STRACON Group Reports First Quarter 2026 Financial Results

STRACON reports strong Q1 2026 financial results as backlog grows to US$2.29 billion; subsequent to quarter end, Pérez Caldera completes initial drawdown under its up to US$376 million non-recourse Pérez Caldera project financing and delivers up to US$85 million parent company guarantee to Anglo American

Toronto, Ontario–(Newsfile Corp. – May 15, 2026) – STRACON Group Holding Inc. (TSX: STG) (BVL: STG) (“STRACON” or the “Company”) today reported its financial results for the three-month period ended March 31, 2026. The Company’s unaudited interim condensed consolidated financial statements and Management’s Discussion and Analysis (“MD&A”) are available under the Company’s profile on SEDAR+ at www.sedarplus.ca.

Financial Highlights

In thousands of US dollars (unless noted)	Q1 2026	Q1 2025	Change
STATEMENT OF PROFIT AND LOSS AND COMPREHENSIVE INCOME
Revenue from contracts with customers	167,234	165,698	+1%
Gross profit	23,310	14,510	+61%
Profit (loss)	3,368	(2,176)	n/m
Basic and diluted earnings per share	0.06	(0.04)	n/m
NON-IFRS AND OTHER FINANCIAL MEASURES(1)
EBITDA	20,131	11,451	+76%
Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin)	21,266	12,211	+74%
Adjusted EBITDA Margin (excluding intersegment EPC Contract Pérez Caldera margin)(2)	12.7%	7.7%	+5.0pp
Adjusted Revenue (excluding intersegment EPC Contract Pérez Caldera)	167,107	157,914	+6%
Free Cash Flow	(8,832)	(13,726)	+36%
CASH FLOW
Net cash and cash equivalents and restricted cash provided by (used in) operating activities	9,013	(13,169)	n/m

 

In thousands of US dollars (unless noted)	Mar 31, 2026	Dec 31, 2025	Change
FINANCIAL POSITION
Cash and cash equivalents and restricted cash	46,216	63,767	(28)%
Total assets	625,303	581,798	+7%
Total interest-bearing liabilities	263,147	243,517	+8%
Net Debt(1)	216,931	179,750	+21%
Net Debt / LTM Adjusted EBITDA (x) (excluding intersegment EPC Contract Pérez Caldera margin)(1)	2.3x	2.1x	+0.2x
OTHER
Backlog (US$ millions)(3)	2,290	2,191	+5%
Backlog-to-LTM Revenue (x)(1)(3)	3.1x	2.9x	+0.2x
Shares outstanding (thousands)	52,395	52,395	–

 

Management Commentary
Steve Dixon, Chief Executive Officer of STRACON, commented: “The first quarter of 2026 marks a clear inflection point for the platform. Revenue was broadly stable, gross profit increased 61%, net income was US$3.4 million, and net cash from operating activities turned positive to US$9.0 million. Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin)⁽¹⁾ increased 74% year-over-year to US$21.3 million, with Adjusted EBITDA Margin (excluding intersegment EPC Contract Pérez Caldera margin)⁽¹⁾⁽²⁾ expanding 5.0 percentage points to 12.7%. Backlog⁽³⁾ also grew to a new record of US$2.29 billion, providing 3.1x coverage of last-twelve-months revenue⁽¹⁾.

Concurrent with these results, the Company is announcing a material milestone for its flagship Pérez Caldera infrastructure project. Following the April 1, 2026 closing of up to US$376 million in non-recourse project financing, STRACON Pérez Caldera SpA has completed the initial drawdown under the term loan facility. STRACON has also executed a parent company guarantee in favor of Anglo American Sur S.A. of up to US$85 million supporting certain payment obligations of STRACON Pérez Caldera SpA under the BOOM contract. Together, these milestones further support the continued advancement of Pérez Caldera following financial close and the development of the Infrastructure segment. The Pérez Caldera project anchors approximately one-third of consolidated backlog across its Engineering, Procurement, and Construction (“EPC”) and build-own-operate-maintain (“BOOM”) scopes, and represents the strategic axis around which the Company is being built.

The shape of this quarter reflects the deliberate transition that defines our medium-term strategy: the conversion of a portfolio historically weighted to shorter-cycle, transactional contracts into one anchored by long-duration, structured infrastructure with contracted, inflation-linked tariffs. Growth in record backlog, expansion in margin, and the continued advancement of the Infrastructure segment are the leading indicators of that transition. The Company continues to target Total Segment Revenue⁽¹⁾ above US$1.0 billion, backlog⁽³⁾ above US$3.0 billion and EBITDA⁽¹⁾ above US$150 million over the three-year horizon, with the Infrastructure segment expected to contribute approximately 50% of consolidated EBITDA⁽¹⁾ within 18 to 24 months.”

