SEDAR Interim Financial Statements

Taiga Building Products Ltd. Condensed Interim Consolidated Financial Statements (Unaudited) For the three and nine months ended September 30, 2025 and 2024 (in Canadian dollars) NOTICE TO SHAREHOLDERS Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the interim financial statements, they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor. The accompanying unaudited interim consolidated financial statements of Taiga Building Products Ltd. (the "Company") have been prepared by and are the responsibility of the Company's management. The Company's independent auditor has not performed a review of these financial statements in accordance with the standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor. TAIGA BUILDING PRODUCTS LTD. Consolidated Balance Sheets (Unaudited) September 30, September 30, December 31, (in thousands of Canadian dollars) 2025 2024 2024 Assets Current: Cash and cash equivalents (Note 4) 36,564 $ 174,377 $ 192,445 $ Accounts receivable 184,307 172,228 150,387 Inventories (Note 5) 178,866 165,249 178,986 Prepaid expenses 1,699 3,810 3,750 Current income tax assets 1,568 7,248 4,895 403,004 522,912 530,463 Property, plant and equipment 115,742 119,745 121,175 Long term inventory (Note 5) 4,680 - 1,873 Intangible assets 10,046 10,910 11,318 Goodwill 10,887 10,557 11,253 Long term investments (Note 11) 11,372 11,315 11,998 Deferred tax assets 5,725 5,783 5,457 561,456 $ 681,222 $ 693,537 $ Liabilities and Shareholders’ Equity Current: Revolving credit facility (Note 6) 8,636 $ - $ - $ Accounts payable and accrued liabilities 141,841 $ 137,885 $ 133,177 $ Current portion of lease obligations 6,303 5,995 6,015 156,780 143,880 139,192 Lease obligations 87,755 90,637 91,431 Deferred gain 1,916 2,034 2,005 Deferred tax liabilities 6,658 5,212 6,479 Provisions - 64 34 253,109 241,827 239,141 Shareholders’ Equity: Share capital (Note 8) 122,477 122,477 122,477 Accumulated other comprehensive income (Note 8) 15,228 10,571 18,984 Retained earnings 170,643 306,347 312,935 308,347 439,395 454,396 561,456 $ 681,222 $ 693,537 $ The accompanying notes are an integral part of these consolidated financial statements. - 1 - TAIGA BUILDING PRODUCTS LTD. Consolidated Statements of Earnings and Comprehensive Income (Unaudited) (in thousands of Canadian dollars, except per share amounts) 2025 2024 2025 2024 Sales (Note 14) 431,276 $ 423,886 $ 1,272,184 $ 1,245,340 $ Cost of sales 383,061 378,342 1,137,250 1,113,331 Gross margin 48,215 45,544 134,934 132,009 Expenses: Distribution 7,916 8,151 24,113 24,605 Selling and administration 21,882 19,169 58,930 53,183 Finance (Note 9) 1,685 3 2,650 202 Other expenses (income) (30) (109) (235) (183) 31,453 27,214 85,458 77,807 Earnings before income tax 16,762 18,330 49,476 54,202 Income tax expense (recovery) (Note 7) 3,953 3,999 11,771 13,177 Net earnings for the year 12,809 $ 14,331 $ 37,705 $ 41,025 $ Other comprehensive income (Item that may be reclassified to net earnings) Exchange differences on translating foreign controlled entities 3,341 $ (2,173) $ (3,756) $ 2,984 $ Total comprehensive income for the year 16,150 $ 12,158 $ 33,949 $ 44,009 $ Basic and diluted net earnings per common share 0.12 $ 0.13 $ 0.35 $ 0.38 $ Weighted average number of common shares outstanding 107,945 107,953 107,945 1 --- 07,953 The accompanying notes are an integral part of these consolidated financial statements. Three months ended September 30, Nine months ended September 30, - 2 - TAIGA BUILDING PRODUCTS LTD. Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) For the nine months ended September 30, 2024 (in thousands of Canadian dollars) Share Capital Retained Earnings Accumulated Other Comprehensive Income Total Balance at December 31, 2023 122,509 $ 265,322 $ 7,587 $ 395,418 $ Net earnings - 41,025 - 41,025 Shares purchased under the NCIB and cancelled (Note 8) (32) - - (32) Other comprehensive income - - 2,984 2,984 Balance at September 30, 2024 122,477 $ 306,347 $ 10,571 $ 439,395 $ For the nine months ended September 30, 2025 (in thousands of Canadian dollars) Share Capital Retained Earnings Accumulated Other Comprehensive Income Total Balance at December 31, 2024 122,477 $ 312,935 $ 18,984 $ 454,396 $ Net earnings - 37,705 - 37,705 Dividend (Note 8) - (179,997) - (179,997) Shares purchased under the NCIB and cancelled (Note 8) - - - - Other comprehensive income - - (3,756) (3,756) Balance at September 30, 2025 122,477 $ 170,643 $ 15,228 $ 308,347 $ The accompanying notes are an integral part of these consolidated financial statements. - 3- TAIGA BUILDING PRODUCTS LTD. Consolidated Statements of Cash Flows (Unaudited) (in thousands of Canadian dollars) 2025 2024 2025 2024 Cash provided by (used in): Operating: Net earnings 12,809 $ 14,331 $ 37,705 $ 41,025 $ Adjustments for non-cash items Amortization 3,333 3,163 9,926 9,634 