Attention Business/Financial Editors:
Burlington, Ontario--(Newsfile Corp. - June 24, 2026) - Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network ("SDVN") technology, today reported its results for the fourth quarter and year ended April 30, 2026.
Fiscal 2026 Highlights
- Record Annual Revenues in excess of a half billion dollars, totaling $515.8 million for the year
- Reoccurring software, services and other software of $240.7 million, an increase of 8% from the prior year and representing 47% of total revenue in fiscal 2026
- International revenue of $148.0 million, an increase of 16% or $20.8 million from the prior year
- Earnings from operations of $87.3 million, an increase of $5.8 million from the prior year
- Net earnings of $64.4 million for the year, an increase of $4.7 million from the prior year
- Fully diluted earnings per share of $0.83 for the year
Fourth Quarter 2026 Highlights
- Quarterly revenue of $131.6 million an increase of 3% from the prior year
- Reoccurring software, services and other software of $65.8 million, an increase of 17% from the prior year
- Net earnings of $15.2 million for the quarter, an increase of $2.2 million from the prior year
- Fully diluted earnings per share of $0.20 for the quarter, an increase of 18% from the prior year
Selected Financial Information
Consolidated Statement of Earnings Data
(in thousands of dollars, except earnings per share and share data)
| Q4'26 | Q4'25 | YE'26 | YE'25 | |||||||||
| Revenue | $ | 131,568 | $ | 127,805 | $ | 515,781 | $ | 501,623 | ||||
| Gross margin | 78,070 | 78,885 | 305,987 | 298,505 | ||||||||
| Earnings from operations | 21,486 | 19,404 | 87,322 | 81,512 | ||||||||
| Net earnings | 15,247 | 13,043 | 64,421 | 59,767 | ||||||||
| Fully-diluted earnings per share | $ | 0.20 | $ | 0.17 | $ | 0.83 | $ | 0.77 | ||||
| Fully-diluted shares | 77,347,001 | 76,805,024 | 76,814,543 | 76,975,472 |
Selected Financial Information
Consolidated Balance Sheet Data
(in thousands of dollars)
| YE ' 26 | YE ' 25 | ||||||
| Cash and cash equivalents | $ | 19,117 | $ | 111,665 | |||
| Working capital | 131,749 | 206,900 | |||||
| Total assets | 424,989 | 469,485 | |||||
| Shareholders' equity | 198,167 | 268,123 |
Revenue
For the quarter ended April 30, 2026, revenues were $131.6 million compared to revenues of $127.8 million for the quarter ended April 30, 2025. For the quarter, revenues in the United States/Canada region were $94.2 million, compared to $106.5 million in the same quarter last year. The International region had revenues of $37.4 million, an increase of $16.1 million compared to $21.3 million in the same quarter last year.
For the year ended, April 30, 2026, sales were $515.8 million compared to sales of $501.6 million for the year ended April 30, 2025. For the year, revenues in the United States/Canada region were $367.8 million compared to $374.4 million in the prior year. The International region had revenues of $148.0 million compared to $127.2 million, an increase of $20.8 million from the prior year.
Gross Margin
For the quarter ended April 30, 2026, gross margin was $78.1 million as compared to $78.9 million in the same quarter last year. Gross margin percentage was approximately 59.3% as compared to 61.7% in the quarter ended April 30, 2025.
For the year ended April 30, 2026, gross margin was $306.0 million as compared to $298.5 million for the year ended April 30, 2025. Gross margin percentage was approximately 59.3% as compared to 59.5% for the prior year.
Earnings
For the quarter ended April 30, 2026, net earnings were $15.2 million as compared to $13.0 million in the corresponding period last year.
For the year ended April 30, 2026, net earnings were $64.4 million as compared to $59.7 million in the corresponding period last year.
For the quarter ended April 30, 2026, earnings per share on a fully-diluted basis were $0.20 as compared to $0.17 in the corresponding period last year.
For the year ended April 30, 2026, earnings per share on a fully-diluted basis were $0.83 as compared to $0.77 in the same period in 2025.
Operating Expenses
For the quarter ended April 30, 2026, selling and administrative expenses were $20.7 million as compared to $20.7 million for the quarter ended April 30, 2025.
For the year ended April 30, 2026, selling and administrative expenses were $77.0 million as compared to $75.9 million for the year ended April 30, 2025.
