Evertz Technologies (ET) Q4 2026 earnings summary

Executive summary

• Achieved record annual sales/revenue of CAD 515.8 million for fiscal 2026, with international revenue up 16% year-over-year to CAD 148 million and software/services revenue up 8% to CAD 240.7 million, representing 47% of total revenue.

• Net earnings for the year were CAD 64.4 million, with fully diluted EPS of CAD 0.83, both up year-over-year.

• Fourth quarter sales rose 3% year-over-year to CAD 131.6 million, with software and services up 17% to CAD 55.8 million.

• Strong presence at industry events and multiple product awards highlighted operational achievements.

• US/Canada revenue declined slightly year-over-year, while international revenue grew.

Financial highlights

• Gross margin remained robust at 59.3% for both the year and Q4, within the target range.

• Hardware revenue declined 1% year-over-year to CAD 275.1 million, while software and services increased 8% to CAD 240.7 million.

• Selling and administrative expenses were CAD 77 million for the year (14.9% of sales), and R&D expenses were CAD 148.1 million (28.7% of sales).

• Cash as of April 30th was CAD 19.1 million, down from CAD 111.7 million last year, mainly due to CAD 136 million in dividends paid.

• Shareholders' equity at year-end was CAD 198.2 million, down from CAD 268.1 million.

Outlook and guidance

• Entering fiscal 2027 with significant momentum, including over CAD 33 million in May shipments and a combined backlog plus shipments exceeding CAD 270 million.

• Continued focus on IP-based, software-defined, and cloud solutions, with strong adoption by major industry players.

• Well-positioned for growth in government, defense, and aerospace sectors.

• Regular quarterly dividend of CAD 0.205 per share declared, payable July 13th, 2026.