Atlas Engineered Products Reports First Quarter 2026 Financial and Operating Results

NANAIMO, BC, May 25, 2026 /CNW/ - Atlas Engineered Products ("AEP" or the "Company") (TSXV: AEP) (OTC Markets: APEUF) is pleased to announce its financial and operating results for the three months ended March 31, 2026. All amounts are presented in Canadian dollars.

Q1 Financial and Operating Highlights

• Government Grant: AEP entered into a non-repayable contribution agreement for up to $4 million;
• Investment into sales and management for the new automation facility
• Difficult winter weather conditions in Q1 compared to prior years;
• Continued difficult market conditions in Ontario & BC, better market conditions in Prairies and Martimes where affordability is better.

Hadi Abassi, President, CEO & Founder of AEP, stated, "The first quarter of 2026 was challenging, with difficult market conditions in Ontario and British Columbia and more severe winter weather across much of Canada than in recent years. Our team worked hard through these conditions while continuing to prepare for a stronger remainder of the year. We made important progress on our first automation facility, advanced our sales and design capabilities, and continued to build our order book. While near-term conditions remain competitive, we believe our scale, automation strategy, and growing national footprint position us well to gain market share as construction activity increases."

On February 2, 2026, the Company entered into a non‑repayable contribution agreement with the Government of Canada under the Investments in the Forest Industry Transformation (IFIT) Program in support of the Company's Robotics Manufacturing Plant project. The agreement provides funding of up to $4,000,000 toward eligible expenditures incurred from the agreement date to March 31, 2026. The Company needed to spend $4,000,000 from February 2, 2026 to March 31, 2026 in order to be eligible to receive the funding, which the Company did increase payment schedules to equipment suppliers to meet the eligible spending requirements for the grant.

Revenue for the three months ended March 31, 2026 was $9,296,081 compared to revenue of $11,010,715 for the three months ended March 31, 2025, representing a 16% decrease, respectively. Revenue decreased due to the industry market conditions, especially in Ontario, and the more significant winter weather conditions across most of Canada compared to recent years. Additionally, the Company had two significant winter projects for the three months ended March 31, 2025 which increased revenues in that quarter compared to the current period. The Company has numerous large projects on order for this year, but none were scheduled for delivery in the first quarter of 2026.

Gross profit for the three months ended December 31, 2025 was $273,175 compared to $1,740,595 for the three months ended March 31, 2025. Gross profits decreased mainly due to decreased revenues driven by the winter weather conditions and industry market conditions in Ontario and British Columbia. The Company regularly analyses the benefits of revenues and gross margins in order to determine whether to reduce margins in order to generate more revenues and increase market share. Additionally, increased cost of sales impacted the profitability of the Company. The Company carried some additional labour in the three months ended March 31, 2026 compared to the three months ended March 31, 2025 due to the preparation for the new automation facility in Clinton, Ontario. Additionally, the Company had some additional maintenance requirements this period compared to last period to prepare for the busier remainder of the fiscal year.

Non-IFRS measure normalized EBITDA for the three months ended December 31, 2025 was ($794,771), compared to $615,758 for the three months ended March 31, 2025. Normalized EBITDA for three months ended March 31, 2026 decreased compared to the three months ended March 31, 2025 decreased due to decreased revenues from market conditions driving lower pricing in the industry and more severe winter weather plus increased cost of sales, specifically labour that the Company needed through winter to support the busier construction season and the new automation facility.
 

SELECTED FINANCIAL RESULTS	Three Months Ended
	March 2026	March 2025
Revenue	$9,296,081	$11,010,715
Cost of Sales	9,022,906	9,270,120
Gross Profit	273,175	1,740,595
Gross Margin %	3 %	16 %
Operating Expenses	2,471,216	2,511,378
Operating Loss	(2,198,041)	(770,783)
Net Loss After Adjustments and Taxes	(1,730,667)	(846,331)
Adjusted EBITDA	(822,524)	586,666
Adjusted EBITDA Margin %	-9 %	5 %
Normalized EBITDA	(794,771)	615,758
Normalized EBITDA Margin %	-9 %	6 %
Weighted Average Number of Shares	70,265,191	70,495,551
Adjusted EBITDA per Share ($ per share)	(0.01)	0.01
Loss per Share, Basic ($ per share)	(0.02)	(0.01)
Loss per Share, Fully Diluted ($ per share)	(0.02)	(0.01)
Selected Financial Information as at:
	Mar 2026	Dec 2025
Total Assets	$86,885,035	$80,506,599
Total Non-Current Liabilities	25,895,212	21,729,670

Outlook for 2026

AEP is getting very close to completion of the first truss robotic facility in Clinton, ON. The building is anticipated to be completed in the second fiscal quarter and the equipment has been shipped and is anticipated to be operational at the beginning of July 2026. There was a slight delay of 2-3 weeks due to the shipping process which is experience impacts from the war in Iran. Additionally, the Company has hired two new sales team members and a designer, two of them with extensive truss, wall panel, and construction industry experience and connections.