For the quarter ended April 30, 2026, gross research and development expenses were $37.7 million as compared to $36.5 million for the quarter ended April 30, 2025.
For the year ended April 30, 2026, gross research and development expenses were $148.1 million as compared to $146.8 million for the year ended April 30, 2025.
Liquidity and Capital Resources
The Company's working capital as at April 30, 2026 was $131.7 million as compared to $206.9 million on April 30, 2025.
Cash was $19.1 million as at April 30, 2026 as compared to $111.7 million on April 30, 2025.
Cash generated from operations was $18.4 million for the quarter ended April 30, 2026 as compared to $33.3 million cash generated for the quarter ended April 30, 2025. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $19.1 million from operations for the quarter ended April 30, 2026 compared to $17.7 million for the same period last year.
Cash generated by operations was $76.2 million for the 2026 fiscal year as compared to cash provided by operations of $99.6 million for the 2025 fiscal year. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $86.4 million from operations for fiscal 2026 as compared to $79.6 million for fiscal 2025.
For the quarter, the Company used $3.9 million for investing activities.
For the year, the Company used $17.8 million in investing activities which was principally driven by the acquisition of property, plant and equipment for $18.7 million and partly offset by the disposal of property, plant and equipment for $0.9 million.
For the quarter ended, the Company used cash in financing activities of $17.1 million which was principally a result of the payment of dividends of $15.4 million.
For the year ended April 30, 2026, the Company used cash in financing activities of $147.1 million which was principally a result of the payment of dividends of $136.7 million, including a special dividend of $75.5 million, capital stock repurchase of $4.1 million and $4.5 million of lease payments.
Shipments and Backlog
At the end of May 2026, purchase order backlog was in excess of $237 million and shipments during the month of May 2026 were $33 million.
Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on June 24, 2026 of $0.205 per share.
The dividend is payable to shareholders of record on July 6, 2026 and will be paid on or about July 13, 2026.
Selected Consolidated Financial Information
(in thousands of dollars, except earnings per share and percentages)
| Three month period ended | Twelve month period ended | |||||||||||
| April 30, | April 30, | |||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||
| Revenue | $ | 131,568 | $ | 127,805 | $ | 515,781 | $ | 501,623 | ||||
| Cost of goods sold | 53,498 | 48,920 | 209,794 | 203,118 | ||||||||
| Gross margin | 78,070 | 78,885 | 305,987 | 298,505 | ||||||||
| Expenses | ||||||||||||
| Selling and administrative | 20,721 | 20,684 | 77,043 | 75,858 | ||||||||
| General | 848 | 1,348 | 4,180 | 5,249 | ||||||||
| Research and development | 37,695 | 36,534 | 148,052 | 146,771 | ||||||||
| Investment tax credits | (4,565) | (4,747) | (17,020) | (15,626) | ||||||||
| Share based compensation | 2,268 | 1,203 | 5,989 | 4,959 | ||||||||
| Foreign exchange (gain) loss | (383) | 4,459 | 421 | (218) | ||||||||
| 56,584 | 59,481 | 218,665 | 216,993 | |||||||||
| Earnings before undernoted | 21,486 | 19,404 | 87,322 | 81,512 | ||||||||
| Finance income | 167 | 706 | 2,764 | 2,779 | ||||||||
| Finance costs | (367) | (463) | (1,506) | (1,567) | ||||||||
| Net loss on investments through profit and loss | - | (1,283) | - | (1,283) | ||||||||
| Other income and expenses | (109) | 214 | (344) | 463 | ||||||||
| Earnings before income taxes | 21,177 | 18,578 | 88,236 | 81,904 | ||||||||
| Provision for (recovery of) income taxes | ||||||||||||
| Current | 8,114 | 6,537 | 24,321 | 24,918 | ||||||||
| Deferred | (2,184) | (1,002) | (506) | (2,781) | ||||||||
| 5,930 | 5,535 | 23,815 | 22,137 | |||||||||
| Net earnings for the period | $ | 15,247 | $ | 13,043 | $ | 64,421 | $ | 59,767 | ||||
| Net earnings attributable to non-controlling interest | 105 | 38 | 454 | 374 | ||||||||
| Net earnings attributable to shareholders | 15,142 | 13,005 | 63,967 | 59,393 | ||||||||
