Activate Celebrates Milestone 50th Location, Continuing Rapid Global Expansion
"Opening our 50th location is more than just a number–it's a testament to this team's incredible vision to reinvent immersive gaming and our players' passion for Activate," said Adam Schmidt, Co-Founder and CEO of Activate.
Since opening its flagship location in Winnipeg in 2017, Activate has rapidly expanded across North America - now operating in 18 states across the U.S. – and internationally, with locations in Dubai, London, and soon France, Germany, Norway, Denmark, Mexico and more. The company currently welcomes more than 3.9 million players globally, with plans to open 200 locations over the next decade.
Activate's immersive gameplay, fusing physical activity with cutting-edge technology offering players real-time brain and body challenges in digitally responsive game rooms like the viral Mega Grid., continues to set the brand apart in a crowded leisure market. This modern approach has fueled remarkable growth, earning Activate the top spot on The Globe and Mail's Top Growing Companies 2024 list with an impressive 1,105% growth rate over three years. Its latest opening in Pembroke Pines, Florida further underscores this momentum, following its recent recognition as the #1 Leisure and Entertainment brand on the Financial Times list of The Americas' Fastest Growing Companies 2025, based on a 209% compounded annual growth rate between 2020 and 2023.
For more details on Activate's dynamic gaming experience, visit playactivate.com or follow @activategames on Instagram and TikTok.
ABOUT ACTIVATE
Activate is the world's first active gaming experience where players #EnterTheGame. Activate offers a unique blend of physical activity and gaming that promotes a healthy lifestyle. Each Activate location provides fun and interactive rooms where players can work cooperatively or compete against each other while tracking their achievements. With the global headquarters located in Winnipeg, Canada, Activate has grown to 40 locations across Canada, the U.S., London, UK, and Dubai.
To join the active gaming movement, visit Activate and follow us on social media:
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17 minutes ago
- Cision Canada
ADENTRA Announces Strong Second Quarter 2025 Results
LANGLEY, BC, Aug. 6, 2025 /CNW/ - ADENTRA Inc. ("ADENTRA" or the "Company") today announced financial results for the three and six months ended June 30, 2025. ADENTRA is one of North America's largest distributors of architectural building products to the residential, repair and remodel, and commercial construction markets. We currently operate a network of 85 facilities in the United States and Canada. All amounts are shown in United States dollars ("US $" or "$"), unless otherwise noted. Financial Highlights (as compared to Q2 2024 unless otherwise noted) Total sales increased to $597.1 million (C$826.5 million), up $47.6 million, or 8.7%, from $549.5 million (C$751.9 million) Gross margin percentage increased slightly to 21.8%, from 21.7% Operating expenses decreased by $3.6 million, or 3.9% Basic earnings per share increased to $0.89 (C$1.23), from $0.74 (C$1.01) per share Adjusted basic earnings per share of $0.88 (C$1.22), compared to $1.03 (C$1.41) per share Adjusted EBITDA increased to $54.3 million (C$75.1 million), up 12.0% from $48.5 million (C$66.3 million) Cash flow provided by operating activities of $33.9 million, as compared to $23.8 million in the prior-year period Effectively deployed capital in Q2 2025, returning $2.7 million in cash to shareholders via dividends and $8.5 million via share repurchases Declared a dividend on August 6, 2025 of C$0.15 per share, to shareholders of record as at October 20, 2025, to be paid on October 31, 2025 "We delivered strong results in the second quarter, demonstrating the resilience of ADENTRA's business model in a challenging environment," said Rob Brown, President and CEO of ADENTRA. "Our positive results included second quarter sales of $597.1 million, Adjusted EBITDA of $54.3 million, and Adjusted earnings per share of $0.88, which we achieved against a backdrop of softer construction markets." "Our 8.7% year-over-year sales growth reflects the positive impact of our July 2024 acquisition of Woolf Distributing, backed by our success in maintaining a steady organic sales pace. Continued strong operational execution also resulted in a gross margin percentage of 21.8%, slightly bettering the 21.7% we achieved in the same period last year, and the 21.6% generated in Q1 2025." "Our second quarter performance translated into cash flow from operations of $33.9 million, which we used to reduce debt and return $11.2 million of capital to shareholders through dividends and opportunistic share repurchases. From March 17, 2025 to June 30, 2025, we repurchased 2% of our outstanding shares at an average price of C$27, providing significant accretion for our shareholders." "Moving into the second half of 2025, we anticipate strong cash generation driven by planned inventory reduction and cash flows from operations. Our capital allocation priorities will continue to focus on reducing leverage and further strengthening our balance sheet, positioning us to execute on acquisitions and our other key strategic priorities in 2026. We remain firmly committed to our full-cycle performance framework, which emphasizes disciplined execution, double-digit capital returns, and long-term sustainable earnings-per-share growth, " added Mr. Brown. Tariffs Country Tariffs As of August 6, 2025, we estimate 14% of our product mix will be subject to country-specific tariffs, at an average tariff rate of 16%. Product Tariffs The US Department of Commerce's ("Commerce") Section 232 (S232) investigation into the US national security implications of timber, lumber, and derivative product imports ("Wood Products") is ongoing. Initiated on March 10, 2025, Commerce has until December 5, 2025, to make a Wood Products tariff recommendation to the President, though this could happen sooner. Currently Wood Products are understood to be excluded from country-specific tariffs discussed above. If S232 tariffs are imposed on Wood Products this could affect up to an additional 20% of our product mix. Countervailing Duties (CVD) and Anti-Dumping (AD) In Q2 2025, Commerce completed its review of certain hardwood plywood products from Vietnam, which were alleged to be circumventing existing CVD and AD orders against Chinese hardwood plywood. The review's outcome was favorable for us, as it removed the circumventing designation and associated duties on products we had imported. Consequently, we expect a refund of $23.9 million in previously paid duties, now included in accounts receivable. Additionally, we recovered $9.7 million in operating expenses, net of costs, related to these duties. Also in the second quarter of 2025, Commerce initiated new CVD and AD investigations on hardwood and decorative plywood imports from China, Indonesia, and Vietnam into the US. The results of these investigations are uncertain, with final determinations expected as early as October 2025 for CVD and January 2026 for AD, though these dates may be extended. We estimate that 6% of our supply chain could be affected by these investigations. We do not anticipate that the outcome of this investigation will materially affect our supply chain or result in duty liabilities for the Company. We are well-prepared to manage tariff impacts. Our price pass-through model allows us to offset increased product costs, including those related to tariffs, by adjusting selling prices. This approach has helped us maintain consistent gross margins and generate additional gross profit during periods of rising product costs. Our global sourcing network spans over 30 countries, providing diverse product options if rates vary