Evertz Technologies (ET) Q4 2025 earnings summary

Executive summary

• Annual revenue reached CAD 501.6 million (USD 501.6 million), exceeding CAD 500 million for the second consecutive year.

• Recurring software and services revenue rose 18% to CAD 222.6 million, now 44% of total revenue.

• Net earnings for the year were CAD 59.7 million, with fully diluted EPS of CAD 0.77, both down from the prior year.

• Q4 revenue was CAD 127.8 million, up 4% year-over-year.

• Cash and cash equivalents rose to CAD 111.7 million at year-end.

Financial highlights

• Gross margin for the year was 59.5%, improving from 58.8% the prior year; Q4 gross margin was 61.7%.

• Net earnings declined to CAD 59.7 million from CAD 71 million year-over-year.

• Cash generated by operations was CAD 98.9 million, down from CAD 144.7 million in the prior year.

• Working capital increased to CAD 206.9 million.

• Dividend payout for the year totaled CAD 60.1 million.

Outlook and guidance

• Backlog at end of May 2025 exceeded CAD 259 million, with May shipments of CAD 26 million.

• Combined backlog and May shipments total over CAD 285 million entering fiscal 2026.

• Management sees robust demand and strong quoting activity, especially in North America.

• Backlog conversion expected at about 40% more than a year out, with significant USD exposure.