RICHELIEU CONTINUES ITS STRONG GROWTH AND STRATEGIC EXPANSION SALES UP 12.6% IN THE THIRD QUARTER

FIVE ACQUISITIONS TO DATE IN FISCAL 2026, REPRESENTING $145 MILLION IN ANNUAL SALES

HIGHLIGHTS OF THE THIRDQUARTER ENDED AUGUST 31, 2026

• Sales of $562.0 million, an increase of 12.6%, including 10.0% internal growth and 2.6% from acquisitions. Sales totaled $300.2 million in Canada (+10.2%) and US$186.7 million in the United States (+12.9% in US dollars).
• EBITDA of $65.5 million, an increase of 14.8%. EBITDA margin: 11.7%, including 60 basis points attributable to the tariff refund⁽¹⁾.
• Net earnings attributable to shareholders of $29.2 million, an increase of 22.4%, or $0.53 diluted earnings per share (+23.3%), including $0.04 per share from the tariff refund⁽¹⁾.
• Adjusted cash flows from operating activities of $54.5 million, an increase of 13.5%.
• Expansion – Two acquisitions completed during the third quarter (Solutions Acoustiques, QC, and Winnec, ON), followed on September 1 by the acquisition of Penrod's Hardware Division (U.S.). Launch of the $15 million expansion project at our Drummondville, Quebec, distribution centre.

FIRST NINE MONTHS

• Sales of $1.6 billion, an increase of 7.2%, including $841.1 million in Canada and US$517.8 million in the United States, representing increases of 6.5% and 9.4% (US$), respectively.
• EBITDA of $164.8 million, an increase of 6.5%, with an EBITDA margin of 10.6%.
• Net earnings attributable to shareholders of $66.9 million, or $1.21 diluted earnings per share.
• Adjusted cash flows from operating activities of $140.4 million, an increase of 6.7%.
• Expansion: Five acquisitions completed since the beginning of fiscal 2026, representing approximately $145 million in additional annual sales.
• Strong financial position at August 31, 2026, with working capital of $702.6 million (current ratio of 3.2:1).

Quarterly dividend of $0.1566 per share payable on November 5, 2026, to shareholders registered as of October 22, 2026.

⁽¹⁾ In the Canada-U.S. business environment of 2025-2026, certain Company products that had been subject to tariffs under the International Emergency Economic Powers Act (IEEPA) recently became eligible for tariff refunds authorized by the U.S. government. As a result, the Corporation recorded a tariff refund of $3 million during the third quarter, reflected as a reduction in the cost of goods sold and contributing to a modest improvement in margins and earnings.

MONTREAL, Oct. 7, 2026 /CNW/ -- (TSX: RCH) «The strong growth and strategic expansion we have achieved once again demonstrate the relevance of our business model, which enables us to meet our customer needs, take advantage of excellent acquisition opportunities and continue driving the Corporation's future growth. Our market development efforts increased sales across all market segments despite an uncertain economic environment. In the manufacturers' market, sales increased 11.5% to $493.3 million, including 8.9% internal growth and 2.6% from acquisitions. Sales to retailers and home improvement superstores increased 20.9% to $68.7 million, reflecting, among other things, initial deliveries made to a major customer in the United States. The acquisitions of Solutions Acoustiques in the Montreal region and Winnec in the Toronto region completed during the third quarter have added expertise, specialized products, customers, and additional sales. As for Penrod's Hardware Division, the largest acquisition we have completed to date, it contributes an additional US$70 million in annual sales, expanded market coverage through seven new centres located across seven U.S. states, and a service-oriented corporate culture fully compatible with Richelieu's," said Mr. Richard Lord, President and Chief Executive Officer.

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«In addition, we recently announced a $15 million investment to expand the scale of our Drummondville distribution centre and support our growth. We are proud of this new development in the Centre-du-Québec region, which relies on local expertise and plays an important role in strengthening our network,» added Richard Lord.

RECENT ACQUISITIONS AND MAJOR FACILITY EXPANSION FOR FUTURE GROWTH

Acquired on September 1, 2026, The Penrod Company («Penrod») represents US$70 million in additional annual sales, adds seven distribution centres to Richelieu's U.S. network, and strengthens its presence in the following states: North Carolina, Texas, Minnesota, California, Colorado, Arizona, and Florida, while expanding service to a diversified customer base that includes door manufacturers, architects, residential and commercial contractors, and specialty distributors.

In September 2026, Richelieu announced a $15 million investment to expand its Drummondville distribution centre from 40,000 square feet to 180,000 square feet. The project is underway and is expected to be completed in spring 2027.

