Tornado Infrastructure Equipment Reports Record 2024 Results
Tornado Infrastructure Equipment (TGHLF) reported strong financial results for 2024, achieving record sales and profitability. Net income increased by 40.3% to $10,302,000, with diluted earnings per share up 37.7% to $0.073 compared to 2023.
The company's revenue grew 30.4% to $136,891,000, driven by increased hydrovac truck sales (320 units vs 241 in 2023), higher pricing, and successful partnerships with Ditch Witch and Custom Truck One Source. Gross profit rose 30.8% to $25,632,000, benefiting from improved production efficiency.
For Q4 2024, despite the absence of a one-time IP sale, revenue increased 14.4% to $38,113,000, with 89 trucks sold compared to 71 in Q4 2023. The company expects continued growth in 2025, supported by infrastructure spending in North America and planned facility expansion.
Tornado Infrastructure Equipment (TGHLF) ha riportato risultati finanziari solidi per il 2024, raggiungendo vendite e profitti record. L'utile netto è aumentato del 40,3% a 10.302.000 dollari, con un utile diluito per azione in crescita del 37,7% a 0,073 dollari rispetto al 2023.
I ricavi dell'azienda sono cresciuti del 30,4% raggiungendo 136.891.000 dollari, grazie all'aumento delle vendite di camion idrovac (320 unità contro 241 nel 2023), a prezzi più elevati e a collaborazioni di successo con Ditch Witch e Custom Truck One Source. Il margine lordo è salito del 30,8% a 25.632.000 dollari, beneficiando di una maggiore efficienza produttiva.
Nel quarto trimestre del 2024, nonostante l'assenza di una vendita una tantum di proprietà intellettuale, i ricavi sono aumentati del 14,4% a 38.113.000 dollari, con 89 camion venduti contro 71 nel Q4 2023. L'azienda prevede una crescita continua nel 2025, supportata dalla spesa per infrastrutture in Nord America e dall'espansione pianificata degli impianti.
Tornado Infrastructure Equipment (TGHLF) reportó resultados financieros sólidos para 2024, logrando ventas y rentabilidad récord. El ingreso neto aumentó un 40,3% hasta 10.302.000 dólares, con ganancias diluidas por acción que subieron un 37,7% a 0,073 dólares en comparación con 2023.
Los ingresos de la compañía crecieron un 30,4% hasta 136.891.000 dólares, impulsados por un aumento en las ventas de camiones hidrovac (320 unidades frente a 241 en 2023), precios más altos y asociaciones exitosas con Ditch Witch y Custom Truck One Source. El beneficio bruto creció un 30,8% hasta 25.632.000 dólares, beneficiándose de una mayor eficiencia en la producción.
En el cuarto trimestre de 2024, a pesar de la ausencia de una venta única de propiedad intelectual, los ingresos aumentaron un 14,4% hasta 38.113.000 dólares, con 89 camiones vendidos frente a 71 en el Q4 de 2023. La compañía espera un crecimiento continuo en 2025, respaldado por el gasto en infraestructura en Norteamérica y la expansión planificada de sus instalaciones.
Tornado Infrastructure Equipment (TGHLF)는 2024년에 강력한 재무 실적을 보고하며 매출과 수익성에서 기록을 세웠습니다. 순이익은 40.3% 증가한 10,302,000달러를 기록했으며, 희석 주당순이익은 37.7% 상승한 0.073달러를 기록했습니다(2023년 대비).
회사의 매출은 30.4% 증가한 136,891,000달러로, 하이드로백 트럭 판매 증가(320대 대 2023년 241대), 가격 인상, Ditch Witch 및 Custom Truck One Source와의 성공적인 파트너십에 힘입은 결과입니다. 총이익은 생산 효율성 향상 덕분에 30.8% 증가한 25,632,000달러를 기록했습니다.
2024년 4분기에는 일회성 지식재산권 판매가 없었음에도 불구하고 매출이 14.4% 증가한 38,113,000달러를 기록했으며, 4분기 트럭 판매량은 89대로 2023년 4분기의 71대보다 많았습니다. 회사는 북미 인프라 투자와 시설 확장 계획에 힘입어 2025년에도 지속적인 성장을 기대하고 있습니다.
Tornado Infrastructure Equipment (TGHLF) a annoncé de solides résultats financiers pour 2024, atteignant des ventes et une rentabilité record. Le revenu net a augmenté de 40,3 % pour atteindre 10 302 000 dollars, avec un bénéfice dilué par action en hausse de 37,7 % à 0,073 dollar par rapport à 2023.
Le chiffre d'affaires de l'entreprise a progressé de 30,4 % pour atteindre 136 891 000 dollars, porté par une augmentation des ventes de camions hydrovac (320 unités contre 241 en 2023), des prix plus élevés et des partenariats fructueux avec Ditch Witch et Custom Truck One Source. Le profit brut a augmenté de 30,8 % pour s’établir à 25 632 000 dollars, bénéficiant d’une meilleure efficacité de production.
