Ms. Kim Marks reports

REKO REPORTS RESULTS FOR SECOND QUARTER OF FISCAL 2026

Reko International Group Inc. has released the results for its second quarter ended Jan. 31, 2026.

Second quarter highlights:

• Sales declined $600,000 or 5.8 per cent over the prior year;
• Quarterly net income of $377 improved by $64 or 20.4 per cent, compared with prior year;
• Earnings per share were seven cents, compared with earnings per share of five cents a year ago;
• Capital deployed during the six-month period ended Jan. 31, 2026, included a $2.7-million mortgage repayment, $2.2-milllion in growth related capital expenditures and a $1.1-million dividend to shareholders.

The following dollar amounts are in thousands, except for per-share data.

Consolidated sales for the quarter ended Jan. 31, 2026, were $10,165, compared with $10,786 in the same quarter last year, a decrease of $621 or 5.8 per cent. This change reflects lower volumes in certain areas of the business and the timing of project activity, as a higher proportion of projects were in earlier stages of completion during the quarter, resulting in lower revenue being recognized when compared with the prior year.

Gross profit of $1,583 declined by $71 or 4.3 per cent compared with the prior year. The impact of lower sales volumes was largely offset by a favourable project mix, disciplined cost management, and a continuing focus on productivity and throughput improvements. Cost initiatives implemented in the prior year contributed $280 in labour savings by better aligning fixed labour costs with sales levels.

Net earnings for the quarter ended Jan. 31, 2026, were $377 or seven cents per share, compared with $313 or five cents per share in the same quarter last year. Included in current quarter earnings is a three-cent-per-share benefit related to the rerecognition of certain deferred tax assets and a three-cent-per-share recovery of current income taxes. In the prior year, earnings included an eight-cent-per-share benefit from the initial recognition of certain deferred tax assets, as well as a charge related to an accounts receivable balance that did not recur in the current period. Excluding these tax items and the prior-year receivable charge, comparable earnings were eight cents per share in the current quarter, compared with five cents per share in the same quarter last year.

"Macroeconomic conditions continue to present headwinds; however, our focus remains on what we can control and on actions that strengthen the business over time," stated Diane Reko, chief executive officer. "We will continue to deliver the high-quality engineered products and solutions our customers rely on, backed by deep technical expertise and disciplined execution. At the same time, we are driving efficiencies and managing controllable costs to build a stronger, more resilient organization. During the quarter, we returned capital to shareholders through a dividend payment, reflecting the strength of our balance sheet and confidence in the business."

During the quarter, the company purchased and subsequently cancelled 1,400 shares under its normal course issuer bid, which expired on Jan. 8, 2026. No shares were purchased under the renewed normal course issuer bid announced on Jan. 6, 2026.

About Reko International Group Inc.

Reko International is a diversified, technology-driven manufacturing company located in Southwestern Ontario, just minutes from the United States border. With expertise in robotic automation equipment and precision machining services, Reko is a go-to supplier for companies in the power generation, automotive, aerospace, rail, mining, off-site construction, infrastructure and capital equipment industries. Reko strives to be a pillar and protector of sustainable North American manufacturing and production.