Sherwood Park, AB, August 19, 2026 /CNW/ -- (TSXV: VTX) - Vertex Resource Group Ltd. ("Vertex" or the "Company") reports its financial and operational results for the second quarter ended June 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 June 30, 2026, which are available on SEDAR+ at www.sedarplus.ca.
During the first half of 2026, Vertex delivered a significant improvement in profitability, with Adjusted EBITDA(1) increasing year-over-year and profit margins expanding across the business. These results were driven by operational efficiencies, disciplined cost management, and strong performance in both the Environmental Consulting and Environmental Services segments.
Key financial results for the three and six months June 30, 2026, and 2025 are as follows:
HIGHLIGHTS
Three months ended Six months ended
June 30, June 30,
(in thousands of Canadian Dollars) 2026 2025 2026 2025
Gross revenue 53,592 54,160 110,734 110,662
Less flow through subcontractor
costs 2,361 3,930 10,398 9,310
Net revenue 51,231 50,230 100,336 101,352
Profit margin 14,570 12,225 25,688 22,942
Profit margin % 28 % 24 % 26 % 23 %
Adjusted EBITDA (1) 9,159 6,371 15,073 11,592
Adjusted EBITDA % 18 % 13 % 15 % 11 %
Free cash flow (1) 4,635 1,258 7,094 2,787
Adjusted EBITDA per share, basic and
diluted (1) 0.08 0.06 0.13 0.10
Earnings per share, basic and
diluted 0.01 (0.03) (0.00) (0.05)
(1) See "Non-IFRS Financial Measures"
HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2026
-- Net revenue increased $1.0 million over prior period while G&A expenses
decreased 7.6%.
-- Profit margin improved to 28.4% of net revenue, up from 24.3% in 2025.
-- Adjusted EBITDA(1) increased by $2.8 million, or 43.8%, compared to 2025,
with Adjusted EBITDA(1) growth in both the Environmental Consulting and
Environmental Services segments.
-- Returned to profitability with net income of $1.0 million, representing a
year-over-year improvement of $4.3 million.
-- Free cash flow(1) increased to $4.6 million from $1.3 million in Q2 2025.
HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2026
-- Environmental Consulting net revenue increased by 7.8% compared to H1
2025.
-- G&A expenses were reduced by 6.5% compared to H1 2025.
-- Adjusted EBITDA(1) increased by $3.5 million, or 30.0%, compared to 2025.
-- Finance costs were reduced by 9.3% year-over-year due to reduced debt
levels.
-- Free cash flow(1) increased by $4.3 million from H1 2025.
OUTLOOK
Vertex enters the second half of the year with positive momentum, supported by improved profitability, stronger operating margins, and continued customer requirements. The pricing actions taken across the Company's service lines and the operational consolidation completed during 2025 are now reflected in Vertex's cost structure, and Management expects the resulting margin improvement to be sustained through the balance of 2026.
Demand is expected to remain firm across both operating segments. Environmental Consulting activity continues to be supported by client programs of growing scope and complexity, while Environmental Services activity tracks customer production, maintenance and regulatory requirements. Maintenance work deferred during the first half, as producers prioritized continued production, is expected to be completed in future periods.
Vertex believes its service offerings are well aligned with several long-term investment themes currently underway in Canada, including LNG development on the West Coast, power generation, growing mining activity, utility infrastructure expansion, and ongoing environmental compliance requirements. Management expects these projects to support demand for our service offerings across both operating segments over the coming years.
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.
1. "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.
2. "Free cash flow" is a non-IFRS financial measure. The most directly
comparable GAAP measure for free cash flow is cash flow from operating
activities. A summary of the reconciliation of cash flow from operating
activities to free cash flow is set forth in the table below. Management
uses the term "free cash flow" for its own performance measure and to
provide shareholders and potential investors with a measurement of the
Company's efficiency and its ability to generate the cash necessary to
fund its future growth expenditures, to repay debt and provide
shareholder returns.