Pour le quatrième trimestre 2024, malgré l’absence d’une vente ponctuelle de propriété intellectuelle, le chiffre d’affaires a augmenté de 14,4 % pour atteindre 38 113 000 dollars, avec 89 camions vendus contre 71 au T4 2023. L’entreprise prévoit une croissance continue en 2025, soutenue par les dépenses d’infrastructure en Amérique du Nord et l’expansion prévue des installations.
Tornado Infrastructure Equipment (TGHLF) meldete starke Finanzergebnisse für 2024 und erreichte Rekordumsätze und -profitabilität. Der Nettoertrag stieg um 40,3 % auf 10.302.000 US-Dollar, das verwässerte Ergebnis je Aktie erhöhte sich im Vergleich zu 2023 um 37,7 % auf 0,073 US-Dollar.
Der Umsatz des Unternehmens wuchs um 30,4 % auf 136.891.000 US-Dollar, angetrieben durch gestiegene Verkäufe von Hydrovac-Trucks (320 Einheiten gegenüber 241 im Jahr 2023), höhere Preise und erfolgreiche Partnerschaften mit Ditch Witch und Custom Truck One Source. Der Bruttogewinn stieg um 30,8 % auf 25.632.000 US-Dollar, begünstigt durch verbesserte Produktionseffizienz.
Im vierten Quartal 2024 stieg der Umsatz trotz des Fehlens eines einmaligen IP-Verkaufs um 14,4 % auf 38.113.000 US-Dollar, mit 89 verkauften Trucks im Vergleich zu 71 im Q4 2023. Das Unternehmen erwartet für 2025 weiteres Wachstum, unterstützt durch Infrastrukturinvestitionen in Nordamerika und geplante Erweiterungen der Produktionsstätten.
- Record revenue growth of 30.4% to $136.9M in 2024
- Net income increased 40.3% to $10.3M
- 32.8% increase in truck sales volume (320 vs 241 units)
- Gross profit up 30.8% to $25.6M
- Strong USD supporting improved gross margins on US sales
- Secured strategic partnerships with Ditch Witch and Custom Truck One Source
- Q4 net income decreased 26% year-over-year
- General and administrative expenses increased by $2.4M
- Stock-based compensation expense rose 22.5% to $1.26M
- Potential exposure to US-Canada tariff risks
Net Income Per Share (diluted) Increased by
CALGARY, Alberta, April 28, 2025 (GLOBE NEWSWIRE) -- Tornado Infrastructure Equipment Ltd. (“Tornado” or the “Company”) (TSX-V: TGH; OTCQX: TGHLF) today reported its audited consolidated financial results for the year ended December 31, 2024, with comparisons to last year. The audited consolidated financial statements and related management discussion and analysis are available on the Company’s issuer profile in Canada on SEDAR+ at www.sedarplus.com, in the United States at www.otcmarkets.com and on the Company’s website www.tornadotrucks.com. All amounts reported in this news release are in thousands (
2024 Overview
- The Company achieved record sales, gross profit, EBITDAS(1) and net income in 2024.
- Net income per share (diluted) of
$0.07 3 increased by$0.02 0 (37.7% ) compared to$0.05 3 in 2023. Net income of$10,302 increased by$2,960 (40.3% ) in 2024 compared to$7,342 in 2023. This increase was principally due to increased revenue from the sale of hydrovac trucks. - EBITDAS per share (diluted)(1) of
$0.11 1 increased by$0.02 1 (23.3% ) compared to$0.09 in 2023. EBITDAS(1) of$15,627 increased by$3,194 (25.7% ) compared to$12,433 in 2023. This increase was principally due to increased revenue and the associated increased gross profit. - Revenue of
$136,891 increased by$31,883 (30.4% ) compared to$105,008 in 2023 as a result of: (i) the positive impact of the four-year Product Supply and Development Agreement (the “Supply Contract”) with Ditch Witch, a division of The Toro Company (“Ditch Witch”), which the Company entered into in 2022 for the co-development and supply of customized hydrovac trucks; (ii) the increase in sales from the sales arrangement with Custom Truck One Source, who is a single-source provider of specialized truck and heavy equipment solutions with over 40 locations across North America (“Custom Truck”); (iii) the increase in sales pricing of hydrovac trucks, particularly in Q4/2024, supported by a stronger U.S. dollar (“USD”); (iv) the increase in the number of hydrovac trucks sold; and (v) the increase in demand for hydrovac trucks in North America. During 2024 the Company sold 320 trucks compared to 241 in 2023. - Gross profit of
$25,632 increased by$6,032 (30.8% ) compared to$19,600 in 2023 principally due to increased revenue and improved production efficiency at the Red Deer Facility. - General and administrative expense of
$10,005 increased in 2024 by$2,433 compared to$7,572 in 2023. The increase was principally due to general increased employee costs in North America to handle present and anticipated growth and non-recurring professional fees.
