STRACON Group Holding Inc. Announces Preliminary Financial Results for the Three- and Six-Month Periods Ended June 30, 2026

Toronto, Ontario--(Newsfile Corp. - August 6, 2026) - STRACON Group Holding Inc. (TSX: STG) (BVL: STG) ("STRACON" or the "Company") today announced certain preliminary unaudited financial information for the three- and six-month periods ended June 30, 2026. All amounts are expressed in thousands of United States dollars unless otherwise indicated.

The financial information presented in this press release is preliminary, unaudited and subject to change. It has been prepared by, and is the responsibility of, management, and has not been audited, reviewed or subject to any other procedures by the Company's auditor. The Company's quarter-end financial close and review procedures have not been completed, and actual results for the periods presented may differ materially from the preliminary information set out below. The Company expects to file its condensed interim consolidated financial statements and related management's discussion and analysis for the three- and six-month periods ended June 30, 2026 on or before August 15, 2026.

Second Quarter and First Half 2026 Highlights

Revenue from contracts with customers of $208.3 million, an increase of 6.5% from $195.6 million for the comparable period in 2025

Profit of $3.4 million, compared with a loss of $1.5 million for the comparable period in 2025

EBITDA (1) of $20.9 million, an increase of 29.5% from $16.1 million for the comparable period in 2025

Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin) (1) of $23.9 million, an increase of 30.1% from $18.3 million for the comparable period in 2025

For the six-month period ended June 30, 2026, revenue from contracts with customers of $375.5 million (up 3.9%), profit of $6.7 million (compared with a loss of $3.6 million), EBITDA (1) of $41.0 million (up 48.7%) and Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin) (1) of $45.1 million (up 47.7%)

Net Debt (1) of $214.2 million as at June 30, 2026, or $163.5 million excluding the Pérez Caldera project

Backlog (2) of $2,028.9 million as at June 30, 2026

Summary of Preliminary Financial Information

Selected Balance Sheet and Other Information

Reconciliation of Profit (loss) to EBITDA

Reconciliation of Total Segment EBITDA to EBITDA

Reconciliation of Total Segment Revenue to Revenue from Contracts with Customers

Reconciliation of EBITDA to Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin)

Reconciliation of Net Debt (excluding Pérez Caldera project)

Notes: (1) Non-IFRS financial measure, total of segments measure or supplementary financial measure, as applicable, other than revenue from contracts with customers and profit, which are measures reported under IFRS. These measures do not have a standardized meaning under IFRS. See "Non-IFRS and Other Financial Measures" below. (2) Other Debt represents the aggregate of lease liabilities and loans and borrowings as presented in the consolidated statement of financial position as at the reporting date excluding the Holdco Loan and Pérez Caldera Loan. (3) Cash and cash equivalents and restricted cash (excluding Pérez Caldera project) represent the balance of cash and cash equivalents and restricted cash of US$137,022 thousand, excluding the cash balance of STRACON Pérez Caldera SpA amounting to US$38,882 thousand. (4) This amount represents off-balance-sheet amounts. In particular, it represents the value of signed and enforceable customer contracts for work not yet completed and not yet recognized as revenue, including under fixed-term contracts and project-specific scopes of work. For clarity, the amount does not include letters of intent, expressions of interest, proposals, indicative estimates, or any other non-binding arrangements. (5) Other Costs and Eliminations EBITDA: In second quarter 2026, the amount is derived from Note 15 and Other Costs and Eliminations operating loss by $(9,335) thousand (without depreciation and amortization of $368 thousand) (for the same period of the previous year the operating profit was a loss of $(2,301) thousand without depreciation and amortization of $(140) thousand). During the second quarter 2026, eliminations include the reversal of the intercompany gain related to Pérez Caldera project by $9,610. For the six-month period ended June 30, 2026, the amount is derived from Note 15 and Other Costs and Eliminations operating loss by $(13,353) thousand without depreciation and amortization by $720 thousand (for the same period of the previous year the operating profit was a loss of $(5,529) thousand without depreciation and amortization of $178 thousand). During the six-month period ended June 30, 2026, eliminations include the reversal of the intercompany gain related to Pérez Caldera project in the amount of $10,222. Segment revenue reflects revenue reported at the operating segment level and therefore includes intercompany transactions that are eliminated in the STRACON Interim Financial Statements. (6) New service strategic project: Represents the impact of a specific mining remediation contract that belongs to a new industrial service line initiated in 2023. Consists of revenues ($71 thousand and $4,017 thousand for the six-month period ended June 30, 2026 and 2025, respectively; and zero revenues on the second quarter of those years) and cost of sales without the effect of depreciation and amortization ($2 thousand and $3,723 thousand for the six-month period ended June 30, 2026 and 2025 and zero cost on the second quarter 2026 and $205 thousand in the second quarter 2025) directly attributable to the contract, based on accounting records. Excluded from Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera) and Adjusted Revenue (excluding intersegment EPC Contract Pérez Caldera) because the contract was in an early operational phase with a cost and margin structure not representative of the segment's established service mix; management uses this adjustment to assess the ongoing performance of its core operations while the mining remediation service line remains in a development phase. (7) Select project in the Fleet Solutions segment: Represents the impact of a legacy contract within the Fleet Solutions segment that was inherited through the AMECO Chile SpA acquisition and concluded in Q4 2025. Consists of revenues ($56 thousand and $7,640 thousand in the six-month periods ended 2026 and 2025 and zero and $3,874 thousand for the second quarter of 2026 and 2025) and cost of sales without the effect of depreciation and amortization ($795 thousand and $9,432 thousand for the six-month period ended June 30, 2026 and 2025; and $127 thousand and $5,223 thousand for the second quarter 2026 and 2025) directly attributable to the contract, based on accounting records. Excluded from Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera) and Adjusted Revenue (excluding intersegment EPC Contract Pérez Caldera) because the contract is not part of ongoing operations and its financial profile is not indicative of the segment's current performance; management uses this adjustment to assess the Fleet Solutions segment's performance on the basis of its active contract portfolio. (8) Impairment of property, plant and equipment: Represents non-cash impairment charges recognized in accordance with IAS 36, as disclosed in Note 15 of the STRACON Interim Financial Statements. Consists of impairment losses recorded on specific assets during the period. Excluded from Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera) because this non-cash charge does not reflect the cash-generating capacity or operating performance of the underlying assets; management uses this adjustment to present a measure of performance that is comparable across periods. (9) Other management adjustments: Represents specific items recorded in the period. For the three-month period ended June 30, 2026 and 2025, corresponds to i) professional financial, tax and legal consulting fees of $819 and $675 thousand ($1,375 and $1,491 for the six-month period ended June 30, 2026 and 2025), respectively, related to corporate reorganization activities, IT systems transformation, and professional services related to the Offering preparation and TSX and LSX listing support; ii) net loss on sale of inventories made during the second quarter 2026 for $1,532 thousand, and iii) severance expenses related to corporate reorganization activities for $524 thousand.