Andrés Gutiérrez Leiva, Chief Financial Officer of STRACON, added: “The quarter demonstrates the operating leverage we have built into the platform. A 74% increase in Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin)⁽¹⁾ on essentially flat revenue reflects improved margin in Industrial Services and contract mix in Engineering & Technology. The reduction in cash and restricted cash to US$46.2 million during the quarter reflects ordinary-course capital expenditures, the acquisition of subsidiary Keypro and other minor investments, partially offset by positive operating cash flow. Net Debt to Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin)⁽¹⁾ of 2.3x on a last-twelve-months basis is above our 1.5x medium-term target, however, the path to that target is supported by growth across our segments and disciplined capital allocation as the platform matures. Separately, and as announced concurrently with these results, STRACON Pérez Caldera SpA has completed the initial drawdown under the up to US$376 million non-recourse Pérez Caldera project financing that closed on April 1, 2026, and STRACON Group Holding Inc. has executed a parent company guarantee in favor of Anglo American Sur S.A. of up to US$85 million, reduced by sponsor equity contributions made to the project company, supporting certain payment obligations under the BOOM contract. The term loans bear interest at compounded daily SOFR plus a margin of 3.00% per annum, with scheduled quarterly amortization commencing October 15, 2027, and final maturity on October 15, 2030. The financing is structured on a non-recourse basis to STRACON, with debt service supported by contracted, inflation-linked project cash flows under the Pérez BOOM contract.”

Operational Highlights

• Revenue. Revenue from contracts with customers was US$167.2 million for the three-month period ended March 31, 2026, up 0.9% from US$165.7 million in the same period of 2025. Higher Industrial Services activity (an incremental US$10.6 million) was partially offset by the conclusion of the Salares project in the Engineering & Technology segment.

• Gross Profit and Profitability. Gross profit increased 61% for the three-month period ended March 31, 2026, reflecting improved margin performance in Industrial Services and the absence of prior-year lower-margin close-out activities in Engineering & Technology. The Company was profitable for the quarter and generated net cash from operating activities of US$9.0 million, compared with a use of cash of US$13.2 million in the same period of 2025.

• Adjusted EBITDA. Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin)⁽¹⁾ was US$21.3 million for the three-month period ended March 31, 2026, compared with US$12.2 million in the same period of 2025, an increase of 74%. Adjusted EBITDA Margin (excluding intersegment EPC Contract Pérez Caldera margin)⁽¹⁾⁽²⁾ expanded to 12.7% from 7.7%, reflecting the same operating drivers that supported the improvement in gross profit.

• Free Cash Flow. Free Cash Flow⁽¹⁾ was US$(8.8) million for the three-month period ended March 31, 2026, compared to US$(13.7) million in the same period of 2025. The improvement was driven by stronger operating cash generation of US$9.0 million, partially offset by elevated capital expenditures associated with project mobilizations. Free cash flow in the first quarter is typically influenced by working capital seasonality and the timing of project mobilizations.

• Record Backlog. Backlog⁽³⁾ grew to US$2,290 million at March 31, 2026 from US$2,191 million at December 31, 2025, of which approximately 96% consists of multi-year projects. The Infrastructure segment, anchored by Pérez Caldera, accounts for 18% of total backlog⁽³⁾. The quarter-over-quarter increase reflects additional scope at Quellaveco and Mina Justa within the Industrial Services segment and at Codelco within the Fleet Solutions segment, partially offset by normal contract burn-down in the ordinary course of business.

• Balance Sheet. Cash, cash equivalents and restricted cash was US$46.2 million at March 31, 2026, compared to US$63.8 million at December 31, 2025. The decrease primarily reflects net cash used in investing activities of US$25.0 million during the quarter, primarily comprising net capital expenditures of US$12.3 million, the acquisition of subsidiary Keypro of US$6.4 million, and other minor investments of US$4.6 million, partially offset by positive operating cash flow of US$9.0 million. Net Debt⁽¹⁾ was US$216.9 million, compared to US$179.8 million at December 31, 2025. Net Debt to Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin)⁽¹⁾ on a last-twelve-months basis was 2.3x at March 31, 2026, compared to 2.1x at December 31, 2025. The Pérez Caldera project financing closed on April 1, 2026 and the initial drawdown was completed subsequent to quarter end, neither of which is reflected in consolidated leverage metrics as at March 31, 2026; the project financing is non-recourse to STRACON Group Holding Inc.