Income tax expense 3,953 3,999 11,771 13,177 Mark-to-market adjustment on financial instruments (138) 512 445 360 Change in provisions - (29) (34) (87) Loss (gain) on asset disposal - (80) (146) (90) Amortization of deferred gain (30) (30) (89) (90) Finance and subordinated debt interest expense 2,224 (41) 5,049 1,589 Interest paid (539) 44 (2,399) (1,387) Income tax paid (4,671) (3,160) (11,008) (12,872) Changes in non-cash working capital (Note 12) 61,115 76,731 (25,689) (22,473) Cash flows used by operating activities 78,056 95,441 25,532 28,787 Investing: Purchase of property, plant and equipment (1,825) (1,742) (4,504) (3,132) Proceeds from disposition of property, plant and equipment - 80 179 99 Cash flows used in investing activities (1,825) (1,662) (4,325) (3,033) Financing: Increase (decrease) in revolving credit facility (73,404) - 8,636 - Repayment of lease obligations (1,748) (1,545) (5,054) (4,150) Dividends paid - - (179,997) - Repurchase of common shares - - - (32) Cash flows used in financing activities (75,152) (1,545) (176,415) (4,182) Effect of foreign exchange on cash (30) (1,094) (672) 45 Cash and Cash Equivalents - beginning of year 35,515 83,237 192,445 152,760 Cash and Cash Equivalents - end of period 36,564 $ 174,377 $ 36,564 $ 174,377 $ The accompanying notes are an integral part of these consolidated financial statements. Three months ended September 30, Nine months ended September 30, - 4 - Taiga Building Products Ltd. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited) For the three and nine months ended September 30, 2025 and 2024 (in Canadian dollars) - 5 - 1. Nature of Operations Taiga Building Products Ltd. (“Taiga” or the “Company”) is an independent wholesale distributor of building products in Canada and the United States. Taiga operates within two reportable geographic areas, Canada and the United States. The Company’s shares are list --- ed for trading on the Toronto Stock Exchange. Taiga is a Canadian corporation and its registered and records office is located at 20th floor, 250 Howe Street, Vancouver, British Columbia, Canada V6C 3R8. 2. Basis of Preparation (a) Statement of Compliance These condensed interim consolidated financial statements (the “Financial Statements”) are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Therefore, these financial statements comply with International Accounting Standards (“IAS”) 34, Interim Financial Reporting. These Financial Statements follow the same accounting policies and methods of application as our most recent annual financial statements. Accordingly, they should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024, which have been prepared in accordance with IFRS as issued by the IASB. These Financial Statements were authorized for issue on November 07, 2025 by the board of directors of the Company. (b) Basis of Consolidation These consolidated financial statements include the accounts of Taiga Building Products Ltd. and its subsidiaries. Subsidiaries are those entities which the Company controls by having the power to govern the financial and operational policies of the entity. Inter-company transactions and balances have been eliminated. (c) Basis of Measurement These consolidated financial statements have been prepared on an accrual basis and are based on historical costs, modified where applicable. 3. Significant Accounting Policies The significant accounting policies that have been used in the preparation of these condensed consolidated interim financial statements are summarized in the Company's annual audited consolidated financial statements for the year ended December 31, 2024. 4. Cash and Cash Equivalents (in thousands of dollars) September 30, 2025 September 30, 2024 December 31, 2024 Cash 36,022 173,594 191,722 Financing costs, net of amortization 542 783 723 Total 36,564 174,377 192,445 Cash and cash equivalents include a short-term investment in a GIC of $36.6 million bearing interest of 3.35%, maturing on October 20th, 2025, and renewing on a monthly basis. Taiga Building Products Ltd. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited) For the three and nine months ended September 30, 2025 and 2024 (in Canadian dollars) - 6 - 5. Inventories (in thousands of dollars) September 30, 2025 September 30, 2024 December 31, 2024 Allied building products 50,213 38,040 37,241 Lumber products 96,206 94,545 104,481 Panel products 31,102 26,676 36,062 Production consumables 1,787 6,204 1,513 Inventory provision (442) (216) (311) Total 178,866 165,249 178,986 The Company’s inventories are pledged as security for the revolving credit facility. Long term inventory of $4.7 million relates to two properties which are held for development and future sale. 6. Revolving Credit Facility (in thousands of dollars) September 30, 2025 September 30, 2024 December 31, 2024 Revolving credit facility 9,178 - - Financing