Tornado Infrastructure Equipment Makes Major Strides with New Financing Arm and Business Update

Tornado Infrastructure Equipment Ltd., a leading provider of hydrovac trucks and infrastructure equipment, has announced several significant developments aimed at enhancing its customer service and navigating the evolving market landscape.

Launch of Tornado Equipment Finance

The company has launched Tornado Equipment Finance Ltd., a dedicated financing arm designed to provide flexible financial solutions exclusively to Canadian customers. This new initiative aims to make it easier for businesses to acquire Tornado's industry-leading hydrovac trucks and infrastructure equipment. By offering in-house financing options, Tornado is enhancing customer accessibility while strengthening long-term relationships. The company expects this new initiative to generate a steady additional revenue stream, further solidifying its position as a full-service provider in the infrastructure equipment sector.

Q4/2024 Business Update

Tornado is pleased to share a business update for Q4/2024, which was another record quarter for hydrovac truck sales and production. The company manufactured and sold 88 hydrovac trucks during the quarter, bringing the total for 2024 to 320 hydrovac trucks. This marks a significant increase from the 241 trucks sold in 2023, representing a strong finish to the year despite a temporary production slowdown in Q3/2024. The slowdown was necessary to accommodate the launch of a new product line and preparations for the construction of Tornado's expanded manufacturing building.

Tariff Mitigation Strategies

In response to the February 1, 2025, announcement from the White House regarding the implementation of a 25% tariff on imports from Canada, Tornado is taking proactive steps to mitigate the potential impact. The implementation of this tariff has now been delayed until March 2025. To address the current tariff situation, Tornado has identified several strategies:

1. Supplying Backend Units: For U.S. customers, Tornado will continue to offer backend-only units. This allows U.S. customers to source chassis locally, reducing the value of goods supplied through Canada and thereby reducing their aggregate tariff exposure. The chassis represents a significant portion of the total cost of the hydrovac trucks, making this strategy potentially effective in mitigating tariff impacts.

2. Exploring Final Assembly in the U.S.: Tornado is assessing opportunities for developing final-stage manufacturing capacity in the U.S., either through potential partnerships or by opening new manufacturing facilities. The successful assembly of the first hydrovac truck in the U.S. by a Midland, Texas-based partner under Tornado personnel supervision has set the stage for further expansion based on market demand.

3. Leveraging Existing U.S. Entity: Tornado is also assessing opportunities for its established U.S. entity, Tornado Infrastructure Equipment (USA) Ltd., to provide additional flexibility in navigating tariff-related challenges and optimizing supply chain logistics.

Conclusion

Tornado Infrastructure Equipment's strategic moves demonstrate its commitment to customer service and adaptability in the face of evolving market conditions. By providing flexible financial solutions, achieving record sales figures, and implementing effective tariff mitigation strategies, the company is well-positioned to support both its business growth and customer success. The anticipated release of Tornado's Q4/2024 financial results in April 2025 will provide further insights into the company's financial performance during this period.

These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated. Actual results could differ materially from those anticipated due to prevailing economic conditions, including restrictions on trade and tariffs, and other factors beyond the company's control. Tornado disclaims any intention or obligation to update or revise any forward-looking statements except as may be required by applicable securities regulations[2].