• Geography. Revenue for the three-month period ended March 31, 2026 was concentrated in Peru (48%) and Chile (30%), with Mexico, Canada, and other jurisdictions accounting for the balance.

Segment Performance
Segment revenue is reported at the operating segment level and includes intersegment transactions, which are eliminated on consolidation. Segment Gross Profit and Segment Operating Profit are derived from the Company’s segment information disclosed in the unaudited interim condensed consolidated financial statements. Segment Adjusted EBITDA⁽¹⁾, Segment Adjusted EBITDA Margin⁽¹⁾, Total Segment Revenue⁽¹⁾ and Total Segment Adjusted EBITDA⁽¹⁾ are specified financial measures within the meaning of NI 52-112 – Non-GAAP and Other Financial Measures Disclosure, as applicable. The Infrastructure segment recorded no revenue or EBITDA⁽¹⁾ in the periods presented. Results from the Pérez Caldera EPC scope are reported within the Engineering & Technology segment; the related intersegment revenue and margin are eliminated on consolidation.

US$ thousands, unless noted	Engineering & Technology	Industrial Services	Fleet  Solutions	Infrastructure	Total  Segments(1)
THREE MONTHS ENDED MARCH 31, 2026
Segment Revenue from contracts with customers	21,821	121,432	31,263	–	174,516
Segment Gross Profit	2,629	19,025	3,259	–	24,913
Segment Operating Profit	(392)	13,696	1,444	–	14,748
Segment Adjusted EBITDA(1)	(269)	19,319	5,326	–	24,376
Segment Adjusted EBITDA Margin(1)(2)	(1.2)%	15.9%	17.1%	n/m	14.0%
Segment Backlog (US$ millions) (3)	451	1,070	359	409	2,290
THREE MONTHS ENDED MARCH 31, 2025
Segment Revenue from contracts with customers	22,960	110,835	31,903	–	165,698
Segment Gross Profit	(1,440)	12,447	3,856	–	14,863
Segment Operating Profit	(3,002)	7,150	2,474	–	6,622
Segment Adjusted EBITDA(1)	(2,651)	10,767	6,189	–	14,305
Segment Adjusted EBITDA Margin(1)(2)	(11.5)%	10.1%	22.0%	n/m	9.1%
Segment Backlog (US$ millions)(3)	51	1,735	318	–	2,104

 

Engineering & Technology. Segment Revenue was US$21.8 million for the three-month period ended March 31, 2026, compared to US$23.0 million in the same period of 2025. The conclusion of legacy projects (including the Salares project in Chile which contributed US$16.1 million in the comparative prior year period) was largely offset by higher activity at Antamina (an incremental US$6.7 million year-over-year) and the ramp-up of work performed on the Pérez Caldera project (US$6.8 million increase in intersegment revenue). Segment Adjusted EBITDA⁽¹⁾ improved to a loss of US$0.3 million from a loss of US$2.7 million, reflecting better project mix and the initial contribution of the Pérez Caldera EPC scope. Segment Backlog⁽³⁾ increased to US$451 million from US$51 million at March 31, 2025, reflecting the addition of the Pérez Caldera EPC scope.

Infrastructure. The Infrastructure segment did not record revenue or EBITDA⁽¹⁾ in the period. Segment Backlog⁽³⁾ was US$409 million as at March 31, 2026, reflecting the Pérez Caldera BOOM contract awarded by Anglo American on December 30, 2025. Following financial close on April 1, 2026 and completion of the initial drawdown announced concurrently with this release, the project is advancing toward full execution, which remains subject to receipt of the full Notice to Proceed. Revenue and EBITDA⁽¹⁾ from the BOOM ownership component will be recognized within the Infrastructure segment upon commencement of operations.

Industrial Services. Segment Revenue increased 9.6% to US$121.4 million from US$110.8 million, supported by strong underground operations in Canada and the continued advancement of key projects in Peru, including the Pampa Cachendo project and Quellaveco. Segment Adjusted EBITDA⁽¹⁾ improved to US$19.3 million from US$10.8 million, with Segment Adjusted EBITDA Margin⁽¹⁾⁽²⁾ expanding to 15.9% from 10.1%, reflecting contract mix and productivity gains. Segment Backlog⁽³⁾ of US$1,070 million at March 31, 2026, compared to US$1,735 million at March 31, 2025, primarily reflects normal contract burn-down on long-duration projects in the ordinary course, partially offset by new contract bookings during the period.

