Company Announcements

NANAIMO, BC , April 30, 2026 /CNW/ - Atlas Engineered Products ("AEP" or the "Company") (TSXV: AEP) (OTC Markets: APEUF) is pleased to announce its financial and operating results for the fourth quarter and year ended December 31, 2025. All amounts are presented in Canadian dollars.

Annual Financial and Operating Highlights

• Revenue of $17.6M & $62.6M, representing a 17% and 12% increase, period over period, for the three and twelve months ended December 31, 2025;
• Acquisition of Truss-Worthy Construction Systems Inc. ("Truss-Worthy") expanding Company's footprint in Ontario;
• Acquisition of Penn-Truss Manufacturing Inc. ("Penn-Truss") expanding the Company's national footprint to Saskatchewan, Canada;
• Difficult market conditions in Ontario & BC, better market conditions in Prairies and Martimes where affordability is better.

Hadi Abassi, President, CEO & Founder of AEP, stated, "In 2025, we achieved strong top-line growth, with annual revenues rising by 12% and fourth quarter revenues increasing by 17%. This success was fueled by both acquisitions and ongoing organic growth across our product lines. Even with particularly tough market conditions in Ontario and British Columbia--impacted by high home prices, political factors, and changing tariff announcements--we were able to boost revenues and grow our market share. The acquisitions of Truss-Worthy and Penn-Truss have extended our national reach, and our first truss robotic facility in Clinton is nearing completion, expected to begin operations in early July. We are now concentrating on integrating these new operations, enhancing our sales capabilities, and using automation and scale to improve efficiency and gain additional market share in a competitive landscape." 

Q4 Results

Revenue for the three months ended December 31, 2025 was $17,645,972 compared to revenue of $15,069,615 for the three months ended December 31, 2024, representing a 17% increase. Revenue has increased due to acquisitive growth for the quarter.  

Gross profit for the three months ended December 31, 2025 was $3,583,030 compared to $3,591,777 for the three months ended December 31, 2024. Gross profits decreased slightly due to increased cost of sales combined with the competitive market. The Company regularly analyses the benefits of revenues and gross margins in order to determine whether to reduce margins in order to generate more revenues and increase market share. Additionally, the Company acquired two new acquisitions that are not fully integrated as of the three months ended December 31, 2025. 

Net loss after taxes was $686,098 for the three months ended December 31, 2025 compared to net loss after taxes of $838,728 for the three months ended December 31, 2024. This improvement in net loss after taxes was mainly due to increased revenues, but offset by 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 the net loss for the period but are added back for normalized EBITDA. 

Non-IFRS measure normalized EBITDA for the three months ended December 31, 2025 was $2,371,866 compared to $2,238,681 in normalized EBITDA for the three months ended December 31, 2024. This increase is driven by revenue increases which are still offset by a reduction in selling prices driven by a competitive market and the Company's strategy to increase market share. 

Annual Results

Revenue for the year ended December 31, 2025 was $62,641,420 compared to revenue of $55,828,723 for the year ended December 31, 2024, representing a 12% increase. Revenue has increased due to acquisitive growth, the 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 prior year.

Gross profit for the year ended December 31, 2025 was $12,157,994 compared to $13,546,485 for the year ended December 31, 2024. Gross profits decreased due to increased cost of sales combined with the competitive market. The Company regularly analyses the benefits of revenues and gross margins in order to determine whether to reduce margins in order to generate more revenues and increase market share. Additionally, the Company acquired two new acquisitions that are not fully integrated as of the year ended December 31, 2025. 

Net loss after taxes was $375,365 for the year ended December 31, 2025 compared to net loss after taxes of $212,128 for the year ended December 31, 2024. This increase was mainly due to 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 the net loss for the period but are added back for normalized EBITDA. 

Non-IFRS measure normalized EBITDA for the year ended December 31, 2025 was $7,384,785 compared to $8,524,374 in adjusted EBITDA for the year ended December 31, 2024. Normalized EBITDA decreased due to the competitive market that resulted in lower selling prices despite the increase in revenues.  

Outlook for 2026

AEP is nearing completion of the first truss robotic facility in Clinton, ON. The building is in the final stages of interior painting and office setup while the equipment has been shipped and is anticipated to be operational at the beginning of July 2026. There was a slight delay of 2-3 weeks due to the shipping process which is experience impacts from the war in Iran. Additionally, the Company has hired two new sales team members, one with extensive truss, wall panel, and construction industry experience and connections. The Company was also pleased to announce the $4 million federal grant to support this new automation facility in Clinton, ON on April 15, 2026.

The Company continues to report high quoting volumes from the beginning of 2025. In the first quarter of 2026, quotes exceeded $80 million. Because quoting activity has been significantly higher in both 2025 and early 2026 than in previous years, order volumes have also been increasing. During the first three months of 2026, orders totaled over $21 million, up from more than $11 million in the same period of 2025. However, shipping during this period were challenging and lower, as much of Canada experienced more severe winter weather compared to prior years.

AEP continues to work at delivering organic growth through increasing focus on wall panel manufacturing and being able to supply customers with a full package of roof and floor trusses, wall panels, and engineered wood products as needed for their projects. This organic growth would help insulate the Company to potential effects of recessions by allowing for increased sales volume potential per order. While industry volumes are largely driven by macroeconomic and political factors beyond the Company's control, AEP will continue to leverage its scale, agility and strong balance sheet to further gain market share. 

In addition to the Company's organic growth strategies, the Company continues to assess acquisition opportunities across North America. In 2025, the Company acquired Truss-Worthy and Penn-Truss expanding its national footprint. Truss-Worthy is close to the 42 acres purchased in Colborne, ON giving the Company a start on a customer base before potential development of the 42 acres. Penn-Truss is the Company's first location in Saskatchewan, Canada. The Company is assessing additional opportunities for 2026 and beyond to enhance its geographical footprint, manufacturing capabilities, and industry knowledge. AEP continues to have a robust pipeline of attractive deals now that the industry has normalized from the high lumber prices and demand during the Covid-19 pandemic.

Conference Call

AEP will host a conference call to discuss the results today, April 30, 2026 at 11:00am EDT (8:00am PT). The call will be hosted by Hadi Abassi, CEO & President, Founder, and Melissa MacRae, CFO. Details to join this conference call are below.

Date: Thursday, April 30, 2026
Time: 11:00am EST (8:00am PST)
Webinar Link: https://atlasaep.ca/8917aDjd1
Meeting ID: 295 204 030 827 026
Passcode: aJ66fL98

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 year ended December 31, 2024 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.

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 year ended December 31, 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 year ended December 31, 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 year ended December 31, 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.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE Atlas Engineered Products Ltd.