Fourth quarter revenue of $886,333, up 707% year over year and 82% over the third quarter, with the quarterly net loss narrowing 52% from the third quarter

Mississauga, Ontario – September 29, 2026 – TheNewswire - Hybrid Power Solutions Inc. (CSE: HPSS) (OTC: HPSIF) (FSE: E092) ("Hybrid" or the "Company"), an emerging leader in the delivery of fuel-free clean power solutions, announces its financial results for the fourth quarter (three months ended May 31, 2026) and the fiscal year ended May 31, 2026 ("fiscal 2026"). The Annual Financial Statements, Management Discussion and Analysis and financial certifications have been filed on SEDAR+ and can be viewed on the Company’s investor website at https://investhps.com/. All amounts are in Canadian dollars unless otherwise stated.

Fiscal Year 2026 Business Highlights

• Secured the largest order to date in the Company’s history, a purchase order valued at over C$1.5 million from distributor LMDH Equipment Sales for 10 Spark Hybrid systems for Quebec-based rental specialist Location GM, following an agreement to deliver nine Spark units to Location GM valued at C$521,100. 

• Received an advance purchase order from LMDH Equipment Sales with an MSRP value of $1,173,800 for twelve Spark units and one Terra unit, and commenced production of 11 Spark units for deployment through a leading national equipment rental company to three of North America’s largest general contractors. 

• Received the first purchase order from MTA New York City Transit for a Batt Pack Spark portable power system with folding solar panels, and secured repeat and follow-on orders from Canada’s largest transit commission, including a $203,000 order for a customized Spark Cube system. 

• Expanded into the defence and public safety sectors through a Canadian defence distribution partnership with Cantec Systems, an initial trial purchase order for a Batt Pack Energy unit from a global provider of AI-based security and drone solutions, and a collaboration with Movex Innovation to pair the Spark platform with Movex’s remote-controlled electric equipment. 

• Broadened distribution across North America with agreements including Meyer Distributing, Alamo Auto Supply, One Stop Truck & Equipment, Rolston Hogstrom, Purafy, Groovy Energy, Kiikew Renewables and The Solar Store, and received a stocking order from Dragonfly Energy Holdings Corp. (NASDAQ: DFLI) to manufacture portable power units under its Battle Born® brand. 

• Received repeat orders across the mining, transportation and logistics, marine and municipal sectors, and completed the sale of a Spark Cube 30 kWh system for embassy infrastructure in Haiti purchased on behalf of the Canadian Department of Foreign Affairs, Trade and Development. 

• Unveiled the patent-pending Solar Tarp portable solar solution, advanced its embedded IoT technology and unified fleet management platform to final testing and beta customer trials, and reshored Terra design and production to North America. 

• Signed memoranda of understanding with Volthium Energy for lithium-ion battery technology for Canadian construction projects and with CarboMat for low-cost, sustainable battery anode materials for the Terra platform. 

Fourth Quarter Fiscal 2026 Financial Highlights (three months ended May 31, 2026)

• Revenue of $886,333, up 707% from $109,846 in the fourth quarter of fiscal 2025 and up 82% from $488,308 in the third quarter of fiscal 2026. Product revenue rose to $878,183 from $101,696 a year earlier on higher sales volumes, including sales of the Terra battery pack and new Spark systems. 

• Gross loss of $65,225, compared with a gross loss of $446,387 in the fourth quarter of fiscal 2025. The improvement reflects higher sales volumes spreading fixed production costs over a larger revenue base, and the absence of the inventory write-off recorded in the prior-year period. 

• Operating expenses of $536,771, compared with $186,594 in the fourth quarter of fiscal 2025. The prior-year quarter included a share-based compensation recovery of $664,428 from the cancellation of the CEO’s share-based compensation, while the current quarter included a net research and development recovery of $206,063 as costs relating to Terra production were reallocated to cost of sales. 

• Net loss of $369,467 ($0.00 per share), a 27% improvement from a net loss of $506,523 ($0.01 per share) in the fourth quarter of fiscal 2025, and a 52% improvement from a net loss of $762,027 in the third quarter of fiscal 2026. 

Fiscal Year 2026 Financial Highlights (year ended May 31, 2026)

• Revenue of $1,953,011, compared with $2,801,100 for fiscal 2025, a decrease of 30%, reflecting lower sales volumes in the first half of the year before the second-half recovery. 

• Gross profit of $70,526, a gross margin of 3.6%, compared with gross profit of $307,426 and a gross margin of 11.0% for fiscal 2025. The lower margin was mainly due to the transfer of $248,819 of research and development costs to cost of sales. 

• Operating expenses of $2,759,157, down 15% from $3,254,599 for fiscal 2025, mainly from lower advertising expense (down $300,761) and professional fees (down $201,879). 

• Net loss of $2,631,007 ($0.03 per share), a 10% improvement from a net loss of $2,928,841 ($0.04 per share) for fiscal 2025. 

• Cash of $234,500 as at May 31, 2026, compared with $62,997 at May 31, 2025, and a working capital deficiency of $1,853,561 (May 31, 2025: $1,373,353). Net cash provided by financing activities was $2,670,881, including the $500,000 convertible debenture financing and the $1,079,925 LIFE offering. 