| (1) | Non-IFRS Financial Measures - EBITDAS is calculated by subtracting interest, tax, depreciation, amortization, stock-based compensation, gain/loss on foreign exchange, gain/loss on disposal of fixed assets and change in fair value of derivative financial instruments from earnings. EBITDAS per share (diluted) is calculated by dividing EBITDAS by the total number of diluted common shares. The terms EBITDAS and EBITDAS per share (diluted) are non-IFRS financial measures, and readers are cautioned that EBITDAS and EBITDAS per share (diluted) should not be considered to be more meaningful than net income determined in accordance with IFRS. |
Brett Newton, President and Chief Executive Officer of Tornado, commented: “Even without the benefit of the one-time intellectual property sale that we completed in 2023, Tornado had another record year in 2024. These financial results reflect strong market demand and our team’s continued ability to execute with excellence. We are well positioned for continued growth in 2025, supported by the expansion of our Red Deer Facility and new product development through internal design and by evaluating potential strategic opportunities.”
Brett Newton added to this stating, “We are also closely monitoring the evolving tariff landscape between the U.S. and Canada. Although our current U.S. sales are not subject to tariffs, we have mitigation strategies in place and are prepared to respond if conditions change.”
4Q/2024 Overview
- The Company achieved record quarterly sales and gross profit in Q4/2024.
- Net income per share (diluted) of
$0.02 4 decreased by$0.00 9 (27.1% ) compared to$0.03 3 in Q4/2023. Net income of$3,374 decreased by$1,185 (26.0% ) compared to$4,559 in Q4/2023. The decrease was primarily due to the absence of a one-time$2,206 intellectual property (“IP”) profit recognized in Q4/2023 under the Supply Contract with Ditch Witch, which did not recur in 2024, partially offset by increased truck sales in Q4/2024. - EBITDAS per share (diluted) (1) of
$0.04 0 decreased by$0.00 8 (16.7% ) compared to$0.04 8 in Q4/2023. EBITDAS(1) of$5,598 , decreased by$973 (14.8% ) compared to$6,571 in Q4/2023, due to the factors discussed above. - Revenue of
$38,113 increased by$4,811 (14.4% ) compared to$33,302 in Q4/2023 as customer demand continued to grow, particularly sales relating to the Supply Contract and to Custom Truck. During Q4/2024 the Company sold 89 trucks compared to 71 in Q4/2023. - Gross profit of
$8,408 , increased by$159 (1.9% ) compared to$8,249 in Q4/2023, despite the absence of the$2,206 IP profit recorded in Q4/2023, principally due to increased revenue.
(1) See “Non-IFRS Financial Measures” above.
Financial and Operating Highlights (in CAD
| Three months ended December 31 | Year ended December 31 | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Revenue | $ | 38,113 | $ | 33,302 | $ | 136,891 | $ | 105,008 | |||||
| Cost of sales | 29,705 | 25,053 | 111,259 | 85,408 | |||||||||
| Gross profit | 8,408 | 8,249 | 25,632 | 19,600 | |||||||||
| Selling and general administrative expenses | 2,810 | 1,933 | 10,005 | 7,572 | |||||||||
| Other gain - foreign exchange | (235 | ) | (160 | ) | (625 | ) | (111 | ) | |||||
| Depreciation and amortization | 310 | 136 | 947 | 840 | |||||||||
| Finance expense | 45 | 160 | 260 | 661 | |||||||||
| Stock-based compensation | 708 | 163 | 1,258 | 1,027 | |||||||||
| Change in fair value of derivative financial instruments | 106 | - | 26 | - | |||||||||
| (Gain)/loss on disposal of fixed assets | - | 11 | (9 | ) | 11 | ||||||||
| Income before tax | 4,664 | 6,006 | 13,770 | 9,600 | |||||||||
| Income tax expense | (1,290 | ) | (1,447 | ) | (3,468 | ) | (2,258 | ) | |||||
| Net income | $ | 3,374 | $ | 4,559 | $ | 10,302 | $ | 7,342 | |||||
| EBITDAS (1) | $ | 5,598 | $ | 6,582 | $ | 15,627 | $ | 12,433 | |||||
| Outstanding common shares | 137,556,119 | 135,871,119 | 137,556,119 | 135,871,119 | |||||||||
| EBITDAS per share - diluted (1) | $ | 0.040 | $ | 0.048 | $ | 0.111 | $ | 0.090 | |||||
| Net income per share - diluted | $ | 0.024 | $ | 0.033 | $ | 0.073 | $ | 0.053 | |||||
(1) See “Non-IFRS Financial Measures” above.