by country. As a key partner for our US vendors, which represents the majority of our sourcing, we also have a strong domestic supply if customers prefer US products over imported ones. In the event that tariff-related price increases reduce consumer demand, we can adjust inventories and preserve cash flow. During economic slowdowns, we release working capital and pay down debt. We believe that any short-term reduction in home building will only worsen the existing housing shortage in the US, ultimately boosting future demand for our products. Outlook While we recognize the strength of our second-quarter performance, we are approaching the near-term outlook with measured caution. Persistently high US mortgage rates and limited housing inventory continue to pose affordability hurdles for prospective buyers. Additionally, the intensifying trade tensions between the US and major global partners have heightened economic uncertainty and raised the risk of renewed inflationary pressures. Notably, our average daily sales in July are tracking approximately 4% below the Q2 2025 average. Despite our prudent short-term stance, we remain optimistic about the long-term trajectory of the residential construction sector. This confidence is underpinned by enduring structural undersupply, favorable demographic trends, and an aging housing stock. We continue to prioritize operational discipline and the consistent execution of our proven strategy, leveraging our extensive experience in navigating diverse economic cycles. Our broad product portfolio, national footprint, and strong supplier partnerships further enhance our ability to adapt and perform in a dynamic environment. Moving forward, we will continue to advance our strategic priorities within our full-cycle value creation framework. We are targeting double-digit returns and accretive growth through a combination of platform efficiency, organic growth initiatives, and tightly managed consolidation of our fragmented market. Q2 2025 Investor Call ADENTRA will hold an investor call on Thursday, August 7, 2025 at 8:00 am Pacific (11:00 am Eastern). Participants should dial 1-888-510-2154 or (437) 900-0527 (GTA) at least five minutes before the call begins. A replay will be available through August 14, 2025 by calling toll free 1-888-660-6345 or (289) 819-1450 (GTA), followed by passcode 22564 #. Summary of Results Three months Three months Six months Six months ended June 30 ended June 30 ended June 30 ended June 30 2025 2024 2025 2024 Total sales $ 597,133 $ 549,492 $ 1,139,638 $ 1,084,630 Sales in the US 551,596 504,633 1,052,795 997,103 Sales in Canada (CAD$) 63,078 61,388 122,360 118,930 Gross margin 130,090 119,218 247,067 237,452 Gross margin % 21.8 % 21.7 % 21.7 % 21.9 % Operating expenses (88,585) (92,219) (188,530) (186,054) Income from operations $ 41,505 $ 26,999 $ 58,537 $ 51,398 Add: Depreciation and amortization 21,290 17,965 41,755 36,294 Earnings before interest, taxes, depreciation and amortization ("EBITDA") $ 62,795 $ 44,964 $ 100,292 $ 87,692 EBITDA as a % of revenue 10.5 % 8.2 % 8.8 % 8.1 % Add (deduct): Depreciation and amortization (21,290) (17,965) (41,755) (36,294) Net finance expense (13,941) (10,418) (25,209) (21,496) Income tax (expense)/recovery (5,457) 435 (7,101) (2,215) Net income for the period $ 22,107 $ 17,016 $ 26,227 $ 27,687 Basic earnings per share $ 0.89 $ 0.74 $ 1.05 $ 1.22 Diluted earnings per share $ 0.88 $ 0.73 $ 1.04 $ 1.20 Average US dollar exchange rate for one Canadian dollar $ 0.722 $ 0.731 $ 0.710 $ 0.736 Analysis of Specific Items Affecting Comparability (in thousands of Canadian dollars) Three months Three months Six months Six months ended June 30 ended June 30 ended June 30 ended June 30 2025 2024 (1) 2025 2024 (1) Earnings before interest, taxes, depreciation and amortization ("EBITDA"), per table above $ 62,795 $ 44,964 $ 100,292 $ 87,692 LTIP expense 1,232 3,517 3,702 6,341 Trade duties, net recovery (9,732) — (9,732) — Adjusted EBITDA $ 54,295 $ 48,481 $ 94,262 $ 94,033 Adjusted EBITDA as a % of revenue 9.1 % 8.8 % 8.3 % 8.7 % Net income for the period, as reported $ 22,107 $ 17,016 $ 26,227 $ 27,687 Adjustments: LTIP expense 1,232 3,517 3,702 6,341 Trade duties net recovery (9,732) — (9,732) — Foreign exchange loss/(gain) 1,505 (250) 1,462 35 Amortization of acquired intangible assets 6,731 5,526 13,462 11,053 Tax impact of above adjustments 72 (2,330) (2,446) (4,619) Adjusted net income for the period $ 21,915 $ 23,479 $ 32,675 $ 40,497 Basic earnings per share, as reported $ 0.89 $ 0.74 $ 1.05 $ 1.22 Net impact of above items per share (0.01) 0.29 0.26 0.57 Adjusted basic earnings per share $ 0.88 $ 1.03 $ 1.31 $ 1.79 Diluted earnings per share, as reported $ 0.88 $ 0.73 $ 1.04 $ 1.20 Net impact of above items per share (0.01) 0.29 0.25 0.57 Adjusted diluted earnings per share $ 0.87 $ 1.02 $ 1.29 $ 1.77 (1) Prior year comparative figures have been adjusted to add back foreign exchange (gain) loss and LTIP tax deductibility to conform with current year presentation. Results from Operations - Three Months Ended June 30, 2025 For the three months ended June 30, 2025, total sales increased by $47.6 million to $597.1 million, from $549.5 million in Q2 2024. The 8.7% year-over-year sales increase was primarily driven by our acquired Woolf operations. Organic sales remained flat as compared to Q2 2024, with product price appreciation of 2.3% offset by lower volumes. The impact of foreign exchange fluctuations in the Canadian dollar were not significant this quarter. In our US operations, second quarter sales grew by $47.0 million, or 9.3%, to $551.6 million, from $504.6 million in the same period last year. This increase was driven by a $48.6 million contribution from the acquired Woolf business, partially offset by a $1.7 million decrease in organic sales. Our organic sales performance reflects product price appreciation of 1.9%, offset by lower volumes of 2.2%. In Canada, second quarter sales rose by C$1.7 million, or 2.8%, to C$63.1 million as compared to Q2 2024. The year-over-year improvement in Canadian sales was driven by a 3.6% increase in product prices, partially offset by a 0.8% decrease in sales volumes. Second quarter gross margin grew to $130.1 million, an increase of $10.9 million, or 9.1%, from the same period in 2024. The year-over-year improvement was primarily driven by sales growth related to the Woolf acquisition, and also reflects a slightly higher gross margin percentage of 21.8%, compared to 21.7% in Q2 2024. For the three months ended June 30, 2025, operating expenses decreased to $88.6 million, from $92.2 million in Q2 2024. This $3.6 million, or 3.9%, improvement was mainly driven by the net recovery of $9.7 million in trade duties (discussed further in Tariffs section above). This was partially offset by $5.5 million of additional operating expense related to the acquired Woolf business, together with a $0.6 million increase in organic operating expenses. For the three months ended June 30, 2025, depreciation and amortization increased to $21.3 million, from $18.0 million in Q2 2024. This $3.3 million increase reflects a $2.1 million rise in depreciation primarily related to leased premises, and a $1.2 million increase of amortization of acquired intangible assets due to the Woolf acquisition. Included in depreciation and amortization in the second quarter is $6.7 million related to acquired intangible assets, compared to $5.5 million in Q2 2024. For the three months ended June 30, 2025, net finance expense increased by $3.5 million to $13.9 million, from $10.4 million in the same period in 2024. The year-over-year change was primarily due to a $1.3 million increase in the accretion of lease obligations, mainly related to leased premises, together with a $1.8 million unrealized foreign exchange loss on intercompany loans