Saltire Capital Ltd. Reports Q2 2025 Financial Results

Executive Summary

• Saltire Capital Ltd. reported unaudited financial results for the six months ended June 30, 2025, showing a net loss of $11.4 million driven by a non-cash fair value loss on warrant liabilities, despite a 23.8% increase in revenue to $9.3 million.
• The Company completed the acquisition of SanStone Investments Limited, a heavy and agricultural equipment dealership operator in Eastern Canada, marking its second platform investment.
• Concurrent with the acquisition, Saltire entered into a loan agreement with Sagard to secure a US$100 million credit facility, with initial proceeds used to finance the acquisition and additional availability reserved for future growth.

Key Details

• Revenue: $9.3 million for the six months ended June 30, 2025, an increase of 23.8% from $7.5 million in the prior year period.
• Revenue Drivers: Cinema-related sales increased by 35%, supported by strong order volumes from key clients including IMAX®. Non-cinema revenues declined approximately 19% due to the timing of immersive project deliveries, expected to shift into Q3.
• Gross Profit: Increased to $3.8 million (up 25.6% year-over-year) with gross margins of 40.9% (vs. 40.3% in Q2 2024). Margin improvement attributed to favorable product mix, reduced raw material waste, and improved throughput efficiency.
• Operating Income: $1.2 million, compared to $1.3 million in the prior year period, reflecting higher public company costs following the reverse takeover in late 2024.
• Net Loss: $11.4 million, compared to net income of $1.0 million in Q2 2024. The loss was entirely due to a non-cash fair value loss of $11.3 million on warrant liabilities, driven by market-based inputs such as volatility and rate changes.
• Adjusted EBITDA: $1.0 million for the six-month period, down from $1.8 million in the prior year, primarily due to higher general & administrative and finance costs.
• Acquisition: Completed the acquisition of SanStone Investments Limited ("SanStone"), a leading owner and operator of heavy equipment dealerships and agricultural equipment dealerships in Eastern Canada, operating the Wilson Equipment and Tidal Tractor dealership brands.
• Financing/Credit Facility: Entered into a loan agreement with Sagard Holdings Manager LP and other lenders to establish a credit facility with an aggregate principal amount of US$100 million.
• Use of Proceeds: Initial draw from the Credit Facility was used to finance part of the cash purchase price for the SanStone acquisition. Additional availability will support future growth.
• Operational Update: The project pipeline for Strong/MDI Screen Systems, Inc. ("MDI") remains active, particularly across immersive and simulation markets, with multiple deliveries expected in the second half of 2025.

Notable Quotes

• "We're very encouraged by the momentum we're seeing across the business," said Andrew Clark, CEO of Saltire. "MDI continues to deliver solid performance, and our new partnership with SanStone opens up exciting opportunities in a space we know well. With two strong platforms now in place, Saltire is entering its next phase of growth — and we're focused on scaling with purpose, discipline, and long-term conviction."