Evertz Technologies Announces Fiscal 2026 Year End Results

Attention Business/Financial Editors: Burlington, Ontario--(Newsfile Corp. - June 24, 2026) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the fourth quarter and year ended April 30, 2026. Fiscal 2026 Highlights Record Annual Revenues in excess of a half billion dollars, totaling $515.8 million for the year Reoccurring software, services and other software of $240.7 million, an increase of 8% from the prior year and representing 47% of total revenue in fiscal 2026 International revenue of $148.0 million, an increase of 16% or $20.8 million from the prior year Earnings from operations of $87.3 million, an increase of $5.8 million from the prior year Net earnings of $64.4 million for the year, an increase of $4.7 million from the prior year Fully diluted earnings per share of $0.83 for the year Fourth Quarter 2026 Highlights Quarterly revenue of $131.6 million an increase of 3% from the prior year Reoccurring software, services and other software of $65.8 million, an increase of 17% from the prior year Net earnings of $15.2 million for the quarter, an increase of $2.2 million from the prior year Fully diluted earnings per share of $0.20 for the quarter, an increase of 18% from the prior year Selected Financial Information Consolidated Statement of Earnings Data (in thousands of dollars, except earnings per share and share data)   Q4'26   Q4'25   YE'26 YE'25 Revenue   $  131,568  $ 127,805  $  515,781 $  501,623 Gross margin   78,070   78,885   305,987 298,505 Earnings from operations   21,486   19,404   87,322 81,512 Net earnings   15,247   13,043   64,421 59,767 Fully-diluted earnings per share   $  0.20 $   0.17  $  0.83 $  0.77 Fully-diluted shares   77,347,001   76,805,024   76,814,543 76,975,472   Selected Financial Information Consolidated Balance Sheet Data (in thousands of dollars) YE ' 26   YE ' 25 Cash and cash equivalents $  19,117   $  111,665 Working capital 131,749   206,900 Total assets 424,989   469,485 Shareholders' equity 198,167   268,123   Revenue For the quarter ended April 30, 2026, revenues were $131.6 million compared to revenues of $127.8 million for the quarter ended April 30, 2025. For the quarter, revenues in the United States/Canada region were $94.2 million, compared to $106.5 million in the same quarter last year. The International region had revenues of $37.4 million, an increase of $16.1 million compared to $21.3 million in the same quarter last year. For the year ended, April 30, 2026, sales were $515.8 million compared to sales of $501.6 million for the year ended April 30, 2025. For the year, revenues in the United States/Canada region were $367.8 million compared to $374.4 million in the prior year. The International region had revenues of $148.0 million compared to $127.2 million, an increase of $20.8 million from the prior year. Gross Margin For the quarter ended April 30, 2026, gross margin was $78.1 million as compared to $78.9 million in the same quarter last year. Gross margin percentage was approximately 59.3% as compared to 61.7% in the quarter ended April 30, 2025. For the year ended April 30, 2026, gross margin was $306.0 million as compared to $298.5 million for the year ended April 30, 2025. Gross margin percentage was approximately 59.3% as compared to 59.5% for the prior year. Earnings For the quarter ended April 30, 2026, net earnings were $15.2 million as compared to $13.0 million in the corresponding period last year. For the year ended April 30, 2026, net earnings were $64.4 million as compared to $59.7 million in the corresponding period last year. For the quarter ended April 30, 2026, earnings per share on a fully-diluted basis were $0.20 as compared to $0.17 in the corresponding period last year. For the year ended April 30, 2026, earnings per share on a fully-diluted basis were $0.83 as compared to $0.77 in the same period in 2025. Operating Expenses For the quarter ended April 30, 2026, selling and administrative expenses were $20.7 million as compared to $20.7 million for the quarter ended April 30, 2025. For the year ended April 30, 2026, selling and administrative expenses were $77.0 million as compared to $75.9 million for the year ended April 30, 2025. For the quarter ended April 30, 2026, gross research and development expenses were $37.7 million as compared to $36.5 million for the quarter ended April 30, 2025. For the year ended April 30, 2026, gross research and development expenses were $148.1 million as compared to $146.8 million for the year ended April 30, 2025. Liquidity and Capital Resources The Company's working capital as at April 30, 2026 was $131.7 million as compared to $206.9 million on April 30, 2025. Cash was $19.1 million as at April 30, 2026 as compared to $111.7 million on April 30, 2025. Cash generated from operations was $18.4 million for the quarter ended April 30, 2026 as compared to $33.3 million cash generated for the quarter ended April 30, 2025. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $19.1 million from operations for the quarter ended April 30, 2026 compared to $17.7 million for the same period last year. Cash generated by operations was $76.2 million for the 2026 fiscal year as compared to cash provided by operations of $99.6 million for the 2025 fiscal year. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $86.4 million from operations for fiscal 2026 as compared to $79.6 million for fiscal 2025. For the quarter, the Company used $3.9 million for investing activities. For the year, the Company used $17.8 million in investing activities which was principally driven by the acquisition of property, plant and equipment for $18.7 million and partly offset by the disposal of property, plant and equipment for $0.9 million. For the quarter ended, the Company used cash in financing activities of $17.1 million which was principally a result of the payment of dividends of $15.4 million. For the year ended April 30, 2026, the Company used cash in financing activities of $147.1 million which was principally a result of the payment of dividends of $136.7 million, including a special dividend of $75.5 million, capital stock repurchase of $4.1 million and $4.5 million of lease payments. Shipments and Backlog At the end of May 2026, purchase order backlog was in excess of $237 million and shipments during the month of May 2026 were $33 million. Dividend Declared Evertz Board of Directors declared a regular quarterly dividend on June 24, 2026 of $0.205 per share. The dividend is payable to shareholders of record on July 6, 2026 and will be paid on or about July 13, 2026. Selected Consolidated Financial Information (in thousands of dollars, except earnings per share and percentages)     Three month period ended   Twelve month period ended     April 30,   April 30,     2026     2025   2026   2025 Revenue   $   131,568   $   127,805  $  515,781  $  501,623 Cost of goods sold     53,498     48,920   209,794   203,118 Gross margin     78,070     78,885   305,987   298,505             Expenses             Selling and administrative     20,721     20,684   77,043   75,858 General     848     1,348   4,180   5,249 Research and development     37,695     36,534   148,052   146,771 Investment tax credits     (4,565)     (4,747)   (17,020)   (15,626) Share based compensation     2,268     1,203   5,989   4,959 Foreign exchange (gain) loss     (383)     4,459   421   (218)     56,584     59,481   218,665   216,993 Earnings before undernoted     21,486     19,404   87,322   81,512             Finance income     167     706   2,764   2,779 Finance costs     (367)     (463)   (1,506)   (1,567) Net loss on investments through profit and loss     -     (1,283)   -   (1,283) Other income and expenses     (109)     214   (344)   463 Earnings before income taxes     21,177     18,578   88,236   81,904 Provision for (recovery of) income taxes             Current     8,114     6,537   24,321   24,918 Deferred     (2,184)     (1,002)   (506)   (2,781)     5,930     5,535   23,815   22,137             Net earnings for the period    $  15,247    $  13,043  $  64,421 $   59,767             Net earnings attributable to non-controlling interest     105     38   454   374 Net earnings attributable to shareholders     15,142     13,005   63,967   59,393 Net earnings for the period     $ 15,247     $ 13,043   $ 64,421   $ 59,767             Earnings per share             Basic    $  0.20    $  0.17  $  0.85  $  0.78 Diluted    $  0.20    $  0.17  $  0.83  $ 0.77   Selected Consolidated Financial Information - Continued (in thousands of dollars, except earnings per share and percentages)   April 30,     April 30, April 30,   2026     2025 2024       Assets       Current assets       Cash and cash equivalents $   19,117   $   111,665 $  86,325 Trade and other receivables   81,131     71,743 84,350 Contract assets   15,987     15,568 12,554 Prepaid expenses   14,974     9,677 11,179 Inventories   200,213     181,011 206,154 Income tax receivable   10,980     1,649 -   342,402     391,313 400,562       Property, plant and equipment   41,459     32,211 34,384 Right-of-use assets   10,980     15,816 20,432 Goodwill   19,987     20,001 21,352 Intangible assets   -     346 1,098 Deferred income taxes   10,161     9,798 6,894  $  424,989    $  469,485 $  484,722       Liabilities       Current liabilities       Trade and other payables  $ 95,325    $ 67,982 $ 63,249 Provisions   5,953     5,269 4,946 Deferred revenue   99,672     101,035 117,913 Current potion of lease obligations   5,289     5,091 4,296 Current potion of redemption liability   4,414     3,798 3,811 Income tax payable   -     - 3,226   210,653     183,175 197,441       Long term deferred revenue   4,609     1,238 1,684 Long term lease obligations   8,448     13,781 18,920   223,710     198,194 218,045       Equity       Capital stock   146,589     144,978 145,721 Share based payment reserve   28,112     24,195 19,246       Accumulated other comprehensive income   7,229     6,568 1,197 Retained earnings   16,237     92,382 97,103   23,466     98,950 98,300       Total equity attributable to shareholders   198,167     268,123 263,267 Non-controlling interest   3,112     3,168 3,410   201,279     271,291 266,677  $  424,989    $  469,485 $ 484,722   Forward-Looking Statements The report contains forward-looking statements reflecting Evertz's objectives, estimates and expectations. Such forward-looking statements use words such as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "project", "continue" and other similar terminology of a forward-looking nature or negatives of those terms. Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company's actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements. Conference Call The Company will hold a conference call with financial analysts to discuss the results on June 24, 2026 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialing 289-514-5100 or toll-free (North America) 1-800-717-1738. For those unable to listen to the live call, a rebroadcast will also be available until July 24, 2026. The rebroadcast can be accessed at 289-819-1325 or toll-free 1-888-660-6264. The passcode for the rebroadcast is 92814#. About Evertz Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the production, post-production and transmission of video content. The Company's solutions are purchased by the television broadcast, telecommunications, professional audio-visual, content creator, advanced education, government, military, enterprise, and new media sectors to support increasingly complex multi-channel digital and high-definition, Ultra HD, and high dynamic range formats and next generation high bandwidth low latency IP network environments. The Company's products allow its customers to generate additional revenue while reducing costs through efficient, highly reliable and secure signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the "Cloud." For further information, please contact: Doug Moore, CPA, CA Chief Financial Officer (905) 335-3700 [email protected] To view the source version of this press release, please visit https://www.newsfilecorp.com/release/302735