denominated in foreign currencies. The remaining $0.4 million increase in net finance expense is largely due to higher interest costs associated with external debt financing. For the three months ended June 30, 2025, income tax expense was $5.5 million, representing an effective tax rate of approximately 19.8%, as compared to 2.6% in Q2 2024. The year-over-year increase in the effective tax rate is primarily due to a $4.3 million deferred tax asset recognized in Q2 2024 related to the anticipated utilization of operating loss carryforwards. In Q2 2025, our effective tax rate remains below the substantively enacted statutory rate of approximately 27.5%, primarily due to a true-up related to finalizing our 2024 Canadian tax returns. Second quarter Adjusted EBITDA grew to $54.3 million, from $48.5 million in Q2 2024. The $5.8 million, or 12.0%, improvement reflects the $10.9 million increase in gross margin and the $5.1 million increase in operating expenses (before changes in depreciation and amortization, net recovery of trade duties, and LTIP expense). Net income increased to $22.1 million (basic earnings per share of $0.89) in the second quarter of 2025, from $17.0 million (basic earnings per share of $0.74) in Q2 2024. The $5.1 million, or 29.9%, year-over-year improvement reflects the $17.8 million increase in EBITDA, which included a $9.7 million net recovery of trade duties, partially offset by the $3.3 million increase in depreciation and amortization, the $3.5 million increase in net finance expense, and the $5.9 million increase in income tax expense. Second quarter adjusted net income was $21.9 million, a decrease of 6.7% from $23.5 million in the same period in 2024. Despite higher operating income, excluding the net recovery of trade duties, adjusted net income declined driven by the higher interest and income tax expense as explained above. Adjusted basic earnings per share for Q2 2025 were $0.88, compared to $1.03 in Q2 2024. Results from Operations - Six Months Ended June 30, 2025 For the six months ended June 30, 2025, total sales increased to $1.14 billion, up $55.0 million or 5.1%, from $1.08 billion in the first half of 2024. This growth primarily reflects $80.5 million of acquisition-based revenue from the acquired Woolf business, representing a 7.4% sales increase. This was partially offset by a $22.3 million, or 2.1%, decline in organic sales which consisted of an increase of 0.9% related to product price appreciation and decrease of 2.9% related to lower sales volumes. Foreign exchange fluctuations in the Canadian dollar negatively impacted sales by an additional $3.2 million. During the first half of 2025, our US operations increased sales to $1.05 billion, from $1.00 billion in the same period last year. This 5.6% sales increase reflects the $80.5 million revenue contribution from the acquired Woolf operations, partially offset by a $24.8 million, or 2.5%, year-over-year decrease in organic sales. Included in the organic sales result is a decrease in sales volumes of 3.2% and product price appreciation of 0.7%. In Canada, sales grew to C$122.4 million in the first half of 2025, up C$3.4 million, or 2.9%, from the same period in 2024. The year-over-year increase primarily reflects higher product prices. Gross margin for the six months ended June 30, 2025 increased to $247.1 million, up $9.6 million, or 4.0%, from the same period in 2024. This improvement was primarily driven by the higher sales, partially offset by a slightly lower gross margin percentage of 21.7% compared to 21.9% in the first half of 2024. For the six months ended June 30, 2025, operating expenses totaled $188.5 million, compared to $186.1 million in the same period of 2024. The $2.5 million, or 1.3% increase, reflects $10.4 million of incremental operating expenses related to the Woolf acquisition, a $1.3 million increase in premise-related costs, and $1.8 million in higher depreciation, mainly related to leased premises. These increases were partially offset by a $9.7 million net recovery of trade duties (as discussed in Tariffs section above), with the remaining variance attributable to reductions in other expense categories. For the six months ended June 30, 2025, depreciation and amortization increased to $41.8 million, from $36.3 million in the same period in 2024. The $5.5 million period-over-period increase reflects $3.0 million in higher depreciation of leased premises, and $2.5 million attributable to the amortization of acquired intangible assets related to the acquisition of the Woolf business. Included in depreciation and amortization in the second half of the year is $13.5 million related to acquired intangible assets, compared to $11.1 million in the same period in 2024. For the six months ended June 30, 2025, net finance expense increased by $3.7 million to $25.2 million, from $21.5 million in the first half of 2024. This was primarily driven by a $2.1 million increase in the accretion of lease obligations, largely related to leased premises, and a $1.4 million unrealized foreign exchange loss on intercompany loans denominated in foreign currencies. The remaining $0.2 million increase mainly reflects higher interest costs on external debt financing. For the six months ended June 30, 2025, income tax expense was $7.1 million, up from $2.2 million in the first half of 2024. This equates to an effective tax rate 21.3% in the current period, up from 7.4% in the prior year. The lower effective tax rate in 2024 reflected the recognition of non-capital losses, as described in section 2.1. Our current year effective tax rate remains below the substantively enacted statutory rate, as further described in section 2.1. For the six months ended June 30, 2025, we generated Adjusted EBITDA of $94.3 million, a modest increase of $0.2 million or 0.2%, from $94.0 million in the same period in 2024. The year-over-year improvement was primarily driven by a $9.6 million increase in gross margin, partially offset by a $9.4 million increase in operating expenses (before changes in depreciation and amortization, LTIP expense and net recovery of trade duties). Net income for the six months ended June 30, 2025 was $26.2 million, a decrease of 5.3% from $27.7 million in the same period last year. Basic earnings per share declined to $1.05 from $1.22. The $1.5 million reduction in net income was primarily driven by a $5.5 million increase in depreciation and amortization expense, a $3.7 million increase in net finance expense, and a $4.9 million increase in income tax expense. These impacts were partially offset by the $12.6 million improvement in EBITDA. Adjusted net income in the first six months of 2025 was $32.7 million, a decrease of 19.3% from $40.5 million in the prior-year period. Adjusted basic earnings per share were $1.31, compared to $1.79 in the same period in 2024, a decrease of 26.8%. About ADENTRA ADENTRA is one of North America's largest distributors of architectural building products to the residential, repair and remodel, and commercial construction markets. The Company operates a network of 85 facilities in the United States and Canada. ADENTRA's common shares are listed on the Toronto Stock Exchange under the symbol ADEN. Non-GAAP and other Financial Measures In this news release, reference is made to the following non-GAAP financial measures: "Adjusted EBITDA" is EBITDA before long term incentive plan ("LTIP") expense and net recovery of trade duties. We believe Adjusted EBITDA is a useful supplemental measure for investors, and is used by management, for evaluating our ability to meet debt service requirements and fund organic and inorganic growth, and as an indicator of relative operating performance. "Adjusted net income" is net income before LTIP expense, net recovery of trade duties, foreign exchange gain (loss), and amortization of intangible