Attention Business/Financial Editors:
Burlington, Ontario--(Newsfile Corp. - March 4, 2026) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the third quarter ended January 31, 2026.
Third Quarter 2026 Highlights
- Record quarterly revenue of $139.3 million, an increase of $2.4 million or 2% from the prior year quarter
- International quarterly revenue of $43.7 million up $5.9 million or 15% from the prior year quarter
- Earnings from operations, before foreign exchange, of $28.1 million, an increase of $3.9 million or of 16% from the prior year
- Net earnings of $18.7 million for the quarter
- Fully diluted earnings per share of $0.24 for the quarter
| Selected Financial Information | ||||||||||
| Consolidated Statement of Earnings Data | ||||||||||
| (in thousands of dollars, except earnings per share and share data) | ||||||||||
| Q3 ' 26 | Q3 ' 25 | |||||||||
| Revenue | $ | 139,333 | $ | 136,916 | ||||||
| Gross margin | 81,246 | 79,098 | ||||||||
| Earnings from operations | 25,818 | 28,108 | ||||||||
| Earnings from operations (before foreign exchange) | 28,133 | 24,213 | ||||||||
| Net earnings | 18,662 | 21,076 | ||||||||
| Fully-diluted earnings per share | $ | 0.24 | $ | 0.27 | ||||||
| Fully-diluted shares | 76,679,260 | 76,860,180 |
| Selected Financial Information Consolidated Balance Sheet Data (in thousands of dollars) | ||||||||||
| Q3 ' 26 | YE ' 25 | |||||||||
| Cash and cash equivalents | $ | 24,790 | $ | 111,665 | ||||||
| Working capital | 133,184 | 206,900 | ||||||||
| Total assets | 417,037 | 469,485 | ||||||||
| Shareholders' equity | 196,529 | 268,123 |
Revenue
For the quarter ended January 31, 2026, revenues were $139.3 million, an increase of $2.4 million compared to revenues of $136.9 million for the quarter ended January 31, 2025. For the quarter, revenues in the United States/Canada region were $95.6 million, a decrease compared to $99.1 million in the same quarter last year. The International region had revenues of $43.7 million, an increase of $5.9 million or 15.5% compared to $37.8 million in the same quarter last year.
Gross Margin
Gross margin for the third quarter ended January 31, 2026 was $81.2 million, an increase of $2.1 million or 2.7% compared to $79.1 million for the third quarter ended January 31, 2025. As a percentage of revenue, the gross margin was 58.3% for the third quarter ended January 31, 2026 compared to 57.8% for the third quarter ended January 31, 2025.
Earnings
For the quarter ended January 31, 2026, net earnings, before the impact of foreign exchange was $28.1 million, an increase compared to $24.2 million in the corresponding period last year. For the quarter ended January 31, 2026, net earnings were $18.7 million compared to $21.1 million in the corresponding period last year.
For the quarter ended January 31, 2026, earnings per share on a fully-diluted basis were $0.24 as compared to $0.27 in the corresponding period last year.
Operating Expenses
For the quarter ended January 31, 2026, selling and administrative expenses were $18.6 million as compared to $19.2 million for the quarter ended January 31, 2025.
For the quarter ended January 31, 2026, gross research and development expenses were $36.7 million as compared to $36.6 million for the quarter ended January 31, 2025.
Liquidity and Capital Resources
The Company's working capital as at January 31, 2026 was $133.2 million as compared to $206.9 million on April 30, 2025.
Cash and cash equivalent was $24.8 million as at January 31, 2026 as compared to $111.7 million on April 30, 2025.
Cash generated from operations was $29.3 million for the quarter ended January 31, 2026 as compared to $53.0 million cash generated for the quarter ended January 31, 2025. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $24.9 million from operations for the quarter ended January 31, 2026 compared to $26.8 million for the same period last year.
For the quarter, the Company used $7.0 million from investing activities which includes the acquisition of an airplane for $4.4 million.
For the quarter, the Company used cash in financing activities of $92.4 million which was principally a result of the payment of dividends of $91.0 million, including a special dividend of $75.5 million.
Shipments and Backlog
At the end of February 2026, purchase order backlog was in excess of $246 million and shipments during the month of February 2026 were $32 million.
Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on March 4, 2026 of $0.205 per share.
The dividend is payable to shareholders of record on March 13, 2026 and will be paid on or about March 20, 2026.
Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)
| Selected Consolidated Financial Information | ||||||||||||||||||
| (in thousands of dollars except earnings per share and share data) | ||||||||||||||||||
| Three month period ended | Nine month period ended | |||||||||||||||||
| January 31, | January 31, | |||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| Revenue | $ | 139,333 | $ | 136,916 | $ | 384,213 | $ | 373,818 | ||||||||||
| Cost of goods sold | 58,087 | 57,818 | 156,296 | 154,198 | ||||||||||||||
| Gross margin | 81,246 | 79,098 | 227,917 | 219,620 | ||||||||||||||
| Expenses | ||||||||||||||||||
| Selling and administrative | 18,596 | 19,198 | 56,322 | 55,174 | ||||||||||||||
| General | 797 | 1,318 | 3,332 | 3,901 | ||||||||||||||
| Research and development | 36,739 | 36,584 | 110,357 | 110,237 | ||||||||||||||
| Investment tax credits | (4,758) | (3,529) | (12,455) | (10,879) | ||||||||||||||
| Share based compensation | 1,739 | 1,314 | 3,721 | 3,756 | ||||||||||||||
| Foreign exchange loss (gain) | 2,315 | (3,895) | 804 | (4,677) | ||||||||||||||
| 55,428 | 50,990 | 162,081 | 157,512 | |||||||||||||||
| Earnings before undernoted | 25,818 | 28,108 | 65,836 | 62,108 | ||||||||||||||
| Finance income | 590 | 531 | 2,597 | 2,073 | ||||||||||||||
| Finance costs | (281) | (421) | (1,139) | (1,104) | ||||||||||||||
| Other (expenses) income | (333) | (62) | (235) | 249 | ||||||||||||||
| Earnings before income taxes | 25,794 | 28,156 | 67,059 | 63,326 | ||||||||||||||
| Provision for (recovery of) income taxes | ||||||||||||||||||
| Current | 7,286 | 7,505 | 16,207 | 18,381 | ||||||||||||||
| Deferred | (154) | (425) | 1,678 | (1,779) | ||||||||||||||
| 7,132 | 7,080 | 17,885 | 16,602 | |||||||||||||||
| Net earnings for the period | $ | $ 18,662 | $ | $ 21,076 | $ | $ 49,174 | $ | $ 46,724 | ||||||||||
| Net earnings attributable to non-controlling interest | 204 | 161 | 349 | 336 | ||||||||||||||
| Net earnings attributable to shareholders | 18,458 | 20,915 | 48,825 | 46,388 | ||||||||||||||
| Net earnings for the period | $ | 18,662 | $ | 21,076 | $ | 49,174 | $ | 46,724 | ||||||||||
| Earnings per share | ||||||||||||||||||
| Basic | $ | 0.24 | $ | 0.28 | $ | 0.65 | $ | 0.61 | ||||||||||
| Diluted | $ | 0.24 | $ | 0.27 | $ | 0.64 | $ | 0.60 | ||||||||||
| Consolidated Balance Sheet Data | As at | As at | ||||||||
| January 31, 2026 | April 30, 2025 | |||||||||
| Cash and cash equivalents | $ | 24,790 | $ | 111,665 | ||||||
| Inventory | $ | 195,418 | $ | 181,011 | ||||||
| Working capital | $ | 133,184 | $ | 206,900 | ||||||
| Total assets | $ | 417,037 | $ | 469,485 | ||||||
| Shareholders' equity | $ | 196,529 | $ | 268,123 | ||||||
| Number of common shares outstanding: | ||||||||||
| Basic | 75,528,850 | 75,750,235 | ||||||||
| Fully-diluted | 79,979,150 | 80,627,710 | ||||||||
| Weighted average number of shares outstanding: | ||||||||||
| Basic | 75,498,904 | 76,010,401 | ||||||||
| Fully-diluted | 76,706,039 | 76,975,472 |
Forward-Looking Statements
The report contains forward-looking statements reflecting Evertz's objectives, estimates and expectations. Such forward-looking statements use words such as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "project", "continue" and other similar terminology of a forward-looking nature or negatives of those terms.
Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company's actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.
Conference Call
The Company will hold a conference call with financial analysts to discuss the results on March 4, 2026 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen only mode. The conference call may be accessed by dialing 1-289-514-5100 or Toll Free (North America) 1-800-717-1738.
For those unable to listen to the live call, a rebroadcast will also be available until April 4, 2026. The rebroadcast can be accessed at 1-289-819-1325 or Toll Free 1-888-660-6264, passcode 66926#.
About Evertz
Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the production, post-production and transmission of video content. The Company's solutions are purchased by the television broadcast, telecommunications, professional audio-visual, content creator, advanced education, government, military, enterprise, and new media sectors to support increasingly complex multi-channel digital and high-definition, Ultra HD, and high dynamic range formats and next generation high bandwidth low latency IP network environments. The Company's products allow its customers to generate additional revenue while reducing costs through efficient, highly reliable and secure signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the "Cloud".
For further information, please contact:
Doug Moore, CPA, CA
Chief Financial Officer
(905) 335-3700
ir@evertz.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/286269
Source: Evertz Technologies Limited