Outlook
Management expects the Company’s production and sales of hydrovac trucks and profitability to continue to grow in 2025 for the following reasons:
- Expected continued spending on infrastructure in North America.
- The continuing addition of new and innovative products that will support the infrastructure, telecommunications and oil and gas industries.
- The anticipated increasing revenues and benefits from the sales arrangement with its U.S. strategic partner, Custom Truck.
- The anticipated increase in production capacity and operating efficiencies resulting from the completion of the new production building being constructed at the Red Deer Facility, which is expected to be completed in Q2/2025.
- The Company’s strategy to introduce new product lines to increase revenue by internal development and through synergistic business acquisitions.
- The Company’s commitment to continuous improvement of its hydrovac truck design which in the Company’s view will result in advantages over other hydrovac trucks currently offered in the market.The Company’s ability to continue to secure key manufacturing components, including chassis for customers, into future years through strategic supplier relationships.
- The Company has strengthened its dealer relationships in both Canada and U.S. to meet the expected demand increase.
- Expanded North American coverage for maintenance warranty and repair to serve customers better.
- Favorable impact of a strengthened USD on a significant portion of the Company’s U.S. sales, which supports improved gross margins on those transactions.
About Tornado Infrastructure Equipment Ltd.
Tornado is a pioneer and leader in the vacuum truck industry and has been a choice of utility and oilfield professionals with over 1,800 hydrovacs sold since 2008. The Company designs and manufactures hydrovac trucks as well as provides heavy duty truck maintenance operations in central Alberta. It sells hydrovac trucks to excavation service providers in the infrastructure and industrial construction and oil and gas markets. Hydrovac trucks use high pressure water and vacuum to safely penetrate and cut soil to expose critical infrastructure for repair and installation without damage. Hydrovac excavation methods are quickly becoming a standard in North America to safely excavate in urban areas and around critical infrastructure greatly reducing infrastructure damage and related fatalities.
For more information about Tornado Infrastructure Equipment Ltd., visit www.tornadotrucks.com or contact:
| Brett Newton President and Chief Executive Officer Phone: (587) 802-5070 Email: bnewton@tghl.ca | Derek Li Vice President and Chief Financial Officer Phone: (403) 204-6350 Email: dli@tghl.ca |
Advisory
Certain statements contained in this news release constitute forward-looking statements. These statements relate to future events. All statements other than statements of historical fact are forward-looking statements. The use of the words “anticipates”, “should”, ‘‘may”, “expected”, “expects”, “believes” and other words of a similar nature are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although Tornado believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Such statements include those with respect to:
- management’s belief that ae are well-positioned for continued growth in 2025, supported by the expansion of our Red Deer Facility and new product development through internal design and by evaluating potential strategic opportunities;
- management’s intention to closely monitor the evolving tariff landscape between the U.S. and Canada and belief that we have mitigation strategies in place and are prepared to respond if conditions change in the tariff landscape;
- the Company’s outlook for 2025;
- the expectation that the Company’s production, sales of hydrovac trucks and profitability for 2025 will continue to grow;
- the expectation of continued spending on infrastructure in North America;
- the expectation of adding new and innovative products that will support the infrastructure, telecommunications and oil and gas industries;
- the anticipated increasing revenues and benefits from the sales arrangement with its U.S. strategic partner, Custom Truck;
- anticipated increase in production capacity and operating efficiencies resulting from the completion of the new building being constructed at the Red Deer Facility, which is expected to be completed in Q2/2025;
- the Company’s strategy to introduce new product lines to increase revenue by internal development and through synergistic business acquisitions.
- management’s belief that the Company’s commitment to continuous improvement of its hydrovac truck design which in the Company’s view will result in advantages over other hydrovac trucks currently offered in the market;
- management’s belief in its continuing ability of securing key manufacturing components, including chassis, for customers into future years through strategic supplier relationships;
- management’s belief in the positive impact of strengthened dealer relationships in both Canada and U.S. to meet the expected demand increase;
- management’s belief in the positive impact of expanded North American coverage for maintenance warranty and repair; and
- management’s belief that a strengthened USD will have a favorable impact on gross margins for U.S. sales, supporting improved profitability on cross border transactions.
These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Actual results could differ materially from those anticipated in these forward-looking statements as a result of prevailing economic conditions, and other factors, many of which are beyond the control of Tornado. Although Tornado believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. The forward-looking statements contained in this news release represent Tornado’s expectations as of the date hereof and are subject to change after such date. Tornado disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.
Neither the Exchange nor its Regulation Service Provider (as that term is defined in policies of the Exchange) accepts responsibility for the adequacy or accuracy of this news release.
FAQ
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