assets acquired in connection with an acquisition. We believe adjusted net income is a useful supplemental measure for investors, and is used by management to assist in evaluating our profitability, our ability to meet debt service and capital expenditure requirements, our ability to generate cash flow from operations, and as an indicator of relative operating performance. "EBITDA" is earnings before interest, income taxes, depreciation and amortization, where interest is defined as net finance income (expense) as per the consolidated statement of comprehensive income. We believe EBITDA is a useful supplemental measure for investors, and is used by management to assist in evaluating our ability to meet debt service requirements and fund organic and inorganic growth, and as an indicator of relative operating performance. "Organic sales" consists of quantifying the change in total sales as either related to organic or acquisition-based, or the impact of foreign exchange. Total sales earned by acquired companies in the first 12 months following an acquisition is reported as acquisition-based growth and thereafter as organic sales. Organic sales excludes the impact of acquisitions and foreign exchange impact related to the translation of Canadian sales to US dollars. From time to time, we also quantify the impacts of certain unusual events to organic sales to provide useful information to investors to help better understand our financial results. "Working capital" is receivables and investments, inventories, and prepaid expenses, partially offset by short-term credit provided by suppliers in the form of accounts payable and accrued liabilities. We believe working capital is a useful indicator for investors, and is used by management to evaluate the oper In this news release, reference is also made to the following non-GAAP ratios: "adjusted basic earnings per share", "adjusted diluted earnings per share", and "Adjusted EBITDA margin". For a description of the composition of each non-GAAP ratio and how each non-GAAP ratio provides useful information to investors and is used by management, see "Non-GAAP and Other Financial Measures" in the Company's management's discussion and analysis for the quarter ended June 30, 2025 (which is incorporated by reference herein). Such non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. For a reconciliation between non-GAAP measures and non-GAAP ratios and the most directly comparable financial measure in our financial statements, please refer to the "Summary of Results". Forward-Looking Statements Certain statements in this press release contain forward-looking information within the meaning of applicable securities laws in Canada ("forward-looking information"). The words "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "will", "would" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Forward-looking information is included, but not limited to: Moving into the second half of 2025, we anticipate strong cash generation driven by planned inventory reduction and cash flows from operations; Our capital allocation priorities will continue to focus on reducing leverage and further strengthening our balance sheet, positioning us to execute on acquisitions and our other key strategic priorities in 2026; We remain firmly committed to our full-cycle performance framework, which emphasizes disciplined execution, double-digit capital returns, and long-term sustainable earnings-per-share growth; As of August 6, 2025, we estimate 14% of our product mix will be subject to country-specific tariffs, at an average tariff rate of 16%; The US Department of Commerce's ("Commerce") Section 232 (S232) investigation into the US national security implications of timber, lumber, and derivative product imports ("Wood Products") is ongoing; Initiated on March 10, 2025, Commerce has until December 5, 2025, to make a Wood Products tariff recommendation to the President, though this could happen sooner; Currently Wood Products are understood to be excluded from country-specific tariffs discussed above; If S232 tariffs are imposed on Wood Products this could affect up to an additional 20% of our product mix; Commerce initiated new CVD and AD investigations on hardwood and decorative plywood imports from China, Indonesia, and Vietnam into the US; The results of these investigations are uncertain, with final determinations expected as early as October 2025 for CVD and January 2026 for AD, though these dates may be extended; We estimate that 6% of our supply chain could be affected by these investigations; We do not anticipate that the outcome of this investigation will materially affect our supply chain or result in duty liabilities for the Company; We are well-prepared to manage tariff impact; Our price pass-through model allows us to offset increased product costs, including those related to tariffs, by adjusting selling prices; In the event that tariff-related price increases reduce consumer demand, we can adjust inventories and preserve cash flow; During economic slowdowns, we release working capital and pay down debt; We believe that any short-term reduction in home building will only worsen the existing housing shortage in the US, ultimately boosting future demand for our products; Persistently high US mortgage rates and limited housing inventory continue to pose affordability hurdles for prospective buyers; Additionally, the intensifying trade tensions between the US and major global partners have heightened economic uncertainty and raised the risk of renewed inflationary pressures; Notably, our average daily sales in July are tracking 4% below the Q2 2025 average; Despite our prudent short-term stance, we remain optimistic about the long-term trajectory of the residential construction sector; This confidence is underpinned by enduring structural undersupply, favorable demographic trends, and an aging housing stock; We are targeting double-digit returns and accretive growth through a combination of platform efficiency, organic growth initiatives, and tightly managed consolidation of our fragmented market. The forecasts and projections that make up the forward-looking information are based on assumptions which include, but are not limited to: there are no material exchange rate fluctuations between the Canadian and US dollar that affect our performance; the general state of the economy does not worsen; we do not lose any key personnel; there is no labor shortage across multiple geographic locations; there are no circumstances, of which we are aware that could lead to the Company incurring costs for environmental remediation; there are no decreases in the supply of, demand for, or market values of our products that harm our business; we do not incur material losses related to credit provided to our customers; our products are not subjected to negative trade outcomes; we are able to sustain our level of sales and earnings margins; we are able to grow our business long term and to manage our growth; we are able to integrate acquired businesses; there is no new competition in our markets that leads to reduced revenues and profitability; we can comply with existing regulations and will not become subject to more stringent regulations; no material product liability claims; importation of components or other innovative products does not increase and replace products manufactured in North America; our management information systems upon which we are dependent are not impaired; we are not adversely impacted by disruptive technologies; an outbreak or escalation of a contagious disease does not adversely affect our business; and, our insurance is sufficient to cover losses that may occur as a result of our operations. The forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. The factors which could cause results to differ from current