Tornado Infrastructure Equipment Reports Second Quarter 2025 Results

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Tornado Infrastructure Equipment (OTCQX:TGHLF) reported strong Q2 2025 results, highlighted by a 30.7% revenue increase to $44,985 CAD and a 6.7% rise in net income to $2,680 CAD. The company's performance was driven by increased hydrovac truck sales and improved operational efficiency.

A key development was the $28 million acquisition of CustomVac on May 15, 2025, expanding Tornado's product portfolio in vacuum equipment for oil and gas, utilities, and environmental services. The company sold 87 hydrovac trucks in Q2 2025, up from 82 in Q2 2024, with an additional 9 trucks from CustomVac.

Management expects continued growth in 2025, supported by infrastructure spending, CustomVac synergies, and increased production capacity from a new Red Deer facility scheduled to commence operations in Q4 2025.

Positive

• Revenue increased by 30.7% to $44,985 CAD year-over-year
• Net income grew 6.7% to $2,680 CAD with EPS up 5.6%
• EBITDAS surged 48.6% to $5,614 CAD
• Strategic $28M acquisition of CustomVac expected to be immediately accretive
• Gross profit jumped 44.5% to $9,010 CAD
• Hydrovac truck sales increased to 87 units from 82 year-over-year
• New production facility in Red Deer to boost capacity in Q4 2025

Negative

• Selling and administrative expenses increased 33.2% to $3,396 CAD
• Higher amortization and finance expenses impacted bottom line
• Unrealized foreign exchange losses affected net income

CALGARY, AB / ACCESS Newswire / August 29, 2025 / Tornado Infrastructure Equipment Ltd. ("Tornado" or the "Company") (TSX-V:TGH)(OTCQX:TGHLF) today reported its unaudited condensed consolidated financial results for the three and six-month periods ended June 30, 2025. The unaudited condensed 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 ($000's CAD) except per share amounts.

Significant Developments and Q2/2025 Overview

• On May 15, 2025, the Company acquired all of the issued and outstanding shares of Custom Vacuum Services Ltd. ("CustomVac") for $28 million in cash, funded by cash on hand and a new term loan. Based in Nisku, Alberta, CustomVac manufactures and services vacuum equipment for multiple sectors, including oil and gas, utilities, and environmental services. The acquisition expands Tornado's product portfolio, adds units designed for the transportation of dangerous goods, and is expected to be immediately accretive. Tornado anticipates synergies through cross-selling, leveraging its North American sales channels, and driving efficiencies across its supply chain.

• Net income per share (diluted) of $0.019 increased by $0.001 (5.6%) compared to $0.018 in Q2/2024. Net income of $2,680 increased by $169 (6.7%) compared to $2,511 in Q2/2024. This improvement was primarily driven by higher revenue from increased hydrovac truck sales, enhanced production efficiency at the Red Deer facility, cost savings from scaled operations, and the contribution from CustomVac (May 15 to June 30), partially offset by higher amortization, stock-based compensation, finance expense and unrealized foreign exchange losses.

• EBITDAS per share (diluted) ⁽¹⁾ of $0.039 increased by $0.011 (39.3%) compared to $0.028 in Q2/2024. EBITDAS of $5,614 increased by $1,835 (48.6%) compared to $3,779 in Q2/2024. This increase was principally due to increased revenue, increased gross profit and the contribution from CustomVac (May 15 to June 30).

• Revenue of $44,985 increased by $10,562 (30.7%) compared to $34,423 in Q2/2024 as a result of: (i) the positive impact of the four-year product supply and development agreement with Ditch Witch, a division of The Toro Company, 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 ("Custom Truck"), who is a single-source provider of specialized truck and heavy equipment solutions with over 40 locations across North America; (iii) the increase in sales pricing of hydrovac trucks; (iv) the increase in the number of hydrovac trucks sold; (v) the increase in demand for hydrovac trucks in North America; and (vi) the contribution of revenue from CustomVac effective May 15, 2025. During Q2/2025 the Company sold 87 hydrovac trucks compared to 82 in Q2/2024, plus an additional 9 trucks sold by CustomVac.

