Tornado Infrastructure Equipment Stock Price, News & Analysis

Tornado Infrastructure Equipment Ltd. (OTCQX: TGHLF), also known in earlier disclosures as Tornado Global Hydrovacs, is a manufacturing company focused on specialized heavy-duty trucks for excavation and infrastructure work. The company is described in its public communications as a pioneer and leader in the vacuum truck industry, with more than 1,800–1,900 hydrovac units sold over many years. Its shares have traded on the TSX Venture Exchange under the symbol TGH and on the OTCQX market under the symbol TGHLF.

According to Tornado’s news releases, the company designs and manufactures hydrovac trucks and related equipment. Hydrovac trucks use high-pressure water and powerful vacuum systems to cut and remove soil. This method allows excavation service providers to expose underground and other critical infrastructure for repair or installation without direct mechanical contact. The company notes that hydrovac excavation has been adopted across North America as a safer way to dig in urban areas and around buried utilities, helping reduce infrastructure damage and related fatalities.

Business focus and products

Tornado’s core business is the engineering and production of hydrovac trucks for excavation service providers. Company disclosures state that these trucks are sold into the infrastructure, environmental, industrial construction, and oil and gas markets. Over time, Tornado has also highlighted its heavy-duty truck maintenance facility in central Alberta, which supports its equipment in the field.

Through its wholly owned subsidiary Custom Vacuum Services Ltd. (CustomVac), based in Nisku, Alberta, Tornado also manufactures and services mobile, coded vacuum equipment. Company materials describe CustomVac’s units as serving the oil and gas, utilities, excavation, environmental and safety sectors in Canada. CustomVac’s product line includes equipment designed for the transportation of dangerous goods, and Tornado has stated that this expands its product offering. CustomVac also provides maintenance and field services to its customers.

Key partnerships and agreements

Tornado has disclosed several important commercial relationships that shape its business profile:

• A Product Supply and Development Agreement with Ditch Witch, a division of The Toro Company, for the co-development and supply of customized, Ditch Witch–branded hydrovac trucks. The agreement covers a multi-year term and is expected to generate significant minimum gross revenue for Tornado.
• A sales arrangement with Custom Truck One Source, described as a single-source provider of specialized truck and heavy equipment solutions with many locations across North America. Tornado attributes increased hydrovac sales and revenue growth in its financial updates in part to this arrangement.
• A private label manufacturing agreement through CustomVac with Ascend Hydrovacs Inc. Under this supply agreement, CustomVac manufactures purpose-built hydrovac units exclusively for Ascend, branded under Ascend’s name. Company disclosures state that this agreement includes a multi-year delivery commitment and associated revenue expectations, as well as intellectual property fees tied to the co-developed product design.

In addition, Tornado has reported that it entered into a four-year product supply and development agreement with Ditch Witch in 2022, under which Tornado co-developed an exclusively Ditch Witch–branded hydrovac truck and supplies these units to Ditch Witch’s construction equipment network.

Facilities and operations

Public releases describe Tornado’s operational footprint as centered in Alberta, Canada. The company operates a manufacturing campus in Red Deer, where it has invested in a new production building intended to increase capacity and improve operating efficiencies. CustomVac operates from a manufacturing and parts facility in Nisku, Alberta. Tornado also notes that it runs a heavy-duty truck maintenance facility in central Alberta, supporting both its own hydrovac trucks and related equipment.

Tornado’s communications emphasize production efficiency, supply chain management and dealer relationships. The company has referred to supply chain advantages from increased purchasing power, strategic supplier relationships for key components such as chassis, and strengthened dealer networks in both Canada and the United States to meet expected demand.

Acquisition of CustomVac

In a detailed announcement, Tornado reported the acquisition of all issued and outstanding shares of Custom Vacuum Services Ltd. for a cash purchase price, funded by cash on hand and a new term loan under a facility with a major Canadian bank. Tornado describes this transaction as a strategic step to expand its footprint across the infrastructure equipment sector, citing synergy opportunities such as cross-selling across customer bases, leveraging Tornado’s North American sales channels to increase sales of CustomVac products, and using Tornado’s supply chain to reduce production costs.

The company also notes that CustomVac’s product line includes units designed for the transportation of dangerous goods and that CustomVac has experienced significant growth since 2022. Tornado’s disclosures characterize the acquisition as expected to be profitable and immediately accretive, with CustomVac’s in-house manufacturing capabilities enabling Tornado to localize production of certain components.

Financial performance themes

Tornado’s financial news releases highlight trends rather than just one-time results. The company has reported record annual sales, gross profit, EBITDAS and net income in at least one recent year. It attributes revenue growth to factors such as:

• Increased sales of hydrovac trucks.
• Positive impact from the Ditch Witch supply and development agreement.
• Increased sales through the Custom Truck arrangement.
• Higher sales pricing of hydrovac trucks.
• Higher demand for hydrovac trucks in North America.

