Evertz Technologies earns $18.66-million in Q3

Executive Summary

• Evertz Technologies reported record quarterly revenue of $139.3 million for the third quarter ended January 31, 2026, representing a 2% increase year-over-year.
• The company reported net earnings of $18.7 million and fully diluted earnings per share of 24 cents, down from 27 cents in the prior-year quarter.
• Significant cash outflow occurred due to dividend payments totaling $91.0 million, including a special dividend of $75.5 million, which reduced cash and cash equivalents from $111.7 million to $24.8 million.

Key Details

• Revenue: Record quarterly revenue of $139.3 million, an increase of $2.4 million (2%) from $136.9 million in the prior-year quarter.
• Regional Performance:
  • International revenue: $43.7 million, up $5.9 million (15.5%) from $37.8 million.
  • US/Canada revenue: $95.6 million, down from $99.1 million.
• Profitability:
  • Earnings from operations (before foreign exchange): $28.1 million, up 16% from $24.2 million.
  • Net earnings: $18.7 million, down from $21.1 million.
  • Fully diluted EPS: 24 cents, down from 27 cents.
• Margins: Gross margin was $81.2 million (58.3% of revenue), compared to $79.1 million (57.8% of revenue) in the prior year.
• Operating Expenses:
  • Selling and administrative expenses: $18.6 million (down from $19.2 million).
  • Gross R&D expenses: $36.7 million (up slightly from $36.6 million).
• Liquidity and Cash Flow:
  • Working capital: $133.2 million (down from $206.9 million at April 30, 2025).
  • Cash and cash equivalents: $24.8 million (down from $111.7 million).
  • Cash generated from operations: $29.3 million (down from $53.0 million).
  • Investing activities: Used $7.0 million, including $4.4 million for an airplane acquisition.
  • Financing activities: Used $92.4 million, principally for dividend payments.
• Dividends:
  • Total dividends paid during the quarter: $91.0 million.
  • Special dividend included in the total: $75.5 million.
  • New regular quarterly dividend declared: 20.5 cents per share (payable March 20, 2026, to shareholders of record on March 13, 2026).
• Backlog and Shipments:
  • Purchase order backlog at end of February 2026: Excess of $246 million.
  • Shipments in February 2026: $32 million.

Notable Quotes

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