Evertz Technologies Announces Fiscal 2026 Year End Results
Rhea-AI Summary
Evertz Technologies (EVTZF) reported fiscal 2026 revenue of $515.8 million, up from $501.6 million, with recurring software and services of $240.7 million (47% of revenue). Net earnings were $64.4 million and diluted EPS $0.83. Quarterly dividend declared at $0.205 per share.
Q4 2026 revenue was $131.6 million with net earnings of $15.2 million and diluted EPS of $0.20. Year-end cash declined to $19.1 million, working capital to $131.7 million. Backlog at end of May 2026 exceeded $237 million, with May shipments of $33 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Positive
- Fiscal 2026 revenue $515.8M, up from $501.6M
- Fiscal 2026 net earnings $64.4M, up from $59.8M
- Recurring software and services $240.7M, 47% of revenue
- International revenue $148.0M, up $20.8M year over year
- Q4 2026 diluted EPS $0.20, up from $0.17
- Purchase order backlog over $237M at end of May 2026
Negative
- Cash balance fell to $19.1M from $111.7M year over year
- Working capital declined to $131.7M from $206.9M
- Cash from operations fell to $76.2M from $99.6M
- US/Canada annual revenue $367.8M, down from $374.4M
- Quarterly gross margin percentage decreased to 59.3% from 61.7%
- Dividends and special dividend totaled $136.7M in fiscal 2026
News Market Reaction – EVTZF
On the day this news was published, EVTZF gained 20.19%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Attention Business/Financial Editors:
Burlington, Ontario--(Newsfile Corp. - June 24, 2026) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the fourth quarter and year ended April 30, 2026.
Fiscal 2026 Highlights
- Record Annual Revenues in excess of a half billion dollars, totaling
$515.8 million for the year - Reoccurring software, services and other software of
$240.7 million , an increase of8% from the prior year and representing47% of total revenue in fiscal 2026 - International revenue of
$148.0 million , an increase of16% or$20.8 million from the prior year - Earnings from operations of
$87.3 million , an increase of$5.8 million from the prior year - Net earnings of
$64.4 million for the year, an increase of$4.7 million from the prior year - Fully diluted earnings per share of
$0.83 for the year
Fourth Quarter 2026 Highlights
- Quarterly revenue of
$131.6 million an increase of3% from the prior year - Reoccurring software, services and other software of
$65.8 million , an increase of17% from the prior year - Net earnings of
$15.2 million for the quarter, an increase of$2.2 million from the prior year - Fully diluted earnings per share of
$0.20 for the quarter, an increase of18% from the prior year
Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except earnings per share and share data)
| Q4'26 | Q4'25 | YE'26 | YE'25 | |||||||||
| Revenue | $ | 131,568 | $ | 127,805 | $ | 515,781 | $ | 501,623 | ||||
| Gross margin | 78,070 | 78,885 | 305,987 | 298,505 | ||||||||
| Earnings from operations | 21,486 | 19,404 | 87,322 | 81,512 | ||||||||
| Net earnings | 15,247 | 13,043 | 64,421 | 59,767 | ||||||||
| Fully-diluted earnings per share | $ | 0.20 | $ | 0.17 | $ | 0.83 | $ | 0.77 | ||||
| Fully-diluted shares | 77,347,001 | 76,805,024 | 76,814,543 | 76,975,472 |
Selected Financial Information
Consolidated Balance Sheet Data
(in thousands of dollars)
| YE ' 26 | YE ' 25 | ||||||
| Cash and cash equivalents | $ | 19,117 | $ | 111,665 | |||
| Working capital | 131,749 | 206,900 | |||||
| Total assets | 424,989 | 469,485 | |||||
| Shareholders' equity | 198,167 | 268,123 |
Revenue
For the quarter ended April 30, 2026, revenues were
For the year ended, April 30, 2026, sales were
Gross Margin
For the quarter ended April 30, 2026, gross margin was
For the year ended April 30, 2026, gross margin was
Earnings
For the quarter ended April 30, 2026, net earnings were
For the year ended April 30, 2026, net earnings were
For the quarter ended April 30, 2026, earnings per share on a fully-diluted basis were
For the year ended April 30, 2026, earnings per share on a fully-diluted basis were
Operating Expenses
For the quarter ended April 30, 2026, selling and administrative expenses were
For the year ended April 30, 2026, selling and administrative expenses were
For the quarter ended April 30, 2026, gross research and development expenses were
For the year ended April 30, 2026, gross research and development expenses were
Liquidity and Capital Resources
The Company's working capital as at April 30, 2026 was
Cash was
Cash generated from operations was
Cash generated by operations was
For the quarter, the Company used
For the year, the Company used
For the quarter ended, the Company used cash in financing activities of
For the year ended April 30, 2026, the Company used cash in financing activities of
Shipments and Backlog
At the end of May 2026, purchase order backlog was in excess of
Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on June 24, 2026 of
The dividend is payable to shareholders of record on July 6, 2026 and will be paid on or about July 13, 2026.
Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)
| Three month period ended | Twelve month period ended | |||||||||||
| April 30, | April 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Revenue | $ | 131,568 | $ | 127,805 | $ | 515,781 | $ | 501,623 | ||||
| Cost of goods sold | 53,498 | 48,920 | 209,794 | 203,118 | ||||||||
| Gross margin | 78,070 | 78,885 | 305,987 | 298,505 | ||||||||
| Expenses | ||||||||||||
| Selling and administrative | 20,721 | 20,684 | 77,043 | 75,858 | ||||||||
| General | 848 | 1,348 | 4,180 | 5,249 | ||||||||
| Research and development | 37,695 | 36,534 | 148,052 | 146,771 | ||||||||
| Investment tax credits | (4,565) | (4,747) | (17,020) | (15,626) | ||||||||
| Share based compensation | 2,268 | 1,203 | 5,989 | 4,959 | ||||||||
| Foreign exchange (gain) loss | (383) | 4,459 | 421 | (218) | ||||||||
| 56,584 | 59,481 | 218,665 | 216,993 | |||||||||
| Earnings before undernoted | 21,486 | 19,404 | 87,322 | 81,512 | ||||||||
| Finance income | 167 | 706 | 2,764 | 2,779 | ||||||||
| Finance costs | (367) | (463) | (1,506) | (1,567) | ||||||||
| Net loss on investments through profit and loss | - | (1,283) | - | (1,283) | ||||||||
| Other income and expenses | (109) | 214 | (344) | 463 | ||||||||
| Earnings before income taxes | 21,177 | 18,578 | 88,236 | 81,904 | ||||||||
| Provision for (recovery of) income taxes | ||||||||||||
| Current | 8,114 | 6,537 | 24,321 | 24,918 | ||||||||
| Deferred | (2,184) | (1,002) | (506) | (2,781) | ||||||||
| 5,930 | 5,535 | 23,815 | 22,137 | |||||||||
| Net earnings for the period | $ | 15,247 | $ | 13,043 | $ | 64,421 | $ | 59,767 | ||||
| Net earnings attributable to non-controlling interest | 105 | 38 | 454 | 374 | ||||||||
| Net earnings attributable to shareholders | 15,142 | 13,005 | 63,967 | 59,393 | ||||||||
| Net earnings for the period | $ 15,247 | $ 13,043 | $ 64,421 | $ 59,767 | ||||||||
| Earnings per share | ||||||||||||
| Basic | $ | 0.20 | $ | 0.17 | $ | 0.85 | $ | 0.78 | ||||
| Diluted | $ | 0.20 | $ | 0.17 | $ | 0.83 | $ | 0.77 | ||||
Selected Consolidated Financial Information - Continued
(in thousands of dollars, except earnings per share and percentages)
| April 30, | April 30, | April 30, | |||||||
| 2026 | 2025 | 2024 | |||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 19,117 | $ | 111,665 | $ | 86,325 | |||
| Trade and other receivables | 81,131 | 71,743 | 84,350 | ||||||
| Contract assets | 15,987 | 15,568 | 12,554 | ||||||
| Prepaid expenses | 14,974 | 9,677 | 11,179 | ||||||
| Inventories | 200,213 | 181,011 | 206,154 | ||||||
| Income tax receivable | 10,980 | 1,649 | - | ||||||
| 342,402 | 391,313 | 400,562 | |||||||
| Property, plant and equipment | 41,459 | 32,211 | 34,384 | ||||||
| Right-of-use assets | 10,980 | 15,816 | 20,432 | ||||||
| Goodwill | 19,987 | 20,001 | 21,352 | ||||||
| Intangible assets | - | 346 | 1,098 | ||||||
| Deferred income taxes | 10,161 | 9,798 | 6,894 | ||||||
| $ | 424,989 | $ | 469,485 | $ | 484,722 | ||||
