Atlas Engineered Products Reports Second Quarter 2025 Financial and Operating Results
NANAIMO, BC, Aug. 29, 2025 /CNW/ - Atlas Engineered Products ("AEP" or the "Company") (TSXV:AEP) (OTC Markets: APEUF) is pleased to announce its financial and operating results for the three and six months ended June 30, 2025. All amounts are presented in Canadian dollars.
Financial and Operating Highlights
Revenue of $24.7M, representing a 2% increase, period over period, for the six months ended June 30, 2025
12% increase in board footage manufacturing of trusses, period over period, for the six months ended June 30, 2025
Acquisition of Truss-Worthy Construction Systems Inc. ("Truss-Worthy") expanding the national footprint on the eastern side of Toronto
Hadi Abassi, President, CEO, and Founder stated: "I continue to be impressed by the commitment and accomplishments of the AEP team. The second quarter presented challenges, because of both Canadian and U.S. political and tariff uncertainties, which delayed builder deliveries. However, our sales team maintained an assertive approach, successfully generating orders within a competitive market and increasing our truss board footage output over the prior period, which ensured robust production activity. Although the second quarter was challenging, we are observing meaningful improvements in top line revenues for the third quarter thus far and are bolstered to see quotation activity at a record level, increasing by $34M year-to-date as of July 31, providing strong visibility for the rest of 2025 and into 2026."
On May 30, 2025, the Company acquired 100% of the issued and outstanding shares in Truss-Worthy in Colborne, Ontario for $1,575,000. In a separate transaction, the Company also purchased the land and building for $850,000. This acquisition aligned with the Company's strategic acquisition plan and links the Company's geographical footprint with the purchase of the 42 acres in Colborne, Ontario previously announced in December 2024.
Revenue for the six months ended June 30, 2025 was $24,663,863 compared to revenue of $24,208,197 for the six months ended June 30, 2024. Revenue has increased due to acquisitive growth and the organic growth related to walls from the beginning of the year. The Company has seen an increase in manufacturing metrics, but due to the competitive market, sales prices have decreased. Internal tracking of board footage manufactured for trusses has increased by 12% for the six months ended June 30, 2025 compared to June 30, 2024 which is leading to an increase in market share.
Gross profit for the six months ended June 30, 2025 was $4,066,534 compared to $5,870,045 for the six months ended June 30, 2024. Gross margin for the six months ended June 30, 2025 was 16%, which is lower than a gross margin of 24% for the six months ended June 30, 2024. Gross profits and gross margins decreased mainly due to the competitive market. The Company regularly analyses the benefits of revenues and gross margins to determine whether to reduce margins to generate more revenues and increase market share.
Net loss after taxes was $1,554,357 for the six months ended June 30, 2025 compared to net loss after taxes of $287,858 for the six months ended June 30, 2024. Net loss after taxes has increased compared to the prior period due to the decrease in gross margins due to the competitive market. Additionally, there were several expenses related to acquisitions and the automation facility that could not be capitalized, such as legal fees, travel costs, appraisals, etc. These are all impacting on the net loss for the period, but are added back for normalized EBITDA.
Non-IFRS measure normalized EBITDA for the six months ended June 30, 2025 was $1,724,587 with a normalized EBITDA margin of 8%. Normalized EBITDA for the six months ended June 30, 2024 was $3,334,506 with a normalized EBITDA margin of 7%. These decreases are due to a competitive market that has resulted in the Company prioritizing market share and revenues over gross margins.
Selected Financial Results
SELECTED FINANCIAL RESULTS
Three Months Ended
Six Months Ended
June 2025
June 2024
June 2025
June 2024
Revenues
$13,653,148
$15,087,138
$24,663,863
$24,208,197
Cost of Sales
11,327,209