The Company continues to report high quoting volumes from the beginning of 2025. In the first quarter of 2026, quotes exceeded $80 million. Because quoting activity has been significantly higher in both 2025 and early 2026 than in previous years, order volumes have also been increasing. During the first three months of 2026, orders totaled over $21 million, up from more than $11 million in the same period of 2025. However, shipping during this period was challenging and revenues were impacted, as much of Canada experienced more severe winter weather compared to prior years.

AEP continues to drive organic growth by expanding its focus on wall panel manufacturing and offering customers complete project packages that include roof and floor trusses, wall panels, and engineered wood products. This strategy can help reduce the Company's exposure to recessionary pressures by increasing potential sales volume per order. Although industry demand is largely influenced by macroeconomic and political factors beyond the Company's control, AEP intends to use its scale, agility, and strong balance sheet to continue gaining market share.

In addition to its organic growth strategy, the Company continues to evaluate acquisition opportunities across North America. With industry EBITDA at a cyclical low, the return potential on these opportunities remains attractive. AEP is reviewing additional opportunities for 2026 and beyond to expand its geographic reach, manufacturing capabilities, and industry expertise. The Company also continues to maintain a strong pipeline of attractive deals as the industry has normalized following the elevated lumber prices and demand seen during the COVID-19 pandemic.

Conference Call

AEP will host a conference call to discuss the results today, April 30, 2026 at 11:00am EDT (8:00am PT). The call will be hosted by Hadi Abassi, CEO & President, Founder, and Melissa MacRae, CFO. Details to join this conference call are below.

Date: Thursday, April 30, 2026
Time: 11:00am EST (8:00am PST)
Webinar Link: https://atlasaep.ca/8917aDjd1
Meeting ID: 295 204 030 827 026
Passcode: aJ66fL98

Non-GAAP / Non-IFRS Financial Measures

Certain financial measures in this news release do not have any standardized meaning under IFRS and, therefore are considered non-IFRS or non-GAAP measures. These non-IFRS measures are used by management to facilitate the analysis and comparison of period-to-period operating results for AEP and to assess whether AEP's operations are generating sufficient operating cash flow to fund working capital needs and to fund capital expenditures. As these non-IFRS measures do not have any standardized meaning under IFRS, these measures may not be comparable to similar measures presented by other issuers. The non-IFRS measures used in this news release may include "EBITDA", "EBITDA margin", "adjusted EBITDA", "adjusted EBITDA margin", "normalized EBITDA" and "normalized EBITDA margin". For a description of the composition of these measures, please refer to AEP's Management's Discussion and Analysis for the three months ended March 31, 2026 under "Non-IFRS / Non-GAAP Financial Measures", available on AEP's website at www.atlasengineeredproducts.com or on SEDAR at www.sedar.com.

About Atlas Engineered Products Ltd.

AEP is a growth company that is acquiring and operating profitable, well-established operations in Canada's truss and engineered products industry. We have a well-defined and disciplined acquisition and operating growth strategy enabling us to scale aggressively and apply new technologies, giving us a unique opportunity to consolidate a fragmented industry of independent operators.

FORWARD LOOKING INFORMATION
Information set forth in this news release contains forward-looking statements. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. Although AEP believes that the expectations reflected in the forward looking statements are reasonable, there is no assurance that such expectations will prove to be correct, or that such future events will occur in the disclosed time frames or at all.  AEP cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond AEP's control.  Such factors include, among other things: risks and uncertainties related to the housing market, changes in interest rates and other risks and uncertainties relating to AEP, including those described in the Management's Discussion and Analysis ("MD&A") for AEP's three months ended March 31, 2026.  Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, AEP undertakes no obligation to publicly update or revise forward-looking information.

SELECTED FINANCIAL INFORMATION
Except as noted below, the financial information provided in this news release is derived from the AEP's audited financial statements for the three months ended March 31, 2026 and the related notes thereto as prepared in accordance with International Financial Reporting Standards ("IFRS") and related IFRS Interpretations Committee ("IFRICs") as issued by the International Accounting Standards Board ("IASB").  A copy of AEP's financial statements for the three months ended March 31, 2026 and the related Management's Discussion and Analysis is available on AEP's website at www.atlasengineeredproducts.com or on SEDAR at www.sedar.com.

Financial information for AEP's acquisitions are included in AEP's unaudited financial statements from the date of acquisition. Financial information for acquired businesses for periods prior to the date of acquisition were prepared by management and have not been reviewed or audited by independent auditors.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE Atlas Engineered Products Ltd.

For additional information please contact: Jake Bouma, Representative for AEP, Phone: [phone], Email: [email protected]; Company contact details: Hadi Abassi, CEO & President, Founder Atlas Engineered Products Ltd., Email: [email protected], 250-754-1400, PO Box 37036 Country Club PO, Nanaimo, BC V9T 6N4, www.atlasengineeredproducts.com