costs, net of amortization (542) - - Total 8,636 - - On December 21, 2022, the Company entered into a new $250 million senior secured revolving credit facility (the "Facility") with a syndicate of lenders led by the Bank of Montreal and including Scotiabank, Bank of America, TD Bank and CIBC. The Facility bears interest at variable rates plus --- variable margin, is secured by a first perfected security interest in all real and personal property of the Company and certain of its subsidiaries and matures on December 20, 2027. Taiga's ability to borrow under the Facility is based upon a defined percentage of accounts receivable and inventories. The terms, conditions, and covenants of the Facility have been met as at September 30, 2025. 7. Income Taxes Income tax expense is comprised of: Three months ended September 30, Nine months ended September 30, (in thousands of dollars) 2025 2024 2025 2024 Current 3,623 3,434 11,641 12,858 Deferred 330 565 130 319 Total 3,953 3,999 11,771 13,177 8. Shareholders’ Equity (a) Authorized Share Capital Unlimited common shares without par value, unlimited class A common shares without par value, and unlimited class A and class B preferred shares without par value. (b) Normal Course Issuer Bid On September 4, 2024, the Company commenced a Normal Course Issuer Bid (“NCIB”) for its common shares. Under the terms of the NCIB, the Company may purchase up to 5,397,226 of its then outstanding 107,944,523 common shares, representing 5% of the outstanding common shares. The NCIB expired on September 3, 2025, and the Company did not purchase any shares during the NCIB. Taiga Building Products Ltd. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited) For the three and nine months ended September 30, 2025 and 2024 (in Canadian dollars) - 7 - (c) On September 4, 2025, the Company commenced a further NCIB for its common shares. Under the terms of the NCIB, the Company may purchase up to 5,397,226 of its then outstanding 107,944,523 common shares, representing 5% of the outstanding common shares. During the nine months ended September 30, 2025, the Company did not purchase any of its common shares under the NCIB. At September 30, 2025, there were 5,397,226 remaining common shares permitted to be purchased by the Company per the terms of the NCIB with an expiration on September 3, 2026. Common Shares Issued (in thousands of dollars, except number of shares) Number of Shares Amount Balance, December 31, 2024 107,944,523 122,477 Shares purchased under NCIB and cancelled - - Balance, September 30, 2025 107,944,523 122,477 (d) Accumulated Other Comprehensive Income Accumulated other comprehensive income consists of exchange differences arising on translation of entities that have a functional currency other than the Canadian dollar. (e) Stock Options and Warrants Taiga does not have stock options or warrants outstanding and has not granted or cancelled options or warrants during the current or prior period. (f) Major Shareholder Taiga’s major shareholder is Avarga Limited (“Avarga”), holding 74.21% or 80,106,014 of the issued and outstanding common shares of the Company. Taiga’s current chairman, Ian Tong, is the chief executive officer and a director of Avarga. Another of Taiga’s directors, Dr. Kooi Ong Tong is also Avarga’s executive chairman and a significant shareholder. Avarga is an investment holding company listed on the Singapore Exchange. (h) Dividend A special one-time dividend of $1.6675 per share was declared, payable to shareholders of record on June 6, 2025. The dividend was paid on June 23, 2025. 9. Finance Expense The finance expense is comprised of: Three months ended September 30, Nine months ended September 30, (in thousands of dollars) 2025 2024 2025 2024 Interest incurred/(earned) on cash balances 373 (1,343) (1,315) (4,0 --- 79) Interest on leases and long-term debt 1,252 1,285 3,784 4,100 Amortization of financing costs 60 61 181 181 Total 1,685 3 2,650 202 Taiga Building Products Ltd. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited) For the three and nine months ended September 30, 2025 and 2024 (in Canadian dollars) - 8 - 10. Commitments and Contingencies Other Outstanding Legal Matters The Company is involved in various non-material legal actions and claims arising in the course of its business. The financial impact individually or in aggregate resulting from these actions and claims is not expected to be significant. The individual and aggregate outcomes cannot be determined at this time. 11. Financial Instruments The fair values of lease obligations are as follows: (in thousands of dollars) September 30, 2025 September 30, 2024 Carrying amount 88,876 91,166 Fair value 88,416 91,166 The fair value of the lease obligations was determined using current borrowing rates for similar debt instruments. The Company acquired 7,000 units of shares for a private