expectations include, but are not limited to: exchange rate fluctuations between the Canadian and US dollar could affect our performance; tariff policies extending to regions not currently under discussion; our results are dependent upon the general state of the economy; the impacts of pandemics, further mutations thereof or other outbreaks of disease, could have significant impacts on our business; we depend on key personnel, the loss of which could harm our business; a labour shortage across multiple geographic locations could harm our business; decreases in the supply of, demand for, or market values of hardwood lumber or sheet goods could harm our business; we may incur losses related to credit provided to our customers; our products may be subject to negative trade outcomes; we may not be able to sustain our level of sales or earnings margins; we may be unable to grow our business long term or to manage any growth; we are unable to integrate acquired businesses; competition in our markets may lead to reduced revenues and profitability; we may fail to comply with existing regulations or become subject to more stringent regulations; product liability claims could affect our revenues, profitability and reputation; importation of components or other innovative products may increase, and replace products manufactured in North America; disruptive technologies could lead to reduced revenues or a change in our business model; we are dependent upon our management information systems; disruptive technologies could lead to reduced revenues or a change in our business model; our information systems are subject to cyber securities risks; our insurance may be insufficient to cover losses that may occur as a result of our operations; an outbreak or escalation of a contagious disease may adversely affect our business; our credit facility affects our liquidity, contains restrictions on our ability to borrow funds, and impose restrictions on distributions that can be made by us and certain of our subsidiaries; the market price of our Shares will fluctuate; there is a possibility of dilution of existing Shareholders; and, other risks described in our Annual Information Form, our Information Circular and in this press release. This press release contains information that may constitute a "financial outlook" within the meaning of applicable securities laws. The financial outlook has been approved by our management as of the date of this press release. The financial outlook is provided for the purpose of providing readers with an understanding of our anticipated financial performance. Readers are cautioned that the information contained in the financial outlook may not be appropriate for other purposes. All forward-looking information in this press release is qualified in its entirety by this cautionary statement and, except as may be required by law, we undertake no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date hereof. Third-Party Information Certain information contained in this news release includes market and industry data that has been obtained from or is based upon estimates derived from third-party sources, including industry publications, reports and websites. Although the data is believed to be reliable, we have not independently verified the accuracy, currency or completeness of any of the information from third-party sources referred to in this news release or ascertained from the underlying economic assumptions relied upon by such sources. We hereby disclaim any responsibility or liability whatsoever in respect of any third-party sources of market and industry data or information.
Cision Canada
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- Cision Canada
GDI Integrated Facility Services Inc. Releases its Financial Results for the Second Quarter Ended June 30, 2025 Français
Q2 2025 revenue of $610 million, a decrease of $29 million, or 5%, over Q2 2024. Q2 2025 Adjusted EBITDA* of $34 million, representing an Adjusted EBITDA* margin of 6%, compared to $34 million and 5% in Q2 2024. Q2 2025 net loss of $1 million or $0.04 per share compared with net income of $2 million or $0.07 per share for the second quarter of 2024. Adjusting for the net of tax effect of a $5 million unrealized foreign exchange loss during the quarter, net income would have been $3 million or $0.12 per share. LASALLE, QC, Aug. 6, 2025 /CNW/ - GDI Integrated Facility Services Inc. ("GDI" or the "Company") (TSX: GDI) is pleased to announce its financial results for the second quarter ended June 30, 2025. Financial Highlights For the second quarter of 2025: Revenue reached $610 million, a decrease of $29 million, or 5%, over the second quarter of 2024 mainly attributable to the organic decline of 4%. Adjusted EBITDA* amounted to $34 million, representing an Adjusted EBITDA* margin of 6% compared to $34 million and 5% in Q2 2024. Net loss was $1 million or $0.04 per share compared to $2 million or $0.07 per share in Q2 2024. During Q2 2025, the Company recorded a $5 million unrealized foreign exchange loss due to the revaluation of a U.S. dollar intercompany loan in our Canadian operations. The offsetting gain is recorded in Other comprehensive income through the currency conversion of our U.S. subsidiary, creating an accounting mismatch with no cash flow impact. Without this expense and considering the related income tax benefit of $1 million, net income would have been $3 million or $0.12 per share. For the second quarters of 2025 and 2024, the business segments performed as follows: Note: The 2024 results were recast to reflect i) the transfer of the Integrated Facility Services business from Corporate and Other to Technical Services since January 1, 2025; and ii) the allocation of corporate technology costs, moving some from the Corporate and Other segment to the operating Business Segments. For the six-month period ended June 30, 2025: Revenue reached $1.23 billion, a decrease of $57 million, or 4%, over the corresponding period of 2024, comprised of 5% organic decline and 1% decrease from acquisitions and disposals, partially offset by 2% growth attributable to the currency translation. Adjusted EBITDA* amounted to $67 million, an increase of $6 million, or 10%, over the corresponding period of 2024. Net income was $5 million or $0.22 per share compared to $2 million or $0.09 per share over the corresponding period of 2024. The increase is mainly due to higher operating income of $14 million mainly attributable to the increase in Adjusted EBITDA* and to the decrease in amortization and depreciation expense. Last year included additional amortization expense due to the significant reduction of an important customer contract. The increase in 2025 was partially offset by higher net finance expense of $11 million which includes a $5 million unrealized foreign exchange loss due to the revaluation of a U.S. dollar intercompany loan in our Canadian operations. For the first two quarters of 2025 and 2024, the business segments performed as follows: Note: The 2024 results were recast to reflect i) the transfer of the Integrated Facility Services business from Corporate and Other to Technical Services since January 1, 2025 and ii) the allocation of corporate technology costs, moving some from the Corporate and Other segment to the operating Business Segments Financial results for the second quarter 2025 GDI's Business Services Canada segment recorded $147 million in revenue while generating $10 million in Adjusted EBITDA *, representing an Adjusted EBITDA margin * of 7%. GDI's Business Services USA segment recorded revenue of $204 million and Adjusted EBITDA * of $14 million, representing an Adjusted EBITDA margin * of 7%. Business Services USA organic decline in Q2 reflects the paring down of low margin accounts from our Atalian acquisition which was carried out