Financial and Operating Highlights
Revenue of $20.3M & $45M, representing a 23% and 10% increase, period over period, for the three and nine months ended September 30, 2025
11% increase in board footage manufacturing of trusses, period over period, for the nine months ended September 30, 2025
Acquisition of Penn-Truss Manufacturing Inc. ("Penn-Truss") expanding the Company's national footprint to Saskatchewan, Canada
Deposits have been placed on automation equipment for the new facility in Clinton, ON
Cash on hand of $3.75M with access to an additional $7.5M through the line of credit facility
Hadi Abassi, President, CEO, and Founder stated: "I remain deeply impressed by the dedication and achievements of the AEP team. The third quarter marked a period of strong performance, with revenue increasing by 23% over the same period last year and truss board footage up 11% for the year to date. While we continued to navigate a competitive market environment, our sales team's assertive efforts resulted in order generation and sustained high production levels. The successful acquisition of Penn-Truss has expanded our national footprint into Saskatchewan and positions us well for further growth. We are encouraged by record quotation activity, which has increased by 36%, or $55.5 million, year-to-date as of September 30 compared to prior period, providing us with visibility and confidence for the remainder of 2025 and into 2026."
On June 24, 2025, the Company acquired 100% of the issued and outstanding shares in Penn-Truss in Saltcoats, Saskatchewan for $3.8 million in cash plus a working capital adjustment to be determined. $760,000 of the purchase price will be due nine months post-closing and $760,000 in cash or shares of AEP at the discretion of AEP and based on the performance of Penn-Truss for fiscal 2025. This acquisition aligned with the Company's strategic acquisition plan and expands the Company's geographical footprint with its first location in Saskatchewan.
Revenue for the three and nine months ended September 30, 2025 was $20,331,585 and $44,995,448 compared to revenue of $16,550,911 and $40,759,108 for the three and nine months ended September 30, 2024. Revenue has increased due to acquisitive growth, organic growth related to walls from the beginning of the year and the increase in roof and floor trusses. The Company has seen an increase in manufacturing metrics, but due to the competitive market, sales prices are still lower than the same period in 2024.
Gross profit for the three and nine months ended September 30, 2025 was $4,508,430 and $8,574,964 compared to $4,084,663 and $9,954,708 for the three and nine months ended September 30, 2024. Gross profits increased for the three months ended September 30, 2025 due to the increased revenues from acquisitive and organic growth. Gross profits decreased for the nine months ended September 30, 2024 due to the competitive market that has lowered the sales price in order to maintain and gain market share.
Net income after taxes was $1,865,090 and $310,733 for the three and nine months ended September 30, 2025 compared to net income after taxes of $914,458 and $626,600 for the three and nine months ended September 30, 2024. Net income after taxes has increased for the three-month period compared to the prior period due to the increase in revenues and the gain on bargain purchase as the current estimate purchase price allocation for Penn-Truss. Net income after taxes has decreased for the nine-month period compared to the prior period. Impacting profitability for both the three- and nine-month periods was a reduction in gross margins driven by a competitive market and several expenses related to acquisitions and the automation facility that could not be capitalized, such as legal fees, travel costs, appraisals, etc. These are all impacting on the net income for the period but are added back for normalized EBITDA.
Non-IFRS measure normalized EBITDA for the three and nine months ended September 30, 2025 was $3,322,317 and $5,012,919, compared to $3,051,187 and $6,285,693 for the three and nine months ended September 30, 2024. Normalized EBITDA for the three months ended September 30, 2025 increased compared to the three months ended September 30, 2024 due to the increase in net income and the one-time costs that increased due to the acquisition costs and credit facility updates. Normalized EBITDA decreased for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to a higher net loss resulting from a competitive market impacting pricing, as well as an additional removal of the gain on bargain purchase related to the Penn-Truss acquisition.
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Nine Months Ended
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Sept 2024
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