Company Announcements

NANAIMO, BC , Aug. 29, 2025 /CNW/ - Atlas Engineered Products ("AEP" or the "Company") (TSXV: AEP) (OTC Markets: APEUF) is pleased to announce its financial and operating results for the three and six months ended June 30, 2025. All amounts are presented in Canadian dollars.

Financial and Operating Highlights

• Revenue of $24.7M, representing a 2% increase, period over period, for the six months ended June 30, 2025
• 12% increase in board footage manufacturing of trusses, period over period, for the six months ended June 30, 2025
• Acquisition of Truss-Worthy Construction Systems Inc. ("Truss-Worthy") expanding the national footprint on the eastern side of Toronto

Hadi Abassi, President, CEO, and Founder stated: "I continue to be impressed by the commitment and accomplishments of the AEP team. The second quarter presented challenges, because of both Canadian and U.S. political and tariff uncertainties, which delayed builder deliveries. However, our sales team maintained an assertive approach, successfully generating orders within a competitive market and increasing our truss board footage output over the prior period, which ensured robust production activity. Although the second quarter was challenging, we are observing meaningful improvements in top line revenues for the third quarter thus far and are bolstered to see quotation activity at a record level, increasing by $34M year-to-date as of July 31, providing strong visibility for the rest of 2025 and into 2026."

On May 30, 2025, the Company acquired 100% of the issued and outstanding shares in Truss-Worthy in Colborne, Ontario for $1,575,000. In a separate transaction, the Company also purchased the land and building for $850,000. This acquisition aligned with the Company's strategic acquisition plan and links the Company's geographical footprint with the purchase of the 42 acres in Colborne, Ontario previously announced in December 2024.

Revenue for the six months ended June 30, 2025 was $24,663,863 compared to revenue of $24,208,197 for the six months ended June 30, 2024. Revenue has increased due to acquisitive growth and the organic growth related to walls from the beginning of the year. The Company has seen an increase in manufacturing metrics, but due to the competitive market, sales prices have decreased. Internal tracking of board footage manufactured for trusses has increased by 12% for the six months ended June 30, 2025 compared to June 30, 2024 which is leading to an increase in market share.

Gross profit for the six months ended June 30, 2025 was $4,066,534 compared to $5,870,045 for the six months ended June 30, 2024. Gross margin for the six months ended June 30, 2025 was 16%, which is lower than a gross margin of 24% for the six months ended June 30, 2024. Gross profits and gross margins decreased mainly due to the competitive market. The Company regularly analyses the benefits of revenues and gross margins to determine whether to reduce margins to generate more revenues and increase market share.

Net loss after taxes was $1,554,357 for the six months ended June 30, 2025 compared to net loss after taxes of $287,858 for the six months ended June 30, 2024. Net loss after taxes has increased compared to the prior period due to the decrease in gross margins due to the competitive market. Additionally, there were 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 loss for the period, but are added back for normalized EBITDA.

Non-IFRS measure normalized EBITDA for the six months ended June 30, 2025 was $1,724,587 with a normalized EBITDA margin of 8%. Normalized EBITDA for the six months ended June 30, 2024 was $3,334,506 with a normalized EBITDA margin of 7%. These decreases are due to a competitive market that has resulted in the Company prioritizing market share and revenues over gross margins.

Selected Financial Results

Outlook for 2025

Outlook Highlights

• Acquisition of Penn-Truss MFG Inc. ("Penn-Truss") in Saltcoats, Saskatchewan
• Quoting increased by almost $34 million for first seven months of year
• Approximately 14% increase in revenues for July 2025 over July 2024, excluding recent acquisitions
• New facility on track for future automation

Subsequent to the three and six months ended June 30, 2025, the Company completed the acquisition of Penn-Truss for a purchase price of $3.8 million as announced on July 24^th, 2025. This acquisition represents AEP's first location in Saskatchewan and strategically expands the Company's national footprint. Canada is a uniquely diverse and large country and while some provinces in the country are seeing slower housing starts and a significantly more competitive market, other provinces are experiencing the opposite with higher housing starts and more demand.

Quoting has increased by nearly $34 million from January to July 2025 compared to the same period in 2024. However, while orders have been steady, a lot of the quoting activity are jobs that are being held currently. Despite this July 2025 resulted in approximately $6 million in revenues, excluding recent acquisitions in 2025, compared to $5.25 million in July of 2024.

