(In $000's of Canadian dollars except for shares and per share amounts)
Edmonton, Alberta--(Newsfile Corp. - July 7, 2026) - Titan Logix Corp., (TSXV: TLA) ("Titan" or the "Company"), a technology company specializing in mobile liquid measurement solutions, announces its interim results for the three- and nine-month periods ended May 31, 2026.
"We are seeing repeat sales with OEM accounts in refined petroleum," says Nick Forbes, CEO at Titan. "We will continue onboarding key accounts in the fourth quarter to position the company for growth in fiscal 2027."
Through the first nine months of fiscal 2026, the Company has generated approximately $494 in revenue from the refined petroleum product line. Revenue generated in the third quarter from the refined petroleum product line were from new tanker builds, the majority of which were reorders from OEMs that were onboarded earlier this fiscal year. The company will continue to focus on onboarding key OEM and dealer accounts for the remainder of the fiscal year.
We estimate the new truck tank builds for the refined petroleum market to be between 1,200 and 1,400 units in calendar 2026, an increase of approximately 20% from last year's build numbers. These builds are comprised of single compartment refuelers, 3-5 compartment refuelers, and 7-10 compartment lubricant delivery trucks. The traction we are seeing is largely driven by the extended measurement range of our new ClearView probe and the Liquid Controls LCR.iQ integration capability.
YTD & Q3 FISCAL 2026 HIGHLIGHTS
Revenue: Q3 fiscal 2026 revenue increased by $38 or 3% to $1,527 from $1,489 in Q3 fiscal 2025. For the nine months ended May 31, 2026, revenue decreased by $517 or 10% to $4,628 from $5,145 in fiscal 2025, reflecting particularly strong results in Q1 fiscal 2025.
Cost of sales: Q3 cost of sales increased 8% to $720, representing 47% of revenues, up from $665 or 45% of revenues in Q3 fiscal 2025. For the nine-month period ended, cost of sales increased to 48% of revenues compared to 42% of revenues in the same period of fiscal 2025. The increase reflects higher product costs driven by sales volume and product mix, together with unfavorable purchase price variances on input materials, partially offset by lower warranty costs and improved production cost absorption.
Gross profit: Q3's gross profit decreased by $17 to $807 or 53% of revenues compared to $824 or 55% of revenues in the comparative period. For the nine-month period, gross profit decreased by $566 to $2,403 or 52% of revenues compared to $2,969 or 58% of revenues in the comparative period of fiscal 2025.
Selling, general and administrative expenses(1): increased by $11 or 2% in Q3 to $744 compared to $733 in Q3 fiscal 2025 and increased by $283 or 14% to $2,258 in the nine-months ended May 31, 2026, compared to $1,975 in fiscal 2025, reflecting increased fixed costs to support new product launches and market penetration efforts.
Engineering operating expenses: increased by $75 to $103 in Q3 compared to $28 in Q3 fiscal 2025 and increased by $210 to $298 for the nine months ended May 31, 2026, when compared to $88 of fiscal 2025, reflecting the absorption of salary costs previously included in Product research and development expenses as key development projects reached completion.
Operating EBITDA(1): Q3 Operating EBITDA(1) decreased by $101 from $83 to an Operating EBITDA loss of $18, driven by lower gross profit, higher SG&A and Engineering operating expenses. For the nine-month period, Operating EBITDA(1) declined by $1,057 to an Operating EBITDA loss of $88, compared to Operating EBITDA of $969 in fiscal 2025, reflecting lower revenues, reduced margins, increased SG&A and Engineering overhead expenses.
Total product research and development expenses(1): Total product research and development expenses decreased by $239 or 41% to $347 in Q3 from $586 in Q3 fiscal 2025. For the nine-month period, total product research and development expenses decreased by $620 or 40% to $919 compared to $1,539 in fiscal 2025, reflecting the completion of key development projects.
Net earnings (loss): Net loss decreased by $293 to $128 in Q3 compared to a net loss of $421 in Q3 fiscal 2025. For the nine-month period, the Company's net loss increased by $456 to $681 compared to a net loss of $225 in fiscal 2025.
NCIB update: The Company completed its NCIB program during Q2 of fiscal 2026 completing the repurchase and cancellation of 1,759,649 common shares at an average price of $0.66 per share excluding transaction costs. A new NCIB has been entered into on May 21st 2026 where the company is authorized to repurchase up to 1,571,185 common shares. No such repurchases occurred during the third quarter ended May 31, 2026.