SHERWOOD PARK, AB, Aug. 14, 2025 /CNW/ - (TSXV: VTX) - Vertex Resource Group Ltd. ("Vertex" or the "Company") reports its financial and operational results for the second quarter ended June 30, 2025. 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, 2025, which are available on SEDAR+ at www.sedarplus.ca.

Vertex operates within a dynamic North American landscape, marked by trade fluctuations and tariff uncertainties that have created challenges for several of the industries we operate in. Throughout the quarter, extensive forest fires and evacuations affected the execution of maintenance projects. Nevertheless, Vertex has demonstrated strategic resilience, as Environmental Consulting exceeded expectations and helped offset the impact on sectors within Environmental Services that are more susceptible to global volatility.

Key financial results for the three and six months June 30, 2025, and 2024 are as follows:

 
HIGHLIGHTS 
                                      Three Months ended    Six Months ended 
                                      June 30,              June 30, 
(in thousands of Canadian Dollars)         2025       2024      2025      2024 
Gross revenue                            54,160     57,159   110,662   116,990 
Less flow through subcontractor 
 costs                                    3,930        460     9,310     1,782 
Net revenue                              50,230     56,699   101,352   115,208 
Profit margin                            12,225     16,521    22,942    29,867 
 Profit margin %                           24 %       29 %      23 %      26 % 
Adjusted EBITDA (1)                       6,371     10,047    11,592    16,947 
 Adjusted EBITDA %                         13 %       18 %      11 %      15 % 
Free cash flow (1)                        1,258      1,742     2,787     2,179 
Adjusted EBITDA per share, basic and 
 diluted (1)                               0.06       0.09      0.10      0.15 
Earnings per share, basic and 
 diluted                                 (0.03)       0.00    (0.05)    (0.01) 
 
 
(1) See "Non-IFRS Financial Measures" 
 

HIGHLIGHTS FOR THE THREE MONTHS ENDED JUNE 30, 2025

   -- Environmental Consulting net revenue increased by 13% compared to 2024. 
 
   -- Environmental Consulting adjusted EBITDA(1) increased by 57% compared to 
      2024. 
 
   -- G&A expenses were reduced by 10% compared to Q2 2024. 
 
   -- Finance costs were reduced by 28% year-over-year due to reduced debt 
      levels. 
 
   -- Reduced loans and borrowings and lease liabilities by $2.9 million during 
      the quarter. 

HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2025

   -- Environmental Consulting net revenue increased by 5% compared to H1 2024. 
 
   -- Environmental Consulting adjusted EBITDA(1) increased by 37% compared to 
      2024. 
 
   -- G&A expenses were reduced by 12% compared to H1 2024. 
 
   -- Finance costs were reduced by 23% year-over-year due to reduced debt 
      levels. 
 
   -- Reduced loans and borrowings and lease liabilities by $5.9 million during 
      H1 2025. 

OUTLOOK

The first half of 2025 has presented macroeconomic challenges that continue to pressure commodity prices, capital investment, and broader market sentiment. These factors have contributed to increased customer uncertainty, resulting in deferred investment decisions, subdued activity levels across key regions, and a shift in focus toward cash flow preservation and operational efficiency. While these factors have impacted Vertex, we remain resilient with a focused view of the evolving landscape.

We remain committed to core objectives and have proactively adjusted our execution strategy to navigate current conditions. Cost management remains a top priority, and we are actively pursuing strategic adjustments to enhance our efficiency and strengthen our corporate framework. By reducing capital expenditures for the remainder of 2025, we are preserving liquidity and maintaining the flexibility needed to respond to emerging opportunities while continuing to reduce debt levels.

When market conditions stabilize, Vertex is well-positioned to capitalize on new opportunities and deliver long-term value. Our cautious optimism reflects both the realities of the current environment and our confidence in the company's ability to thrive through disciplined execution and strategic agility.

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) "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.

C) "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.

D) "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, 
                                  2025      2024       2025     2024 
Net (loss) income for 
 the period                    (3,254)       563    (5,627)    (808) 
Add: 
 Depreciation and 
  amortization                   5,824     6,398     11,881   12,296 
 Finance costs                   2,065     2,853      4,313    5,588 
 Impairment                      2,707         -      2,707        - 
 Share-based 
  compensation                      17        60         35      119 
 Income tax (recovery) 
  expense                        (988)       173    (1,717)    (248) 
Adjusted EBITDA                  6,371    10,047     11,592   16,947 
 
 
FREE CASH FLOW              Three months ended    Six months ended 
                            June 30,              June 30, 
                                 2025       2024      2025      2024 
Cash flows from 
 operating activities           6,131     10,805    10,905    20,081 
Changes in non-cash 
 operating working capital 
 items                             55      (860)       670   (3,216) 
Maintenance capex             (3,227)    (6,092)   (5,213)  (10,093) 
Cash interest                 (1,404)    (2,125)   (3,105)   (4,133) 
Depreciation of right of 
 use assets - real 
 property                       (690)    (1,001)   (1,678)   (1,903) 
Proceeds from disposal of 
 property and equipment           393      1,015     1,208     1,443 
Free cash flow                  1,258      1,742     2,787     2,179 
 
 

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