• Subsequent to fiscal year end, the Company closed non-brokered private placements of 33,940,000 units for gross proceeds of $1,697,000 on June 10, 2026 and 12,350,000 units for gross proceeds of $617,500 on September 18, 2026, in each case at a price of $0.05 per unit. 

Selected Financial Results (C$, except per share amounts)

	Q4 FY2026	Q4 FY2025	FY2026	FY2025
Revenue	886,333	109,846	1,953,011	2,801,100
Cost of sales	951,558	556,233	1,882,486	2,493,674
Gross profit (loss)	(65,225)	(446,387)	70,526	307,426
Operating expenses	536,771	186,594	2,759,157	3,254,599
Net loss	(369,467)	(506,523)	(2,631,007)	(2,928,841)
Net loss per share, basic and diluted	(0.00)	(0.01)	(0.03)	(0.04)

 

Francois Byrne, CEO and Director, states: “Our fourth quarter was our strongest quarter of fiscal 2026. Revenue grew in each of the last two quarters as orders moved into production and delivery, and our quarterly net loss narrowed as higher volumes began to absorb our fixed production costs. We also reduced operating expenses for the year and strengthened our cash position.

“We are also encouraged by the accelerating demand for resilient, deployable power solutions across the defence sector. From unmanned systems and mobile communications to radar, surveillance and critical field infrastructure, reliable power has become an increasingly essential capability. Hybrid Power Solutions is well positioned to address this growing requirement with scalable hybrid energy systems that reduce fuel consumption, improve operational resilience and support demanding mission-critical applications. Our focus for fiscal 2027 is delivering on our orders, improving margins as volumes grow and converting our pipeline into sustainable revenue, and we see a significant opportunity to establish Hybrid as a leading provider of advanced power solutions for defence customers in the near term.”

Pipeline and Outlook

As of September 22, 2026, the Company’s sales pipeline totalled approximately $19.3 million, covering expected opportunities from October 2026 to September 2028. The pipeline comprises approximately $1.5 million in booked backlog and approximately $17.8 million in active, quoted opportunities. This represents an increase from the pipeline of $12.5 million in active, quoted opportunities disclosed in the Company’s news release dated June 18, 2026.

Pipeline by Sector as at September 22, 2026

Sector	C$ millions	% of total
OEM	5.5	29%
Rental and construction	3.9	20%
Utilities and government	3.3	17%
Defence	1.7	9%
Other (1)	4.9	25%
Total pipeline	19.3	100%

(1) Other comprises fleet, EV and industrial; transit; international; distribution and channel; and mining. Amounts and percentages are rounded. Pipeline represents potential opportunities, including quoted opportunities that are not firm orders, and may not convert to revenue in the amounts or on the timing expected. See "Forward-Looking Statements" below.

Correction to September 18, 2026 News Release

The Company’s news release dated September 18, 2026, announcing the closing of its non-brokered private placement, incorrectly stated the finder’s fees paid in connection with the private placement. The Company paid aggregate cash finder’s fees of $15,000 and issued an aggregate of 300,000 finder warrants, not $14,370 and 287,400 finder warrants as previously reported. Each finder warrant entitles the holder to acquire one common share at a price of $0.06 for 24 months from the closing date, expiring September 18, 2028. Accordingly, an aggregate of 12,650,000 warrants exercisable at $0.06 were issued in connection with the private placement, comprising 12,350,000 unit warrants and 300,000 finder warrants. All other terms of the private placement are unchanged.

About Hybrid Power Solutions

Hybrid Power Solutions Inc. is a Canadian clean energy innovator listed on the Canadian Securities Exchange under the symbol "HPSS." The Company specializes in developing portable power systems that eliminate the need for fossil fuels in off-grid and remote applications. With a focus on environmental responsibility and technological innovation, Hybrid Power Solutions is committed to leading the clean energy transition.

On Behalf of the Company,

Francois Byrne, CEO and Director

For further information, inquiries, or media opportunities, please contact:

Hybrid Power Solutions
E: invest@hybridps.ca
T: 866-549-2743
www.investhps.com

Investor Relations
Dean Stuart
E: dean@boardmarker.net
T: 403-617-7609

Sophic Capital
Sean Peasgood
E: Sean@SophicCapital.com
T: 437-836-8862

Forward-Looking Statements

Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by terminology such as "will," "expects," "anticipates," "intends," "plans," or variations of such words and phrases, or by statements that certain actions, events, or results "will" occur. Forward-looking statements in this release include, without limitation, statements regarding the Company’s fiscal 2027 focus and priorities, the delivery of orders received, margins, the Company’s sales pipeline, the conversion of its pipeline into revenue, demand for power solutions in the defence sector, and the Company’s opportunity to establish itself as a leading provider of advanced power solutions for defence customers. The Company’s pipeline represents potential opportunities, including quoted opportunities that are not firm orders, and may not convert to revenue in the amounts or on the timing expected. Quoted opportunities may not result in firm orders, and orders received may be delayed, modified or cancelled. Forward-looking statements are based on management’s estimates as of the date such statements are made and are subject to risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied by such statements, including the risk factors described in the Company’s MD&A filed on SEDAR+. Readers are cautioned not to place undue reliance on forward-looking information. The Company undertakes no obligation to update forward-looking statements except as required by applicable securities laws.

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.