Evertz Technologies (ET) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 sales reached CAD 136.9 million, up 9% sequentially and 1% year-over-year, marking a record high.

• Net earnings for Q3 were CAD 21.1 million, an 11% increase year-over-year, with fully diluted EPS of CAD 0.27 and basic EPS of CAD 0.28.

• The company maintains a diversified customer base, with the top 10 customers accounting for 48% of sales and no single customer over 10%.

• Recurring software and services revenue increased 6.3% year-over-year to CAD 55 million.

Financial highlights

• Gross margin for Q3 was CAD 79.1 million or 57.8%, slightly lower than prior quarters and last year.

• Cash as of January 31, 2025, was CAD 96.3 million; working capital stood at CAD 207.9 million.

• Cash from operations was CAD 53 million, up from CAD 30.2 million in Q3 2024.

• Hardware revenue for Q3 was CAD 81.2 million, slightly down from CAD 82.8 million last year.

• Earnings from operations increased to CAD 28.1 million from CAD 26.4 million year-over-year.

Outlook and guidance

• Entering Q4 with strong momentum, supported by a combined purchase order backlog and February shipments exceeding CAD 308 million.

• Purchase order backlog exceeded CAD 269 million at the end of February 2025; February shipments totaled CAD 39 million.

• Continued growth expected from adoption of IP-based, software-defined, and cloud solutions.