Decisive Dividend Corporation Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2025

Executive Summary

• Decisive Dividend Corp. reported record Q4 2025 sales of C$42.8 M (+14% YoY) and full‑year 2025 sales of C$152.2 M (+19% YoY).
• Adjusted EBITDA rose to C$25.4 M for the year (+25% YoY); net profit increased 159% to C$5.2 M, driven by higher sales and gross margin despite a lower dividend payout ratio (79% vs 96%).
• The company announced an aggressive 2026 acquisition outlook and expects improved financial metrics that could support further dividend growth.

Key Details

• Q4 2025 Highlights
• Sales: C$42.8 M (+14% QoQ); component manufacturing sales up 23%, wear‑parts sales up 93%.
• Gross profit: C$16.1 M (+10% QoQ); gross margin fell to 38% (from 39%) due to product mix.
• Adjusted EBITDA: C$7.3 M, flat versus Q4 2024; operating expenses rose with higher commissions, incentives, insurance and acquisition costs.
• Net profit: C$1.4 M (-25% QoQ) impacted by foreign‑exchange losses.

• Free cash flow (FCF): C$4.5 M (-12% QoQ) mainly from higher current income tax expense.

• Full‑Year 2025 Highlights

• Sales: C$152.2 M (+19% YoY); finished product segment +18%, component manufacturing +20%.
• Gross profit: C$57.8 M (+21% YoY); gross margin improved to 38% (from 37%).
• Adjusted EBITDA: C$25.4 M (+25% YoY).
• Net profit: C$5.2 M (+159% YoY); EPS rose from $0.10 to $0.26.
• Free cash flow: C$14.5 M (+23% YoY); FCF less maintenance capital = C$13.5 M.

• Dividends declared: C$10.747 M (up 3% YoY); payout ratio fell to 79%.

• Impairments & Contingent Consideration

• FY2025 goodwill impairment of $0.8 M and a $0.8 M reduction in accrued contingent consideration for the Capital I acquisition, reflecting lower expected order flow from oil‑&‑gas customers.

• Acquisition Activity

• Completed three strategic acquisitions in 2025 (including Venger and Techbelt) that contributed to sales growth in merchandising and wear‑parts segments.

• Management signaled “meaningful increase” in 2026 acquisition activity targeting the same verticals.

• Outlook & Guidance

• CEO Jeff Schellenberg expects 2026 results to benefit from new product investments, higher energy/metal prices, and infrastructure spending.

• Anticipates returning to target dividend payout levels, enabling potential dividend growth toward “dividend aristocrat” status.

• Conference Call

• Date: Thursday, March 12 2026, 8:00 am PT / 11:00 am ET.
• Hosted by CEO Jeff Schellenberg and CFO Rick Torriero.

Notable Quotes

“Our business performance in 2025 reflected the resiliency of our group… we anticipate an improvement in our results and per‑share financial metrics that will help support a return to our target payout ratio levels…” – Jeff Schellenberg, CEO.