Rubicon Organics wins value goal increase at Haywood

Haywood Capital Markets analyst Neal Gilmer raised his goal value on Rubicon Organics (Rubicon Organics Inventory Quote, Chart, Information, Analysts, Financials TSXV:ROMJ) to $1.30 from $1.10 in an Aug. 18 report, citing stronger-than-expected second quarter outcomes.

“The corporate expects to obtain licensing approval from Well being Canada for the Hope facility by year-end, after which administration will start implementing some capital enhancements,” Gilmer wrote. “The brand new facility will add 4,500 kg of annual manufacturing capability, setting 2026 as much as be a really robust yr.”

Rubicon, which went public in 2018 after retrofitting its Delta, B.C., greenhouse for natural hashish manufacturing, reported Q2/25 income of $15.0-million, up 24% from final yr and 21% from the earlier quarter, forward of Haywood’s $12.6-million estimate. Adjusted gross margin improved to 34.2%, in contrast with 30.6% in Q1 and 30.2% a yr earlier. Adjusted EBITDA was $1.4-million (9.2% margin), above Haywood’s $1.0-million forecast and up from $0.7-million in Q1 and $0.9-million in Q2/24.

The corporate generated $0.8-million in working money movement, ending the quarter with $7.3-million in money and $9.5-million in debt, and accomplished a $4.5-million non-public placement through the interval.

In Q2, Rubicon held 1.9% of the nationwide flower and pre-roll market, down barely from 2.0% in Q1. Its premium share in these classes was 5.2%. The Wildflower model ranked second nationally in topicals with a 28.3% share, up from 26.6% in Q1, whereas Rubicon’s premium edibles held a 26.2% share.

The Hope facility, as soon as licensed, is predicted so as to add 4,500 kg of annual manufacturing capability—a couple of 40% enhance—and contribute to income in 2026. Administration has guided for $1–2-million of start-up prices in 2025, with a part of the $4.5-million non-public placement allotted to funding preliminary operations.

Following Q2 outcomes, Haywood raised its 2025 income and EBITDA forecasts barely, with bigger will increase to 2026 estimates to replicate contributions from the brand new facility. The agency is sustaining its “Purchase” score whereas lifting its value goal to $1.30, based mostly on 1.5 occasions estimated 2026 income.

Gilmer initiatives Rubicon will generate $5.2-million in Adjusted EBITDA on income of $58.6-million in fiscal 2025, bettering to $10.5-million on $69.7-million in fiscal 2026.

“Rubicon continues to have robust market share inside the premium section throughout its markets. The Firm stays prudent in working bills with a strong steadiness sheet. The acquisition of the brand new facility will assist drive continued development subsequent yr. We imagine the Firm is positioned to determine itself in a robust area of interest section of the market.”

-30-