To view full press release click FyQ3 2025

Third Quarter Highlights:

• Sales increase of $742 or 7% over the prior year
• Gross profit improvement of $1.3M in third quarter and $1.8M year-to-date
• EPS of ($0.06) unfavourably impacted by ($0.16) per share due to restructuring costs
• Continued strong balance sheet with working capital improvement of $3.5M over prior year

Consolidated sales for the quarter ended April 30, 2025, increased by 7.7%, or $742, compared to the same period last year. Sales in certain areas of the business are influenced by the number of active projects, the value of awards, and the timing of project milestones, all of which can vary significantly by job, sector, and customer. Year-to-date sales are $31,372, representing an 11.0% decline compared to the prior year, reflecting reduced project volumes in the automotive sector and continued economic uncertainty, including tariff-related delays in project awards.

Gross profit increased to 17.1% of sales, compared to 4.4% in the prior-year quarter, driven by improved execution on fixed-price contracts and a more selective go-to-market strategy. A lower volume of projects and their stage of completion also contributed to reduced direct project costs, including materials and subcontracting. In addition, the Company continues to manage fixed labour costs through various measures to better align with current sales levels.

Net loss for the quarter ended April 30, 2025, was ($352), or ($0.06) per share, compared to a net loss of ($849), or ($0.15) per share, in the same quarter of the prior year. Results for the quarter include a net unfavorable impact of ($0.16) per share from non-operating items comprised of restructuring costs of ($0.16) per share, a write-down of assets totaling ($0.05) per share and a gain of $0.05 per share related to net insurance proceeds. In the same period last year, non-operating items resulted in a net expense of $0.04 per share.

“In response to continued economic headwinds, including political uncertainty and potential tariff impacts in our key U.S. markets, we undertook a strategic restructuring to align our cost base with current conditions,” stated Diane Reko, CEO. “While we delivered improved sales and earnings compared to the same period last year, stabilization is still underway. We are focused on strengthening performance and executing our strategy to position the Company for sustained long-term growth.”

During the quarter, the Company purchased and subsequently cancelled 5,700 shares under the normal course issuer bid that was announced on January 6, 2025 at a net cost of $ 21. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Reko International Group Inc.

 Reko International Group Inc. (TSX-V:REKO) is a diversified, technology-driven manufacturing company located in Southwestern Ontario, just minutes from the U.S. border. With expertise in robotic automation equipment and precision machining services, Reko is a “go-to” supplier for companies in the automotive, aerospace, rail, mining, power generation, offsite construction, infrastructure and capital equipment industries. Reko strives to be a pillar and protector of sustainable North American manufacturing and production. For more information, contact Kim Marks, Chief Financial Officer at (519) 727-3287.