Core Insights - Tornado Infrastructure Equipment Ltd. has entered into a private label manufacturing agreement with Ascend Hydrovacs Inc. to produce hydrovac units, which is expected to generate significant revenue for the company [1][3]. Group 1: Supply Agreement Details - CustomVac will manufacture 13-yard tipping tank hydrovac units exclusively for Ascend, tailored to meet specific operational requirements [2]. - The Supply Agreement includes a commitment for the delivery of proprietary hydrovac trucks over the next four fiscal years starting in 2026, estimated to generate minimum gross revenue of CAD$88.2 million [3][13]. - Ascend will pay Tornado an intellectual property fee of up to CAD$1.8 million per unit for rights to the co-developed hydrovac product design [3][13]. Group 2: Operational Developments - The partnership enhances CustomVac's position as a leading original equipment manufacturer in private label hydrovac manufacturing [4][13]. - Production will take place at CustomVac's advanced facility in Nisku, Alberta, with initial deliveries expected later this year [4][13]. - Tornado's new manufacturing facility in Red Deer is nearing completion, which is anticipated to improve operational efficiencies and increase capacity starting in Q3 2025 [4][13]. Group 3: Company Background - CustomVac specializes in manufacturing and servicing mobile vacuum equipment for various sectors including oil and gas, utilities, and environmental services [5][6]. - Tornado has sold over 1,800 hydrovacs since 2008 and is recognized as a leader in the vacuum truck industry [7].

Core Insights - Tornado Infrastructure Equipment Ltd. reported a record year in 2024, achieving significant increases in net income and revenue despite the absence of a one-time intellectual property sale from 2023 [3][5]. Financial Performance - Net income per share (diluted) increased by 37.7% to $0.073 in 2024 from $0.053 in 2023 [5]. - Total net income rose by 40.3% to $10,302 thousand in 2024 compared to $7,342 thousand in 2023, primarily driven by increased revenue from hydrovac truck sales [5]. - Revenue for 2024 reached $136,891 thousand, a 30.4% increase from $105,008 thousand in 2023, attributed to several factors including a supply contract with Ditch Witch and increased demand for hydrovac trucks [5][9]. - Gross profit for 2024 was $25,632 thousand, up 30.8% from $19,600 thousand in 2023, reflecting improved production efficiency [5]. Quarterly Overview - In Q4 2024, net income per share (diluted) was $0.024, a decrease of 27.1% from $0.033 in Q4 2023, mainly due to the absence of a one-time IP profit recognized in Q4 2023 [6][8]. - Revenue for Q4 2024 was $38,113 thousand, a 14.4% increase from $33,302 thousand in Q4 2023, driven by strong customer demand [8]. Strategic Outlook - The company anticipates continued growth in production and sales of hydrovac trucks in 2025, supported by the expansion of the Red Deer Facility and new product development [3][9]. - Management is closely monitoring the tariff landscape between the U.S. and Canada and has established mitigation strategies [3][14]. - Expected infrastructure spending in North America and the introduction of new products are anticipated to further drive revenue growth [9][14]. Market Position - Tornado is recognized as a leader in the vacuum truck industry, having sold over 1,800 hydrovacs since 2008, and continues to innovate in hydrovac truck design [10]. - The company has strengthened dealer relationships in both Canada and the U.S. to meet increasing demand [14].