Research
Research Alert: Tih Q1: Avl Stake Doubled To 80%, Driving Q1 Beat
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Q1 revenue advanced 13% to CAD1,228.1M with net earnings rising 25% to CAD92.7M, lifting EPS 24% to CAD1.14. AVL contributed CAD129M in revenue, indicating organic growth of only 3%, while Equipment Group fueled performance with 14% revenue growth to CAD1,129.1M. TIH increased its AVL ownership stake to 80% through a CAD71.0M cash purchase, which will result in an approximately CAD45.0M expense in Q2. Gross profit margin expanded significantly to 25.8% from 22.4%, primarily led by Equipment Group margin improvement across all areas. Operating income surged 44% to CAD143.0M with margin expanding to 11.6% from 9.1%, reflecting higher revenue and improved gross margins. Equipment Group operating margin expanded to 12.1% from 9.1%, while CIMCO margin contracted to 6.2% from 10.0%. Bookings increased 44% with Equipment Group bookings advancing 45% on healthy power system and mining orders. Backlog reached CAD1.7B, up from CAD1.3B as of March 31, 2025.
$TIH