Mr. Tim Gu reports

UNISYNC CORP. REPORTS FISCAL 2025 RESULTS

Unisync Corp. has released its financial results for the 12 months ended Sept. 30, 2025, highlighted by a return to profitability, a second consecutive year of gross margin improvement and a growing base of contracted new business.

For fiscal 2025, Unisync posted $1.5-million in pretax income on $84.5-million in revenue, compared with a $6.6-million pretax loss the prior year. The company recorded net income of $300,000 (one cent per share) versus a net loss of $4.5-million (25 cents per share) in fiscal 2024. Net income included $500,000 in unrealized foreign exchange losses.

"We are pleased with the progress achieved in fiscal 2025," said Tim Gu, executive chairman of Unisync. "We delivered meaningful gross margin improvement, returned the business to profitability and strengthened our operating foundation. Together with the new business we have secured, these results provide a more stable base from which to continue improving performance."

Highlights

Fiscal full-year 2025:

• Net income before income taxes of $1.5-million, compared with a net loss before income taxes of $6.6-million in the prior year;
• Gross margin increased to 20.5 per cent from 13.4 per cent in fiscal 2024;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $9.3-million, a 46.2-per-cent improvement year over year;
• General and administrative expenses reduced by $1.6-million, or 11.4 per cent;
• Interest expense declined by $400,000 due to overall reduced borrowings;
• Approximately $10-million in annualized new business awarded during fiscal 2025 across telecommunications, quick-service restaurants and government customers.

Fiscal Q4 2025:

• Net loss before income taxes of $300,000, compared with a net loss before income taxes of $4.9-million in prior year;
• Gross margin increased to 21.4 per cent from 1.2 per cent;
• Adjusted EBITDA of $1.4-million, consistent with prior year;
• General and administrative expenses reduced by $200,000, or 6 per cent;
• Interest expense declined by $300,000 due to overall reduced borrowings.

Operational and financial review

Revenues for the 12 months ended Sept. 30, 2025, were $84.5-million, compared with $89.8-million in the prior year. Q4 2025 revenues were $16.7-million, compared with $20-million. The decrease was primarily attributable to lower volumes in airline accounts, reflecting non-recurring launch activity in the fourth quarter of fiscal 2024. The company reported a net loss of $400,000 in the fourth quarter of fiscal 2025, compared with a net loss of $3.3-million in the prior year.

Despite the lower revenue base, Unisync delivered an improvement in profitability. Gross margin increased from 13.4 per cent in fiscal 2024 to 20.5 per cent in fiscal 2025 and 1.2 per cent in Q4 2024 to 21.4 per cent in Q4 2025. The increase was driven by a stronger sales mix, lower offshore product costs, improved fill rates, a reduction in inventory writedowns and operational efficiencies resulting from consolidation and restructuring initiatives initiated in fiscal 2023 and completed in fiscal 2024.

New business and outlook

During fiscal 2025, Unisync secured approximately $1.7-million in annualized new business. Subsequent to Sept. 30, 2025, the company has been awarded an additional over $8-million in annualized new business, including contracts in the telecommunications, quick-service restaurant and government sectors. In aggregate, Unisync has now secured more than $10-million in annualized new business between fiscal 2025 and the period immediately following year-end.

Management of the Unisync Group Ltd. (UGL) segment continues to actively pursue a robust pipeline of material opportunities expected to come to market in both Canada and the United States during calendar 2026. With $26.7-million in firm contracts and options as at Sept. 30, 2025, the Peerless Garments segment is well positioned to maintain its current revenue and profitability levels in fiscal 2026.

More detailed information is contained in the company's consolidated financial statements for the fiscal year ended Sept. 30, 2025, and management discussion and analysis dated Dec. 9, 2025, which may be accessed on SEDAR+.

About Unisync Corp.

Unisync operates through two business units: Unisync Group (UGL) with operations throughout Canada and the United States and 92-per-cent-owned Peerless Garments LP, 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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