• Gross profit of $9,010 increased by $2,776 (44.5%) compared to $6,234 in Q2/2024 principally due to increased revenue, improved operating efficiency at the Red Deer facility, supply chain advantages from increased purchasing power and the contribution from CustomVac (May 15 to June 30).

• Selling and general administrative expenses of $3,396 increased by $846 (33.2%) compared to $2,550 in Q2/2024. The increase was principally due to generally increased employee, sales and travel costs and non-recurring professional fees, and the costs from CustomVac since May 15.

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. The Company's definition of EBITDAS and EBITDAS per share (diluted), are not standardized financial measures under IFRS and may not be comparable to similar financial measures used by other companies. While not IFRS measures, EBITDAS and EBITDAS per share (diluted), are used by management, creditors, analysts, investors and other financial stakeholders to assess the Company's performance and management from a financial and operational perspective.

Financial and Operating Highlights (in CAD $000's except outstanding common share and per share data)

(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 our industry across North America.

• The anticipated increased revenues and benefits from the strategic acquisition of CustomVac, including expanded product offerings, cross-selling opportunities, and improved supply chain efficiency.

• 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 constructed at the Red Deer facility, which is substantially complete and expected to commence operations in Q4/2025.

• 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's strengthened 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 strong 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 the choice of utility and oilfield professionals with over 1,900 hydrovacs sold since 2008. The Company designs and manufactures hydrovac trucks and, through its subsidiary CustomVac, based in Nisku, Alberta, produces complementary vacuum and industrial equipment solutions, including units designed for the transportation of dangerous goods, and provides maintenance and field services to its customers. In addition, Tornado operates a heavy-duty truck maintenance facility in central Alberta. The Company sells its products to excavation service providers in the infrastructure, 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, significantly 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", "will", "strategy", "estimate", "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:

• the Company's outlook for the remainder of 2025;

• the expectation that the Company's production, sales of hydrovac trucks and profitability for the remainder of 2025 will continue to grow;

• the expectation that the CustomVac acquisition presents synergy opportunities, including cross-selling across both customer bases, leveraging Tornado's established sales channels in Canada and the United States to drive increased sales of CustomVac products, utilizing Tornado's established and scalable supply chain to reduce production costs and improve efficiency;

• the expectation that the CustomVac acquisition provides a new product line for Tornado which includes units that are designed for the transportation of dangerous goods, which expands Tornado's product offering to its customers;

• the expectation that the CustomVac acquisition will be profitable and immediately accretive to Tornado;

• the expectation that the new production facility in Red Deer will be operational in Q4/2025, enabling increased production capacity, enhanced efficiency, and improved working conditions;

• the anticipated increasing revenues and benefits from the sales arrangement with its U.S. strategic partner, Custom Truck;

• the expectation of continued spending on infrastructure in our industry across North America;

• the Company's strategy to introduce new product lines to increase revenue by internal development and through synergistic business acquisitions.

• the expectation of continuing addition of new and innovative products that will support the infrastructure, telecommunications and oil and gas industries;

• 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

• the expected increased production levels for 2025.

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 TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

SOURCE: Tornado Infrastructure Equipment Ltd.

View the original press release on ACCESS Newswire

FAQ

What were Tornado Infrastructure Equipment's (TGHLF) Q2 2025 earnings highlights?

Tornado reported Q2 2025 revenue of $44,985 CAD (up 30.7%), net income of $2,680 CAD (up 6.7%), and diluted EPS of $0.019 (up 5.6%) year-over-year.

How much did Tornado pay for CustomVac acquisition and when?

Tornado acquired CustomVac for $28 million CAD in cash on May 15, 2025, funded through cash on hand and a new term loan.

How many hydrovac trucks did Tornado sell in Q2 2025?

Tornado sold 87 hydrovac trucks in Q2 2025, compared to 82 in Q2 2024, plus an additional 9 trucks from CustomVac.

What is Tornado's growth outlook for 2025?

Tornado expects continued growth in production and sales, driven by North American infrastructure spending, CustomVac synergies, and increased capacity from the new Red Deer facility opening in Q4 2025.

How did Tornado's EBITDAS perform in Q2 2025?

EBITDAS increased by 48.6% to $5,614 CAD, with EBITDAS per share rising 39.3% to $0.039 compared to Q2 2024.