Cleantek Industries Reports Strong Third Quarter 2026 Financial Results

Cleantek delivered record Q3 revenue and profit, driven by HALO unit sales and rentals.

What the company is saying

Cleantek Industries Inc. is highlighting a record third-quarter revenue of $5.187 million, representing a 58% year-over-year increase, and net income of $1.265 million, up from $352,000. The company emphasizes that Adjusted EBITDA more than doubled to $2.126 million, attributing this to continued HALO International Program deliveries and a 12% rise in rental and service revenue. President and CEO Riley Taggart frames these results as evidence of successful business diversification and strong operational execution, specifically noting the company's ability to fully repay its operating line from cash generated in the quarter. The announcement foregrounds operational achievements, such as delivering 12 HALO SE Crown Mount lighting systems in Q3 (32 total by September 30, 2026, and 36 as of the release date), and references ongoing international expansion, including a first commercial sale into South America. The company also signals its intent to pursue further sales in South America and to evaluate acquisitions to grow its fleet and diversify revenue. The tone is confident and data-driven, with forward-looking statements clearly separated from realised results.

What the data suggests

The disclosed figures show Cleantek's financial and operational performance improved sharply in Q3 2026. Revenue reached $5,187,000, up 58% from $3,282,000 in Q3 2025, while net income rose to $1,265,000 from $352,000. Adjusted EBITDA jumped 116% to $2,126,000, and gross profit increased to $3,145,000 with a margin of 61%, up from 58%. Equipment sales surged to $1,753,000, largely due to HALO International Program deliveries, and rental and service revenue grew 12% to $3,434,000. Cash provided by operating activities more than doubled to $2,217,000, enabling full repayment of the bank operating line. Working capital swung from a $482,000 deficit at year-end 2025 to a $4,022,000 surplus at September 30, 2026. Operationally, 12 HALO units were delivered in Q3, with 36 of up to 60 contracted units delivered as of the release. The company completed its first commercial sale in South America and is pursuing up to 15 additional unit sales, though these are not yet contracted. The data supports management's claims of strong growth and improved profitability, with realised results dominating the narrative and forward-looking statements clearly qualified.

Analysis

The announcement's tone is positive but proportionate to the substantial, realised financial and operational progress disclosed. The majority of claims are supported by concrete, period-over-period figures for revenue, net income, EBITDA, gross profit, and working capital, all showing significant improvement. Forward-looking statements (international expansion, potential South American sales, and acquisition evaluation) are present but clearly separated from realised results and do not dominate the narrative. The only capital outlays referenced are routine capital expenditures, which are modest relative to cash flow and are not paired with speculative, long-dated returns. The company's language around future opportunities is measured and does not overstate their certainty or impact. Overall, the data supports a strong positive signal with no material narrative inflation.

Risk flags

• ●Customer concentration risk is present, as a significant portion of equipment sales growth is attributed to deliveries under the HALO International Program, which may not be repeatable at the same pace if customer demand shifts.
• ●International expansion introduces execution and collection risks, especially in new markets like South America, where project timing and customer demand are less predictable and may impact the realization of follow-on sales.
• ●The company is evaluating acquisitions to expand its fleet and diversify revenue, which could introduce integration, capital allocation, and execution risks if pursued without clear strategic fit or financial discipline.
• ●Forward-looking statements regarding up to 15 additional unit sales in South America are contingent on external factors and are not yet contracted, leaving future revenue from this initiative uncertain.

Bottom line

Cleantek Industries Inc. delivered a strong Q3 2026, with revenue up 58% to $5.187 million and net income rising to $1.265 million, driven by HALO unit deliveries and growth in rentals and services. The company generated enough cash to fully repay its operating line and improved working capital from a deficit to a $4.022 million surplus. Operational momentum is clear, with 36 of up to 60 contracted HALO units now delivered and a first commercial sale into South America completed. While the outlook for additional South American sales and further international expansion is positive, these remain forward-looking and subject to execution risk. The financial disclosures are detailed and transparent, supporting management's claims of growth and profitability. The most important takeaway is that Cleantek's realised results show strong operational leverage and cash generation, but sustaining this trajectory will depend on continued demand for HALO units and successful expansion beyond its core markets.

Announcement summary

(TSXV:CTEK) Cleantek Industries Inc. reported record third-quarter revenue of $5.187 million for the three months ended September 30, 2026, representing a 58% increase over the same quarter in 2025. Net income for the quarter was $1.265 million, up from $352,000 in Q3 2025. Adjusted EBITDA more than doubled to $2.126 million from $984,000 in the prior-year quarter. Equipment sales reached $1,753,000, compared to $212,000 in Q3 2025, primarily due to deliveries under the HALO International Program. Rental and service revenue was $3,434,000, a 12% increase over the prior-year quarter. Gross profit for Q3 2026 was $3,145,000, up from $1,889,000 in Q3 2025, with a gross profit margin of 61% versus 58% in the prior year. Net income per share was $0.04 (basic and diluted), compared to $0.01 in Q3 2025. EBITDA for the quarter was $2,024,000, up from $1,134,000, and capital expenditures were $484,000, compared to $268,000 in Q3 2025. Cash provided by operating activities was $2,217,000, up from $968,000 in the prior year, and the company fully repaid its bank operating line during the quarter. Working capital at September 30, 2026 was $4,022,000, compared to a deficit of $482,000 at December 31, 2025. Cleantek delivered 12 HALO SE Crown Mount lighting systems under the HALO International Program in Q3 2026, bringing total deliveries to 32 as of September 30, 2026, with an additional 4 units delivered in October 2026. Year-to-date revenue for 2026 was $13,827,000, compared to $10,339,000 for the same period in 2025. Year-to-date gross profit was $7,835,000, up from $6,014,000, and year-to-date net income was $2,000,000, compared to $340,000 in 2025. Year-to-date EBITDA was $4,303,000, up from $2,601,000, and year-to-date Adjusted EBITDA was $4,553,000, compared to $3,030,000 in 2025. Year-to-date capital expenditures were $1,296,000, compared to $1,161,000 in 2025. As of the date of the release, 36 of up to 60 contracted units have been delivered under the HALO International Program. The company completed its first commercial sale into South America in Q2 2026 and is pursuing a follow-on phase that could result in the sale of up to 15 additional units, subject to project timing and customer demand. Cleantek continues to focus on expanding its international presence, growing its recurring rental and service business, and evaluating acquisitions to expand its fleet and diversify revenue. Riley Taggart, President and Chief Executive Officer, stated that the third quarter results demonstrate the value of business diversification, record revenue, and strong cash generation.

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