Vertex Resource Group Ltd. Reports Third Quarter 2025 Results

Executive Summary

• Vertex reported a decline in gross revenue to C$54.0 M for Q3 2025, down 13% year‑over‑year, and a net loss of C$1.17 M, resulting in earnings per share of –C$0.01.
• Adjusted EBITDA fell 40% YoY to C$7.2 M (14% of revenue) and free cash flow dropped to C$2.4 M, reflecting reduced operating cash generation.
• The Company reduced debt and lease liabilities by $2.6 M in the quarter and $8.5 M for the nine‑month period, highlighting ongoing balance‑sheet strengthening despite weaker top‑line performance.

Key Details

• Revenue & Margins – Gross revenue: C$54,047 k (down from C$62,405 k YoY). Net revenue after subcontractor costs: C$50,440 k. Profit margin declined to 25% (from 28%).
• Adjusted EBITDA – Q3 2025: C$7,180 k (14% of revenue), down from C$11,924 k YoY (19%). Nine‑month adjusted EBITDA: C$18,772 k vs. C$28,871 k prior year.
• Earnings per Share – Basic & diluted EPS: –C$0.01 for Q3 2025 (vs. +C$0.02 in Q3 2024). Nine‑month EPS: –C$0.06 vs. +C$0.01 YoY.
• Free Cash Flow – Q3 2025 free cash flow: C$2,409 k (down from C$6,936 k YoY). Nine‑month free cash flow: C$5,196 k vs. C$9,115 k prior year.
• Debt Reduction – Loans, borrowings and lease liabilities reduced by $2.6 M in Q3; total reduction of $8.5 M for the nine‑month period. Overall balance‑sheet leverage down 25% since Dec 31 2022.
• Segment Performance – Environmental Consulting net revenue up 7% YoY; adjusted EBITDA up 14%. Environmental Services segment continued to face pressure, offsetting consulting gains.
• Cost Management – Finance costs cut 32% YoY in the quarter due to lower debt levels; G&A expenses down 9% for nine months.
• Outlook – Management expects continued challenging market conditions but remains cautiously optimistic, emphasizing cost discipline, facility consolidation, reduced capex, and further debt reduction to preserve liquidity.

Notable Quotes

• “Our disciplined cost management and operational efficiency have helped mitigate external pressures, reducing finance costs and overall debt levels,” said Terry Stephenson, CEO.
• “While revenue pressure persists, the strong performance of our Environmental Consulting segment provides a partial offset as we continue to streamline operations and preserve cash flow,” added Sherry Bielopotocky, CFO.