Saltire loses $3.15-million (U.S.) in nine months

Executive Summary

• Saltire Capital Ltd. reported unaudited financial results for the three- and nine-month periods ended September 30, 2025, following the consolidation of SanStone Investments Ltd.
• The company reported a net loss of $3.2 million for the nine-month period, a significant improvement from the $42.9 million loss in the prior year, primarily due to the non-recurrence of $44.6 million in one-time listing expenses from the 2024 reverse takeover.
• Revenue for the nine months ended Sept. 30, 2025, reached $28.8 million, a 144% increase year-over-year, driven by the addition of SanStone and continued strength in MDI’s cinema-related sales.

Key Details

• Revenue: $28.8 million for the nine months ended Sept. 30, 2025, up 144% from $11.8 million in the same period of 2024.
• Gross Profit: $9.5 million, up 91% year-over-year. Gross margin was 32.9% (2024: 42%), reflecting the consolidation of SanStone’s high-volume, lower-margin dealership operations.
• Operating Income: $1 million for the nine-month period, compared to $2.4 million in the prior year, impacted by SanStone’s operating structure and higher public company costs.
• Net Loss: $3.2 million for the nine-month period, compared to a $42.9 million net loss in the prior year. The improvement is attributed to the one-time $44.6 million listing expense recorded in 2024.
• Adjusted EBITDA: $1.6 million for the nine-month period, compared to $2.8 million in the prior year. The decline reflects the non-recurrence of the prior year's large listing-expense adjustment.
• Normalized Operating Income: $3.4 million for the period, compared to $2.8 million in the prior year.
• Cash Position: Ended the quarter with $4.1 million in cash.
• Debt/Facility: Drew $50.1 million under its $100 million senior secured credit facility with Sagard Credit Partners II. Remaining availability supports future acquisitions.
• SanStone Acquisition: SanStone contributed positively in its first two months under Saltire ownership. It operates two dealership brands (Wilson Equipment and Tidal Tractor) with exclusive OEM relationships in Atlantic Canada.
• MDI Performance: Cinema-related sales increased 16.4% year-over-year. Demand remained robust from major customers including Imax, Regal Cinemas, and AMC.
• Accounting Note: Results reflect reverse takeover accounting treatment under IFRS, with MDI as the accounting acquirer and Saltire as the acquiree. Comparative figures prior to Sept. 25, 2024, reflect MDI stand-alone operations.

Notable Quotes

• "Q3 marked a pivotal step forward for Saltire," said Andrew Clark, chief executive officer of Saltire. "With SanStone now a part of the platform and MDI continuing to execute, we are building a foundation of steady, diversified growth. The strength across both businesses gives us confidence as we continue to scale with discipline and a long-term ownership mindset."