Vertex Resource Group Ltd. Reports Third Quarter 2026 Results

SHERWOOD PARK, AB, Nov. 12, 2026 /CNW/ -- (TSXV: VTX) - Vertex Resource Group Ltd. ("Vertex" or the "Company") reports its financial and operational results for the third quarter ended September 30, 2026. The following should be read in conjunction with the Management Discussion and Analysis ("MD&A") and the unaudited condensed consolidated interim financial statements of Vertex for the period ended September 30, 2026, which are available on SEDAR+ at www.sedarplus.ca.

The first nine months of 2026 delivered improved profitability compared to last year. Both the Environmental Consulting and the Environmental Services segments have seen higher profit margins and Adjusted EBITDA⁽¹⁾ as operational efficiencies and cost management have resulted in a stronger bottom-line.

Key financial results for the three and nine months ended September 30, 2026, and 2025 are as follows: 

HIGHLIGHTS
	Three months ended		Nine months ended
	September 30,		September 30,
(in thousands of Canadian Dollars)	2026	2025	2026	2025
Gross revenue	57,141	54,047	167,875	164,709
Less flow through subcontractor costs	4,927	3,607	15,325	12,917
Net revenue	52,214	50,440	152,550	151,792
Profit margin	13,815	12,782	39,503	35,724
Profit margin %	26 %	25 %	26 %	24 %
Adjusted EBITDA ^(1)	8,870	7,180	23,943	18,772
Adjusted EBITDA %	17 %	14 %	16 %	12 %
Adjusted EBITDA per share, basic and diluted ^(1)	0.08	0.06	0.21	0.17
Earnings per share, basic and diluted	0.01	(0.01)	0.00	(0.06)

(1) See "Non-IFRS Financial Measures"

HIGHLIGHTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2026

• Environmental Consulting net revenue increased 12.2% over prior period.
• G&A expenses decreased 11.7% year-over-year despite a $1.8 million increase in net revenue.
• Adjusted EBITDA⁽¹⁾ improved $1.7 million, or 23.5%, compared to 2025.
• Continued profitability with net income of $0.8 million, improving by $1.9 million compared to 2025.

HIGHLIGHTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2026

• Environmental Consulting net revenue increased by 9.2% compared to 2025.
• G&A expenses reduced to 10.2% of net revenue, down $1.4 million from 2025.
• Adjusted EBITDA⁽¹⁾ increased in both operating segments, resulting in consolidated growth of 27.5% year-over-year.
• Net income of $0.4 million, increasing by $7.2 million from a net loss in 2025.

OUTLOOK

Management expects positive momentum to continue for the remainder of 2026 and allows the Company to be well placed as it heads into 2027. The margin and cost improvements delivered this year give the Company a solid base, and demand is broadening across its industrial, mining, infrastructure and energy customers.

Customers are planning larger programs for 2027, and several pieces of that work are already in place, including new industrial and municipal contracts, higher committed volumes from existing customers, and continued mining expansion projects in Saskatchewan, Alberta and Ontario.

Major projects, both federal and provincial, are also moving from announcement to construction. LNG Canada reached a final investment decision on Phase 2 in September. In northern Ontario, construction has begun on the all-season roads to the Ring of Fire critical minerals region, opening the area to future development. Large data centers are under development across Canada, and provinces are advancing electrical transmission in British Columbia and Ontario along with transportation and municipal infrastructure.

Projects of this scale require environmental assessment, regulatory approval, land, Indigenous engagement and geotechnical work well before construction begins, all core consulting services for Vertex. Once construction starts, they also need hydro-excavation, fluid management and pressure and vacuum services.

Several external factors are expected to shape the next few years. Geopolitical events have lifted commodity prices and strengthened customer cash flows, although prices could ease as conditions settle. Canada's response to shifting trade relationships is directing more public investment toward domestic infrastructure, defence, northern development and critical minerals, all areas that require the type of services Vertex provides.

Management expects the activity already under way, together with these longer-term investment programs, to support continued improvement from 2027 through 2031.

ABOUT VERTEX

Since 1962, Vertex has been a leading North American provider of environmental services. Headquartered in Sherwood Park, Alberta, Vertex employs a staff of approximately 1,000 employees and lease operators that provide services to help clients achieve their developmental and operational goals. From initial site selection, consultation and regulatory approval, through construction, operation and maintenance, to conclusion and environmental cleanup, Vertex provides a wide array of services to customers operating in industries such as energy, mining, utilities, private development, public infrastructure, construction, telecommunications, forestry, agriculture and government.

Vertex principally operates in Canada with select locations in the United States.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NON-IFRS FINANCIAL MEASURES

This release includes certain terms or performance measures that are not defined under International Financial Reporting Standards ("IFRS"), including "Adjusted EBITDA". The data presented is intended to provide additional information that should not be considered in isolation or as a substitute measure of performance prepared in accordance with IFRS. The non-IFRS measures should be read in conjunction with the Company's financial statements and accompanying notes.

