TerraVest Industries (TVK) investor relations material

Executive summary

• Sales increased 42% year-over-year for the quarter and 56% for the six months, driven by recent acquisitions, despite a 7% decline in the base portfolio and negative foreign exchange impacts.

• Net income decreased 62% for the quarter and 25% for the six months, mainly due to higher depreciation, amortization, and financing costs from acquisitions, and unfavorable changes in investment values.

• Adjusted EBITDA rose 15% for the quarter and 25% for the six months, reflecting acquisition contributions and partially offset by FX headwinds.

• Cash flow from operating activities increased 71% for the quarter and 119% for the six months, mainly due to favorable working capital changes.

• A quarterly dividend of $0.20 per share was declared, payable July 10, 2026.

Financial highlights

• Sales: $442.6M for the quarter and $850.9M for six months, up from $311.5M and $546.0M year-over-year.

• Net income: $12.7M for the quarter and $48.0M for six months, down from $33.3M and $63.8M year-over-year.

• Adjusted EBITDA: $75.5M for the quarter and $143.3M for six months, up from $65.7M and $114.6M.

• Gross profit: $109.4M for the quarter and $212.1M for six months, up 21% and 31% respectively.

• Cash available for distribution: $29.7M for the quarter and $62.9M for six months.

Outlook and guidance

• Portfolio performance aligns with expectations except for soft tank trailer demand and stronger-than-expected industrial steel tank demand.

• Recent acquisitions are expected to continue contributing meaningfully.

• Management is focused on leveraging synergies and mitigating tariff-related uncertainties.

• Targeted investments continue in manufacturing efficiency and product line expansion.