NXT Energy Solutions Highlights Revenue Surge, Active Surveys and SFD Growth Strategy

NXT Energy Solutions (TSE:SFD) President and CFO Eugene Woychyshyn outlined the company’s commercial progress, active survey work and growth strategy for its Stress Field Detection, or SFD, technology during a presentation to investors.

Woychyshyn said SFD is an airborne exploration tool designed to identify prospective hydrocarbon accumulations more rapidly than traditional approaches. The company uses aircraft-mounted sensors to detect anomalies associated with pressurized trapped fluid bodies and provides clients with information intended to help target drilling and integrate with seismic and other geoscience data.

“The key here is rapid,” Woychyshyn said, adding that the company can provide recommendations in months rather than years. He said SFD can be used in varied terrain and both onshore and offshore environments.

Revenue Growth and Active Projects

Woychyshyn said NXT generated CAD 16.4 million in revenue during 2025, compared with CAD 600,000 in the prior year. The company completed three SFD surveys during the year, compared with what he described as a historical pace of roughly one survey every two or three years.

He also reported operating cash flow of CAD 1.2 million for 2025 and said the business was beginning to become self-sustaining on a cash-flow basis. The company reported free cash flow of CAD 0.07 last year, according to the presentation.

NXT had two active surveys underway at the time of the event. The company completed the acquisition phase for an African survey in August, with interpretation being conducted by its Calgary team. Woychyshyn said another survey in South Asia was expected to begin the following day, with results from both the South Asian and African projects expected in December.

The company also expects to complete the final portion of a Pakistan survey flown during the prior December and January, with that work also expected to conclude in December.

Technology Ownership and Financial Position

Woychyshyn said NXT acquired all rights to the SFD technology at the end of the prior year, giving it what he described as unencumbered ownership without royalties, licensing fees or time limits. The company also paid out the capital lease on its aircraft as of Sept. 28, giving it control of both the technology and aircraft used to deliver surveys.

As of Sept. 30, Woychyshyn said NXT’s share price was CAD 0.30 and long-term debt stood at CAD 500,000, carrying a 4% interest rate. Working capital was CAD 2 million as of June 30. He said free cash flow was negative CAD 0.01 at the end of June, attributing that result in part to the planning and timing requirements of surveys, which can take three to four months to organize.

Exploration Claims and Market Adoption

Woychyshyn said that when SFD results are integrated with other geological and geophysical data, the company has observed drilling success rates of up to 81%, compared with a historical industry rate he cited at about 30%. In response to an analyst question, he said the company’s figure was based on 39 drilling recommendations over the past 10 to 15 years, of which he said 31 resulted in commercial discoveries. He said the remaining recommendations were not commercial, though he did not characterize them as dry holes.

Michael Baker, NXT’s Director of Business Development and Capital Markets, said the technology identifies a pressurized trapped fluid body, while drilling ultimately determines whether the accumulation contains commercial hydrocarbons. He also said the company excludes certain engagements in which it is hired to confirm a prospect already identified by a client when assessing results.

Woychyshyn acknowledged that adoption can be slow among major oil companies because the industry is conservative and large operators may require years to evaluate new technologies. He said national oil companies and smaller independent operators have generally been more willing to use SFD, particularly in regions where traditional seismic work may be more costly or less established.

The company cited repeat activity in Africa, where it is conducting a fourth survey for the same client, and said it was undertaking a second survey in South Asia for neighboring operators. Woychyshyn also said SFD can identify both structural traps and stratigraphic traps, with the latter often more difficult to identify through seismic alone.

Western Canada Data Strategy

Beyond client surveys, NXT is reviewing more than 50,000 line kilometers of historical SFD data collected in Western Canada. Woychyshyn said the company is evaluating anomalies, ranking prospects and considering the acquisition of hydrocarbon rights. It plans to use low-capital-intensity methods to develop opportunities it selects.

He said the company received a CAD 2 million investment nearly a year earlier to pursue that initiative, which would apply its technology to prospective resources in Western Canada.

About NXT Energy Solutions (TSE:SFD)

NXT Energy Solutions Inc is a Calgary-based technology company whose proprietary airborne SFD® survey system, applied in numerous basins around the world, uses the principles of quantum mechanics to infer stress anomalies of exploration interest. The method can be used both onshore and offshore to remotely identify areas conducive to fluid entrapment in order to recommend areas with commercial hydrocarbon and/or geothermal potential. The SFD® survey system enables our clients to focus their exploration decisions concerning land commitments, data acquisition expenditures and prospect prioritization on areas with the greatest potential.