Hybrid Power Solutions Reports Strong Fourth Quarter Revenue Growth and Narrowing Net Loss

Mississauga, Ontario — September 29, 2026 — Leads & Copy — Hybrid Power Solutions Inc. (CSE: HPSS) (OTC: HPSIF) (FSE: E092), a company specializing in fuel-free clean power solutions, announced its financial results for the fourth quarter and fiscal year ended May 31, 2026. The company reported fourth-quarter revenue of C$886,333, a 707% increase year-over-year and an 82% rise from the third quarter, with its quarterly net loss narrowing by 52% compared to the prior quarter.

Fiscal year 2026 saw significant business achievements for Hybrid Power Solutions. The company secured its largest order to date, a C$1.5 million purchase order from LMDH Equipment Sales for 10 Spark Hybrid systems destined for rental specialist Location GM. This followed a prior agreement to deliver nine Spark units to Location GM valued at C$521,100. Additionally, Hybrid received an advance purchase order from LMDH Equipment Sales for twelve Spark units and one Terra unit, with a Manufacturer's Suggested Retail Price (MSRP) of C$1,173,800. Production also commenced on 11 Spark units for deployment through a major national equipment rental company to three of North America’s largest general contractors.

The company also made inroads into new sectors and expanded its distribution network. Hybrid secured its first purchase order from MTA New York City Transit for a Batt Pack Spark portable power system equipped with folding solar panels. It also received repeat orders from Canada’s largest transit commission, including a C$203,000 order for a customized Spark Cube system. Expansion into the defence and public safety sectors was marked by 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 integrate the Spark platform with Movex’s remote-controlled electric equipment.

Hybrid Power Solutions broadened its North American distribution through agreements with Meyer Distributing, Alamo Auto Supply, One Stop Truck & Equipment, Rolston Hogstrom, Purafy, Groovy Energy, Kiikew Renewables, and The Solar Store. Dragonfly Energy Holdings Corp. (NASDAQ: DFLI) placed a stocking order for portable power units to be manufactured under its Battle Born® brand. The company also received repeat orders from the mining, transportation and logistics, marine, and municipal sectors. A Spark Cube 30 kWh system was sold for embassy infrastructure in Haiti, purchased on behalf of the Canadian Department of Foreign Affairs, Trade and Development.

Technological advancements included the unveiling of the patent-pending Solar Tarp portable solar solution. The company advanced its embedded IoT technology and unified fleet management platform to final testing and beta customer trials, and re-shored Terra design and production to North America. Memoranda of understanding were signed 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.

For the fourth quarter of fiscal 2026, product revenue increased to C$878,183 from C$101,696 in the same period of fiscal 2025, driven by higher sales volumes of the Terra battery pack and new Spark systems. The company reported a gross loss of C$65,225 for the quarter, an improvement from a gross loss of C$446,387 in the fourth quarter of fiscal 2025. This improvement is attributed to higher sales volumes spreading fixed production costs and the absence of an inventory write-off from the prior-year period. Operating expenses for the quarter were C$536,771, compared to C$186,594 in the fourth quarter of fiscal 2025. The current quarter included a net research and development recovery of C$206,063, while the prior-year quarter benefited from a share-based compensation recovery.

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

For the full fiscal year 2026, revenue was C$1,953,011, a 30% decrease from C$2,801,100 in fiscal 2025, primarily due to lower sales volumes in the first half of the year. The gross profit for fiscal 2026 was C$70,526 with a gross margin of 3.6%, compared to a gross profit of C$307,426 with a 11.0% margin in fiscal 2025. This decrease in margin was largely due to the transfer of C$248,819 of research and development costs to cost of sales. Operating expenses decreased by 15% to C$2,759,157 from C$3,254,599 in fiscal 2025, mainly due to reduced advertising and professional fees. The net loss for fiscal 2026 was C$2,631,007 (C$0.03 per share), a 10% improvement from a net loss of C$2,928,841 (C$0.04 per share) in fiscal 2025.

Cash reserves increased to C$234,500 as of May 31, 2026, from C$62,997 at May 31, 2025. The company reported a working capital deficiency of C$1,853,561. Net cash provided by financing activities was C$2,670,881, including C$500,000 from convertible debenture financing and C$1,079,925 from a LIFE offering. Subsequent to the fiscal year-end, Hybrid Power Solutions closed non-brokered private placements, raising C$1,697,000 on June 10, 2026, and C$617,500 on September 18, 2026, both at C$0.05 per unit.

Francois Byrne, CEO and Director, stated, “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.” Byrne also noted the accelerating demand for resilient, deployable power solutions across the defence sector, highlighting Hybrid Power Solutions' position to address this need. The company's focus for fiscal 2027 includes fulfilling orders, improving margins, and converting its pipeline into sustainable revenue.

As of September 22, 2026, the company's sales pipeline totalled approximately C$19.3 million, with C$1.5 million in booked backlog and C$17.8 million in active, quoted opportunities, an increase from the C$12.5 million disclosed in June 2026. The pipeline is diversified across sectors including OEM (29%), rental and construction (20%), utilities and government (17%), and defence (9%).

The company also issued a correction to its September 18, 2026, news release regarding finder's fees paid in connection with a private placement, clarifying the aggregate cash finder’s fees and finder warrants issued.

Source: Hybrid Power Solutions Inc.