WINDSOR, Ontario--(BUSINESS WIRE)--Reko International Group Inc. (TSX-V: REKO) today announced results for its third quarter ended April 30, 2026.<\/p>
\nThird Quarter Highlights:<\/b><\/p> \nFinancial Highlights:<\/b> \n\u00a0<\/p><\/td> \nThree months ended<\/b><\/p><\/td> \nNine months ended<\/b><\/p><\/td><\/tr>\n \n\u00a0<\/p><\/td> \nApril 30<\/b><\/p><\/td> \nApril 30<\/b><\/p><\/td><\/tr>\n \n\u00a0<\/p><\/td> \n(unaudited)<\/p><\/td> \n(unaudited)<\/p><\/td><\/tr>\n \n\u00a0<\/p><\/td> \nFiscal 2026<\/b><\/p><\/td> \nFiscal 2025<\/b><\/p><\/td> \nVariance<\/b><\/p><\/td> \nVariance<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \nFiscal 2026<\/b><\/p><\/td> \nFiscal 2025<\/b><\/p><\/td> \nVariance<\/b><\/p><\/td> \nVariance<\/b><\/p><\/td><\/tr>\n \n$<\/b><\/p><\/td> \n13,306<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/b><\/p><\/td> \n10,348<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n2,958<\/p><\/td> \n28.6<\/p><\/td> \n%<\/p><\/td> \n$<\/b><\/p><\/td> \n32,523<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/b><\/p><\/td> \n31,372<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n1,151<\/p><\/td> \n\u00a0<\/p><\/td> \n3.7<\/p><\/td> \n%<\/p><\/td><\/tr>\n \n$<\/b><\/p><\/td> \n8,391<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/b><\/p><\/td> \n8,032<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n359<\/p><\/td> \n4.5<\/p><\/td> \n%<\/p><\/td> \n$<\/b><\/p><\/td> \n22,940<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/b><\/p><\/td> \n23,978<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n(1,038<\/p><\/td> \n)<\/p><\/td> \n-4.3<\/p><\/td> \n%<\/p><\/td><\/tr>\n \n\u00a0<\/p><\/td> \n63.1<\/b><\/p><\/td> \n%<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n77.6<\/b><\/p><\/td> \n%<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n-<\/p><\/td> \n-14.6<\/p><\/td> \n%<\/p><\/td> \n\u00a0<\/p><\/td> \n70.5<\/b><\/p><\/td> \n%<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n76.4<\/b><\/p><\/td> \n%<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n-<\/p><\/td> \n\u00a0<\/p><\/td> \n-5.9<\/p><\/td> \n%<\/p><\/td><\/tr>\n \n$<\/b><\/p><\/td> \n1,148<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/b><\/p><\/td> \n(352<\/b><\/p><\/td> \n)<\/b><\/p><\/td> \n$<\/p><\/td> \n1,500<\/p><\/td> \n426.1<\/p><\/td> \n%<\/p><\/td> \n$<\/b><\/p><\/td> \n1,908<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/b><\/p><\/td> \n49<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n1,859<\/p><\/td> \n\u00a0<\/p><\/td> \n3793.9<\/p><\/td> \n%<\/p><\/td><\/tr>\n \n$<\/b><\/p><\/td> \n0.21<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/b><\/p><\/td> \n(0.06<\/b><\/p><\/td> \n)<\/b><\/p><\/td> \n$<\/p><\/td> \n0.27<\/p><\/td> \n450.0<\/p><\/td> \n%<\/p><\/td> \n$<\/b><\/p><\/td> \n0.35<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/b><\/p><\/td> \n0.01<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n0.34<\/p><\/td> \n\u00a0<\/p><\/td> \n3400.0<\/p><\/td> \n%<\/p><\/td><\/tr>\n \n$<\/b><\/p><\/td> \n0.13<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/b><\/p><\/td> \n0.11<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n0.02<\/p><\/td> \n18.2<\/p><\/td> \n%<\/p><\/td> \n$<\/b><\/p><\/td> \n0.27<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/b><\/p><\/td> \n0.25<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n0.02<\/p><\/td> \n\u00a0<\/p><\/td> \n8.0<\/p><\/td> \n%<\/p><\/td><\/tr>\n \n$<\/b><\/p><\/td> \n1,629<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/b><\/p><\/td> \n1,512<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n117<\/p><\/td> \n7.7<\/p><\/td> \n%<\/p><\/td> \n$<\/b><\/p><\/td> \n4,389<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/b><\/p><\/td> \n4,348<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n41<\/p><\/td> \n\u00a0<\/p><\/td> \n0.9<\/p><\/td> \n%<\/p><\/td><\/tr>\n \n$<\/b><\/p><\/td> \n19,331<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/b><\/p><\/td> \n26,006<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n(6,675<\/p><\/td> \n)<\/p><\/td> \n-25.7<\/p><\/td> \n%<\/p><\/td><\/tr>\n \n$<\/b><\/p><\/td> \n42,943<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/b><\/p><\/td> \n41,248<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n1,695<\/p><\/td> \n\u00a0<\/p><\/td> \n4.1<\/p><\/td> \n%<\/p><\/td><\/tr>\n \n$<\/b><\/p><\/td> \n7.83<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/b><\/p><\/td> \n7.52<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n$<\/p><\/td> \n0.31<\/p><\/td> \n\u00a0<\/p><\/td> \n4.1<\/p><\/td> \n%<\/p><\/td><\/tr>\n<\/table> \n(1)<\/p><\/td> \nEarned revenue is a non-IFRS measure and is calculated as sales less costs associated with purchased material and subcontracting. Earned revenue margin is an expression of earned revenue as a percentage of sales A reconciliation of this non-IFRS measure is included in the MD&A.