CALGARY, AB – Tornado Infrastructure Equipment Ltd. has released its unaudited financial results for the second quarter of 2025, revealing a notable increase in both net income and revenue. The company attributes this growth to robust hydrovac truck sales and the recent acquisition of Custom Vacuum Services Ltd.
On May 15, 2025, Tornado completed the acquisition of Custom Vacuum Services for $28 million in cash. This purchase is expected to enhance Tornado's product offerings, particularly in manufacturing and servicing vacuum equipment across sectors such as oil and gas, utilities, and environmental services. The acquisition aims to create synergies through cross-selling and operational efficiencies.
In the second quarter of 2025, Tornado reported a net income of $2.68 million, reflecting a 6.7% increase from the $2.51 million reported in the same quarter of 2024. Diluted earnings per share rose by 5.6% to $0.019.
Overall revenue for Q2 reached $44.99 million, marking a 30.7% increase compared to $34.42 million for the same period last year. This surge was facilitated by various factors, including a successful partnership with Ditch Witch, and a rise in both pricing and demand for hydrovac trucks.
The growth in sales can be attributed to several factors: the expansion of hydrovac truck sales, enhanced efficiency in production at the company's Red Deer facility, and contributions from CustomVac. During this quarter, Tornado sold 87 hydrovac trucks, an increase from 82 units sold in Q2 2024, plus an additional nine trucks sold by CustomVac within the same timeframe.
While Tornado experienced growth, it also faced rising administrative costs, which increased by 33.2% to $3.4 million primarily due to increased employee costs and non-recurring professional fees associated with the acquisition.
Looking forward, the company anticipates continued growth in production and sales of hydrovac trucks into 2025. Key factors include ongoing infrastructure investment in North America and the strategic advantages expected from the acquisition of CustomVac.
Tornado Infrastructure Equipment Ltd. reported net income of $2,680, which represents an increase of 6.7% compared to the previous year. Diluted net income per share also increased by 5.6%, reaching $0.019. Overall revenue for Q2/2025 was $44,985, marking a 30.7% increase from $34,423 in Q2/2024.
The acquisition of Custom Vacuum Services Ltd. for $28 million in cash is expected to expand Tornado's product portfolio and provide immediate accretion. It is anticipated to generate synergies through cross-selling opportunities and improvements in supply chain efficiency. However, the integration may also lead to increased operational complexity and requires careful management of new resources.
The partnership with Custom Truck is expected to enhance revenue through an increased sales arrangement. This collaboration could improve Tornado's market reach in North America. However, reliance on a single partner poses risks, including potential supply chain disruptions and market fluctuations that may affect sales.
Tornado expects to commence operations at its new production facility in Red Deer by Q4/2025, which is anticipated to increase production capacity and operational efficiency. However, achieving these milestones depends on various factors, including regulatory approvals and operational integration challenges.
While Tornado anticipates continued growth in sales of hydrovac trucks in 2025 due to infrastructure spending in North America, challenges such as economic uncertainties, potential increases in operating costs, and competition in the market could impact these projections.
Investors can access the unaudited condensed consolidated financial statements and management discussion and analysis on SEDAR+ at www.sedarplus.com, in the United States at www.otcmarkets.com, and on Tornado's official website at www.tornadotrucks.com.
Tornado's forward-looking statements involve known and unknown risks and uncertainties that could cause actual outcomes to differ materially from expectations. Factors include prevailing economic conditions, operational risks, and reliance on strategic partnerships. As such, these statements should not be overly relied upon.
Tornado's use of EBITDAS, while a popular measure for assessing operational performance, is non-IFRS and may not be comparable to similar measures used by other companies. Investors should consider both EBITDAS and net income when evaluating the company's financial health.