3. "Adjusted Working Capital" is a non-IFRS financial measure which is
calculated by reducing current liablities by the current portion of loans
and borrowings, lease liablities and other liabilities. Adjusted working
capital is used by Vertex to monitor its capital structure, liquidity,
and it's ability to fund current operations.
4. "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, free cash flow and adjusted working capital are provided in the following tables.
ADJUSTED EBITDA Three months ended Six months ended
June 30, June 30,
2026 2025 2026 2025
Net (loss) income for
the period 1,038 (3,254) (410) (5,627)
Add:
Depreciation and
amortization 5,801 5,824 11,661 11,881
Finance costs 1,963 2,065 3,910 4,313
Share-based
compensation 38 17 38 35
Impairment - 2,707 - 2,707
Income tax (recovery)
expense 319 (988) (126) (1,717)
Adjusted EBITDA 9,159 6,371 15,073 11,592
FREE CASH FLOW Three months ended Six months ended
June 30, June 30,
2026 2025 2026 2025
Cash flows from
operating activities 4,059 6,132 12,449 10,905
Changes in non-cash
operating working capital
items 4,155 55 1,755 670
Maintenance capex (2,152) (3,228) (3,670) (5,213)
Cash interest (1,319) (1,404) (2,693) (3,105)
Depreciation of right of
use assets - real
property (848) (690) (1,679) (1,678)
Proceeds from disposal of
property and equipment 740 393 932 1,208
Free cash flow 4,635 1,258 7,094 2,787
ADJUSTED WORKING CAPITAL June 30, December 31,
2026 2025
Current assets 57,287 58,539
Current liabilities, less 50,707 58,997
Current portion of loans and borrowings (8,268) (10,403)
Current portion of lease liabilities (6,967) (8,838)
Current liabilities (excluding current
portion of
loans
and borrowings, lease liabilities, and
other liabilities) 35,472 39,756
Adjusted working capital 21,815 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; the Company's ability to grow profitably; sufficiency of working capital; and with respect to Vertex's ability to meet evolving customer demands.
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
-- 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 parties, and the combined 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.
/CONTACT:
Copyright CNW Group 2026
(END) Dow Jones Newswires
Sherwood Park, AB, August 19, 2026 /CNW/ -- (TSXV: VTX) - Vertex Resource Group Ltd. ("Vertex" or the "Company") reports its financial and operational results for the second quarter ended June 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 June 30, 2026, which are available on SEDAR+ at www.sedarplus.ca.
During the first half of 2026, Vertex delivered a significant improvement in profitability, with Adjusted EBITDA(1) increasing year-over-year and profit margins expanding across the business. These results were driven by operational efficiencies, disciplined cost management, and strong performance in both the Environmental Consulting and Environmental Services segments.
Key financial results for the three and six months June 30, 2026, and 2025 are as follows:
HIGHLIGHTS
Three months ended Six months ended
June 30, June 30,
(in thousands of Canadian Dollars) 2026 2025 2026 2025
Gross revenue 53,592 54,160 110,734 110,662
Less flow through subcontractor
costs 2,361 3,930 10,398 9,310
Net revenue 51,231 50,230 100,336 101,352
Profit margin 14,570 12,225 25,688 22,942
Profit margin % 28 % 24 % 26 % 23 %
Adjusted EBITDA (1) 9,159 6,371 15,073 11,592
Adjusted EBITDA % 18 % 13 % 15 % 11 %
Free cash flow (1) 4,635 1,258 7,094 2,787
Adjusted EBITDA per share, basic and
diluted (1) 0.08 0.06 0.13 0.10
Earnings per share, basic and
diluted 0.01 (0.03) (0.00) (0.05)
(1) See "Non-IFRS Financial Measures"
HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2026
-- Net revenue increased $1.0 million over prior period while G&A expenses
decreased 7.6%.
-- Profit margin improved to 28.4% of net revenue, up from 24.3% in 2025.
-- Adjusted EBITDA(1) increased by $2.8 million, or 43.8%, compared to 2025,
with Adjusted EBITDA(1) growth in both the Environmental Consulting and
Environmental Services segments.
-- Returned to profitability with net income of $1.0 million, representing a
year-over-year improvement of $4.3 million.
