INCREASE IN SALES OF 6.4% IN THE SECOND QUARTER AND TWO NEW ACQUISITIONS FOR A TOTAL OF SIX IN THE FIRST HALF

Executive Summary

• Richelieu Hardware Ltd. reported a 6.4% increase in second-quarter sales to $512.2 million, driven by strong performance in the U.S. market (up 11.7%) and two new acquisitions.
• The company completed six acquisitions in the first half of 2025, adding over $53 million in annualized sales and expanding its North American distribution network, including a new facility in New Jersey and an expansion in Detroit.
• Net earnings attributable to shareholders were $22.5 million ($0.41 per diluted share) for Q2, while EBITDA reached $55.2 million with a margin of 10.8%.

Key Details

• Q2 Financial Performance (Ended May 31, 2025):
  • Consolidated Sales: $512.2 million (up 6.4% from $481.4 million in Q2 2024).
  • EBITDA: $55.2 million (up 2.7%); EBITDA Margin: 10.8%.
  • Net Earnings Attributable to Shareholders: $22.5 million ($0.41 per diluted share).
  • Adjusted Cash Flow from Operating Activities: $46.8 million.
  • Operating Expenses (excl. amortization): $457.0 million (89.2% of sales).
  • Amortization Expense: $19.0 million.
  • Net Financial Costs: $4.0 million.
• First-Half Financial Performance (Ended May 31, 2025):
  • Consolidated Sales: $953.9 million (up 7.4% from prior year).
  • EBITDA: $97.6 million (up 3.6%); EBITDA Margin: 10.2%.
  • Net Earnings Attributable to Shareholders: $36.4 million ($0.66 per diluted share).
  • Adjusted Cash Flow from Operating Activities: $84.1 million.
• Sales Breakdown (Q2):
  • Canada: $275.8 million (down 0.2%).
  • United States (USD): $168.1 million (up 11.7%).
  • Internal Growth: 5.1% of total sales growth attributed to internal growth (including price adjustments for tariffs); 3.2% attributed to acquisitions.
• Acquisitions & Expansion:
  • Total of six acquisitions completed in H1 2025, generating over $53 million in additional annualized sales.
  • Q2 Acquisitions:
    • Rhoads & O'Hara Architectural Products (April 1): Specialist in exclusive architectural panels, distribution centre in Vineland, New Jersey.
    • Les industries Camcoat (May 1): Distributor of wood finishing products for the industrial market, Greater Montreal area.
  • Network Expansion: Completed a >50,000-square-foot expansion of the Detroit distribution centre to broaden product offerings.
• Balance Sheet & Capital:
  • Total Assets: $1.47 billion (up 5.4% from Nov 30, 2024).
  • Working Capital: $614.2 million (Ratio: 2.9:1).
  • Share Capital: 55,304,503 common shares outstanding as of May 31, 2025.
• Dividends:
  • Quarterly dividend of $0.1533 per share approved.
  • Record Date: July 24, 2025.
  • Payable Date: August 7, 2025.

Notable Quotes

• "All our market segments in the United States delivered a strong performance in the second quarter driving an 11.7% increase in sales, of which 5.1% was attributable to acquisitions and 6.6% to internal growth." — Richard Lord, President and CEO.
• "We remain fully committed to executing our strategies focused on innovation, acquisitions, and customer service, the main drivers of our growth." — Richard Lord, President and CEO.