Earnings season has kicked off, and the reports are flying in. Think of these Weekly Updates as your shortcut for staying on top of it, a fast rundown of the latest results across the microcaps we're monitoring, with the beats, the duds, and everything on our radar.
Highlights
BRM.V (Quarterly Results): Q2 sales +67% to C$15.7M and EPS +163% to C$0.105, with backlog up YoY, a strong H1 setup for a seasonally bigger H2, and services now 1/3 of the mix.
HMM.A.TO (Quarterly Results): Q2 sales +19% to C$85.0M and EPS +88% to $0.64, an indirect AI/data-center beneficiary expanding capacity, still cheap at an 8.7x run-rate P/E.
SCIA (Quarterly Results): Q2 sales +164% to $9.5M and EPS +225% to $0.26. Cheap at a run-rate P/E of 8.6x; however, the main caveat is 80% customer concentration.
MUEL (Quarterly Results): Q2 sales +29% to $93.8M but EPS flat at $12.72 on margin compression. Backlog is still declining, though we expect it to inflect on the pharma-onshoring wave. Cheap at a run-rate P/E of 9.3x.
The following will cover stocks that are either in our microcap quality indices (MSMqi) or in our research journal (stocks that don’t quite qualify for the MSMqi but might be close).
Studs (Positive News)
1) BRM.V | Air Pollution Control Systems Maker
Quarterly Results
BRM.V posted excellent results with Q2 sales of C$15.7 million vs. C$9.4 million in the prior year and Q2 2026 EPS of C$0.105 vs. C$0.040 in the prior year.
Q2 2026 backlog stood at $75.5M, up from $60.9M in the prior year but slightly down from the $77.0M backlog they posted in Q1 2026. As a heads up, Biorem is a very lumpy and seasonal business, and H1 is usually significantly weaker than H2. However, this strong H1 backlog sets them up for an excellent H2. Now, Biorem will have to prove they can at least maintain or grow their backlog during these stronger periods.
According to Biorem’s data, the US and the Middle East are driving all of the revenue growth. In a previous interview, management stated that Israel was a particularly strong market and the broader area could see a significant increase in infrastructure investment; it appears that this driver might be materializing.
The biggest takeaway from this release is probably that Biorem is finally breaking down its revenue into construction and service revenue, and the mix indicates that around 1/3 of the business is already services revenue.
In terms of valuation, the one analyst covering the stock expects the company to generate $0.34 in EPS in 2026 and $0.43 in 2027. This is in line with our estimates, which indicate EPS of $0.38 for the next twelve months. We think that in the medium to long-term, services revenue might help to partially offset the lumpy revenue, and potentially contribute toward an expansion in Biorem’s P/E.
Note:
Stock is in our Microcap Quality Index
Check our previous Biorem commentary by reading our Cliff Note Update or our Weekly Update #15.
2) HMM.A.TO | Electrical Enclosures and Racks Maker
Quarterly Results
Hammond Manufacturing announced results with Q2 2026 sales of C$85.0 million vs C$71.3 million in the prior year, and Q2 2026 EPS of $0.64 vs. $0.34 in the prior year.
To give you some context. We started taking a closer look at Hammond after the company reported Q1 2026 results earlier this year. At the time, it announced an 85,000-square-foot facility expansion to add painting and metal fabrication capacity.
The company never spelled out why it was expanding capacity, but we reported that we suspected it was tied to rising demand from increased AI spending. As a matter of fact, Hammond has several products geared toward data centers (ladders, frames, etc.), which makes it an indirect AI beneficiary.
The “AI beneficiary” narrative gets more traction when you realize that Hammond sells through distributors (Wesco, Rexel, Avnet, etc.), which have some very insightful commentary on what their revenue drivers have been.