Foremost Income Fund Reports 2025 Results

Calgary, Alberta--(Newsfile Corp. - March 12, 2026) - Foremost Income Fund ("Foremost" or the "Fund") announces its financial results for the year ended December 31, 2025.

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 three 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 2025
Foremost delivered a very strong year in 2025, with robust revenue growth and improved profitability across both divisions.

For the year, the Fund generated revenue of $248.8 million, up $28.3 million from 2024 ($220.5 million). Gross margin improved to 23% from 21% in 2024, and EBITDA increased to $42.8 million from $35.9 million in 2024, reflecting strong execution in FME and steady performance in FEE. SG&A Expenses accounted for 9% of revenue, at $21.5 million compared to 9% and $20.3 million in 2024. This level of administrative expense remains near the low end of the Fund's historical range and reflects continued discipline in managing overhead costs while supporting increased activity levels.

Foremost closed the year in an excellent financial position, with no long-term debt, cash of $64.8 million, and working capital of $97.7 million. This balance sheet strength provides flexibility as we enter a more uncertain trade and economic environment.

Foremost Mobile Equipment
Revenue: $173.4 million in 2025, a 13% increase from the $153.6 million recognized in 2024.
Gross Margin: $45.9 million, representing 27% of revenue, up from $34.4 million (22% of revenue) in 2024.

FME generated higher revenue and improved gross margins in 2025, building on the strong performance achieved in 2024. These results were driven by higher drill volumes, strong hydrovac demand, improved production throughput, and favourable foreign exchange.

Trade conditions with the U.S. became more challenging as the year progressed, with new tariff costs emerging in Q4 across several product categories in FME. We have worked closely with customers to pass through or share these costs while maintaining market share and product competitiveness. As a result, tariffs did not materially affect FME's full-year results in 2025.

Foremost Energy Equipment
Revenue: $75.9 million in 2025, a 13% increase from the $67.4 million recorded in 2024.
Gross Margin: $11.9 million, representing 16% of revenue, lower than the 18% recognized in 2024. Excluding the one-time $2.7 million project termination gain in 2024, FEE gross margin improved from 14% to 16% in 2025.

FEE generated higher revenue and improved operational gross margins compared to 2024. Shop tank and vessel activity remained strong, supported by increased development activity by key customers. Backlogs remain solid entering 2026, despite softening of commodity prices, as production continues on a large multi-year contract through 2026 and into 2027.

Summary of Key Fund Metrics for 2025 Compared to 2024

• Revenue: $248.8 million, a 13% increase over the $220.5 million in 2024.
• Gross Margin: $57.9 million, representing 23% of revenue, compared to $46.4 million (21% of revenue) in the previous year.
• SG&A Expenses: Accounted for 9% of revenue, at $21.5 million compared to 9% and $20.3 million in 2024.
• EBITDA: $42.8 million, representing 17% of revenue, compared to $35.9 million (16% of revenue) in the previous year.
• Adjusted EBITDA: (refer to page 21 of the MD&A): After removing non-operating items, increased from $30.1 million in 2024 to $41.6 million in 2025.

2026 Outlook
Entering 2026, our primary focus is maintaining execution and protecting margins as tariffs and chassis supply remain key swing factors. With a strong backlog and excellent liquidity, Foremost is well positioned to navigate these conditions and pursue new opportunities as they emerge.

Kevin Johnson
President, Foremost Income Fund

2025 VS 2024 Highlights

• Revenue for 2025 was $248.8 million, compared to $220.5 million for the previous year. More information is in the Segmented Results of Operations section of the MD&A.
• Gross profit for 2025 was $57.9 million and 23% of revenue, compared to $46.4 million and 21% of revenue in 2024. More information is in the Segmented Results of Operations section of the MD&A.
• Administrative expenses accounted for 9% of revenue in 2025 and 2024. In absolute terms, these costs increased $1.3 million from the previous year. The increase was primarily driven by trust unit option costs and personnel expenses.
• Adjusted EBITDA (defined on page 21 of the MD&A) was $41.6 million for 2025 compared to $30.1 million in 2024. Note that one-time non-operating items have been removed for purposes of adjusted EBITDA.
• As of March 10, 2026, the stated redemption price increased to $8.65 per trust unit.

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. 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, and interest rates and stock market volatility.

For further Investor Relations information please contact:

Jackie Schenn, CPA, CA

Tel: (403) 295-5800 or toll free 1-800-661-9190 (Canada/US) - Fax: (403) 295-5832 E-mail: investorrelations@foremost.ca - Website: www.foremost.ca

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/288238