Overview

* Tree Island Q2 revenue, net of freight and distribution costs, falls C$11.7 mln to C$42.3 mln on lower U.S. sales

* Gross profit drops to C$3.9 mln from C$4.6 mln, despite higher selling prices

* Adjusted EBITDA declines to C$2.2 mln from C$2.9 mln amid tariff challenges

Outlook

* Company focused on improving profitability through cost control and strategy adjustments

* Tree Island adapting production and staffing to changing tariff environments

Result Drivers

* TARIFF IMPACT - Lower U.S. sales volumes due to tariffs on wire and wire products, leading to revenue decline

* STRATEGIC PRODUCT WITHDRAWAL - Revenue decrease partly due to strategic withdrawal from unprofitable products

* PROFITABILITY FOCUS - Co adjusting sales and sourcing strategies to improve profitability amid changing tariff environments

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 C$44.49

Revenue mln

Q2 EPS

Q2 Net C$85,000

Income

Q2 C$2.24

Adjusted mln

EBITDA

Q2 Gross C$3.87

Profit mln

Q2 C$729,00

Operatin 0

g Income

Q2 C$85,000

Pretax

Profit

Analyst Coverage

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)