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 to prior years;
Continued difficult market conditions in Ontario & BC, better market conditions in Prairies and Martimes where affordability is better.
Hadi Abassi, President, CEO & Founder of AEP, 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 February 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 $4,000,000 toward eligible expenditures incurred from the agreement date to March 31, 2026. The Company needed to spend $4,000,000 from February 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 to revenue of $11,010,715 for the three months ended March 31, 2025, representing a 16% 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 to 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 to 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 December 31, 2025 was $273,175 compared to $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 to the three months ended March 31, 2025 due to the preparation for the new automation facility in Clinton, Ontario. Additionally, the Company had some additional maintenance requirements this period compared to last period to prepare for the busier remainder of the fiscal year.
Non-IFRS measure normalized EBITDA for the three months ended December 31, 2025 was ($794,771), compared to $615,758 for the three months ended March 31, 2025. Normalized EBITDA for three months ended March 31, 2026 decreased compared to 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.Â
SELECTED FINANCIAL RESULTS
Three Months Ended
March 2026
March 2025
