Atlas Engineered Products reported first-quarter revenue of C$9.3 million, down 16% from C$11.0 million a year earlier, citing difficult market conditions in Ontario and British Columbia. More severe winter weather across much of Canada also disrupted shipping and reduced deliveries during the quarter.
Gross profit fell to C$273 thousand from C$1.7 million, and gross margin declined to 3% from 16%. The quarter reflected lower pricing in the market and higher cost of sales.
Cost of sales increased in part because the company carried additional labor through the winter as it prepared its automation facility in Clinton, Ontario. Maintenance requirements also rose as operations were readied for higher activity later in the fiscal year.
Operating loss widened to C$2.2 million from C$771 thousand, and net loss after adjustments and taxes increased to C$1.7 million from C$846 thousand. Adjusted EBITDA shifted to a loss of C$823 thousand from positive C$587 thousand, and normalized EBITDA moved to a loss of C$795 thousand from positive C$616 thousand.
Revenue in the quarter also reflected project timing. Two large winter projects that contributed to the year-earlier quarter did not repeat, and large projects on order for 2026 were not scheduled for delivery in the first quarter.
Quoting activity stayed high. First-quarter quotes exceeded C$80 million and orders totaled more than C$21 million, up from more than C$11 million a year earlier, while winter shipping constraints limited revenue conversion.
The company expected its first truss robotic facility in Clinton, Ontario to be operational at the beginning of July 2026, with the building completed in the second fiscal quarter and equipment installed. It accelerated payments to equipment suppliers to meet spending requirements tied to a non-repayable federal contribution agreement of up to C$4.0 million for its robotics manufacturing plant project.
Total assets rose to C$86.9 million at March 2026 from C$80.5 million at December 2025, and total non-current liabilities increased to C$25.9 million from C$21.7 million.