Fleet Solutions. Segment Revenue was US$31.3 million, broadly consistent with US$31.9 million in the prior-year period. Segment Adjusted EBITDA⁽¹⁾ was US$5.3 million compared to US$6.2 million. Segment Backlog⁽³⁾ increased to US$359 million from US$318 million at March 31, 2025.

Recent Developments: Pérez Caldera Infrastructure Project
STRACON is announcing concurrently with the release of its first quarter 2026 financial results that STRACON Pérez Caldera SpA has satisfied the conditions precedent to first disbursement and completed the initial drawdown under the previously announced up to US$376 million non-recourse project financing for the Pérez Caldera infrastructure project in Chile, awarded by Anglo American Sur S.A. (“Anglo American”) under the BOOM contract dated December 30, 2025. In connection with first disbursement, STRACON Group Holding Inc. has delivered to Anglo American a parent company guarantee in support of certain payment obligations of STRACON Pérez Caldera SpA under the BOOM contract, up to a maximum amount equal to US$85 million, reduced by sponsor equity contributions made to the project company. Together, these milestones further support the continued advancement of Pérez Caldera following financial close.

The Pérez Caldera project anchors STRACON’s Infrastructure segment. Awarded by Anglo American on December 30, 2025, the project involves an integrated engineering, construction, financing, and long-term operations and maintenance arrangement for dedicated infrastructure assets required to condition, remove, and transport tailings material from the Pérez Caldera Tailings Dam at the Los Bronces operation in Chile. The Pérez Caldera project supports the Pérez Caldera Tailings Dam Removal and Water Resource Adaptation Project, which received environmental approval in April 2025. The Company’s economics under the project will be realized through a fixed capital recovery tariff payable by Anglo American over the operating life of the asset, which includes a designated margin and is contractually payable regardless of actual usage or tonnage throughput.

Key milestones in the development of the project are summarized below:

• December 30, 2025: Award of the BOOM contract by Anglo American for dedicated tailings infrastructure at the Los Bronces copper operation in Chile, anchoring the Company’s newly established Infrastructure segment.

• April 1, 2026: Closing of up to US$376 million in non-recourse project financing comprising up to US$345 million in term loans and up to US$31 million in debt service reserve letters of credit, arranged by Natixis, Sumitomo Mitsui Banking Corporation, and Banco de Crédito e Inversiones. Term loans bear interest at compounded daily SOFR plus 3.00%, with scheduled quarterly amortization commencing October 15, 2027 and final maturity on October 15, 2030. The capital structure reflects a maximum debt-to-equity ratio of 82.75:17.25, consistent with the Company’s stated approach to Infrastructure segment projects in which approximately 70 to 80% of project costs are financed through non-recourse project debt and STRACON contributes the balance as sponsor equity.

• Initial drawdown and parent company guarantee: STRACON Pérez Caldera SpA has satisfied the conditions precedent to first disbursement and completed the initial drawdown under the term loan facility, positioning the project company to continue advancing the development and construction phase under the BOOM contract.

In connection with the first disbursement, the Company has become party to customary sponsor arrangements consistent with the non-recourse nature of the project financing structure. These arrangements relate principally to customary ownership and control undertakings in respect of the project company, as well as undertakings to cause the BOOM contract performance guarantees to be delivered and remain in place while required under the BOOM contract. The Company has also provided Anglo American with a parent company guarantee to support certain payment obligations of STRACON Pérez Caldera SpA under the BOOM contract, up to a maximum amount equal to US$85 million, reduced by equity contributions made to the project company.

The Pérez Caldera project is expected to contribute meaningfully to consolidated backlog, recurring revenue, and cash flow visibility over the contract term. The EPC scope of the project is reflected within the Engineering & Technology segment, and the BOOM ownership component, including revenue and EBITDA⁽¹⁾, will be recognized within the Infrastructure segment upon commencement of operations. As at March 31, 2026, the combined Pérez Caldera scopes represent approximately one-third of consolidated backlog.

