Tornado Infrastructure Equipment Reports First Quarter 2025 Results

Core Viewpoint - Tornado Infrastructure Equipment Ltd. reported a strong financial performance in Q1 2025, highlighted by a 17.3% increase in net income and the strategic acquisition of Custom Vacuum Services Ltd. to enhance its product offerings and operational efficiency [1][2][3]. Financial Performance - Net income for Q1 2025 was $2,846,000, an increase of $419,000 (17.3%) compared to $2,427,000 in Q1 2024 [3][5]. - Net income per share (diluted) rose to $0.020, up by $0.002 (11.1%) from $0.018 in Q1 2024 [3][5]. - Revenue reached $35,649,000, reflecting a $1,745,000 (5.1%) increase from $33,904,000 in Q1 2024, driven by higher hydrovac truck sales and strategic partnerships [3][5]. - Gross profit increased to $7,749,000, a rise of $2,007,000 (35.0%) compared to $5,742,000 in Q1 2024, attributed to improved operational efficiency and increased sales [3][4]. Acquisition of CustomVac - The acquisition of Custom Vacuum Services Ltd. was completed for $28 million, aimed at expanding Tornado's footprint in the infrastructure equipment sector [2][3]. - CustomVac's trailing 12-month gross profit was $9.58 million, with assets of $11.59 million as of January 31, 2025 [3]. - The acquisition is expected to be immediately accretive and profitable, providing new product lines and synergy opportunities for cross-selling [3][10]. Operational Highlights - EBITDAS for Q1 2025 was $4,522,000, an increase of $1,088,000 (31.7%) from $3,434,000 in Q1 2024, driven by increased revenue and gross profit [3][5]. - EBITDAS per share (diluted) rose to $0.032, up by $0.007 (25.0%) from $0.025 in Q1 2024 [3][5]. - The company sold 81 hydrovac trucks in Q1 2025, compared to 79 in Q1 2024, indicating a growing demand in North America [3][4]. Future Outlook - Management anticipates continued growth in production and sales of hydrovac trucks in 2025, supported by ongoing infrastructure spending and the benefits from the CustomVac acquisition [6][9]. - The completion of a new production building in Red Deer is expected to enhance production capacity and operational efficiencies [9][10]. - The company is committed to continuous product innovation and improvement, aiming to maintain a competitive edge in the hydrovac truck market [9][10].