Tornado Infrastructure Equipment (TGH) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly sales in Q2 2024, marking the ninth consecutive quarter of record revenue.

• Net income per share (diluted) rose 125% year-over-year to $0.018; net income increased 138.2% to $2,511,000.

• EBITDAS per share (diluted) increased 85.8% to $0.028; EBITDAS rose 86.2% to $3,770,000 year-over-year.

• Revenue grew 46.3% year-over-year to $34,423,000, driven by supply agreements, higher pricing, and increased demand.

• Gross profit increased 59.7% to $6,234,000, reflecting higher sales volume.

Financial highlights

• Revenue for Q2 2024 was $34,423,000, up from $23,530,000 in Q2 2023.

• Gross profit reached $6,234,000, up from $3,904,000 year-over-year.

• Selling and general administrative expenses rose 30.7% to $2,550,000, mainly due to growth-related costs and non-recurring professional fees.

• Net income for Q2 2024 was $2,511,000, compared to $1,054,000 in Q2 2023.

• EBITDAS for Q2 2024 was $3,770,000, up from $2,025,000 in Q2 2023.

Outlook and guidance

• Management expects continued growth in production, sales, and profitability for the remainder of 2024.

• Anticipates increasing revenues from the Ditch Witch supply contract and Custom Truck sales arrangement.

• Expects ongoing infrastructure spending in North America to support demand.

• Plans to expand product line and production capacity to meet robust demand into 2025.

• Strengthened dealer relationships and expanded maintenance coverage to support growth.