations manufacture oil-treating systems, shop tanks, field tanks, agriculture equipment, oil and gas process-treating equipment, and gas separators. FME manufactures and services hydrovac and vacuum trucks and equipment; off-highway, large-wheeled and tracked vehicles; and equipment for the custom drilling, construction, water well, and mining sectors. FME focuses on custom-built vehicles for its global clientele whom it serves through two manufacturing and service locations across Alberta.

Message to Unitholders
Summary of Q3 2026
Foremost delivered a mixed third quarter in 2026. Revenue for the quarter was $62.3 million, compared with $70.3 million in Q3 2025, while adjusted EBITDA was $9.1 million compared with $13.1 million in the prior-year quarter. Results reflected continued strong performance from Foremost Mobile Equipment, offset by significantly lower margins in Foremost Energy Equipment due primarily to losses on a major field tank project.

Gross profit for the quarter was $13.3 million, representing 21% of revenue, compared with $17.0 million and 24% of revenue in Q3 2025. EBITDA was $11.9 million and included a $2.8 million gain from the sale of an investment property in Lloydminster. Adjusted EBITDA, which removes this non-operating gain, was $9.1 million.

Administrative expenses were $5.3 million and represented 9% of revenue. Administrative expenses remain near the low end of the Fund's historical range and continue to be well controlled.

Foremost remains in a strong financial position, ending Q3 with $67.2 million of cash, no long-term debt, and working capital of $132.5 million. Through the first nine months of 2026, the Fund generated revenue of $194.9 million and adjusted EBITDA of $31.6 million.

Foremost Mobile Equipment
Revenue: $41.5 million in Q3 2026, compared with $48.9 million in Q3 2025.
Gross Margin: $11.9 million, representing 29% of revenue, compared with $13.1 million and 27% of revenue in Q3 2025.

FME continued to perform well despite lower revenue in the quarter. Revenue declined primarily in the drill and hydrovac product lines, partially offset by stronger parts and vehicle sales. Gross margin improved to 29%, reflecting continued operating discipline and favourable product mix.

Trade conditions with the United States continue to affect the business. Tariffs on certain steel derivative products and chassis-mounted work equipment remain a headwind for U.S.-bound sales and margins. Foremost continues to work with customers, distributors, and suppliers to mitigate these impacts through pricing adjustments and alternative sourcing.

Despite these pressures, demand for drilling equipment, hydrovacs, and aftermarket parts remains strong across North and South America.

Foremost Energy Equipment
Revenue: $20.9 million in Q3 2026, compared with $21.5 million in Q3 2025.
Gross Margin: $1.3 million, representing 6% of revenue, compared with $3.9 million and 18% of revenue in Q3 2025.

FEE's results were significantly affected by losses on a major field tank project during the quarter. Project execution challenges were compounded by adverse weather conditions over the course of the work. These factors materially reduced margins for the quarter. Management has reviewed the execution issues and will be incorporating the lessons learned into future projects. Outside of this project, activity remained solid across several FEE product lines. Vessel and shop tank work continued to generate healthy activity, while agricultural bin and ULC tank demand improved during the quarter.

The sales environment remains competitive for shorter-cycle work as energy-price volatility continues to influence customer spending and pricing.

During the quarter, FEE completed the sale of the Lloydminster West investment property, resulting in a $2.8 million gain.

Summary of Key Fund Metrics for Q3 2026 Compared to Q2 2026

• Revenue: $62.3 million, a 14% decrease from the $72.5 million in Q2 2026.
• Gross Margin $13.3 million, representing 21% of revenue, compared with $17.0 million and 23% of revenue in Q2 2026
• Administrative Expenses: $5.3 million, representing 9% of revenue, compared with $5.6 million and 8% of revenue in Q2 2026
• EBITDA: $11.9 million, representing 19% of revenue, compared with $12.8 million and 18% of revenue in Q2 2026.
• Adjusted EBITDA: (refer to page 21 of the MD&A): After removing non-operating items, decreased from $12.8 million in Q2 2026 to $9.1 million in Q3 2026.
• EBITDA and Adjusted EBITDA are non-GAAP financial measures and do not have standardized meanings under IFRS. Refer to the Non-GAAP Measures section of the Fund's Q3 2026 MD&A for definitions, usefulness to management, and reconciliations to the most directly comparable IFRS measures.

2026 Outlook
As we enter the final quarter of 2026, our focus remains on maintaining execution, protecting margins, and managing working capital in an uncertain trade and commodity-price environment. Tariffs continue to affect U.S.-bound sales and deliveries, although strong product demand is helping to mitigate the impact. Foremost remains well positioned, with a diverse product portfolio, a strong reputation, and a solid balance sheet that provides flexibility to manage through near-term volatility while continuing to pursue growth opportunities.

Kevin Johnson
President, Foremost Income Fund

Q3 2026 VS Q3 2025 Highlights

• Revenue for the third quarter of 2026 was $62.3 million, compared to $70.3 million for the same period of the previous year. More information is in the Segmented Results of Operations section of the MD&A.
• Gross profit for Q3 2026 was $13.3 million and 21% of revenue, a decrease from Q3 2025 gross profit of $17.0 million and 24% of revenue. More information is in the Segmented Results of Operations section of the MD&A.
• Administrative expenses accounted for 9% of revenue in Q3 2026, an increase over the 7% in Q3 2025. In absolute terms, these costs increased $0.1 million from the previous year.
• Adjusted EBITDA (defined on page 21 of the MD&A) was $9.1 million for Q3 2026 compared to $13.1 million in Q3 2025. Note that one-time non-operating items have been removed for purposes of adjusted EBITDA, including a gain of $2.8 million on assets held for sale.
• During the first quarter of 2026, the Fund paid an annual distribution of $24.4 million related to the Fund's 2025 taxable income.
• As of November 10, 2026, the stated redemption price increased to $10.55 per trust unit.
• The Fund's Q3 2026 financial statements and MD&A are available at www.sedarplus.ca and www.foremost.ca.

FORWARD-LOOKING STATEMENT
Certain statements in this news release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this news release, such statements use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. Forward-looking statements include statements regarding tariff impacts, expected continuation of vessel and field work, pricing and sourcing responses, margin protection, working capital management, and future growth opportunities. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this news release. These forward-looking statements involve a number of risks and uncertainties, including: the impact of general economic conditions, industry conditions, changes in laws and regulations, increased competition, fluctuations in commodity prices and foreign exchange, interest rates and stock market volatility.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/323850

Source: Foremost Income Fund