Atlas Engineered Products Reports Second Quarter 2026 Financial and Operating Results, Including YoY Revenue Increase of 19% in Q2 and 3% YTD

NANAIMO, BC, Aug. 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 and six months ended June 30, 2026. All amounts are presented in Canadian dollars.

Q2 Financial and Operating Highlights

• Revenue increases of 19% Q2 2026 vs Q2 2025 and 3% YTD 2026 vs YTD 2025;
• Revenue increases of 74% Q2 2026 vs Q1 2026;
• Gross Margin increases to 17% in Q2 2026 from 3% in Q1 2026;
• Continued and increased investment into sales and management for the new automation facility;
• New automation facility commissioning finishing August 2026 and anticipated shipping roof trusses September 2026;
• Continued challenging market conditions in Ontario & BC, improvement in Ontario with new housing HST relief, but also general seasonal improvements for Ontario & BC.

Hadi Abassi, President, CEO & Founder of AEP, stated, "The second quarter of 2026 reflected the strength and resilience of our team, with revenue increasing 19% over the prior year and 74% over the first quarter of 2026. Gross margin improved to 17% in Q2, supported by higher revenues, seasonal recovery in construction activity, and continued execution across our operating platform. While market conditions in Ontario and British Columbia remain competitive, quoting and order activity continue to be encouraging, and we are seeing benefits from the investments we have made in sales, management, and operational capabilities. We also made important progress on our first robotic truss manufacturing facility in Clinton, Ontario, with equipment installed and commissioning underway. We believe our scale, automation strategy, and growing national footprint position AEP well to continue gaining market share as construction activity improves."

As previously announced, the Company had 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 provided funding of up to $4 million toward eligible expenditures. The Company did receive $3.6 million in June 2026. The remaining $400,000 is a standard holdback and is still anticipated to be received this year.

Revenue for the three and six months ended June 30, 2026 was $16,211,481 and $25,507,562, respectively, compared to revenue of $13,653,148 and $24,663,863 for the three and six months ended June 30, 2025, representing a 19% and 3% increase, respectively. Revenue increased due to the expansion of the sales team for market growth, and the acquisitions of Truss-Worthy and Penn-Truss.

Gross profit for the three and six months ended June 30, 2026 was $2,829,127 and $3,102,302 compared to $2,325,939 and $4,066,534 for the six months ended June 30, 2025, respectively. Gross profits increased for the three months ended June 30, 2026 due to the increase in revenues. Gross profits decreased though for the six months ended June 30, 2026 due to the results from the first quarter of 2026 which were driven by the winter weather conditions and industry market conditions in Ontario and British Columbia. During the first three months of fiscal 2026, the Company carried some additional labour and other expenses as normal and additional costs due to the preparation for the new automation facility in Clinton, Ontario. Revenues increasing through the three months ending June 30, 2026 supported the increased costs carried through the first three months ending March 31, 2026 which is typical through the seasonal construction industry.
 

Non-IFRS measure normalized EBITDA for the three and six months ended June 30, 2026 was $1,731,568 and $1,207,024 with a normalized EBITDA margin of 11% and 5%, respectively. Normalized EBITDA for the three and six months ended June 30, 2025 was $1,100,515 and $1,724,587 with a normalized EBITDA margin of 8% and 7%, respectively. The three months ended June 30, 2026 increases were driven by increased revenues, consistent gross margins, and slightly reduced operating expenses, along with increased depreciation and income tax addbacks for EBITDA. For the six months ended June 30, 2026, the decreases are due to offsetting results from the first three months ending March 31, 2026 similar to gross profit.
 