Outlook
The Company’s three-year strategic targets of Total Segment Revenue⁽¹⁾ above US$1.0 billion, backlog⁽³⁾ above US$3.0 billion, and EBITDA⁽¹⁾ above US$150 million were established at the start of 2025 in connection with the formal establishment of the Infrastructure segment as a fourth reportable segment. The targets followed a concentrated multi-year effort to build internal engineering capacity, initiated with the 2022 launch of the Engineering & Technology segment, which positioned the Company to originate, structure, and execute long-duration infrastructure mandates such as Pérez Caldera. As at March 31, 2026, last-twelve-months total segment revenue⁽¹⁾ was US$762.7 million and backlog⁽³⁾ was US$2,290 million, each representing approximately 76% of the corresponding three-year target. The Company intends to revisit these targets upon completion of construction at the Pérez Caldera project, at which point the Infrastructure segment will be generating operational cash flows and the Company’s capital structure, contracted revenue base, and growth pipeline will be reassessed.

The Infrastructure segment is expected to contribute approximately 50% of consolidated EBITDA⁽¹⁾ within the next 18 to 24 months, supporting improved earnings visibility and cash-flow durability. The capital allocation framework targets Net Debt to Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin)⁽¹⁾ of 1.5x or lower, excluding non-recourse debt, and directs investment toward projects expected to earn returns on invested capital above the cost of capital.

The Company’s identified pipeline⁽⁴⁾ of opportunities exceeds US$17 billion, including US$6.3 billion in infrastructure, supported by structural tailwinds in mining, including growing demand for copper and critical minerals, tightening water and tailings management standards, and a broad shift by mining operators toward integrated BOOM and Design-Build-Finance-Operate (“DBFO”) infrastructure ownership models.

About STRACON Group
STRACON is an integrated, engineering-led and technology-enabled mining infrastructure and services group operating across the Americas. Headquartered in Toronto, Canada, STRACON provides end-to-end solutions across the mining lifecycle, including engineering and technology solutions, industrial services, equipment and support services, and infrastructure development and ownership. The Company partners with leading global mining operators to design, build, operate and maintain critical infrastructure that supports safe, efficient and sustainable mining operations.

Non-IFRS and Other Financial Measures
Throughout this press release, the Company refers to certain financial measures and ratios that are not prescribed by IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”), as well as certain other financial measures within the meaning of National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure. These measures comprise non-IFRS financial measures, non-IFRS ratios, total of segments measures and supplementary financial measures, as applicable.

The non-IFRS financial measures referred to in this press release include EBITDA, Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin), Adjusted Revenue (excluding intersegment EPC Contract Pérez Caldera), LTM Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin), Total Segment Adjusted EBITDA, LTM Revenue, Free Cash Flow and Net Debt. The non-IFRS ratios referred to in this press release include Adjusted EBITDA Margin (excluding intersegment EPC Contract Pérez Caldera margin), Segment Adjusted EBITDA Margin, Net Debt to Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin) and Backlog-to-LTM Revenue Ratio. The total of segments measures referred to in this press release include Total Segment Revenue and Total Segment Gross Profit. The supplementary financial measures referred to in this press release include Backlog, Segment Backlog and LTM Total Segment Revenue.

These measures and ratios are used by management to assess the Company’s operating performance, financial position, liquidity, capital structure, project activity and contracted revenue visibility, as applicable. They are provided to supplement, and not replace, financial measures prepared in accordance with IFRS. Certain of these measures do not have standardized meanings under IFRS and may not be comparable to similar measures presented by other issuers. These measures should not be considered in isolation or as a substitute for measures of performance, financial position or cash flows prepared in accordance with IFRS.

Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin), LTM Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin) and Adjusted Revenue (excluding intersegment EPC Contract Pérez Caldera) exclude items management considers not reflective of ongoing operations, namely (i) a new service strategic project, (ii) a select project in the Fleet Solutions segment, (iii) impairment of property, plant and equipment and (iv) other management adjustments, where appropriate. These measures are presented on a consolidated basis and exclude the intersegment revenue and margin from the EPC contract under which the Engineering & Technology segment provides EPC services to the Infrastructure segment for the Pérez Caldera Tailings Infrastructure Project, which are eliminated on consolidation.

LTM Revenue represents revenue from contracts with customers for the last twelve-month period. LTM Total Segment Revenue represents Total Segment Revenue from contracts with customers for the last twelve-month period, including intersegment transactions, which are eliminated on consolidation. These measures are used to assess the Company’s progress against its three-year strategic targets and to calculate the Backlog-to-LTM Revenue Ratio, as applicable.

Refer to the “Non-IFRS and Other Financial Measures” section of the Company’s MD&A for the three-month period ended March 31, 2026, available under the Company’s profile on SEDAR+ at www.sedarplus.ca, for definitions, explanations of composition and usefulness, and reconciliations, where applicable. Reconciliations of the non-IFRS financial measures and total of segments measures referred to in this press release are also presented in the Appendix below. Unless otherwise indicated, financial information presented in this press release is prepared in accordance with IFRS.

