Two TSXV industrial stocks to watch

Summary

• TSXV industrial stocks include those junior stocks that produce or distribute machines and equipment used across sectors.
• Earthworks Industries, a waste management and disposal company, reported an operating income of negative CA$ 1.381 million for Q1 2023.
• Volatus Aerospace reported total revenue of CA$ 7.412 million For Q1 2023.

The TSX Venture exchange focuses on those stocks that are issued by early-stage companies. These companies require capital to get business operations going and may have the potential to grow. Among these stocks are junior industrial stocks that can offer an interesting investment opportunity to investors.

Industrial stocks belong to those companies that are either producers or distributors of machines and equipment used across sectors. The performance of these stocks may also be reflective of the soundness of an economy as they highlight the existence of construction and manufacturing.

Another major linkage of industrial stocks is with the materials sector. Industrial stocks also utilize many minerals and metals as inputs into their operations. So, these stocks have a dependency on the materials sector.

With that, it is now time examine two junior industrial stocks listed on TSXV that can be an interesting watch.

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Earthworks Industries Inc. (TSXV: EWK)

Earthworks focuses on waste management and disposal across both the private and public sectors. It pays special attention to deploying practices that are environmentally friendly. The company’s CIWM project aims at solving the waste disposal problem and improve the material handling and recycling industry.

For the year ended November 2022, Earthworks reported an operating income of negative CA$ 1.381 million. The net income to common stockholders was negative CA$ 1.841 million, while the EBIT was CA$ 1.247 million for the year.

Image Source: Mohamed Abdulraheem|Shutterstock

The company reported an operating income of negative CA$ 83,460 for the February 2023 quarter. The net income to common stockholders was negative CA$ 272,270.

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Volatus Aerospace Corp. (TSXV: VOL)

Volatus Aerospace operates in the integrated drone segment, wherein it offers a range of solutions and services for civilian and military applications. It also offers aerial and imaging services, system design engineering and covers data processing and management.

For Q1 2023, Volatus reported total revenue of CA$ 7.412 million, marking an increase of 54% over Q1 2022. The gross profit for the quarter was CA$ 2.366 million, which was CA$ 1.273 million higher than that in Q1 2022. This increase came because of higher gross margins from the service segment.

Image Source: ©2023 Kalkine®; Data source: Company Reports

The adjusted EBITDA during the three months ended March 31, 2023, was negative CA$ 1.602 million. The company reported an overall net loss of CA$ 3.017 million.

Disclaimer:

Please note, the above content constitutes a very preliminary observation based on the industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.