Zedcor (ZDC) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of CAD 11.5 million, up 87% year-over-year and surpassing the previous quarter by CAD 1.2 million.

• Adjusted EBITDA reached a record CAD 4.1 million, a 116% increase year-over-year, with EBITDA margin over 36%.

• Net income for Q1 2025 was $0.6 million, reversing a net loss of $0.5 million in Q1 2024.

• Deployed 229 new security towers, with fleet utilization rates above 90% and U.S. revenue comprising 29% of total.

• Significant U.S. expansion and diversification away from major pipeline customers, with operations expanded into Texas, Colorado, Arizona, and Nevada.

Financial highlights

• Last 12 months (LTM) revenue was CAD 38.3 million, up 56% from CAD 24.6 million in the prior period.

• Adjusted EBITDA: CAD 14.2 million (37% margin) for LTM; Q1 2025 adjusted EBITDA: CAD 4.1 million (36% margin).

• Adjusted EBITDA per share increased to CAD 0.15 from CAD 0.10, despite a higher share count.

• Q1 2025 adjusted operating cash flow increased 159% year-over-year to CAD 3.6 million; adjusted free cash flow was $1.5 million.

• Working capital increased to $15.0 million from a deficit of $1.8 million year-over-year.

Outlook and guidance

• Aggressive expansion across the southern U.S. with increased sales team and expedited growth strategy.

• Targeting 1,200–1,400 security tower manufacturing for 2025, on pace to achieve this.

• Margins may dip slightly as U.S. growth accelerates, but revenue growth is expected to offset this.

• Focus on enterprise-level sales, fixed camera installations, and new AI-based security products.

• No slowdown in demand observed despite economic and tariff concerns.