The Company anticipates that orders will increase with the announcement of government incentives and programs for the construction industry as consistently indicated for Fall 2025. Additionally, the ongoing housing shortage in Canada continues to intensify, contributing further pressure on the construction sector. AEP is preparing for a potential rapid shift in the market by investing in automation efficiency, training an aggressive and proactive salesforce, and expanding manufacturing capacity.

"I am proud of the Company's resilience amid persistent market competitiveness, especially in Ontario and British Columbia. Our national presence has strengthened AEP's stability by ensuring we are in markets that are still affordable like the Prairies and Maritimes," said Hadi Abassi. "Additionally, by investing in automation, we will be ready when demand accelerates across all of Canada."

AEP believes that the future of the industry will be defined by highly automated manufacturing facilities capable of producing greater volumes at reduced costs. Construction of the new automation facility in Ontario continues to progress with cladding being completed and interior work underway. The building is still anticipated to be completed later in 2025.

Conference Call

AEP will host a conference call to discuss the results today, August 29, 2025 at 11:00am EST (8:00am PST). The call will be hosted by Hadi Abassi, CEO & President, Founder, and Melissa MacRae, CFO. Details to join this conference call are below.

Date: Friday, August 29, 2025
Time: 11:00am EST (8:00am PST)
Webinar Link: https://atlasaep.ca/d19ADsik1 
Meeting ID: 294 992 021 812
Passcode: 4FV3YF7T

Non-GAAP / Non-IFRS Financial Measures

Certain financial measures in this news release do not have any standardized meaning under IFRS and, therefore are considered non-IFRS or non-GAAP measures. These non-IFRS measures are used by management to facilitate the analysis and comparison of period-to-period operating results for AEP and to assess whether AEP's operations are generating sufficient operating cash flow to fund working capital needs and to fund capital expenditures. As these non-IFRS measures do not have any standardized meaning under IFRS, these measures may not be comparable to similar measures presented by other issuers. The non-IFRS measures used in this news release may include "EBITDA", "EBITDA margin", "adjusted EBITDA", "adjusted EBITDA margin", "normalized EBITDA" and "normalized EBITDA margin". For a description of the composition of these measures, please refer to AEP's Management's Discussion and Analysis for the three and six months ended June 30, 2025 under "Non-IFRS / Non-GAAP Financial Measures", available on AEP's website at www.atlasengineeredproducts.com or on SEDAR at www.sedar.com.

About Atlas Engineered Products Ltd.

AEP is a growth company that is acquiring and operating profitable, well-established operations in Canada's truss and engineered products industry. We have a well-defined and disciplined acquisition and operating growth strategy enabling us to scale aggressively and apply new technologies, giving us a unique opportunity to consolidate a fragmented industry of independent operators.

Company contact details:
Hadi Abassi, CEO & President, Founder
Atlas Engineered Products Ltd.
Email: info@atlasep.ca
250-754-1400
PO Box 37036 Country Club PO
Nanaimo, BC V9T 6N4
www.atlasengineeredproducts.com

FORWARD LOOKING INFORMATION
Information set forth in this news release contains forward-looking statements. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. Although AEP believes that the expectations reflected in the forward looking statements are reasonable, there is no assurance that such expectations will prove to be correct, or that such future events will occur in the disclosed time frames or at all.  AEP cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond AEP's control.  Such factors include, among other things: risks and uncertainties related to the housing market, changes in interest rates and other risks and uncertainties relating to AEP, including those described in the Management's Discussion and Analysis ("MD&A") for AEP's three and six months ended June 30, 2025.  Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, AEP undertakes no obligation to publicly update or revise forward-looking information.

SELECTED FINANCIAL INFORMATION
Except as noted below, the financial information provided in this news release is derived from the AEP's audited financial statements for the three and six months ended June 30, 2025 and the related notes thereto as prepared in accordance with International Financial Reporting Standards ("IFRS") and related IFRS Interpretations Committee ("IFRICs") as issued by the International Accounting Standards Board ("IASB").  A copy of AEP's financial statements for the three and six months ended June 30, 2025 and the related Management's Discussion and Analysis is available on AEP's website at www.atlasengineeredproducts.com or on SEDAR at www.sedar.com.

Financial information for AEP's acquisitions are included in AEP's unaudited financial statements from the date of acquisition. Financial information for acquired businesses for periods prior to the date of acquisition were prepared by management and have not been reviewed or audited by independent auditors.

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SOURCE Atlas Engineered Products Ltd.