Tornado Infrastructure Equipment (TGH) Q4 2024 earnings summary

Executive summary

• Achieved record annual sales, gross profit, EBITDAS, and net income for 2024, driven by strong demand for hydrovac trucks and expanded partnerships.

• Net income per share (diluted) rose 37.7% year-over-year to $0.073; net income increased 40.3% to $10,302,000.

• Q4 2024 saw record sales and gross profit, though net income and EBITDAS declined due to the absence of a one-time IP sale in Q4 2023.

Financial highlights

• 2024 revenue grew 30.4% year-over-year to $136.9 million, with 320 trucks sold versus 241 in 2023.

• Gross profit increased 30.8% to $25.6 million, supported by higher sales and improved production efficiency.

• EBITDAS rose 25.7% to $15.6 million; EBITDAS per share (diluted) up 23.3% to $0.111.

• Q4 2024 revenue up 14.4% year-over-year to $38.1 million; gross profit up 1.9% to $8.4 million.

• Q4 2024 net income per share (diluted) fell 27.1% to $0.024 due to the prior year's one-time IP profit.

Outlook and guidance

• Management expects continued growth in production, sales, and profitability in 2025, driven by infrastructure spending and new product introductions.

• Anticipates increased revenues from Custom Truck partnership and expanded Red Deer Facility, with new building completion expected in Q2 2025.

• Plans to introduce new product lines via internal development and acquisitions; expects improved operating efficiencies.

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