Mr. Hadi Abassi reports

ATLAS ENGINEERED PRODUCTS REPORTS FIRST QUARTER 2026 FINANCIAL AND OPERATING RESULTS

Atlas Engineered Products Ltd. has released its financial and operating results for the three months ended March 31, 2026. All amounts are presented in Canadian dollars.

Q1 financial and operating highlights

• Government grant: AEP entered into a non-repayable contribution agreement for up to $4-million;
• Investment into sales and management for the new automation facility;
• Difficult winter weather conditions in Q1 compared with prior years;
• Continued difficult market conditions in Ontario and British Columbia, better market conditions in Prairies and Martimes where affordability is better.

Hadi Abassi, president, chief executive officer and founder of Atlas Engineered, stated: "The first quarter of 2026 was challenging, with difficult market conditions in Ontario and British Columbia and more severe winter weather across much of Canada than in recent years. Our team worked hard through these conditions while continuing to prepare for a stronger remainder of the year. We made important progress on our first automation facility, advanced our sales and design capabilities, and continued to build our order book. While near-term conditions remain competitive, we believe our scale, automation strategy and growing national footprint position us well to gain market share as construction activity increases."

On Feb. 2, 2026, the company entered into a non-repayable contribution agreement with the Government of Canada under the Investments in the Forest Industry Transformation (IFIT) program in support of the company's robotics manufacturing plant project. The agreement provides funding of up to $4-million toward eligible expenditures incurred from the agreement date to March 31, 2026. The company needed to spend $4-million from Feb. 2, 2026, to March 31, 2026, in order to be eligible to receive the funding, which the company did increase payment schedules to equipment suppliers to meet the eligible spending requirements for the grant.

Revenue for the three months ended March 31, 2026, was $9,296,081 compared with revenue of $11,010,715 for the three months ended March 31, 2025, representing a 16-per-cent decrease, respectively. Revenue decreased due to the industry market conditions, especially in Ontario, and the more significant winter weather conditions across most of Canada compared with recent years. Additionally, the company had two significant winter projects for the three months ended March 31, 2025, which increased revenues in that quarter compared with the current period. The company has numerous large projects on order for this year, but none were scheduled for delivery in the first quarter of 2026.

Gross profit for the three months ended Dec. 31, 2025, was $273,175 compared with $1,740,595 for the three months ended March 31, 2025. Gross profits decreased mainly due to decreased revenues driven by the winter weather conditions and industry market conditions in Ontario and British Columbia. The company regularly analyses the benefits of revenues and gross margins in order to determine whether to reduce margins in order to generate more revenues and increase market share. Additionally, increased cost of sales impacted the profitability of the company. The company carried some additional labour in the three months ended March 31, 2026, compared with the three months ended March 31, 2025, due to the preparation for the new automation facility in Clinton, Ont. Additionally, the company had some additional maintenance requirements this period compared with last period to prepare for the busier remainder of the fiscal year.

Non-IFRS (international financial reporting standards) measure normalized EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months ended Dec. 31, 2025, was ($794,771), compared with $615,758 for the three months ended March 31, 2025. Normalized EBITDA for three months ended March 31, 2026, decreased compared with the three months ended March 31, 2025, decreased due to decreased revenues from market conditions driving lower pricing in the industry and more severe winter weather plus increased cost of sales, specifically labour that the company needed through winter to support the busier construction season and the new automation facility.

Outlook for 2026

Atlas Engineered is getting very close to completion of the first truss robotic facility in Clinton, Ont. The building is anticipated to be completed in the second fiscal quarter and the equipment has been shipped and is anticipated to be operational at the beginning of July, 2026. There was a slight delay of two to three weeks due to the shipping process which is experience impacts from the war in Iran. Additionally, the company has hired two new sales team members and a designer, two of them with extensive truss, wall panel and construction industry experience and connections.

The company continues to report high quoting volumes from the beginning of 2025. In the first quarter of 2026, quotes exceeded $80-million. Because quoting activity has been significantly higher in both 2025 and early 2026 than in previous years, order volumes have also been increasing. During the first three months of 2026, orders totalled over $21-million, up from more than $11-million in the same period of 2025. However, shipping during this period was challenging and revenues were impacted, as much of Canada experienced more severe winter weather compared with prior years.

Atlas Engineered continues to drive organic growth by expanding its focus on wall panel manufacturing and offering customers complete project packages that include roof and floor trusses, wall panels, and engineered wood products. This strategy can help reduce the company's exposure to recessionary pressures by increasing potential sales volume per order. Although industry demand is largely influenced by macroeconomic and political factors beyond the company's control, Atlas Engineered intends to use its scale, agility and strong balance sheet to continue gaining market share.

In addition to its organic growth strategy, the company continues to evaluate acquisition opportunities across North America. With industry EBITDA at a cyclical low, the return potential on these opportunities remains attractive. Atlas Engineered is reviewing additional opportunities for 2026 and beyond to expand its geographic reach, manufacturing capabilities and industry expertise. The company also continues to maintain a strong pipeline of attractive deals as the industry has normalized following the elevated lumber prices and demand seen during the COVID-19 pandemic.

Conference call

Atlas Engineered will host a conference call to discuss the results today, April 30, 2026, at 11 a.m. ET (8 a.m. PT). The call will be hosted by Hadi Abassi, chief executive officer and president, founder, and Melissa MacRae, chief financial officer. Details to join this conference call are below.

Date:  Thursday, April 30, 2026

Time:  11 a.m. ET (8 a.m. PT)

Meeting ID:  295 204 030 827 026

Pass code:  aJ66fL98

About Atlas Engineered Products Ltd.

Atlas Engineered is a growth company that is acquiring and operating profitable, well-established operations in Canada's truss and engineered products industry. The company has a well-defined and disciplined acquisition and operating growth strategy enabling it to scale aggressively and apply new technologies, giving the company a unique opportunity to consolidate a fragmented industry of independent operators.

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