SELECTED FINANCIAL RESULTS	Three Months Ended		Six Months Ended
	June 2026	June 2025	June 2026	June 2025
Revenues	$16,211,481	$13,653,148	$25,507,562	$24,663,863
Cost of Sales	13,382,354	11,327,209	22,405,260	20,597,329
Gross Profit	2,829,127	2,325,939	3,102,302	4,066,534
Gross Margin %	17 %	17 %	12 %	16 %
Operating Expenses	2,645,349	2,872,209	5,116,565	5,383,587
Operating Profit (Loss)	183,778	(546,270)	(2,014,263)	(1,317,053)
Net Loss After Adjustments and Taxes	(307,481)	(708,026)	(2,038,148)	(1,554,357)
Adjusted EBITDA	1,608,417	805,308	1,070,973	1,395,985
Adjusted EBITDA Margin %	10 %	6 %	4 %	6 %
Normalized EBITDA	1,731,568	1,100,515	1,207,024	1,724,587
Normalized EBITDA Margin %	11 %	8 %	5 %	7 %
Weighted Average Number of Shares, Basic	70,690,648	70,333,533	70,479,095	70,414,095
Adjusted EBITDA per Share ($ per share)	0.02	0.01	0.02	0.02
(Loss) Income per Share, Basic ($ per share)	(0.00)	(0.01)	(0.03)	(0.02)
(Loss) income per Share, Fully Diluted ($ per share)	(0.00)	(0.01)	(0.03)	(0.02)
Selected Financial Information as at:
			June 2026	Dec 2025
Total Assets			$87,862,801	$80,506,599
Total Non-Current Liabilities			25,659,824	21,729,670

Summary of Quarterly Results for 2026

2026 QUARTERLY RESULTS	Three Months Ended
	June 2026	March 2026
Revenues	$16,211,481	$9,296,081
Cost of Sales	13,382,354	9,022,906
Gross Profit	2,829,127	273,175
Gross Margin %	17 %	3 %
Operating Expenses	2,645,349	2,471,216
Operating Profit (Loss)	183,778	(2,198,041)
Net (loss) income After Adjustments and Taxes	(307,481)	(1,730,667)
EBITDA	1,551,934	(894,236)
EBITDA Margin %	10 %	-10 %
Adjusted EBITDA	1,608,417	(822,524)
Adjusted EBITDA Margin %	10 %	-9 %
Normalized EBITDA	1,731,568	(794,771)
Normalized EBITDA Margin %	11 %	-9 %

Outlook for 2026

AEP has received all equipment related to the first truss robotic facility in Clinton, ON after some shipping delays. The equipment has been installed and commissioning commenced in late July 2026. The Company anticipates delivering its first truss order from this facility in September 2026.  

The Company continues to report high quoting volumes from the beginning of 2025 and continuing in 2026. Up to the end of July 2026, quotes exceeded $176 million, compared to roughly $159 million and $125 million up to the end of July 2025 and 2024, respectively. Because quoting activity has been significantly higher in both 2025 and early 2026 than in previous years, order volumes have also been increasing. Up to the end of July 2026, orders totaled over $49 million, up from more than $33.7 million in the same period of 2025. However, while orders are being placed, the Company is noticing that there is more lead time on these orders than during a busier market and deliveries may be in subsequent quarters instead of within the same quarter as the order was received.

The Company is seeing typical seasonal recovery in the market for the summer and anticipates this continuing in the fall of 2026. The Company is cautiously optimistic that the HST relief on new housing in Ontario seems to have sparked some market recovery, but the Company anticipates signs of long-term recovery will become more evident through the winter and early 2027 during the typically slower construction season.

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. Additionally, the Company is assessing the benefits of adding loose lumber materials and wall panel installation to its offerings to customers. This strategy can help reduce the Company's exposure to recessionary pressures by increasing potential sales volume per order.

In addition to its organic growth strategy, the Company continues to evaluate acquisition opportunities across North America. Each potential acquisition is evaluated based on its geography, results, and growth potential.  

Conference Call

AEP will host a conference call to discuss the results today, August 25, 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: Tuesday, August 25, 2026
Time: 11:00am EST (8:00am PST)
Webinar Link: https://atlasaep.ca/81uhak1A
Meeting ID: 245 813 044 472 448
Passcode: gz25nv9P

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 and six months ended June 30, 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 and six months ended June 30, 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 and six months ended June 30, 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 and six months ended June 30, 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