TerraVest Industries (TVK) investor relations material

Executive summary

• Sales for Q1 FY2026 rose 74% year-over-year to $408.4M, driven by organic growth and recent acquisitions.

• Net income increased 16% year-over-year to $35.2M, with higher revenues partially offset by unfavorable product mix and increased expenses.

• Adjusted EBITDA grew 39% to $67.8M, reflecting acquisition contributions and organic growth.

• Recent acquisitions, including Tankcon, Simplex, LBT, Entrans, Wave, and Aureus, significantly expanded the business portfolio.

Financial highlights

• Gross profit increased 45% year-over-year to $102.7M, mainly from acquired businesses.

• Administration expenses rose 119% due to higher amortization from acquisitions.

• Selling expenses increased 35%, but as a percentage of sales, decreased from 3.8% to 3.0%.

• Financing costs surged 241% due to higher debt from acquisitions.

• Cash flow from operating activities jumped 164% to $96.5M, driven by higher net income and favorable working capital changes.

• Cash Available for Distribution increased 34% to $33.2M.

• Dividend payout ratio remained stable at 11%.

Outlook and guidance

• Management expects continued strong performance from recent acquisitions and ongoing synergy opportunities.

• Tariff uncertainty in North America may soften demand in some segments, especially tank trailers.

• Strong demand anticipated for products related to data center build-outs.

• New credit facility positions the company to pursue further acquisitions.