STRACON Group Reports Record Year-End Backlog of US$2,191 Million, Sets March 31 Date for Q4 and Full Year 2025 Results Conference Call, and Provides Update on Peruvian Merger

Executive Summary

• STRACON reports a record year‑end backlog of US$2.191 billion, up ~22% YoY and representing ~3.0× its FY 2025 revenue.
• The cross‑border merger with STRACON Peru, effective November 1 2025, is confirmed as legally binding despite opposition from SLC Holdings; Peruvian courts have granted an injunction to complete registration and allow STRACON to secure US$2 million of SLC’s assets.
• A conference call for the Q4 and full‑year 2025 results is scheduled for March 31 2026 at 8:00 a.m. ET.

Key Details

• Merger Confirmation
• Merger between STRACON Group Holding Inc. and STRACON Peru became effective on Nov 1 2025 under Yukon law; registration in Peru is pending but does not affect effectiveness.
• Ontario Securities Commission’s Capital Markets Tribunal dismissed SLC Holdings’ application challenging the merger on Feb 12 2026.
• Peruvian court issued an interim injunction on Jan 29 2026, ordering the Public Registry to complete merger registration and granting STRACON the right to secure US$2 million of SLC’s assets for damages/costs.

• Independent legal opinion confirms asset transfer as of Nov 1 2025; Peruvian tax agency and bank creditors acknowledge STRACON as successor.

• Backlog Update (as of Dec 31 2025)

• Ending backlog: US$2.191 billion (↑22% from US$1.789 bn in 2024).
• CAGR since 2020: ~31%; backlog‑to‑revenue ratio: 2.9× (revenue FY 2025 ≈ US$749 million).
• Segment composition:
  • Industrial Services – 44%
  • Engineering & Technology – 21%
  • Infrastructure (BOOM/DBFO) – 19% (anchor: Pérez Caldera project, Chile)
  • Fleet Solutions – 16%
• ~62% of backlog is relationship‑type contracts (cost‑plus, time‑and‑materials, etc.) providing margin stability; remaining split between BOOM/DBFO (19%) and EPC (20%).

• Approximately 73% of contracted revenue expected beyond 2026; all non‑EPC contracts contain escalation clauses.

• Strategic Outlook

• Pipeline of opportunities valued at ~US$17 billion (incl. US$6.3 bn in infrastructure) supports three‑year targets: >US$1 bn revenue, >US$3 bn backlog, Adjusted EBITDA >US$150 million.

• Infrastructure segment projected to contribute ~50% of consolidated EBITDA within 18–24 months, enhancing cash‑flow predictability.

• Q4 & FY2025 Results Call

• Date/Time: Tuesday, March 31 2026 at 8:00 a.m. ET.
• Dial‑in: 1‑800‑715‑9871 or (647) 932‑3411, Conference ID #5690484.
• Webcast available at www.stracon-group.com; replay from 1 hour post‑call until April 30 2026.

Notable Quotes

• “The successful completion of our cross‑border merger and the record backlog underscore STRACON’s strong market position and the robustness of our diversified contract portfolio,” – Josh Wardell, Vice President, Investor Relations.