Evertz Technologies (ET) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 sales reached CAD 111.6 million, with software and services contributing CAD 55.9 million, up 26% year-over-year.

• Gross margin improved to 59.4% from 57.3% year-over-year.

• Net earnings were CAD 9.7 million, with diluted EPS of CAD 0.13, both down from the prior year.

• Strong order backlog and shipments, with combined value exceeding CAD 335 million and purchase order backlog over $302 million at end of August 2024.

• Continued momentum driven by adoption of IP-based and cloud-native solutions.

Financial highlights

• Hardware revenue declined to CAD 55.7 million, while software/services revenue rose 26% year-over-year.

• U.S./Canada revenue was CAD 73.9 million, international revenue CAD 37.7 million.

• Cash position at quarter-end was CAD 91 million, up from CAD 48.9 million a year ago and $86.3 million sequentially.

• Working capital stood at CAD 197.7 million as of July 31, 2024.

• Cash from operations was CAD 22.5 million for the quarter.

Outlook and guidance

• Management attributes revenue volatility to project timing, not macroeconomic or industry weakness.

• Backlog remains robust, with 55% expected to convert within the next 12 months.

• Continued focus on expanding in adjacent markets and leveraging large-scale deployments.