Non-IFRS and Other Financial Measures

This press release makes reference to certain non-IFRS financial measures, total of segments measures and supplementary financial measures, including EBITDA, Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin), Total Segment EBITDA, Total Segment Revenue, Total Financial Debt (excluding Pérez Caldera project), Cash and cash equivalents and restricted cash (excluding Pérez Caldera project), Net Debt, Net Debt (excluding Pérez Caldera project) and Backlog. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. These measures are provided as additional information to complement IFRS measures by providing further understanding of the Company's results of operations and financial position from management's perspective, and should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS.

EBITDA and Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin) are non-IFRS financial measures. EBITDA is calculated as profit before net finance costs, income taxes and depreciation and amortization. Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin) is calculated as EBITDA adjusted for the items set out in the reconciliation above, which management believes are not indicative of underlying operating performance, and is presented excluding the intersegment margin on the Pérez Caldera EPC Contract, which is eliminated on consolidation. Total Segment EBITDA and Total Segment Revenue are total of segments measures, each being the total of the corresponding measure of the Company's reportable segments before other costs and eliminations. Net Debt and Net Debt (excluding Pérez Caldera project) are non-IFRS financial measures. Net Debt is calculated as total debt less cash, and Net Debt (excluding Pérez Caldera project) is calculated as total debt excluding the Pérez Caldera Loan, less cash excluding cash attributable to the Pérez Caldera project. Backlog is a supplementary financial measure described in note (2) to the tables above. Quantitative reconciliations of each non-IFRS financial measure and total of segments measure to the most directly comparable IFRS measure are set out in the tables above.

About STRACON Group

STRACON is an engineering-led mining infrastructure and industrial solutions platform focused on the origination, development, construction and operation of mission-critical assets for the mining sector across the Americas. Headquartered in Toronto, Canada, STRACON provides end-to-end solutions across the mining lifecycle, including engineering and technology solutions, industrial services, equipment and support services, and infrastructure development and ownership. The Company partners with leading global mining operators to design, build, operate and maintain critical infrastructure that supports safe, efficient and sustainable mining operations.

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable Canadian securities laws, including the preliminary financial information for the three- and six-month periods ended June 30, 2026 and statements regarding the expected timing of the filing of the Company's condensed interim consolidated financial statements and related management's discussion and analysis. The preliminary financial information presented in this press release reflects management's current estimates, is based on the assumption that the Company's quarter-end financial close and review procedures will be completed without material adjustments, and may be revised as a result of, among other things, further review by management and the completion of such procedures. Forward-looking information is based on management's current expectations and assumptions and is subject to known and unknown risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, without limitation, the risk that final results for the periods presented differ materially from the preliminary financial information set out in this press release, project delays, the ability to convert backlog into revenue and earnings, commodity price fluctuations, foreign exchange volatility, competition, regulatory and permitting risk, financing risk, and other risks described in the Company's public disclosure filings available on SEDAR+ at www.sedarplus.ca . Readers are cautioned not to place undue reliance on forward-looking information. STRACON undertakes no obligation to update forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law.

For further information, please contact:

Josh Wardell, Vice President, Investor Relations STRACON Group Holding Inc. 65 Queen Street West, Suite 910 Toronto, ON, Canada M5H 2M5 Tel: 416-553-8443 Email: josh.wardell@stracon-group.com

Website: www.stracon-group.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/308481

Newsfile Corp.

August 6, 2026 - 4:39 PM PDT

News by QuoteMedia

www.quotemedia.com