| Liabilities | |||||||||
| Current liabilities | |||||||||
| Trade and other payables | $ | 95,325 | $ | 67,982 | $ | 63,249 | |||
| Provisions | 5,953 | 5,269 | 4,946 | ||||||
| Deferred revenue | 99,672 | 101,035 | 117,913 | ||||||
| Current potion of lease obligations | 5,289 | 5,091 | 4,296 | ||||||
| Current potion of redemption liability | 4,414 | 3,798 | 3,811 | ||||||
| Income tax payable | - | - | 3,226 | ||||||
| 210,653 | 183,175 | 197,441 | |||||||
| Long term deferred revenue | 4,609 | 1,238 | 1,684 | ||||||
| Long term lease obligations | 8,448 | 13,781 | 18,920 | ||||||
| 223,710 | 198,194 | 218,045 | |||||||
| Equity | |||||||||
| Capital stock | 146,589 | 144,978 | 145,721 | ||||||
| Share based payment reserve | 28,112 | 24,195 | 19,246 | ||||||
| Accumulated other comprehensive income | 7,229 | 6,568 | 1,197 | ||||||
| Retained earnings | 16,237 | 92,382 | 97,103 | ||||||
| 23,466 | 98,950 | 98,300 | |||||||
| Total equity attributable to shareholders | 198,167 | 268,123 | 263,267 | ||||||
| Non-controlling interest | 3,112 | 3,168 | 3,410 | ||||||
| 201,279 | 271,291 | 266,677 | |||||||
| $ | 424,989 | $ | 469,485 | $ | 484,722 |
Forward-Looking Statements
The report contains forward-looking statements reflecting Evertz's objectives, estimates and expectations. Such forward-looking statements use words such as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "project", "continue" and other similar terminology of a forward-looking nature or negatives of those terms.
Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company's actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.
Conference Call
The Company will hold a conference call with financial analysts to discuss the results on June 24, 2026 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialing 289-514-5100 or toll-free (North America) 1-800-717-1738.
For those unable to listen to the live call, a rebroadcast will also be available until July 24, 2026. The rebroadcast can be accessed at 289-819-1325 or toll-free 1-888-660-6264. The passcode for the rebroadcast is 92814#.
About Evertz
Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the production, post-production and transmission of video content. The Company's solutions are purchased by the television broadcast, telecommunications, professional audio-visual, content creator, advanced education, government, military, enterprise, and new media sectors to support increasingly complex multi-channel digital and high-definition, Ultra HD, and high dynamic range formats and next generation high bandwidth low latency IP network environments. The Company's products allow its customers to generate additional revenue while reducing costs through efficient, highly reliable and secure signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the "Cloud."
For further information, please contact:
Doug Moore, CPA, CA
Chief Financial Officer
(905) 335-3700
ir@evertz.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/302735