<\/p><\/td><\/tr>\n \n(2)<\/p><\/td> \nAdjusted EPS is a non-IFRS measure and is calculated as basic earnings per share excluding items not considered reflective of ongoing operations. <\/i>A reconciliation of this non-IFRS measure is included in the MD&A.<\/p><\/td><\/tr>\n \n(3)<\/p><\/td> \nAdjusted EBITDA is a non-IFRS measure and is defined as adjusted earnings from operations excluding depreciation and amortization. A reconciliation of this non-IFRS measure is included in the MD&A.<\/p><\/td><\/tr>\n<\/table> \nConsolidated sales for the quarter ended April 30, 2026 were $13,306, compared to $10,348 in the same quarter last year, an increase of $2,958 or 28.6%. The increase in sales reflects stronger project activity and improved volumes across the business, as well as a higher proportion of projects reaching later stages of completion during the quarter, resulting in increased revenue recognition compared to the prior year.<\/p> \nGross profit increased by $131, or 7.4%, to $1,900 compared to the prior year quarter. Gross profit margin was 14.3%, compared to 17.1% in the prior year, reflecting project mix, including a greater proportion of projects in stages requiring higher material content, as well as increased labour costs associated with supporting higher production and sales activity. The Company continues to focus on disciplined cost management and ongoing productivity and throughput improvements.<\/p> \nSelling and administrative expenses decreased by $1,041, or 45.1%, to $1,265, or 9.5% of sales, compared to $2,306, or 22.3% of sales, in the same period last year. The decrease primarily reflects prior year non-recurring costs, including $882 of restructuring expenses and $94 of accounts receivable collection and settlement costs, as well as improved operating cost performance resulting from ongoing cost management initiatives.<\/p> \nNet income for the three months ended April 30, 2026 was $1,148, or $0.21 per share, compared with a net loss of ($352), or ($0.06) per share, in the same quarter last year. Results for the current quarter included a $0.04 per share benefit related to the re-recognition of certain deferred tax assets, while the prior year period included restructuring expenses, asset impairment charges and other non-recurring items that unfavourably impacted earnings per share by $0.16. Adjusting for these items, comparable earnings were $0.13 per share for the current quarter, compared with $0.11 per share in the prior year period.<\/p> \n\u201cThe quarter reflected improved customer volumes and a significant improvement in our bottom-line performance,\u201d stated Diane Reko, CEO. \u201cWhile geopolitical and broader economic uncertainty continues to create challenges across the market, I am pleased with our team\u2019s response, our execution across the business and the continued value we are providing to our customers. We remain focused on deepening relationships with customers that value our technical capabilities and long-term partnership approach, while continuing to strengthen the business through disciplined operational execution.\u201d<\/p> \nDuring the quarter, the Company purchased and subsequently cancelled 1,900 shares under its normal course issuer bid announced on January 6, 2026.<\/p> \nNeither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.<\/p> \nAbout Reko International Group Inc.<\/b><\/p> \nReko International Group Inc. (TSX-V: REKO) is a diversified, technology-driven manufacturing company located in Southwestern Ontario, just minutes from the U.S. border. With expertise in robotic automation equipment and precision machining services, Reko is a \u201cgo-to\u201d supplier for companies in the power generation, automotive, aerospace, rail, mining, offsite construction, infrastructure and capital equipment industries. Reko strives to be a pillar and protector of sustainable North American manufacturing and production. For more information, contact Kim Marks, Executive Vice-President and Chief Financial Officer at (519) 727-3287.<\/i><\/p>\n
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\n \n \n \n \n \n $<\/td>\n $<\/td>\n $<\/td>\n %<\/b><\/td>\n \n $<\/td>\n $<\/td>\n $<\/td>\n %<\/b><\/td>\n<\/tr>\n \n Sales<\/b><\/td>\n \n \n Earned Revenue (1)<\/sup><\/b><\/td>\n \n \n Earned Revenue Margin (1)<\/sup><\/b><\/td>\n \n \n Net Income (loss)<\/b><\/td>\n \n \n EPS Basic<\/b><\/td>\n \n \n Adjusted EPS (2)<\/sup><\/b><\/td>\n \n \n Adjusted EBITDA (3)<\/sup><\/b><\/td>\n \n \n Working Capital<\/b><\/td>\n \n \n \n \n \n \n Shareholders' Equity<\/b><\/td>\n \n \n \n \n \n \n Shareholders' Equity per Share<\/b><\/td>\n \n \n \n \n \n \n
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