Reko Reports Results for Second Quarter of Fiscal 2026

Executive Summary

• Reko International reported Q2 FY 2026 net income of $377 k ($0.07 EPS), a 20.4% increase year‑over‑year despite a 5.8% decline in sales to $10.165 M.
• Adjusted EBITDA rose 10.4% to $1.402 M, and adjusted EPS improved 60.0% to $0.08 per share.
• The company returned $1.1 M to shareholders via a dividend and repaid $2.7 M of mortgage debt while investing $2.2 M in growth‑related capital expenditures.

Key Details

• Sales: $10,165 k (−5.8% YoY) vs. $10,786 k prior year.
• Earned Revenue: $7,235 k (−7.1% YoY). Earned revenue margin fell 1.0 percentage point to 71.2%.
• Gross Profit: $1,583 k (‑4.3% YoY). Labor cost initiatives saved $280 k in the prior year.
• Net Income: $377 k (+20.4% YoY) vs. $313 k last year.
• EPS – Basic: $0.07 (↑40.0% YoY).
• Adjusted EPS: $0.08 (↑60.0% YoY). Adjusted for tax re‑recognition and recovery items.
• Adjusted EBITDA: $1,402 k (+10.4% YoY).
• Working Capital: $20,014 k (‑23.8% YoY).
• Shareholders’ Equity: $41,783 k (↑0.3% YoY); per share equity $7.43 (‑1.2%).
• Capital Deployments (6‑month period):
• Mortgage repayment: $2.7 M
• Growth‑related CAPEX: $2.2 M
• Dividend to shareholders: $1.1 M
• Share Repurchase Activity: Purchased and cancelled 1,400 shares under the normal course issuer bid (NCIB) that expired Jan 8 2026; no purchases under renewed NCIB announced Jan 6 2026.
• Management Commentary: CEO Diane Reko noted macro‑economic headwinds but emphasized focus on controllable actions, cost efficiencies, and returning capital to shareholders.

Notable Quotes

“Macroeconomic conditions continue to present headwinds; however, our focus remains on what we can control and on actions that strengthen the business over time,” – Diane Reko, CEO
“During the quarter, we returned capital to shareholders through a dividend payment, reflecting the strength of our balance sheet and confidence in the business.” – Diane Reko, CEO