Tornado Infrastructure Equipment Reports Record 2024 Results

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 ($000’s CAD) except per share amounts.

2024 Overview

• The Company achieved record sales, gross profit, EBITDAS⁽¹⁾ and net income in 2024.
  
  
• Net income per share (diluted) of $0.073 increased by $0.020 (37.7%) compared to $0.053 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 $0.111 increased by $0.021 (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 $0.024 decreased by $0.009 (27.1%) compared to $0.033 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 $0.040 decreased by $0.008 (16.7%) compared to $0.048 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 $000’s except outstanding common share and per share data)

	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.