Atlas Engineered Products (AEP) investor relations material

Executive summary

• Q1 2026 faced challenging market conditions in Ontario and B.C., compounded by severe winter weather across Canada, impacting operations and revenue.

• Despite headwinds, quoting activity and order volumes increased significantly year-over-year, with quoting up to CAD 109 million and orders at CAD 29 million by end of April 2026.

• Progress continued on the first automation facility, with operations expected to begin in early July 2026, supporting long-term efficiency and margin improvement.

• Entered a non-repayable government grant agreement for up to CAD 4 million to support the robotics manufacturing plant.

• Active pursuit of M&A opportunities to expand geographic footprint and capabilities, leveraging low industry EBITDA for attractive returns.

Financial highlights

• Q1 2026 revenue was CAD 9.3 million, down 16% year-over-year from CAD 11.0 million in Q1 2025 due to market and weather impacts.

• Gross profit dropped to CAD 273,000 from CAD 1.74 million year-over-year; gross margin fell to 3% from 16%.

• Normalized EBITDA was CAD -800,000, down from CAD 616,000; adjusted EBITDA was CAD -823,000, down from CAD 587,000.

• Operating loss widened to CAD 2.2 million from CAD 771,000; net loss after taxes was CAD 1.73 million versus CAD 846,000 in Q1 2025.

• Total assets increased to CAD 86.9 million as of March 2026, up from CAD 80.5 million in December 2025.

Outlook and guidance

• Shipping and deliveries are picking up in Q2, with expectations for a more typical seasonal trend and stronger performance in the second half of 2026.

• Large projects are scheduled to be delivered throughout Q2, Q3, and Q4, smoothing revenue recognition across the year.

• Management remains optimistic about continued market share gains and volume growth, supported by automation and expanded offerings.

• High quoting activity continues, with Q1 2026 quotes exceeding CAD 80 million and orders over CAD 21 million, up from CAD 11 million in Q1 2025.

• Actively evaluating acquisition opportunities across North America to expand reach and capabilities.