Atlas Engineered Products Ltd. (AEP) reported second-quarter 2026 revenue of CAD 16.2 million, exceeding the CAD 15.6 million consensus by CAD 580,000, or 3.71%. The Vancouver-based manufacturer posted earnings per share of CAD 0.00, missing the CAD 0.005 estimate by a full CAD 0.005.
Gross profit for the quarter reached CAD 2.8 million, lifting gross margins to 17% from 3% in Q1 2026, a 1,400 basis-point improvement. Normalized EBITDA totaled CAD 1.7 million, with margins expanding to 11% from -9% in the prior quarter, a 2,000 basis-point increase. Year-to-date revenue stood at CAD 25.5 million, while YTD gross profit and normalized EBITDA were CAD 3.1 million and CAD 1.2 million, respectively.
Quoting activity climbed to more than CAD 176 million through July 31, 2026, up from roughly CAD 159 million a year earlier and CAD 125 million two years prior. Orders booked reached over CAD 49 million year-to-date, compared with more than CAD 33.7 million at the same point in 2025.
Shares of AEP fell 7.25% to CAD 0.64 after the release, leaving the stock 14.9% above its 52-week low of CAD 0.56 and 26.4% below its 52-week high of CAD 0.87.
Management highlighted progress at the company’s first robotic truss manufacturing facility in Clinton, Ontario, where equipment installation and commissioning were completed in late July. First truss orders from the automated line are expected to begin in September 2026, with the facility designed to produce 5,000 to 6,000 board feet per shift using about three workers, compared with seven to eight on a traditional setup. The company currently delivers four to five complete project packages weekly, including roof trusses, floor trusses, wall panels, engineered wood products and, in some regions, installation materials.
Hadi Abassi, president, CEO and founder, said the quarter reflected the team’s resilience, with revenue and profitability improving sequentially and year-over-year. He noted construction demand in core regions had “completely bottomed out” and was recovering independently, with government support providing a gradual tailwind. “Big daddy is not going to take care of it,” Abassi said. “We will make it happen.”
Melissa MacRae, chief financial officer, attributed the rise in normalized EBITDA to higher revenue, stable margins and modestly reduced operating expenses.
