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TerraVest (TVK.TO)
More background: Special Report, TerraVest’s next chapter, 2026 outlook
TerraVest reported a good set of fiscal Q3 results, with organic revenue growth of 5%. As I wrote recently in TerraVest’s Next Chapter, I believe the two big trends affecting the company are the:
Growth into new markets, particularly data centers
Cyclical slowdown in the trailer business
Both of those trends accelerated in the quarter.
I believe the business is developing into four platforms:
Storage Tanks (~C$120mm EBITDA)
Led by Highland Tank, KBK, Simplex, Mississippi Tank, Pro-par.
Traditionally driven by storage of propane and chemicals. Increasingly focused on new markets like data centers, LNG, and convenience stores.
Trailers (~C$70mm EBITDA)
Led by Entrans, Advance, LBT, Tankcon.
Transport of petroleum and chemicals. Driven by industrial cycles.
Water / Services (~C$65mm EBITDA)
Led by GES, LV, Aureus, Wave.
Water for oil & gas.
Legacy businesses (~C$50mm EBITDA)
Led by ECR, Granby, NWP.
Not a platform but a legacy group of businesses across heating oils, boilers, wellhead equipment, and others.
TerraVest does not segment its business according to these four platforms, but I still believe that the reported segments give us a clue to how each of the platforms is performing.
HVAC
This mostly represents the storage tank platform, and saw organic growth accelerate to 61%.
The segment is being driven by demand from data centers for storage tanks, which, as I wrote in TerraVest’s Next Chapter, is a major new market that the company is pushing into.
In fact, the demand from data centers is so strong that TerraVest is now using production capacity from its Compressed Gas and Processing Equipment facilities to fulfill demand.
The Processing Equipment business, for example, is small at C$2.9mm in EBITDA in the quarter in comparison with C$51mm for HVAC, but saw 1% organic revenue growth in the quarter, of which 27ppts came from intercompany sales that represent data center revenues.