Achieved annual results of $232.2 million of gross revenue and $35.9 million of adjusted EBITDA⁽¹⁾.

Vertex Resource Group Ltd. (TSX-V: VTX) reports its financial and operational results for the fourth quarter and year ended December 31, 2024.  The following should be read in conjunction with the Management Discussion and Analysis and the audited consolidated financial statements of Vertex for the year ended December 31, 2024, which are available on SEDAR+ at www.sedarplus.ca.

Vertex completed the fourth quarter consistent with expectations and prior year. Revenue declines compared to prior year are attributable to the completion of pipeline projects, including the TMX pipeline which was heavily subcontracted. Our ability to scale to customer demands without impacting margins has been a key factor in maintaining stability.

Key financial results for the three months and years ended December 31, 2024, and 2023 are as follows:

HIGHLIGHTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2024

• Profit margin increased 5.7% compared to Q4 2024.
• Free cash flow¹ generated was $12.1 million compared to $4.0 million in Q4 2023.
• Reduced loans and borrowings during the quarter by $13.5 million.

HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2024

• Profit margin as a % of net revenue increased to 26.5% compared to 24.9% in 2023
• Reduced loans and borrowings during the year by $5.7 million, and lease liabilities by $11.0 million.
• Free cash flow¹ generated was $21.2 million compared to $17.8 million in 2023.
• Repurchased common shares using the Normal Course Issuer Bid for consideration of $1.0 million.  The total common shares repurchased and cancelled during the NCIB represent 3.2% of the total issued and outstanding common shares of the Company.
• Extended the maturity date of the Syndicate Credit Facilities.

OUTLOOK

2024 was a transitional year for Vertex. While revenues declined, margins increased due to our steadfast dedication to driving operational efficiencies. We expect our revenue for 2025 to be slightly less than in 2024, with margins remaining similar. There are no major turnaround projects scheduled for 2025, which have historically been executed in the second and third quarters. Our efforts will be concentrated on sustaining steady activity levels and capitalizing on ongoing maintenance and development opportunities across our operating segments.

Vertex will continue to prioritize providing a return on assets for our shareholders. This includes maximizing the effectiveness of our assets and ensuring that our investments generate strong returns.  We are targeting a debt covenant ratio of 2.0x by the end of 2026. This goal aligns with our commitment to maintaining a healthy balance sheet by further reducing our debt levels, enhancing our capabilities for shareholder returns or future acquisitions.

The projected GDP growth of 1.8% for Canada in 2025, supported by increased household spending, business investment, and export growth, aligns with the Bank of Canada’s outlook. Inflations is expected to remain close to the Bank of Canada’s 2% target. However, the uncertainty around tariffs between the US and Canada is expected to impact businesses and consumers. Vertex is diligently monitoring the unfolding situation to ensure we remain nimble and can maneuver through any potential impacts effectively.

Overall, Vertex is well-positioned to navigate the challenges and opportunities of 2025 and beyond. Our unwavering focus on operational efficiencies, strategic asset management, and proactive response to market dynamics ensures that we remain resilient in the face of uncertainty. By continuously enhancing our service offerings and leveraging our expertise, we are committed to delivering exceptional value to our shareholders and driving sustainable growth. Vertex’s strategic vision and adaptability will enable us to capitalize on emerging opportunities and maintain our leadership in the industry.

ABOUT VERTEX

Since 1962, Vertex has been a leading North American provider of environmental services. Headquartered in Sherwood Park, Alberta, Vertex employs a staff of approximately 1,000 employees and lease operators that provide services to help clients achieve their developmental and operational goals. From initial site selection, consultation and regulatory approval, through construction, operation and maintenance, to conclusion and environmental cleanup, Vertex provides a wide array of services to customers operating in industries such as energy, mining, utilities, private development, public infrastructure, construction, telecommunications, forestry, agriculture and government.

Vertex principally operates in Canada with select locations in the United States.