| Net earnings for the period | $ 15,247 | $ 13,043 | $ 64,421 | $ 59,767 | ||||||||
| Earnings per share | ||||||||||||
| Basic | $ | 0.20 | $ | 0.17 | $ | 0.85 | $ | 0.78 | ||||
| Diluted | $ | 0.20 | $ | 0.17 | $ | 0.83 | $ | 0.77 | ||||
Selected Consolidated Financial Information - Continued
(in thousands of dollars, except earnings per share and percentages)
| April 30, | April 30, | April 30, | |||||||
| 2026 | 2025 | 2024 | |||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | $ | 19,117 | $ | 111,665 | $ | 86,325 | |||
| Trade and other receivables | 81,131 | 71,743 | 84,350 | ||||||
| Contract assets | 15,987 | 15,568 | 12,554 | ||||||
| Prepaid expenses | 14,974 | 9,677 | 11,179 | ||||||
| Inventories | 200,213 | 181,011 | 206,154 | ||||||
| Income tax receivable | 10,980 | 1,649 | - | ||||||
| 342,402 | 391,313 | 400,562 | |||||||
| Property, plant and equipment | 41,459 | 32,211 | 34,384 | ||||||
| Right-of-use assets | 10,980 | 15,816 | 20,432 | ||||||
| Goodwill | 19,987 | 20,001 | 21,352 | ||||||
| Intangible assets | - | 346 | 1,098 | ||||||
| Deferred income taxes | 10,161 | 9,798 | 6,894 | ||||||
| $ | 424,989 | $ | 469,485 | $ | 484,722 | ||||
| Liabilities | |||||||||
| Current liabilities | |||||||||
| Trade and other payables | $ | 95,325 | $ | 67,982 | $ | 63,249 | |||
| Provisions | 5,953 | 5,269 | 4,946 | ||||||
| Deferred revenue | 99,672 | 101,035 | 117,913 | ||||||
| Current potion of lease obligations | 5,289 | 5,091 | 4,296 | ||||||
| Current potion of redemption liability | 4,414 | 3,798 | 3,811 | ||||||
| Income tax payable | - | - | 3,226 | ||||||
| 210,653 | 183,175 | 197,441 | |||||||
| Long term deferred revenue | 4,609 | 1,238 | 1,684 | ||||||
| Long term lease obligations | 8,448 | 13,781 | 18,920 | ||||||
| 223,710 | 198,194 | 218,045 | |||||||
| Equity | |||||||||
| Capital stock | 146,589 | 144,978 | 145,721 | ||||||
| Share based payment reserve | 28,112 | 24,195 | 19,246 | ||||||
| Accumulated other comprehensive income | 7,229 | 6,568 | 1,197 | ||||||
| Retained earnings | 16,237 | 92,382 | 97,103 | ||||||
| 23,466 | 98,950 | 98,300 | |||||||
| Total equity attributable to shareholders | 198,167 | 268,123 | 263,267 | ||||||
| Non-controlling interest | 3,112 | 3,168 | 3,410 | ||||||
| 201,279 | 271,291 | 266,677 | |||||||
| $ | 424,989 | $ | 469,485 | $ | 484,722 |
Forward-Looking Statements
The report contains forward-looking statements reflecting Evertz's objectives, estimates and expectations. Such forward-looking statements use words such as "may", "will", "expect", "believe", "anticipate", "plan", "intend", "project", "continue" and other similar terminology of a forward-looking nature or negatives of those terms.
Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company's actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.
Conference Call
The Company will hold a conference call with financial analysts to discuss the results on June 24, 2026 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialing 289-514-5100 or toll-free (North America) 1-800-717-1738.
For those unable to listen to the live call, a rebroadcast will also be available until July 24, 2026. The rebroadcast can be accessed at 289-819-1325 or toll-free 1-888-660-6264. The passcode for the rebroadcast is 92814#.
About Evertz
Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the production, post-production and transmission of video content. The Company's solutions are purchased by the television broadcast, telecommunications, professional audio-visual, content creator, advanced education, government, military, enterprise, and new media sectors to support increasingly complex multi-channel digital and high-definition, Ultra HD, and high dynamic range formats and next generation high bandwidth low latency IP network environments. The Company's products allow its customers to generate additional revenue while reducing costs through efficient, highly reliable and secure signal routing, distribution, monitoring and management of content as well as the automation and orchestration of more streamlined and agile workflow processes on premise and in the "Cloud."
For further information, please contact:
Doug Moore, CPA, CA
Chief Financial Officer
(905) 335-3700
[email protected]
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/302735