Reko Reports Strong Q4 Growth and Improved Profitability in Fiscal 2025

Executive Summary

• Reko International Group Inc. reported a turnaround for fiscal 2025, posting net income of $1.05 M ($0.19 EPS) versus a loss of $3.89 M ($‑0.70 EPS) in the prior year.
• Gross profit increased 66.8% YoY to $7.20 M, driven by higher earned revenue margin and improved project mix despite a 4.8% decline in sales.
• Adjusted EBITDA rose 91.7% YoY to $6.05 M; adjusted EPS improved from a loss of $‑0.13 to $0.39.

Key Details

• Quarterly Highlights (Q4 FY2025):
• Sales: $10.78 M, up 19.5% QoQ.
• Gross profit: $1.78 M (+167.7% YoY).
• Net income: $0.996 M ($0.18 EPS) vs. a loss of $3.46 M last year.

• Adjusted EBITDA: $1.70 M (+213.7% YoY).

• Year‑to‑Date (FY2025):

• Sales: $42.15 M, down 4.8% YoY.
• Earned revenue: $32.00 M (+6.2% YoY).
• Gross profit: $7.20 M (+66.8% YoY).
• Net income: $1.05 M ($0.19 EPS) vs. a loss of $3.89 M last year.

• Adjusted EBITDA: $6.05 M (+91.7% YoY).

• Margins:

• Earned revenue margin improved to 75.9% from 68.0% YoY.

• Gross profit margin rose to 17.1% from 9.8% YoY.

• Non‑recurring items affecting EPS:

• $0.13 per share benefit from re‑recognition of deferred tax assets (vs. $‑0.55 charge prior year).
• $0.02 per share charge for settlement of a Tier 1 customer receivable.

• Net foreign exchange gain of $0.01 per share (consistent with 2024).

• Adjusted EPS (non‑IFRS):

• Q4 FY2025: $0.06 vs. loss of $‑0.08 YoY.

• FY2025: $0.39 vs. loss of $‑0.13 YoY (+400%).

• Share Activity:

• Purchased and cancelled 69,300 shares under the normal course issuer bid during FY2025.

Notable Quotes

“Macroeconomic conditions and trade uncertainty created a challenging year, contributing to periods of underutilized capacity,” said Diane Reko, CEO. “Despite these headwinds, our results improved over the prior year… we are positioning the Company for sustainable growth and long‑term success.”