through the course of fiscal 2024 as well as the loss of the remaining 20% of the large client lost during Q1 fiscal 2024. In addition, revenue generated by one customer fluctuated based on the volume of recurring project work which was lower in the second quarter of 2025. The Technical Services segment recorded revenue of $252 million and Adjusted EBITDA * of $14 million, up by $2 million compared to Q2 2024, representing an Adjusted EBITDA margin * of 6% compared to 5% in Q2 2024, mainly attributable to higher margins in project revenues compared to previous year. GDI's Corporate and Other segment recorded revenue of $7 million and negative Adjusted EBITDA* of $4 million compared to $9 million and negative $3 million in Q2 2024, respectively. "I am relatively pleased with GDI's Q2 2025 performance," stated Claude Bigras, President & CEO of GDI. "Our Business Services Canada delivered results in-line with historic, with 1% organic growth and a slight decline in Adjusted EBITDA. We are experiencing a degree of softness in our Business Services Canada segment due to a higher levels of contract churn and margin pressure on existing accounts. These trends reflect broader challenges in the Canadian real estate sector, where higher vacancy rates and economic uncertainty from tariffs are weighing on customer operating budgets. In response, we are actively implementing strategic initiatives to align our cost structure, enhance client retention, and preserve margins in this evolving environment. GDI's Business Services USA segment delivered solid results with an Adjusted EBITDA margin of 7%, an increase over the prior year's quarter. As previously announced, the business recorded an organic revenue decline in Q2 reflecting the paring down of low margin accounts from our Atalian USA acquisition which was carried out through the course of fiscal 2024 as well as the loss of the remaining 20% of the business' largest client lost in Q1 fiscal 2024. The Business Services USA segment has secured several new contracts wins which are expected to be starting in Q3 and we expect this business to perform well for the remainder of the year. Our Technical Services business had a very good quarter compared to Q2 last year, generating $252 million in revenue and a 6% Adjusted EBITDA margin which represents a 17% increase in Adjusted EBITDA over Q2 2024. Our Ainsworth business is continuing to perform well. It is generating higher than historic profitability and the outlook remains positive," stated Mr. Bigras. "GDI's balance sheet management initiatives continue to deliver results with a slight decrease in long-term debt over Q1 2025 and stability in working capital levels. Our leverage ratio remains comfortably below three times Adjusted EBITDA, our balance sheet is strong, and we are well positioned to continue to execute on our growth through M&A strategy," concluded Mr. Bigras. _________________________________ * The terms "Adjusted EBITDA", "Adjusted EBITDA Margin", Long-term debt, net of cash, and net operating working capital do not have standardized definitions prescribed by International Financial Reporting Standards and therefore, may not be comparable to similar measures presented by other companies. "Adjusted EBITDA" is defined as operating income before depreciation and amortization, transaction, reorganization and other costs, share-based compensation and strategic information technology projects configuration and customization costs. The Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by revenues. For more details and for a reconciliation of that measure to the most directly comparable IFRS measure, consult the "Operating and Financial Results" section of the Company's Management Discussion & Analysis ("MD&A"). Long-term debt, net of cash, and net operating working capital details and calculation is descripted in the section "consolidated financial position" of the MD&A. ABOUT GDI GDI is a leading integrated commercial facility services provider which offers a range of services in Canada and the United States to owners and managers of a variety of facility types including office buildings, educational facilities, distribution centers, industrial facilities, healthcare establishments, stadiums and event venues, hotels, shopping centres, airports and other transportation facilities. GDI's commercial facility services capabilities include commercial janitorial and building maintenance, energy advisory and system optimization, the installation, maintenance and repair of HVAC-R, mechanical, electrical and building automation systems, as well as other complementary services such as janitorial products manufacturing and distribution. GDI's subordinate voting shares are listed on the Toronto Stock Exchange (TSX: GDI). Additional information on GDI can be found on its website at CAUTION CONCERNING FORWARD-LOOKING STATEMENTS Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward looking information may relate to GDI's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee"; "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding GDI's future operating results and economic performance, and its objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which GDI believes are reasonable as of the current date. While management considers these assumptions to be reasonable based on information currently available to the Company, they may prove to be incorrect. It is impossible for GDI to predict with certainty the impact that the current economic uncertainties may have on future results. Forward-looking information is also subject to certain factors, including risks and uncertainties (described in the "Risk Factors" section) that could cause actual results to differ materially from what GDI currently expects. Namely, these factors include risks pertaining to unsuccessful implementation of the business strategy, changes to business structure, inherent operating risks from acquisition activity, failure to integrate an acquired company, decline in commercial real estate occupancy levels, increase in costs which cannot be passed on to customers, labour shortages, disruption in information technology systems and execution issues with Strategic IT projects, increases in interest rates, exchange rate fluctuations, deterioration in economic conditions, Government Policies on International trade and Investment, including sanctions and actions in respect to global trade, tariffs, and trade agreement, increase in competition, influence of the principal shareholders, loss of key or long-term customers, public procurement laws and regulations, legal proceedings, reputational damage, labour disputes, disputes with franchisees, environmental, social and governance ("ESG") considerations, goodwill and long-lived assets impairment charges, tax matters, key employees, participation in multi-employer pension plans, legislation or other governmental action, cybersecurity, data confidentiality and data protection, and public perception of our environmental footprint, many of which are beyond the Company's control. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While management may elect to, the Company is under no obligation and does not undertake to update or alter this information at any particular time, except as may be required by law. June 30, 2025 unaudited condensed consolidated interim financial statements and accompanied Management & Discussion Analysis are filed on Three-months period ended June 30, 2025 Business Services Canada Business Services USA Technical Services Corporate and Other Total Recurring/contractual services 129 193 42 – 364 On-call services 10 11 69 – 90 Projects – – 141 – 141 Manufacturing and distribution – – – 10 10 Other revenues 5 – – – 5 Total external revenues 144 204 252 10 610 Inter-segment revenues 3 – – (3) ‒ Revenues 147 204 252 7 610 Income (loss) before income taxes 8 8 5 (23) (2) Net finance expense – – 2 10 12 Operating income (loss) 8 8 7 (13) 10 Depreciation and amortization 2 6 7 3 18 Transaction, reorganization, and other costs – – – 2 2 Share-based compensation (1) – – – 3 3 Strategic information technology projects configuration and customization costs – – – 1 1 Adjusted EBITDA 10 14 14 (4) 34 Total assets 251 362 525 100 1,238 Total liabilities 67 91 248 334 740 Additions to property, plant and equipment 3 8 2 – 13 Additions to intangible assets – – – 1 1 Goodwill recorded on business acquisitions – – 2 – 2 (1) Includes stock option, performance share unit and restricted share unit plans. GDI INTEGRATED FACILITY SERVICES INC. SEGMENTED INFORMATION (CONTINUED) (UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS) Three-months period ended June 30, 2024 Business Services Canada Business Services USA Technical Services Corporate and Other (3) Total Recurring/contractual services 127 200 36 ‒ 363 On-call services 10 21 69 ‒ 100 Projects ‒ ‒ 159 ‒ 159 Manufacturing and distribution ‒ ‒ ‒ 12 12 Other revenues 5 ‒ ‒ ‒ 5 Total external revenues 142 221 264 12 639 Inter-segment revenues 3 ‒ ‒ (3) ‒ Revenues 145 221 264 9 639 Income (loss) before income taxes (4) 8 8 1 (12) 5 Net finance expense ‒ 1 2 2 5 Operating income (loss) 8 9 3 (10) 10 Depreciation and amortization 3 5 9 2 19 Transaction, reorganization, and other costs ‒ ‒ ‒ 2 2 Share-based compensation (1) ‒ ‒ ‒ 2 2 Strategic information technology projects configuration and customization costs ‒ ‒ ‒ 1 1 Adjusted EBITDA 11 14 12 (3) 34 Total assets (2) 254 416 526 89 1,285 Total liabilities (2) 72 114 246 357 789 Additions to property, plant and equipment 1 5 8 2 16 Additions to intangible assets – 1 3 – 4 Goodwill recorded on business acquisitions – 7 2 – 9 (1) Includes stock option, performance share unit and restricted share unit plans. (2) As at December 31, 2024. (3) The 2024 figures were recast to reflect the January 1, 2025 reorganization change where facility management services now report into the Technical Serviced segment as opposed to Corporate and Other as published in 2024. (4) The 2024 figures were recast to reflect a change in the allocation of corporate technology costs, moving from the Corporate and Other segment to the operating segments. This change was implemented to provide a more meaningful view of segment profitability. GDI INTEGRATED FACILITY SERVICES INC. SEGMENTED INFORMATION (CONTINUED) (UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS) Six-months period ended June 30, 2025 Business Services Canada Business Services USA Technical Services Corporate and Other Total Recurring/contractual services 258 399 80 – 737 On-call services 18 22 133 – 173 Projects – – 285 – 285 Manufacturing and distribution – – – 19 19 Other revenues 12 – – – 12 Total external revenues 288 421 498 19 1,226 Inter-segment revenues 6 – – (6) ‒ Revenues 294 421 498 13 1,226 Income (loss) before income taxes 16 18 7 (34) 7 Net finance expense – 1 3 11 15 Operating income (loss) 16 19 10 (23) 22 Depreciation and amortization 5 9 16 6 36 Transaction, reorganization, and other costs – – – 3 3 Share-based compensation (1) – – – 5 5 Strategic information technology projects configuration and customization costs – – – 1 1 Adjusted EBITDA 21 28 26 (8) 67 Total assets 251 362 525 100 1,238 Total liabilities 67 91 248 334 740 Additions to property, plant and equipment 4 18 4 1 27 Additions to intangible assets – – – 1 1 Goodwill recorded on business acquisitions – – 2 – 2 (1) Includes stock option, performance share unit and restricted share unit plans. GDI INTEGRATED FACILITY SERVICES INC. SEGMENTED INFORMATION (CONTINUED) (UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS) Six-month period ended June 30, 2024 Business Services Canada Business Services USA Technical Services Corporate and Other (3) Total Recurring/contractual services 253 403 72 ‒ 728 On-call services 18 43 143 ‒ 204 Projects ‒ ‒ 309 ‒ 309 Manufacturing and distribution ‒ ‒ ‒ 29 29 Other revenues 13 ‒ ‒ ‒ 13 Total external revenues 284 446 524 29 1,283 Inter-segment revenues 6 ‒ ‒ (6) ‒ Revenues 290 446 524 23 1,283 Income (loss) before income taxes (4) 15 11 (2) (20) 4 Net finance expense ‒ 1 1 2 4 Operating income (loss) 15 12 (1) (18) 8 Depreciation and amortization 6 14 19 6 45 Transaction, reorganization, and other costs ‒ 1 ‒ 2 3 Share-based compensation (1) ‒ ‒ ‒ 4 4 Strategic information technology projects configuration and customization costs ‒ ‒ ‒ 1 1 Adjusted EBITDA 21 27 18 (5) 61 Total assets (2) 254 416 526 89 1,285 Total liabilities (2) 72 114 246 357 789 Additions to property, plant and equipment 3 6 16 3 28 Additions to intangible assets – 1 3 1 5 Goodwill recorded on business acquisitions – 10 2 – 12 (1) Includes stock option, performance share unit and restricted share unit plans. (2) As at December 31, 2024. (3) The 2024 figures were recast to reflect the January 1, 2025 reorganization change where facility management services now report into the Technical Services segment as opposed to Corporate and Other as published in 2024. (4) The 2024 figures were recast to reflect a change in the allocation of corporate technology costs, moving from the Corporate and Other segment to the operating segments. This change was implemented to provide a more meaningful view of segment profitability. GDI INTEGRATED FACILITY SERVICES INC. CONSOLIDATED FINANCIAL POSITION (UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS) June 30, December 31, (in millions of Canadian dollars) 2025 2024 Net operating working capital: Trade and other receivables and contract assets 529 565 Inventories 32 33 Prepaid expenses and other 22 16 Other financial assets ‒ 15 Trade and other payables (274) (306) Provisions (26) (32) Contract liabilities (35) (33) Net operating working capital 248 258 Long-term debt, including current portion, net of Cash (bank indebtedness): Cash, net of bank indebtedness 25 12 Long-term debt, including current portion (378) (383) Long-term debt, including current portion, net of cash (353) (371) Other financial position accounts: Property, plant and equipment 120 119 Intangible assets 104 115 Goodwill 370 378 Other long-term assets 22 20 Assets held for sale 6 6 Other long-term liabilities (6) (9) Net current tax (liabilities) assets (2) (5) Net deferred tax (liabilities) assets (11) (15) GDI INTEGRATED FACILITY SERVICES INC. SUPPLEMENTARY QUARTERLY FINANCIAL INFORMATION THREE-MONTH PERIODS (UNAUDITED) (IN MILLIONS OF CANADIAN DOLLARS) Period ended June March December September (in millions of Canadian dollars, except per share data) (1) 2025 2025 2024 2024 Revenue 610 616 634 640 Operating income 10 12 15 15 Depreciation and amortization 18 18 22 20 Transaction, reorganization and other costs 2 1 (2) 1 Share-based compensation 3 3 2 3 Strategic information technology projects configuration and customization costs 1 ‒ 1 ‒ Adjusted EBITDA 34 34 38 39 Net (loss) income for the period (1) 6 23 7 Earnings per share Basic (0.04) 0.26 1.00 0.28 Diluted (0.04) 0.26 0.99 0.28 Period ended June March December September (in millions of Canadian dollars, except per share data) (1) 2024 2024 2023 2023 Revenue 639 644 622 615 Operating (loss) income 10 (2) 9 16 Depreciation and amortization 19 26 22 19 Transaction, reorganization and other costs 2 1 2 ‒ Share-based compensation 2 2 2 2 Strategic information technology projects configuration and customization costs 1 1 2 2 Adjusted EBITDA 34 28 37 39 Net income for the period 2 ‒ 6 8 Earnings per share Basic 0.07 0.02 0.26 0.35 Diluted 0.07 0.02 0.25 0.35 (1) The differences between the quarters are mainly the results of business acquisitions, as well as seasonality in the Technical Services segment and also reflect the timing of certain projects. SOURCE GDI Integrated Facility Services Inc.