In quarterly updates, Tornado has linked improvements in net income and EBITDAS to higher revenue, improved production efficiency at its Red Deer facility, cost savings from scaled operations, and contributions from CustomVac following its acquisition. The company also discusses non-IFRS financial measures such as EBITDAS and EBITDAS per share, explaining how these are calculated and how management and financial stakeholders use them to assess performance.

Corporate transaction with The Toro Company

Later disclosures describe a major corporate development: a plan of arrangement with The Toro Company. Tornado announced that a subsidiary of The Toro Company would acquire all of the outstanding Class "A" common shares of Tornado in an all-cash transaction. Following securityholder approval and court approvals, Tornado reported the completion of the arrangement, under which an affiliate of Toro acquired all issued and outstanding shares for cash consideration per share.

In connection with this transaction, Tornado stated that its shares are expected to be delisted from the TSX Venture Exchange and that the company has applied to cease to be a reporting issuer in certain Canadian provinces. The company has indicated that, upon completion of the transaction, Tornado will be an indirect, wholly owned private subsidiary of The Toro Company. For investors researching the historical TGHLF listing, this means Tornado has transitioned from an independent public issuer to part of a larger corporate group.

Role in the hydrovac and infrastructure market

Across multiple releases, Tornado describes itself as a pioneer in the vacuum truck industry and notes that it has been a choice of utility and oilfield professionals for many years. Its hydrovac trucks are used by excavation service providers working on infrastructure, industrial construction, oil and gas, environmental and related projects. By focusing on hydrovac excavation, Tornado’s equipment is positioned within a segment of the heavy-duty truck manufacturing industry that emphasizes safe excavation practices around critical infrastructure.

FAQs about Tornado Infrastructure Equipment (TGHLF)

• What does Tornado Infrastructure Equipment do?
  According to its public disclosures, Tornado designs and manufactures hydrovac trucks and related vacuum equipment, operates a heavy-duty truck maintenance facility in central Alberta, and, through its subsidiary CustomVac, produces and services vacuum equipment for sectors such as oil and gas, utilities, excavation, environmental and safety.
• Which markets does Tornado serve?
  Company materials state that Tornado sells its hydrovac trucks to excavation service providers in the infrastructure, environmental, industrial construction, and oil and gas markets. CustomVac’s equipment is described as serving oil and gas, utilities, excavation, environmental and safety sectors in Canada.
• How are Tornado’s hydrovac trucks used?
  Tornado explains that hydrovac trucks use high-pressure water and vacuum to safely penetrate and cut soil, exposing critical infrastructure for repair and installation without damage. This method is described as becoming a standard approach in North America for excavation in urban areas and around critical infrastructure.
• What is CustomVac and how does it relate to Tornado?
  Custom Vacuum Services Ltd. is a wholly owned Tornado subsidiary based in Nisku, Alberta. Tornado reports that CustomVac manufactures and services mobile, coded vacuum equipment, both truck-mounted and semi-trailer mounted, and that its product line includes units designed for the transportation of dangerous goods. Tornado acquired all of the issued and outstanding shares of CustomVac and integrates its products and services into Tornado’s broader offering.
• What partnerships has Tornado announced?
  Tornado has disclosed a product supply and development agreement with Ditch Witch, a division of The Toro Company, for co-developed, Ditch Witch–branded hydrovac trucks; a sales arrangement with Custom Truck One Source; and a private label manufacturing agreement through CustomVac with Ascend Hydrovacs Inc. for exclusive, Ascend-branded hydrovac units.
• What happened to Tornado’s public listing?
  Tornado announced a plan of arrangement under which a subsidiary of The Toro Company acquired all of Tornado’s outstanding Class "A" common shares for cash. Following completion of the arrangement, Tornado reported that its shares are expected to be delisted from the TSX Venture Exchange and that it has applied to cease to be a reporting issuer in certain Canadian provinces, with Tornado becoming an indirect wholly owned private subsidiary of The Toro Company.
• How does Tornado describe its financial performance?
  In its news releases, Tornado has reported record annual sales, gross profit, EBITDAS and net income in at least one recent year, and has attributed revenue growth to increased hydrovac truck sales, the Ditch Witch supply contract, the Custom Truck sales arrangement, higher pricing and increased demand in North America. It also discusses non-IFRS measures such as EBITDAS and EBITDAS per share.
• Where are Tornado’s main operations located?
  Company disclosures indicate that Tornado operates a manufacturing campus and heavy-duty truck maintenance facility in central Alberta, and that its subsidiary CustomVac operates a manufacturing and parts facility in Nisku, Alberta.