Vertex Resource Group Ltd. Reports Fourth Quarter and Year End 2025 Results

Executive Summary

• Vertex Resource Group Ltd. reported its financial and operational results for the fourth quarter and full year ended December 31, 2025, highlighting a decline in gross revenue and profitability compared to the prior year.
• The company achieved $219.5 million in gross revenue and $24.1 million in adjusted EBITDA for the full year 2025, with adjusted EBITDA per share dropping to $0.22 from $0.32 in 2024.
• Management noted a shift toward more consistent, recurring work patterns and reported significant debt reduction, including the amendment of a debenture agreement to remove convertible features and extend maturity.

Key Details

• Gross Revenue: $219.5 million for the year ended Dec 31, 2025 (down from $232.2 million in 2024); $54.8 million for Q4 2025 (up from $52.9 million in Q4 2024).
• Net Revenue: $203.1 million for the year ended Dec 31, 2025 (down from $230.0 million in 2024); $51.4 million for Q4 2025.
• Profit Margin: 23% for the year ended Dec 31, 2025 (down from 26% in 2024); 22% for Q4 2025.
• Adjusted EBITDA: $24.1 million for the year ended Dec 31, 2025 (down from $35.9 million in 2024); $5.4 million for Q4 2025.
• Adjusted EBITDA per Share: $0.22 for the year ended Dec 31, 2025 (down from $0.32 in 2024); $0.05 for Q4 2025.
• Free Cash Flow: $9.8 million for the year ended Dec 31, 2025 (down from $21.2 million in 2024); $4.6 million for Q4 2025.
• Loss Per Share: $(0.12) basic and diluted for the year ended Dec 31, 2025 (compared to $(0.05) in 2024); $(0.06) for Q4 2025.
• Segment Performance: Environmental Consulting gross revenue increased by 6% year-over-year for both Q4 and the full year.
• Cost Management: General and administrative expenses decreased by $1.7 million year-over-year for the full year.
• Debt Reduction: Reduced loans, borrowings, and lease liabilities by $10.5 million during the year and $1.9 million during Q4. Total loans and borrowings/other liabilities reduced by 28% since Dec 31, 2022.
• Financing Amendment: The Company amended its Debenture agreement to remove the convertible feature and extended the maturity date by two years.
• Impairment: Recorded $2.3 million in impairment for the year ended Dec 31, 2025 (down from $6.0 million in 2024).
• Outlook: Management anticipates operating conditions influenced by macroeconomic and geopolitical factors, with activity levels showing signs of stabilization and a shift toward recurring work patterns.

Notable Quotes

• "Vertex reported consistent activity levels throughout the fourth quarter, demonstrating steady execution across its service offerings. The Environmental Consulting segment maintained strong performance during the period, helping to offset softer market conditions, impacting the Environmental Services segment. Overall results demonstrate stability and resilience in a challenging operating environment."
• "Management continues to prioritize disciplined cost management, prudent capital allocation, and maintain balance sheet flexibility... positioning Vertex well to navigate near term uncertainty and improve performance as market conditions evolve."