-- Free cash flow(1) increased to $4.6 million from $1.3 million in Q2 2025.
HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2026
-- Environmental Consulting net revenue increased by 7.8% compared to H1
2025.
-- G&A expenses were reduced by 6.5% compared to H1 2025.
-- Adjusted EBITDA(1) increased by $3.5 million, or 30.0%, compared to 2025.
-- Finance costs were reduced by 9.3% year-over-year due to reduced debt
levels.
-- Free cash flow(1) increased by $4.3 million from H1 2025.
OUTLOOK
Vertex enters the second half of the year with positive momentum, supported by improved profitability, stronger operating margins, and continued customer requirements. The pricing actions taken across the Company's service lines and the operational consolidation completed during 2025 are now reflected in Vertex's cost structure, and Management expects the resulting margin improvement to be sustained through the balance of 2026.
Demand is expected to remain firm across both operating segments. Environmental Consulting activity continues to be supported by client programs of growing scope and complexity, while Environmental Services activity tracks customer production, maintenance and regulatory requirements. Maintenance work deferred during the first half, as producers prioritized continued production, is expected to be completed in future periods.
Vertex believes its service offerings are well aligned with several long-term investment themes currently underway in Canada, including LNG development on the West Coast, power generation, growing mining activity, utility infrastructure expansion, and ongoing environmental compliance requirements. Management expects these projects to support demand for our service offerings across both operating segments over the coming years.
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.
1. "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.
2. "Free cash flow" is a non-IFRS financial measure. The most directly
comparable GAAP measure for free cash flow is cash flow from operating
activities. A summary of the reconciliation of cash flow from operating
activities to free cash flow is set forth in the table below. Management
uses the term "free cash flow" for its own performance measure and to
provide shareholders and potential investors with a measurement of the
Company's efficiency and its ability to generate the cash necessary to
fund its future growth expenditures, to repay debt and provide
shareholder returns.
3. "Adjusted Working Capital" is a non-IFRS financial measure which is
calculated by reducing current liablities by the current portion of loans
and borrowings, lease liablities and other liabilities. Adjusted working
capital is used by Vertex to monitor its capital structure, liquidity,
and it's ability to fund current operations.
4. "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, free cash flow and adjusted working capital are provided in the following tables.
ADJUSTED EBITDA Three months ended Six months ended
June 30, June 30,
2026 2025 2026 2025
Net (loss) income for
the period 1,038 (3,254) (410) (5,627)
Add:
Depreciation and
amortization 5,801 5,824 11,661 11,881
Finance costs 1,963 2,065 3,910 4,313
Share-based
compensation 38 17 38 35
Impairment - 2,707 - 2,707
Income tax (recovery)
expense 319 (988) (126) (1,717)
Adjusted EBITDA 9,159 6,371 15,073 11,592
FREE CASH FLOW Three months ended Six months ended
June 30, June 30,
2026 2025 2026 2025
Cash flows from
operating activities 4,059 6,132 12,449 10,905
Changes in non-cash
operating working capital
items 4,155 55 1,755 670
Maintenance capex (2,152) (3,228) (3,670) (5,213)
Cash interest (1,319) (1,404) (2,693) (3,105)
Depreciation of right of
use assets - real
property (848) (690) (1,679) (1,678)
Proceeds from disposal of
property and equipment 740 393 932 1,208
Free cash flow 4,635 1,258 7,094 2,787
ADJUSTED WORKING CAPITAL June 30, December 31,
2026 2025
Current assets 57,287 58,539
Current liabilities, less 50,707 58,997
Current portion of loans and borrowings (8,268) (10,403)
Current portion of lease liabilities (6,967) (8,838)
Current liabilities (excluding current
portion of
loans
and borrowings, lease liabilities, and
other liabilities) 35,472 39,756
Adjusted working capital 21,815 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; the Company's ability to grow profitably; sufficiency of working capital; and with respect to Vertex's ability to meet evolving customer demands.
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
-- 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 parties, and the combined 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.
/CONTACT:
Copyright CNW Group 2026