Image source: © 2025 Krish Capital Pty.Ltd

Highlights

  • Q3 sales reach CAD 405.7 million, supported by acquisitions and market expansion
  • Adjusted EBITDA rises to CAD 68.1 million, reflecting operational performance gains
  • Announces share buyback program and CAD 0.175 quarterly dividend for shareholders 

TerraVest Industries Inc (TSX:TVK) manufactures home heating products, propane and natural gas transport vehicles, storage vessels, energy processing equipment, and fiberglass tanks. Its operations are organized into three segments: Fuel Containment, Processing Equipment, and Service. The Fuel Containment segment produces LPG trailers, delivery trucks, storage tanks, and related products, while the Processing Equipment segment fabricates machinery for oil and gas, agriculture, transportation, and mining. The company operates in Canada and the United States.

The company reported third-quarter 2025 sales of CAD 405.7 million compared to CAD 238.1 million in the same period last year, representing a 70.4% increase. The rise in sales was attributed to recent acquisitions, expanded product offerings, and broader market reach. Adjusted EBITDA for Q3 2025 was CAD 68.1 million, up 38.8% from CAD 49.1 million in Q3 2024. The growth was supported by operational performance and contributions from acquisitions, which helped counterbalance softness in the base business.

Net income for the quarter came in at CAD 13.3 million, compared to CAD 14.4 million a year earlier, marking a 7.5% decline. The decrease was linked to higher depreciation, financing costs, and foreign exchange losses, despite gains from acquisitions. The company continued to return value to shareholders, with dividends paid totalling CAD 3.4 million, an increase of 25.3% over CAD 2.7 million in the prior year.

Business Update
In recent time, TerraVest has reinforced its focus on shareholder returns through both capital allocation measures and cash distributions. On August 20, 2025, the company announced a Normal Course Issuer Bid to repurchase up to 1.56 million shares, representing about 10% of its public float. The buyback is intended to reduce the share count and support earnings per share accretion, reflecting management’s view of long-term value creation.

Earlier, on August 14, 2025, TerraVest declared a quarterly dividend of CAD 0.175 per share, scheduled for payment on October 10, 2025. The dividend underscores the company’s commitment to distributing cash to shareholders while maintaining a balanced payout ratio, consistent with its steady cash generation profile.

Outlook
TVK provided a decent outlook for the remainder of the fiscal year. Management expects continued contributions from recent acquisitions and is focused on driving synergies between the newly acquired and existing businesses. While North American tariffs have introduced some near-term demand softness, the company noted that its domestic-centered portfolio limits overall exposure to these pressures. Ongoing investments in manufacturing efficiency and the expansion of product lines are expected to support performance. In addition, the strengthened credit facility provides flexibility to sustain growth and pursue further strategic acquisitions over the course of the year.

Top 10 Shareholders

The top 10 shareholders collectively own about 51.44% of the company’s shares. The largest stakes are held by Charles Pellerin at approximately 15.92% and Fidelity Investments Canada ULC at around 10.76%.

Stock Information

As of 26 September 2025, TVK closed at CAD 138.64. Over the past month, the stock has declined 3.35%, while it is down 17.87% over the last three months. Year-to-date, TVK has gained 24.01%, and over the past year, it has surged 45.45%. The stock is currently trading 21.51% below its 52-week high of CAD 176.64 and 46.74% above its 52-week low of CAD 94.48.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels Is 26 September 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined

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Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.