Forward-Looking and Cautionary Statements
This press release contains certain forward-looking statements within the meaning of applicable Canadian securities laws. All statements, other than statements of historical facts, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “hopes”, “intends”, “estimated”, “potential”, “possible” and similar expressions, or statements that events, conditions or results “will”, “may”, “could” or “should” occur or be achieved. Forward-looking statements relate to future events or future performance and reflect STRACON’s management’s expectations or beliefs regarding future events and include, but are not limited to statements regarding: the expected contribution of the Infrastructure segment to consolidated EBITDA⁽¹⁾ within 18 to 24 months; the construction timeline and commercial operation of the Pérez Caldera project, including subsequent drawdowns under the project financing; the Company’s target Net Debt to Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin)⁽¹⁾ of 1.5x or lower; backlog conversion and revenue visibility; three-year strategic targets; the expected capital structure and financing terms of future infrastructure projects; and anticipated benefits from energy transition and critical minerals demand.

Although STRACON believes the expectations expressed in such forward-looking statements are based on management’s reasonable expectations and assumptions, such statements do not guarantee future performance. The actual achievements of STRACON or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors. These risks, uncertainties and factors include general business, legal, economic, competitive, political, regulatory and social uncertainties, including project execution and construction risks, counterparty credit risk, commodity price fluctuations, foreign exchange and interest rate volatility, regulatory and permitting risks, financing risk, backlog conversion risk, risks related to customer demand and project awards, and other risks described in the reports that the Company files with the various Canadian Securities authorities and in the Company’s preliminary prospectus dated April 27, 2026, available on SEDAR+ at www.sedarplus.ca. Readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update forward-looking information except as required by applicable securities law.

Appendix – Non-IFRS and Other Financial Measures

The following tables provide reconciliations, where applicable, for the non-IFRS financial measures, non-IFRS ratios, total of segments measures and supplementary financial measures referred to in this press release to the most directly comparable financial measures disclosed in STRACON’s unaudited interim condensed consolidated financial statements for the three-month periods ended March 31, 2026 and 2025.

These measures and ratios are provided to supplement, and not replace, financial measures prepared in accordance with IFRS Accounting Standards. Certain of these measures do not have standardized meanings under IFRS, may not be comparable to similar measures disclosed by other issuers, and should not be viewed as substitutes for measures of performance, financial position or cash flows prepared in accordance with IFRS. Complete definitions, explanations of composition and usefulness, and reconciliations, where applicable, are provided in the MD&A available on SEDAR+ at www.sedarplus.ca.

Table 1 – EBITDA⁽¹⁾ and Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin)⁽¹⁾

In thousands of US dollars	Q1 2026	Q1 2025
Profit (loss)	3,368	(2,176)
Share of loss of joint ventures and other financial assets	381	–
Finance income	(543)	(161)
Finance costs	6,530	6,298
Losses (gains) on net monetary position	(147)	605
Income tax expense (recovery)	1,141	(1,172)
EBIT	10,730	3,394
Depreciation of property, plant and equipment	4,350	4,088
Amortization of right-of-use assets	4,644	3,318
Amortization of intangible assets	407	651
EBITDA(1)	20,131	11,451
New service strategic project (a)	(69)	(499)
Select project in the Fleet Solutions segment (b)	612	443
Impairment of property, plant and equipment (c)	36	–
Other management adjustments (d)	556	816
Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin)(1)	21,266	12,211

 
Table 2 – Free Cash Flow⁽¹⁾

In thousands of US dollars	Q1 2026	Q1 2025
Net cash and cash equivalents and restricted cash provided by (used in) operating activities	9,013	(13,169)
Add: Interest paid on borrowings and lease liabilities	3,123	8,689
Less: Repayment of lease liabilities	(8,693)	(6,518)
Less: Net Capital Expenditures	(12,275)	(2,728)
Free Cash Flow(1)	(8,832)	(13,726)

 

Table 3 – Net Debt⁽¹⁾ and Net Debt to Adjusted EBITDA⁽¹⁾

In thousands of US dollars	March 31, 2026	December 31, 2025
Loans and borrowings	161,483	150,030
Lease liabilities	101,664	93,487
Total interest-bearing liabilities	263,147	243,517
Less: Cash and cash equivalents and restricted cash	(46,216)	(63,767)
Net Debt(1)	216,931	179,750
Net Debt / Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin) (LTM)	2.3x	2.1x