Cision Canada
an hour ago
- Cision Canada
FY26 Guidance
Group mine and milling outputs to lift, delivering improved free cash flow in FY26 PERTH, Western Australia, Aug. 7, 2025 /CNW/ - Westgold Resources Limited (ASX: WGX) (TSX: WGX) – Westgold or the Company) is pleased to present its FY26 Guidance. Highlights View PDF Production guidance of 345-385koz - at AISC of $2,600-$2,900/oz Non-sustaining capex guidance of $270M investing predominantly in Bluebird-South Junction and Great Fingall mines Exploration and resource definition guidance of $50M Multi - year outlook expected in September following release of FY25 Mineral Resource Estimate and Ore Reserve Westgold Managing Director and CEO Wayne Bramwell commented: "Westgold is now leveraging our expanded scale and continuing to optimise our largest mines and mills for grade and enhanced free cash flow in FY26. Consistency in delivery is key – driven by continued investment in drilling, improving operational efficiency and prudently allocating capital where it delivers the greatest return. This strategy is already bearing fruit with a $132 million treasury build in Q4 and FY25 closing on a record $364 million in cash, bullion and investments. Our team remains focussed on delivering enhanced shareholder returns through the delivery of safe and profitable ounces. With a robust balance sheet, full exposure to the gold price and a clear path to organic growth, Westgold is committed to becoming the leading Australian gold company." Westgold FY26 Guidance Group Production Within the FY26 production guidance of 345-385koz, Westgold forecasts 330-355koz being produced from Westgold assets and circa 15-30koz from the processing of purchased ores. Group production is back-end weighted to H2, FY26 due to the timing of mine ramp ups at Bluebird-South Junction, Great Fingall and from ore sourced from third parties. Murchison Fortnum Processing Hub Milled grade at the Fortnum Processing Hub is expected to lift across FY26, underpinned by ore from the Starlight underground mine. Mine performance is expected to remain consistent year-on-year, supported by high-grade ore from the Galaxy and Nightfall zones within the Starlight complex. Bluebird Processing Hub Milled grade at the Bluebird Processing Hub at Meekatharra is expected to lift across FY26 as run of mine stocks build and higher-grade ore sources displace lower grade stocks. Those opportunities include: Bluebird-South Junction mine - the establishing of additional work areas and introduction of paste fill in this mine will result in lower production rates in H1 FY26 3, with the asset expected to reach a steady-state run rate of 1-1.2Mtpa by the end of FY26. Great Fingall mine - first ore from higher grade virgin stopes at Great Fingall is expected in Q2 FY26, ramping up through FY26 with the asset reaching commercial production in FY27. Third party ore supply – from opportunities within trucking distance of Westgold processing hubs. __________________________________ 1 Westgold's FY26 production guidance assumes ~15,000 – 30,000 ounces of production from purchased third party ore. 2 Included in Westgold's AISC/oz guidance are indicative costs for third party purchased ore. 3 Refer to ASX announcement titled "June 2025 Quarterly Results" – 23 July 2025 Tuckabianna Processing Hub Milled grade at the Tuckabianna Processing Hub near Cue is expected to remain consistent across FY26 with increasing outputs from the lower grade Upper Cave at Big Bell, offsetting a planned reduction in mined output from the higher-grade Lower Cave. This shift in ore sourcing is anticipated to deliver a more favourable cost profile for several years, deferring the capital-intensive development of the Big Bell Deeps. Southern Goldfields Higginsville Processing Hub In the Southern Goldfields, Westgold continues to debottleneck and optimise the Higginsville Processing Hub and anticipates milled throughputs and grades to lift across FY26 as run of mine stocks build and greater volumes of higher-grade ore from Beta Hunt and Two Boys is processed. At Beta Hunt (the primary ore source for Higginsville), the completion of key infrastructure projects at Beta Hunt is expected to unlock higher productivity and support a ramp-up towards a 2Mtpa mining rate. AISC Westgold forecasts FY26 AISC between A$2,600 - A$2,900/oz. Included in Westgold's AISC/oz guidance are indicative costs for purchased ore. Non-Sustaining Capital Westgold's non-sustaining capital investment of $270M is predominantly at growth projects within the Murchison - specifically at Bluebird-South Junction ($81M) and Great Fingall ($97M). This investment is largely attributable to increased underground development at these two long life assets. At Fortnum, Westgold is investing $21M in upgrades to the primary ventilation and power infrastructure associated with the Starlight underground mine, and the next tailing storage facility (TSF). In the Southern Goldfields, Westgold is closing out capital projects relating to Beta Hunt mine infrastructure and investing in TSF expansions and processing plant debottlenecking opportunities at Higginsville ($62M). The FY26 non-sustaining capex estimated breakdown is shown below: Exploration Westgold plans to invest $50M in exploration and resource definition in FY26, with the expenditure split approximately evenly between the two functions. Westgold is targeting 100km in exploration drilling over the year, with expenditure evenly across both the Murchison and the Southern Goldfields packages. Resource definition and conversion drilling will primarily focus on Bluebird-South Junction and Beta Hunt. Westgold has 17 underground drill rigs operating across the package currently with 3 additional surface drill rigs provided by third parties. This announcement is authorised for release to the ASX by the Board. Compliance Statements Forward Looking Statements These materials prepared by Westgold Resources Limited (or the " Company") include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "intend", "believe", "forecast", "predict", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance, and achievements to differ materially from any future results, performance, or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the Company and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company's business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company's business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company's control. Although the Company attempts, and has attempted, to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. In addition, the Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors outlined in the "Risk Factors" section of the Company's continuous disclosure filings available on SEDAR+ or the ASX, including, in the Company's current annual report, half year report or most recent management discussion and analysis. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances.
