Atlas Engineered Products Reports Second Quarter 2025 Financial and Operating Results

Executive Summary

• Atlas Engineered Products reported financial and operating results for the six months ended June 30, 2025, showing a 2% increase in revenue to $24.7M but a significant decline in profitability due to competitive pricing pressures.
• The company completed two strategic acquisitions: Truss-Worthy Construction Systems Inc. in May 2025 for $1.575M (plus $850k for real estate) and Penn-Truss MFG Inc. in July 2025 for $3.8M, expanding its national footprint into Ontario and Saskatchewan.
• Despite a net loss of $1.55M for the first half of 2025, the company reported strong forward visibility with quoting activity up $34M year-to-date and a 14% revenue increase in July 2025 compared to the prior year.

Key Details

• Revenue: $24,663,863 for the six months ended June 30, 2025, compared to $24,208,197 in the same period of 2024 (a 2% increase).
• Gross Profit: $4,066,534 for the six months ended June 30, 2025, down from $5,870,045 in the prior year period.
• Gross Margin: Decreased to 16% for the six months ended June 30, 2025, compared to 24% in the prior year, attributed to a competitive market and strategic price reductions to gain market share.
• Net Loss: $1,554,357 for the six months ended June 30, 2025, compared to a net loss of $287,858 in the prior year. The increase in loss is due to lower gross margins and non-capitalizable acquisition/automation facility expenses (legal, travel, appraisals).
• Normalized EBITDA: $1,724,587 for the six months ended June 30, 2025 (margin of 8%), compared to $3,334,506 (margin of 7%) in the prior year.
• Adjusted EBITDA: $1,395,985 for the six months ended June 30, 2025 (margin of 6%), compared to $3,334,506 (margin of 14%) in the prior year.
• Operating Metrics: Board footage manufacturing of trusses increased by 12% period-over-period for the six months ended June 30, 2025.
• Acquisition (Truss-Worthy): Completed on May 30, 2025. The company acquired 100% of Truss-Worthy Construction Systems Inc. for $1,575,000 and purchased the associated land and building for $850,000. This expands the footprint on the eastern side of Toronto.
• Acquisition (Penn-Truss): Completed subsequent to the quarter (announced July 24, 2025). The company acquired Penn-Truss MFG Inc. in Saltcoats, Saskatchewan, for $3.8 million. This marks AEP's first location in Saskatchewan.
• Outlook/Quoting: Quoting activity increased by nearly $34 million from January to July 2025 compared to the same period in 2024. July 2025 revenues were approximately $6 million (excluding recent acquisitions), a ~14% increase over July 2024 ($5.25 million).
• Balance Sheet: Total assets stood at $79,777,313 as of June 2025, compared to $80,254,197 as of December 2024. Total non-current liabilities were $22,157,016 as of June 2025.
• Operations: Construction of a new automation facility in Ontario is progressing, with cladding completed and interior work underway; completion is anticipated later in 2025.

Notable Quotes

• "I continue to be impressed by the commitment and accomplishments of the AEP team. The second quarter presented challenges, because of both Canadian and U.S. political and tariff uncertainties, which delayed builder deliveries. However, our sales team maintained an assertive approach, successfully generating orders within a competitive market and increasing our truss board footage output over the prior period, which ensured robust production activity." — Hadi Abassi, President, CEO, and Founder
• "Although the second quarter was challenging, we are observing meaningful improvements in top line revenues for the third quarter thus far and are bolstered to see quotation activity at a record level, increasing by $34M year-to-date as of July 31, providing strong visibility for the rest of 2025 and into 2026." — Hadi Abassi, President, CEO, and Founder
• "I am proud of the Company's resilience amid persistent market competitiveness, especially in Ontario and British Columbia. Our national presence has strengthened AEP's stability by ensuring we are in markets that are still affordable like the Prairies and Maritimes... Additionally, by investing in automation, we will be ready when demand accelerates across all of Canada." — Hadi Abassi, President, CEO, and Founder