 

Table 4 – Backlog⁽³⁾ Reconciliation

In millions of US dollars	Q1 2026	Q1 2025
Opening backlog	2,191	1,789
Add: Contract bookings during the period	266	481
Less: Revenue recognized during the period	(167)	(166)
Ending backlog	2,290	2,104
Backlog-to-LTM Revenue ratio(3)	3.1x	2.9x

 

Table 5 – Reconciliation of Segment Measures to Consolidated Measures

The following table reconciles Total Segment Revenue from contracts with customers and Total Segment Adjusted EBITDA⁽¹⁾ to the most directly comparable IFRS measures.

In thousands of US dollars	Q1 2026	Q1 2025
Revenue Reconciliation
Engineering & Technology	21,821	22,960
Industrial Services	121,432	110,835
Fleet Solutions	31,263	31,903
Infrastructure	–	–
Total Segment Revenue from contracts with customers (1)	174,516	165,698
Other Costs and Eliminations (e)	(7,282)	–
Consolidated Revenue from contracts with customers	167,234	165,698
Adjusted EBITDA Reconciliation
Engineering & Technology	(269)	(2,651)
Industrial Services	19,319	10,767
Fleet Solutions	5,326	6,189
Infrastructure	–	–
Total Segment Adjusted EBITDA (1)	24,376	14,305
Corporate costs and intersegment eliminations (e)	(3,110)	(2,094)
Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin) (1)	21,266	12,211

 

Table 6 – Adjusted Revenue (excluding intersegment EPC Contract Pérez Caldera) and Adjusted EBITDA Margin (excluding intersegment EPC Contract Pérez Caldera margin)

In thousands of US dollars (unless noted)	Q1 2026	Q1 2025
Reconciliation of Adjusted Revenue
Revenue from contracts with customers	167,234	165,698
Less: New service strategic project (a)	(71)	(4,017)
Less: Select project in the Fleet Solutions segment (b)	(56)	(3,767)
Adjusted Revenue (excluding intersegment EPC Contract Pérez Caldera)	167,107	157,914
Adjusted EBITDA Margin Calculation
Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin)	21,266	12,211
Adjusted Revenue (excluding intersegment EPC Contract Pérez Caldera)	167,107	157,914
Adjusted EBITDA Margin (excluding intersegment EPC Contract Pérez Caldera margin)	12.7%	7.7%

 

Table 7 – Reconciliation of LTM Adjusted EBITDA, LTM Revenue, LTM Total Segment Revenue and Net Debt to Adjusted EBITDA (LTM)

In thousands of US dollars	For the twelve months  ended March 31, 2026
Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin) – Year ended December 31, 2025	87,216
Less: Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin) – Three months ended March 31, 2025	(12,211)
Add: Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin) – Three months ended March 31, 2026	21,266
Adjusted EBITDA (LTM) (excluding intersegment EPC Contract Pérez Caldera margin)	96,271
Revenue from contracts with customers – Year ended December 31, 2025	748,624
Less: Revenue from contracts with customers – Three months ended March 31, 2025	(165,698)
Add: Revenue from contracts with customers – Three months ended March 31, 2026	167,234
Revenue from contracts with customers (LTM)	750,160
Total Segment Revenue from contracts with customers – Year ended December 31, 2025	753,871
Less: Total Segment Revenue from contracts with customers – Three months ended March 31, 2025	(165,698)
Plus: Total Segment Revenue from contracts with customers – Three months ended March 31, 2026	174,516
Total Segment Revenue from contracts with customers – LTM	762,689
Net Debt – As at March 31, 2026	216,931
Net Debt / Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin) (LTM) (x)	2.3x

 

Table 8 – Reconciliation of Segment Adjusted EBITDA – Three months ended March 31, 2026

In thousands of US dollars	Engineering & Technology	Industrial Services	Fleet  Solutions	Total  Segments
Segment operating profit	(392)	13,696	1,444	14,748
Segment depreciation and amortization	123	5,692	3,234	9,049
Segment EBITDA	(269)	19,388	4,678	23,797
New service strategic project (a)	–	(69)	–	(69)
Select project in the Fleet Solutions segment (b)	–	–	612	612
Impairment of property, plant and equipment (c)	–	–	36	36
Other management adjustments (d)	–	–	–	–
Segment Adjusted EBITDA (1)	(269)	19,319	5,326	24,376
Segment Adjusted Revenue (1)	21,821	121,361	31,207	174,389
Segment Adjusted EBITDA Margin (1)(2)	(1.2)%	15.9%	17.1%	14.0%

