Canada's Reko Q3 Sales Rise on Stronger Project Activity

Reko's Fiscal Q3 Sales Rise 29%

Canada-based manufacturing firm Reko reported a 29% year-over-year increase in fiscal Q3 sales, driven by stronger project activity, improved volumes, and more projects reaching later stages of completion.

Adjusted EPS Increases

The company's adjusted EPS rose 18% year-over-year to $0.13 in fiscal Q3. Additionally, 1,900 shares were repurchased and cancelled under a normal course issuer bid.

Outlook and Challenges

Reko noted that geopolitical and economic uncertainty continues to create market challenges. The company remains focused on operational execution and strengthening customer relationships.

Result Drivers

Project Activity: Higher sales were driven by stronger project activity, improved volumes, and more projects reaching later stages of completion.

Cost Management: Selling and administrative expenses decreased due to the absence of prior year restructuring and settlement costs, and ongoing cost management initiatives.

Gross Margin Pressure: Gross margin declined due to project mix with higher material content and increased labour costs.