Reko Reports Improved Results for Third Quarter of Fiscal 2026

Executive Summary of Latest Release

• Date: May 28, 2026 (Third Quarter Fiscal 2026)
• Headline: Improved Results for Third Quarter of Fiscal 2026
• Financial Performance: Net income turned positive at $1.148 million compared to a loss in the prior year; Consolidated sales increased by 28.6% year-over-year to $13.3 million.
• Operational Metrics: Adjusted EBITDA rose 7.7% to $1.629 million for the quarter. Gross profit margin contracted to 14.3% from 17.1% in the prior year period.
• Capital Allocation: Purchased and cancelled 1,900 shares under Normal Course Issuer Bid (NCIB). Working capital decreased by 25.7% year-over-year to $19.3 million.

Positive Drivers

• Profitability Confirmation: The company has now posted three consecutive quarters of net income in Fiscal 2026 (Q1: $384k, Q2: $377k, Q3: $1.15M), solidifying the FY2025 turnaround.
• Sales Growth: A 28.6% year-over-year sales increase is significant and suggests improved project activity or volume recovery compared to the prior year's contraction.
• Shareholder Returns: Continued NCIB execution (1,900 shares in Q3) signals management confidence in intrinsic value relative to market price.

Business Description

Reko International Group Inc. operates in the construction and engineering services sector. The company generates revenue through "earned revenue" on projects, indicating a contract-based service model rather than product sales. * Flagship Project: Specific project names are not disclosed in the news releases provided. Activity is described generally as "project activity" with improved volumes. * Operations: Management mentions capital equipment installation and mortgage debt repayment, suggesting asset-heavy operations or significant infrastructure projects.