Asian Real Estate fund in March 2023. The investment is stated at fair value at each reporting date. The change in value represents the unrealized gains and losses on the portfolio investment. (in thousands of dollars) September 30, 2025 September 30, 2024 Carrying amount 9,546 9,546 Fair value 8,967 8,910 In December 2023, the Company invested in a private guaranteed bond bearing interest at 8% per annum, together with a share of revenues. The bond matures on December 29, 2026. (in thousands of dollars) September 30, 2025 September 30, 2024 Carrying amount 2,405 2,405 Fair value 2,405 2,405 The carrying amount of derivative financial instrument assets and liabilities are equal to their fair values as these instruments are re-measured to their fair values at each reporting date as follows: (in thousands of dollars) September 30, 2025 September 30, 2024 Lumber futures 5 (18) Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are: Level 1 – based on quoted prices in active markets for identical assets or liabilities; Level 2 – based on inputs other than quoted prices that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); or Level 3 – applies to assets and liabilities for inputs that are not based on observable market data, which are unobservable inputs. Taiga Building Products Ltd. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited) For the three and nine months ended September 30, 2025 and 2024 (in Canadian dollars) - 9 - Cash and cash equivalent are classified as level 1. Derivative financial instrument assets and liabilities are classified as level 1 and investments are classified as level 2 or 3. The following table summarizes the classification and carrying values of the Company’s financial instruments at September 30, 2025 and 2024: (in thousands of dollars) At September 30, 2025 Amortized Cost (Financial assets) FVTPL Amortized Cost (Financial liabilities) Total Financial assets: Cash and cash equivalents 36,564 - - 36,564 Accounts receivable 184,307 - - 184,307 Lumber futures1 5 5 Long term investment 11,372 11,372 Total financial assets: 220,871 11,377 - 232,248 Financial liabilities: Accounts payabl --- e & accrued liabilities - - 141,841 141,841 Current portion of lease obligation - - 6,303 6,303 Non-current portion of lease obligation - - 87,755 87,755 Total financial liabilities: - - 235,899 235,899 (in thousands of dollars) At September 30, 2024 Amortized Cost (Financial assets) FVTPL Amortized Cost (Financial liabilities) Total Financial assets: Cash and cash equivalents 174,377 - - 174,377 Accounts receivable 172,228 - - 172,228 Long term investment 11,315 11,315 Total financial assets: 346,605 11,315 - 357,920 Financial liabilities: Accounts payable & accrued liabilities - - 137,885 137,885 Lumber futures1 18 18 Current portion of lease obligation - - 5,995 5,995 Non-current portion of lease obligation - - 90,637 90,637 Total financial liabilities: - 18 234,517 234,535 (1)Included with accounts receivable or accounts payable and accrued liabilities on the balance sheet Taiga Building Products Ltd. Notes to the Condensed Interim Consolidated Financial Statements (Unaudited) For the three and nine months ended September 30, 2025 and 2024 (in Canadian dollars) - 10 - 12. Changes in Non-Cash Working Capital Three months ended September 30, Nine months ended September 30, (in thousands of dollars) 2025 2024 2025 2024 (Increase) Decrease in Accounts receivable 20,731 36,472 (33,556) (53,044) (Increase) Decrease in Inventories 23,537 24,167 (2,687) 9,510 (Increase) Decrease in Prepaid expenses and other 855 (672) 6,264 (774) Effect of foreign exchange on working capital 3,422 672 (4,373) 4,035 (Decrease) Increase in Accounts payable & accrued liabilities 12,570 16,092 8,663 17,800 Total 61,115 76,731 (25,689) (22,473) 13. Seasonality Taiga’s sales are subject to seasonal variances that fluctuate in accordance with the normal home building season. Taiga generally experiences higher sales in the quarters ended June 30 and September 30 and reduced sales in the late fall and winter during its quarters ended December 31 and March 31 of each fiscal year. 14. Segmented Information Taiga operates within one business segment and has two reportable geographic areas as follows: Revenue by Point of Sale Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 $000’s % $000’s % $000’s % $000’s % Canada 362,582 84.1 343,431 81.0 1,068,466 84.0 1,023,094 82.2 United States 68,694 15.9 80,456 19.0 203,718 16.0 222,247 17.8 For the quarter ended September 30, 2025, export sales totalled $40.5 million compared to $34.6 million in the previous year. For the nine months period ended September 30, 2025 export sales were $120.5 million compared to $102.0 million in the previous year. These export sales were primarily to the United States and Asia and are included as part of the Canadian segment in the table above.