Environmental solutions are all the rage as a wide range of industries and organizations are looking to reduce their environmental impact. Alberta-based Vertex Resource Group Ltd, (TSX-V.VTX, Forum) has a heavy hand in leading the revolution while also offering environmental consulting, field services and equipment.
With quarterly results season among us, Vertex is indicative that the need for environmental solutions continues to be pressing, now more than ever, thanks to record revenue generation and exceeded expectations.
Vertex posts record Q1 2022 revenue
In a press release, the company said it posted record Q1 revenue of $45.4 million compared to $32.9 million compared to the same quarter in 2021. Vertex also said gross margin increased to $10.5 million, up from $8 million in Q1 2021. Meanwhile adjusted EBITDA totaled $5.7 million compared to $4.7 million from the same period last year.
“Vertex started 2022 with a first quarter that exceeded our expectations,” the company said in a press release. “The corporation’s strong first quarter results were driven by cost control, realized synergies from our acquisition in the first quarter of 2021, and increasing commodity prices as well as a gradual return to pre-COVID activity levels across other industries.”
The company also said the quarter produced “historically high-first quarter revenue,” while it continued to expand into other markets such as utilities, telecommunications and the government further fueled Vertex’ revenue growth.
Future outlook for Vertex
In line with the company’s record revenue and diversification efforts, it said it continues to keep its focus on cost containment, operating efficiencies and geographic and sector diversification.
Moving forward, Vertex said its outlook is that economies across North America will benefit from commodity prices in energy, utilities, agriculture and forestry.
“The current trend towards less carbon-intensive energy sources is presenting new opportunities for Vertex,” the company said, adding that it continues to work with Indigenous partners and customers that use renewable sources that reduce carbon emissions, enhance carbon sequestering, utilize or convert to wind or solar, renewable gas, biofuels, helium and emerging hydrogen opportunities.
With Vertex’ headquarters in Alberta, it is also in a strong position to help lead the country in growth as it is projected that Alberta and neighboring province Saskatchewan will be leaders largely due to energy and other key commodity prices recovering. This includes Alberta’s exports of crude oil increasing by 86% and exports of natural gas rising by 165%, both over the last 12 months.
The company said that its ESG initiatives and its plan of being a world-leading environmental services company haven’t changed, adding that it believes it is in a strong position for ESG performance.
“Vertex understands that our opportunity to support the ESG initiatives of our customers has a significantly broader global impact,” the company said. “As such our ESG system design includes both an internal and a customer focus.”
The investment corner
With environmental, social and governance (ESG) efforts at the forefront of everyone’s mind, Vertex offers investors a strategic opportunity thanks to its sustainable business model and peace of mind that it is helping the planet with its sustainable environmental solutions.
Thanks to its 60-year history, the company clearly has what it takes to deliver strong results and consistency, which is something every investor is on the lookout for and ultimately wants.
For more information, please visit vertex.ca.
