Clear Blue Technologies International Inc. (CBLU-X) saw revenue rise 25 per cent from the previous quarter to just over $1 million in Q2, while it anticipates most of the year’s revenue to be generated during the next two quarters.

Toronto-based Clear Blue manufactures off-grid smart technologies and power electronics that are compatible with renewable energy. The cloud-based products are designed to get communities off diesel and onto solar energy, with 14,000 of its systems in use by 400 customers in 55 countries.

In Q2, revenue and recurring revenue rose due to increases in its wind- and solar-powered lighting business Illuminent, and power solutions Nano-Grid and Esite-Micro, Farrukh Anwar, CFO of Clear Blue, said on an investor call Tuesday.

Profit in Q2 stood at $245,564 against a net loss at $1.3 million. That compares to a profit of $338,339 and a net loss of $1.2 million in Q1, and a profit of $309,007 and a net loss of $2.1 million in Q2 2023.

After a difficult period for the company since 2022, Clear Blue’s co-founder and CEO Miriam Tuerk believes it is reversing its fortunes.

“We’ve been working very hard as a company," Tuerk said. "I think we’re pretty proud of the progress we’re making as a company and showing a strong upswing as a result of the all the work we’ve done through the downturn in 2022 and coming out of it last year.”

Clear Blue’s Q2

Recurring revenue in Q2 was $169,106, which was a decrease from $300,786 in Q1 but an increase from $139,056 in Q2 2023.

Growth in Clear Blue’s Q2 revenues was led by its acquisitions, Tuerk said. Two years ago, the company only had Illuminent and Nanogrid, but has since added Pico-Grid, a small all-in-one solar power system, and Esite-Micro to its roster of products.

Its profit in Q2 was hit by an “unexpected” solar panel anti-dumping charge of $93,643, Anwar explained. Without the charge, Clear Blue would have seen its gross margin at 33 per cent, compared to the 24 per cent it ended at, he continued. Clear Blue is appealing the decision.

Clear Blue’s Q2 EBIDTA was a loss of $721,262, compared to a loss of $664,964 in Q2 2023.

Anwar noted EBITDA is negative, but it still marks an improvement because of rising revenues. Tuerk said global economic conditions impacted the figure, which she expects to be positive over the next 12 to 18 months because Clear Blue will generate most of its annual revenue in Q3 and Q4.

In the second half of 2024, the company is closing seven to 10 lighting projects in North America and two to six Esite-Micro orders, and plans to announce partnerships with telecom and lighting companies in Q4, Tuerk said.

The company has $3.2 million in bookings as of June 30, which is a 31 per cent increase from $2.5 million in Dec. 31, 2023.

Clear Blue’s areas of growth: telecoms, satellites, roads, AI

A significant portion of Clear Blue's telecom business is from Africa. Tuerk said the rising price of diesel has led many companies on the continent to switch to solar-powered towers. An example of its work is helping client IHS Towers to reduce its greenhouse gas intensity by 50 per cent by 2030 with its products.

The small satellite market is an area of growth for Clear Blue, the CEO said. The company and partners will seek to deploy Pico-Grid systems powered by solar or partial grid power on satellite dishes for stronger internet reliability. A partnership with a global original equipment manufacturer in the sector is expected to be announced in the fall.

Illuminent is servicing roads and highways, graduating from parks and walkways as grid parity is being attained, Tuerk said. The company may be at an inflection point where Illuminent’s revenue and sales volume rises, she projected.

Artificial intelligence is also a key priority. Clear Blue is receiving grants and loans from Sustainable Development Technology Canada and the Industrial Research Assistance Program to fund its projects applying the technology, Tuerk said.