Evertz Technologies Reports First Quarter Results for the Quarter Ended July 31, 2026
Evertz grew quarterly revenue and backlog but saw lower margins, reduced earnings, weaker cash position and a maintained cash dividend payout.
Rhea-AI Summary
Evertz Technologies (EVTZF) reported first quarter 2027 revenue of $118.3 million for the quarter ended July 31, 2026, up from $112.1 million a year earlier.
United States/Canada revenue was $79.9 million and International revenue $38.3 million. Gross margin was $69.3 million with a gross margin percentage of 58.6%, down from 61.4% in the prior-year quarter. Earnings from operations were $11.0 million, compared with $15.0 million a year ago. Net earnings were $8.0 million, versus $11.9 million, and fully diluted earnings per share were $0.10, down from $0.15.
Cash, net of bank indebtedness, was $2.5 million at July 31, 2026, down from $19.1 million at April 30, 2026. Order backlog exceeded $259 million at August 31, 2026, a 9% sequential increase, and August 2026 shipments were $30 million. A quarterly dividend of $0.205 per share was declared, payable on or about October 1, 2026 to shareholders of record on September 24, 2026.
Positive
- Revenue $118.3 million vs. $112.1 million prior year (+$6.1 million)
- International revenue $38.3 million vs. $32.7 million prior year
- Order backlog $259 million at August 31, 2026, up 9% sequentially
- Total assets $443.6 million at July 31, 2026 vs. $425.0 million at April 30, 2026
- Dividend declared $0.205 per share payable on or about October 1, 2026
Negative
- Gross margin percentage 58.6% vs. 61.4% in prior-year quarter
- Earnings from operations $11.0 million vs. $15.0 million prior year
- Net earnings $8.0 million vs. $11.9 million prior year
- Diluted EPS $0.10 vs. $0.15 in prior-year quarter
- Cash, net of bank indebtedness $2.5 million vs. $19.1 million at April 30, 2026
- Cash from operations $0.8 million vs. $33.5 million in prior-year quarter
AI-generated analysis. How Rhea-AI works. Not financial advice.
Attention Business/Financial Editors:
Burlington, Ontario--(Newsfile Corp. - September 14, 2026) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the first quarter ended July 31, 2026.
First Quarter 2027 Highlights
- Revenue of
$118.3 million , an increase from$112.1 million in the prior year. - Revenue to the US and Canada was
$79.9 million an increase of$0.5 million or1% from prior year - Order Backlog of
$259 million as at August 31, 2026, a9% sequential increase from May 31, 2026 - Gross Margin of
58.6% - Earnings from operations of
$11.0 million - Net earnings of
$8.0 million - Fully diluted earnings per share of
$0.10 for the quarter
Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except earnings per share and share data)
| Q1'27 | Q1'26 | ||||||
| Revenue | $ | 118,259 | $ | 112,145 | |||
| Gross margin | 69,321 | 68,842 | |||||
| Earnings from operations | 10,980 | 14,984 | |||||
| Net earnings | 7,960 | 11,894 | |||||
| Fully-diluted earnings per share | $ | 0.10 | $ | 0.15 | |||
| Fully-diluted shares | 79,744,150 | 77,549,350 |
Selected Financial Information
Consolidated Balance Sheet Data
(in thousands of dollars)
| Q1 ' 27 | YE' 26 | ||||||
| Cash, net of bank indebtedness | $ | 2,457 | $ | 19,117 | |||
| Working capital | 131,424 | 131,749 | |||||
| Total assets | 443,616 | 424,989 | |||||
| Shareholders' equity | 194,699 | 198,167 |
Revenue
For the quarter ended July 31, 2026, revenues were
Gross Margin
For the quarter ended July 31, 2026, gross margin was
Earnings
For the quarter ended July 31, 2026, net earnings were
For the quarter ended July 31, 2026, earnings per share on a fully-diluted basis were
Operating Expenses
For the quarter ended July 31, 2026, selling and administrative expenses were
For the quarter ended July 31, 2026, gross research and development expenses were
Liquidity and Capital Resources
The Company's working capital as at July 31, 2026 was
Cash, net of bank indebtedness, was
Cash generated from operations was
For the quarter, the Company used
For the quarter ended July 31, 2026, the Company used cash in financing activities, net of bank indebtedness, of
Shipments and Backlog
At the end of August 2026, purchase order backlog was in excess of
Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on September 14, 2026 of
The dividend is payable to shareholders of record on September 24, 2026 and will be paid on or about October 1, 2026.
Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)
| Three months ended July 31, 2026 | Three months ended July 31, 2025 | ||||||||
| Revenue | $ | 118,259 | $ | 112,145 | |||||
| Cost of goods sold | 48,938 | 43,303 | |||||||
| Gross margin | 69,321 | 68,842 | |||||||
| Expenses | |||||||||
| Selling and administrative | 19,901 | 18,966 | |||||||
| General | 777 | 925 | |||||||
| Research and development | 38,456 | 36,983 | |||||||
| Investment tax credits | (3,681 | ) | (3,348 | ) | |||||
| Share based compensation | 2,357 | 1,068 | |||||||
| Foreign exchange loss (gain) | 531 | (736 | ) | ||||||
| 58,341 | 53,858 | ||||||||
| Earnings before undernoted | 10,980 | 14,984 | |||||||
| Finance income | 90 | 775 | |||||||
| Finance costs | (369 | ) | (238 | ) | |||||
| Other income and expenses | 39 | 500 | |||||||
| Earnings before income taxes | 10,740 | 16,021 | |||||||
| Provision for (recovery of) income taxes | |||||||||
| Current | 152 | 3,965 | |||||||
| Deferred | 2,628 | 162 | |||||||
| 2,780 | 4,127 | ||||||||
| Net earnings for the period | $ | 7,960 | $ | 11,894 | |||||
| Net earnings attributable to non-controlling interest | $ | 202 | $ | 52 | |||||
| Net earnings attributable to shareholders | 7,758 | 11,842 | |||||||
| Net earnings for the period | $ | 7,960 | $ | 11,894 | |||||
| Earnings per share | |||||||||
| Basic | $ | 0.10 | $ | 0.16 | |||||
| Diluted | $ | 0.10 | $ | 0.15 | |||||
| Consolidated Balance Sheet Data | |||||||||
| As At July 31, 2026 | As At April 30, 2026 | ||||||||
| Cash, net of bank indebtedness | $ | 2,457 | $ | 19,117 | |||||
| Inventory | $ | 215,099 | $ | 200,213 | |||||
| Working capital | $ | 131,424 | $ | 131,749 | |||||
| Total assets | $ | 443,616 | $ | 424,989 | |||||
| Shareholders' equity | $ | 194,699 | $ | 198,167 | |||||
| Number of common shares outstanding: | |||||||||
| Basic | 75,718,100 | 75,583,950 | |||||||
| Fully-diluted | 79,744,150 | 79,771,350 | |||||||
| Weighted average number of shares outstanding: | |||||||||
| Basic | 75,585,408 | 75,507,140 | |||||||
| Fully-diluted | 77,618,485 | 76,814,543 | |||||||
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
September 14, 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
October 14, 2026. The rebroadcast can be accessed at 289-819-1325 or toll-free 1-888-660-6264. The pass code for the rebroadcast is 74313 #.
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/314281
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did revenue break down between the US/Canada and International regions in Q1 2027?
For the quarter ended July 31, 2026, United States/Canada revenue was $79.9 million, compared to $79.5 million in the same quarter last year. The International region generated $38.3 million of revenue, compared to $32.7 million in the prior-year quarter.
What were Evertz's key operating expense trends in the quarter?
For the quarter ended July 31, 2026, selling and administrative expenses were $19.9 million vs. $19.0 million a year earlier. Gross research and development expenses were $38.5 million vs. $37.0 million, while share based compensation was $2.4 million vs. $1.1 million. Investment tax credits were $(3.7) million vs. $(3.3) million.
How did working capital and inventory change compared to April 30, 2026?
As at July 31, 2026, working capital was $131.4 million, slightly down from $131.7 million at April 30, 2026. Inventory increased to $215.1 million from $200.2 million over the same period.
What were the main uses of cash in investing and financing activities during the quarter?
For the quarter ended July 31, 2026, Evertz used $2.1 million in investing activities, mainly for $1.8 million of capital asset acquisitions and $0.2 million for business acquisitions. In financing activities, the company used $16.8 million, primarily for $15.5 million of dividends paid and $1.0 million of lease payments.
What are the details and key dates of the declared quarterly dividend?
The Board declared a regular quarterly dividend of $0.205 per share on September 14, 2026. The dividend is payable to shareholders of record on September 24, 2026 and will be paid on or about October 1, 2026.
How did income tax expense change year over year?
For the quarter ended July 31, 2026, the provision for income taxes was $2.8 million, compared to $4.1 million in the same period last year. Current tax was $0.2 million vs. $4.0 million, and deferred tax was $2.6 million vs. $0.2 million.