Review of TerraVest Industries Inc.

MAR 26, 2026 - TVK is no longer a small-cap under-the-radar company like it was a few years ago, therefore, future deals need to be large enough to move the needle, and integration complexity could be meaningfully higher. In addition, valuation is also not as cheap as it used to, but it is still fair for a high-quality compounder, we think the market currently put a premium valuation on the company’s ability to grow through acquisitions. Though tariffs risk is there, it is manageable given the company’s diverse footprint and operating businesses. Overall, TVK continues to be a great serial acquirer in the energy sector, and we think the story of TVK as a long-term compounder is still intact, and given the consistent, opportunistic execution, we are upgrading our rating to “A-.”