During the third quarter, tariff uncertainties and trade fluctuations persisted, maintaining the external pressures that have been the theme throughout the year. In addition, customer consolidation further curtailed spending while increasing pricing competitiveness for upcoming projects. Despite these challenging conditions, Vertex's Environmental Consulting segment performed strongly, exceeding expectations. This outperformance provided a partial offset to the Environmental Services segment, which continues to be adversely affected by global market volatility.
The Company's commitment to disciplined cost management and operational efficiency played a significant role in mitigating these pressures. Focused efforts to control expenses led to reductions in finance costs and a decrease in overall debt levels. These financial improvements underscore the effectiveness of Vertex's strategies to manage risk and enhance stability in a fluctuating market environment.
Key financial results for the three and nine months September 30, 2025, and 2024 are as follows:
HIGHLIGHTS
Three Months ended
Nine months ended
September 30,
September 30,
(in thousands of Canadian Dollars)
2025
2024
2025
2024
Gross revenue
54,047
62,405
164,709
179,295
Less flow through subcontractor costs
3,607
126
12,917
1,808
Net revenue
50,440
62,279
151,792
177,487
Profit margin
12,782
17,566
35,724
47,433
Profit margin %
25 %
28 %
24 %
27 %
Adjusted EBITDA (1)
7,180
11,924
18,772
28,871
Adjusted EBITDA %
14 %
19 %
12 %
16 %
Free cash flow (1)
2,409
6,936
5,196
9,115
Adjusted EBITDA per share, basic and diluted (1)
0.06
0.11
0.17
0.26
Earnings per share, basic and diluted
(0.01)
0.02
(0.06)
0.01
(1) See "Non-IFRS Financial Measures"
HIGHLIGHTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025
Environmental Consulting net revenue increased by 7% compared to 2024.
Environmental Consulting adjusted EBITDA(1) increased by 14% compared to 2024.
Finance costs were reduced by 32% year-over-year due to reduced debt levels.
Reduced loans and borrowings and lease liabilities by $2.6 million during the quarter.
HIGHLIGHTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025
Environmental Consulting net revenue increased by 6% compared to 2024.
Environmental Consulting adjusted EBITDA(1) increased by 26% compared to 2024.
G&A expenses were reduced by 9% compared to the same period of 2024.
Finance costs were reduced by 26% year-over-year due to reduced debt levels.
Reduced loans and borrowings and lease liabilities by $8.5million during the nine-month period.
The Company reduced loans and borrowings, and other liabilities by 25% since December 31, 2022, strengthening its financial position following two major acquisitions.
OUTLOOK
Throughout 2025, Vertex has operated in a persistently challenging environment shaped by fluctuating commodity prices, repeated tariff impositions, and subdued activity levels across our operating footprint. These factors have influenced customer investment decisions, resulting in lower operational activity and softer financial performance for the first three quarters.
In response, Vertex has taken deliberate steps to streamline operations, enhance cost efficiency, and focus on cash flow preservation. Actions such as facility consolidation, targeted reductions in capital expenditures, and ongoing debt reduction have strengthened our liquidity position and provided greater flexibility to adapt to evolving market conditions. Management continues to monitor expenditures closely and remains committed to prudent financial stewardship.
Looking ahead, Vertex remains ...
