SUSTAINED GROWTH OF 5.0% FOR RICHELIEU IN THE FIRST QUARTER OF 2026

Executive Summary of Q1 2026 Results

• Consolidated sales reached $463.6 million, representing a 5.0% year-over-year increase (7.0% currency-neutral).
• Net earnings attributable to shareholders were $14.4 million ($0.26 per diluted share), up 4.0% year-over-year.
• The company completed the acquisition of three U.S. distribution centres, marking its 100th acquisition in history.
• Signed letters of intent for two additional acquisitions in Canada.
• Quarterly dividend declared at $0.1566 per share (payable May 7, 2026).

Evaluation of News Impact

• The Q1 2026 results are consistent with the company's historical growth trajectory established in FY 2025 and Q3/Q4 2025. Sales growth of 5.0% aligns closely with previous quarters (Q4: +7.3%, Q3: +6.7%).
• The completion of the 100th acquisition is a significant milestone that validates the company's long-term M&A strategy, though it does not represent a sudden change in business model.
• Earnings per share growth of 4.0% matches revenue growth, indicating stable cost management despite FX headwinds.
• The dividend increase (from $0.1533 in Q3 to $0.1566 in Q1) signals confidence but consumes cash during a period of liquidity tightening.

Business Model

• Richelieu Hardware Ltd. is a leading North American distributor of hardware, building products, and home improvement supplies.
• Operates through two main segments: Retail (hardware stores) and Distribution (wholesale to contractors and retailers).
• Flagship Strategy: "One-stop shop" approach combined with aggressive acquisition growth.