With the release of 2022 year end results that showed revenues up 80% to $59.3 million accompanied with strong profitability and positive cash flow, Beacon stuck to its $1.00 price target versus current trading in the $0.50 range.
In 2022, Tornado designed and manufactured 143 hydrovac trucks, which are used for safe excavation in and around critical infrastructure corridors and pipelines. Currently the company is forecasting 2023 production of between 180 and 220 units. Tornado’s customers include such high profile companies such as Ditch Witch, a division of Toro Inc. (NYSE: TTC – market cap ~$11B), and Custom Truck One Source, (NSYSE: CTOS – market cap ~$1.6B).
Beacon notes that Tornado is trading at a “significant discount to its closest peers’ with the investment firm forecasting 2023 revenues of $89 million and $11 million EBITDA and those numbers reaching $118 million and $20 million in 2024.
Tornado finished the year on a high note as Q4 revenues reached $20.7 million compared to $9.5 million in Q4, 2021.
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