Evertz Technologies (ET) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 sales were CAD 111.6 million, with software and services revenue at CAD 55.9 million, representing 26% growth and about 50% of total sales.

• Net earnings were CAD 9.7 million, with EPS of CAD 0.13, both down from the prior year.

• Gross margin improved to 59.4% from 57.3% year-over-year.

• The order backlog plus August shipments exceeded CAD 335 million, reflecting strong demand and project momentum.

Financial highlights

• Hardware revenue declined to CAD 55.7 million from CAD 81.4 million year-over-year.

• Cash and cash equivalents rose to CAD 91 million, up from CAD 48.9 million a year ago and $86.3 million sequentially.

• Working capital stood at CAD 197.7 million as of July 31, 2024.

• Cash from operations was CAD 22.5 million for the quarter.

• Quarterly dividend of CAD 0.195 per share declared, payable September 25, 2024.

Outlook and guidance

• Management attributes revenue volatility to project timing, not macroeconomic or industry weakness.

• Backlog remains robust, with 55% expected to convert within the next 12 months.

• Continued optimism for fiscal 2025, supported by strong order pipeline and industry demand.