Mr. Tim Gu reports

UNISYNC REPORTS Q3 FISCAL 2025 OPERATING RESULTS SHOWING CONTINUED IMPROVEMENT IN PROFITABILITY

Unisync Corp. had strong operating results for the three months ended June 30, 2025, highlighted by continued profitability, significant gross margin gains and disciplined cost management.

For the quarter, Unisync delivered net income before tax of $1.8-million (10 cents per share) and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $3.5-million (18 cents per share) on revenues of $21.9-million. This marks a substantial improvement from the prior-year net loss before tax of $1.2-million and adjusted EBITDA of $1.1-million.

Key highlights:

• Revenue growth: consolidated revenues of $21.9-million, up from $21.2-million in Q3 (third quarter) FY (fiscal year) 2024;
• UGL (Unisync Group Ltd.) segment strength: UGL revenues rose by $600,000, driven by higher airline account volumes, pushing gross profit in the segment from $2.3-million to $5.4-million;
• Margin expansion: excluding unrealized FX (foreign exchange) gains, segment margins surged to 23.5 per cent from 12.6 per cent a year ago, reflecting a stronger sales mix, lower offshore product costs and operational efficiencies from the 2023 consolidation;
• Cost discipline: general and administrative expenses reduced to $3.2-million, down $100,000 from last year;
• Lower financing costs: interest expense declined by $200,000 to $800,000 due to reduced borrowings and a weaker U.S. dollar.

Peerless Garments LP revenues held steady at $3.2-million, contributing stable profitability.

Excluding unrealized foreign exchange gains of $1.0-million, net income before tax was $800,000 and adjusted EBITDA was $2.5 million -- both a strong turnaround from the loss position last year.

"Our Q3 results reflect the ongoing transformation of our business -- with sharper execution, stronger margins and disciplined cost control," said Tim Gu, executive chairman of Unisync. "We're building sustainable profitability while positioning the company for future growth."

Business outlook

During the three months ended June 30, 2025, the UGL segment continued to benefit from positive contract pricing adjustments and relocating offshore production from a number of factories with higher labour costs and/or who were import duty subject, to those that offer lower labour costs and/or duty-free status. These initiatives have yielded improved margins and are expected to continue to positively impact future margins for UGL as these reduced input costs get reflected in the weighted average cost of inventory. The company also continues to aggressively pursue opportunities to reduce its facility costs to further improve operating margins.

While the recent upward momentum in the value of the Canadian dollar resulted in unrealized foreign exchange gains and a recovery from the first half of the fiscal year, the company is still facing a lack of visibility on the outcome of the trade war with the United States, and its ultimate effect on the relative value of the Canadian dollar and its clients' business activities, especially in the airline sector.

UGL segment management continues to actively pursue several material business opportunities that are coming to market in both the Canadian and U.S. marketplace during the 2025 calendar year. With $28.9-million in firm contracts and options on hand as at June 30, 2025, the Peerless business segment is positioned to maintain its current level of revenues and profitability in fiscal 2025.

More detailed information is contained in the company's consolidated financial statements for the quarter ended June 30, 2025, and the management's discussion and analysis dated Aug. 11, 2025, which may be accessed on SEDAR+.

About Unisync Corp.

Unisync operates through two business units: Unisync Group, with operations throughout Canada and the U.S., and 92-per-cent-owned Peerless Garments, a domestic manufacturing operation based in Winnipeg, Man. UGL is a leading customer-focused provider of corporate apparel, serving many leading Canadian and American iconic brands. Peerless specializes in the production and distribution of highly technical protective garments, military operational clothing and accessories for a broad spectrum of federal, provincial and municipal government departments and agencies.

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