A) "Adjusted EBITDA" is a non-IFRS financial measure which is calculated by adjusting net income (loss) for the sum of income taxes, finance costs including interest accretion on lease liabilities, depreciation of property and equipment and right of use assets, amortization of intangible assets, share-based compensation, restructuring costs and impairment. The Company uses Adjusted EBITDA as an indicator of its principal business activities operational performance prior to consideration of how its activities are financed and the impact of taxation, non-cash depreciation and amortization, restructuring costs and other non-cash expenses such as impairments required under IFRS. Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures provided by other companies. Adjusted EBITDA is used by many analysts as an important analytical tool and the management of Vertex believes it is useful for providing readers with additional clarity on Vertex's operational performance. This measure is also considered important by the Company's lenders in determining compliance by the Company with the financial covenants under its lending arrangements.

B) "Adjusted Working Capital" is a non-IFRS financial measure which is calculated by reducing current liabilities by the current portion of loans and borrowings, lease liabilities and other liabilities. Adjusted working capital is used by Vertex to monitor its capital structure, liquidity, and it's ability to fund current operations.

C) "Adjusted EBITDA per share, basic and diluted" is a non-financial measure which is calculated by dividing adjusted EBITDA by the weighted average shares outstanding – basic and diluted.

Reconciliations of adjusted EBITDA and adjusted working capital are provided in the following tables.

ADJUSTED EBITDA					Three months ended			Nine months ended
					September 30,			September 30,
					2026	2025		2026	2025
Net (loss) income for the period					766	(1,170)		356	(6,797)
Add:
Depreciation and amortization					5,731	6,690		17,392	18,571
Finance costs					2,119	1,968		6,029	6,281
Share-based compensation					19	18		57	53
Impairment					-	-		-	2,707
Income tax (recovery) expense					235	(326)		109	(2,043)
Adjusted EBITDA					8,870	7,180		23,943	18,772

ADJUSTED WORKING CAPITAL						September 30,	December 31,
						2026	2025
Current assets						58,368	58,539
Current liabilities, less						47,514	58,997
Current portion of loans and borrowings						(7,477)	(10,403)
Current portion of lease liabilities						(7,244)	(8,838)
Current liabilities (excluding current portion of loans and borrowings, lease liabilities, and other liabilities)						32,793	39,756
Adjusted working capital						25,575	18,783

Forward-Looking Information

This Press Release contains forward-looking statements and information ("forward-looking statements") within the meaning of applicable Canadian securities laws. The forward-looking statements contained in this Press Release are based on the expectations, estimates and projections of management of Vertex as of the date of this Press Release unless otherwise stated. The use of any of the words "believe", "expect", "anticipate", "contemplate", "target", "plan", "outlook", "potential", "estimated", "intends", "continue", "may", "will", "should" and similar expressions are intended to identify forward-looking statements. More particularly and without limitation, this Press Release contains forward-looking statements concerning anticipated financial performance; the outlook for 2026 and 2027; the Company's ability to grow profitably; sufficiency of working capital; projected 2026 capital expenditures; expected customer capital spending; the timing and progress of federal and provincial major projects; expected labour market conditions; the Company's capital allocation priorities; and with respect to Vertex's ability to meet evolving customer demands. These forward-looking statements are based on certain assumptions, including that commodity prices remain at levels that support customer capital programs; that major projects proceed broadly on announced timelines; that the Company can attract and retain qualified personnel; and that there is no material change in trade policies affecting the Company's input costs or its customers' spending.

Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the industries in which Vertex operates in general, such as:

• Ability to access sufficient capital from internal and external sources
• Ability to market to new customers
• Ability to obtain equipment in a timely and cost-efficient manner
• Ability to secure work
• Adjustments and cancellations of backlog
• Changes in legislation, including but not limited to tax laws and environmental regulations
• Collection of recognized revenue
• Commodity price, interest rate and exchange rate fluctuations
• Competition, ethics, and reputational risks
• Compliance with environmental laws risks
• Cyber-security risks
• Economy and cyclicality
• Geopolitical risks
• Global pandemics
• Health, safety and environmental risks
• Industry and inherent project delivery risks
• Insurance risk
• Joint venture risk
• Labour matters
• Litigation risk
• Loss of key management; ability to hire and retain qualified and capable personnel
• Maintaining safe worksites
• Operational risks
• Potential for non-payment and credit risk and ongoing financing availability
• Third party credit risk
• Timing of major project approvals and customer capital spending
• Unforeseen weather conditions
• Unanticipated shutdowns, work stoppages, and lockouts
• Volatility of market trading 

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on other factors that could affect the operations or financial results of the Company are included in reports on file with applicable securities regulatory authorities, including but not limited to: Annual Information Form for the year ended December 31, 2025, which may be accessed on Vertex's SEDAR+ profile at www.sedarplus.ca.

The forward-looking statements contained in this Press Release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as, and to the extent required by applicable securities laws.

SOURCE Vertex Resource Group Ltd.

For further information please contact: Terry Stephenson, CEO, or Sherry Bielopotocky, CFO at 780-464-3295