 

Table 9 – Reconciliation of Segment Adjusted EBITDA – Three months ended March 31, 2025

In thousands of US dollars	Engineering & Technology	Industrial Services	Fleet  Solutions	Total Segments
Segment operating profit	(3,002)	7,150	2,474	6,622
Segment depreciation and amortization	351	4,116	3,272	7,739
Segment EBITDA	(2,651)	11,266	5,746	14,361
New service strategic project (a)	–	(499)	–	(499)
Select project in the Fleet Solutions segment (b)	–	–	443	443
Impairment of property, plant and equipment (c)	–	–	–	–
Other management adjustments (d)	–	–	–	–
Segment Adjusted EBITDA (1)	(2,651)	10,767	6,189	14,305
Segment Adjusted Revenue (1)	22,960	106,818	28,136	157,914
Segment Adjusted EBITDA Margin (1)(2)	(11.5)%	10.1%	22.0%	9.1%

 

Table 10 – Segment Revenue and Adjusted Revenue Reconciliation

In thousands of US dollars	Engineering & Technology	Industrial Services	Fleet  Solutions	Total Segments
Three months ended March 31, 2026
Segment Revenue from contracts with customers	21,821	121,432	31,263	174,516
Less: New service strategic project (a)	–	(71)	–	(71)
Less: Select project in the Fleet Solutions segment (b)	–	–	(56)	(56)
Segment Adjusted Revenue (1)	21,821	121,361	31,207	174,389
Three months ended March 31, 2025
Segment Revenue from contracts with customers	22,960	110,835	31,903	165,698
Less: New service strategic project (a)	–	(4,017)	–	(4,017)
Less: Select project in the Fleet Solutions segment (b)	–	–	(3,767)	(3,767)
Segment Adjusted Revenue (1)	22,960	106,818	28,136	157,914

 

(a) “New service strategic project” represents the impact on EBITDA of a strategic mining remediation service line commenced in 2023, in an early operational phase with a cost and margin structure not representative of the segment’s established service mix.

(b) “Select project in the Fleet Solutions segment” represents the impact on EBITDA of a legacy contract within the Fleet Solutions segment inherited through the AMECO Chile SpA acquisition, which concluded in Q4 2025 and is not part of ongoing operations.

(c) Impairment of property, plant and equipment recognized in accordance with IAS 36.

(d) “Other management adjustments” consist of professional financial, tax and legal consulting fees related to corporate reorganization activities, IT systems transformation, and professional services related to the Offering preparation and TSX and BVL listing support.

(e) “Other Costs and Eliminations” and “Corporate costs and intersegment eliminations” consist of unallocated corporate costs and intercompany eliminations made in arriving at consolidated results under IFRS.

Endnotes

(1) Non-IFRS financial measure, non-IFRS ratio, total of segments measure or supplementary financial measure, as applicable. See “Non-IFRS and Other Financial Measures” above and the “Appendix – Non-IFRS and Other Financial Measures” for definitions, compositions, explanations and, where applicable, reconciliations.

(2) Adjusted EBITDA Margin (excluding intersegment EPC Contract Pérez Caldera margin) is calculated as Adjusted EBITDA (excluding intersegment EPC Contract Pérez Caldera margin) divided by Adjusted Revenue (excluding intersegment EPC Contract Pérez Caldera). Segment Adjusted EBITDA Margin is calculated as Segment Adjusted EBITDA divided by Segment Adjusted Revenue.

(3) Backlog and Segment Backlog are supplementary financial measures. Backlog represents off-balance-sheet amounts, consisting of the value of signed and enforceable customer contracts for work not yet completed and not yet recognized as revenue, including under fixed-term contracts and project-specific scopes of work. For clarity, backlog does not include letters of intent, expressions of interest, proposals, indicative estimates or other non-binding arrangements. Segment Backlog amounts are presented in US$ millions; consolidated Backlog may differ marginally from the sum of segment amounts due to rounding.

(4) Pipeline represents management’s estimate of the aggregate potential contract value of identified business development opportunities being monitored or pursued by the Company as at the date of this press release. Pipeline includes opportunities at various stages of development, including early-stage discussions, pre-qualification, tender, proposal, negotiation and other commercial processes. Pipeline is not Backlog, does not represent signed or enforceable customer contracts, is not risk-adjusted, and there can be no assurance that any pipeline opportunity will be awarded to the Company or converted into revenue.

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