Five acquisitions since the beginning of fiscal 2026, representing $145 million in additional annual sales:

• (Q1) Three distribution centres of McKillican American, Oregon and Washington State;
• (Q2) Finium, a distributor and manufacturer of premium wall covering panels, Frampton, Quebec;
• (Q3) Solutions Acoustiques, distributor of standard and premium acoustic products, Montreal region; and
• Winnec, specialized hardware distributor with three distribution centres in the Toronto region;
• (Q4) ThePenrod Company, with seven distribution centres across the United States.

OPERATING RESULTS FOR THE THIRD QUARTER AND FIRST NINE MONTHS ENDED AUGUST 31, 2026

The following table provides an overview of Richelieu's sales in its two main markets for the quarters ended August 31, 2026 and 2025 :

Quarters ended August 31	2026	2025	∆ %
(in millions of dollars, except exchange rates)			Total	Internal	Acquisitions
Consolidated	562.0	499.2	12.6	10.0	2.6
Manufacturers	493.3	442.4	11.5	8.9	2.6
Retailers	68.7	56.8	20.9	18.4	2.5
Canada	300.2	272.3	10.2	7.4	2.8
Manufacturers	252.1	226.3	11.4	8.4	3.0
Retailers	48.1	46.0	4.6	2.8	1.8
United States in US$	186.7	165.3	12.9	10.5	2.4
Manufacturers	172.0	157.4	9.3	7.0	2.3
Retailers	14.7	7.9	86.1	81.2	4.9
United States in CA$	261.8	226.9	15.4
Average exchange rates	1.402	1.372

For the third quarter ended August 31, 2026, consolidated sales totalled $562.0 million, compared with $499.2 million for the third quarter of 2025, representing an increase of $62.8 million, or 12.6%, of which 2.6% was attributable to  the positive contribution of acquisitions and 10.0% to internal growth. Internal growth primarily reflects price increases aimed at offsetting higher product and freight costs. In addition, the strong sales growth in the retail and home improvement superstore market is mainly due to initial deliveries to a major customer in the United States. On a constant-currency basis relative to the third quarter of 2025, consolidated sales would have increased by 11.3% for the quarter ended August 31, 2026.

Operating expenses excluding amortization totalled $496.5M, representing 88.3% of sales, compared with $442.2M, or 88.6% of sales, for the corresponding period of fiscal 2025. The increase in absolute dollars was primarily attributable to sales growth, while the improvement as a percentage of sales reflects a $3M refund of certain U.S. customs duties, recorded as a reduction of cost of goods sold.

Earnings before income taxes, interest, and amortization (EBITDA) reached $65.5M, up $8.5M or 14.8% from the corresponding quarter of 2025. This improvement was primarily driven by sales growth and the $3M refund of certain U.S. customs duties. As a result, the EBITDA margin was 11.7%, compared to 11.4% for the corresponding quarter of 2025, and includes a favourable impact of approximately 60 basis points attributable to this refund.

Amortization expense for the third quarter of 2026 amounted to $20.1M, up $1.4M compared to the corresponding period in 2025, mainly reflecting the increase in right-of-use assets related mainly to lease renewals. Net financial costs totalled $3.3M, compared to $3.4M in the corresponding quarter of 2025, representing a decrease of $0.1M.

Net earnings amounted to $30.5M, an increase of 19.3% from the corresponding quarter of 2025. Including non-controlling interests, net earnings attributable to shareholders of the Corporation amounted to $29.2M, an increase of 22.4% from the third quarter of 2025. Net earnings per share were $0.53, basic and diluted, compared to $0.43, basic and diluted, for the third quarter of 2025, an increase of 23.3%.

Cash flow from operating activities, before net change in non-cash working capital balances, amounted to $54.5M, or $0.99 per diluted share, compared with $48.1M, or $0.87 per diluted share, for the third quarter of 2025. This 13.5% increase mainly reflects the increase in net earnings. Net change in non-cash working capital items represented a cash inflow of $4.8M, reflecting a $24.7M change in accounts payable, while accounts receivable, inventories and other items used cash flows of $19.9M. As a result, operating activities provided a cash inflow of $59.4M, compared to a cash inflow of $82.7M in the third quarter of 2025.

In the first nine months of 2026, consolidated sales reached $1.6B, up $104.5M or 7.2% over the first nine months of 2025, of which 2.6% from the positive contribution of acquisitions and 4.6% from internal growth. On a currency-comparable basis with the corresponding period in 2025, the increase in consolidated sales would have been 7.9%.

Operating expenses excluding amortization totalled $1.4B, representing 89.4% of sales, compared to $1.3B, or 89.4% of sales, for the same period in 2025. The increase in absolute dollars was primarily attributable to sales growth. As a percentage of sales, operating expenses remained stable, as the impact of selling price increases implemented to reflect higher customs duties was offset by the favourable impact of the $3M tariff refund recorded in the third quarter as a reduction of cost of goods sold.

EBITDA was $164.8M, up $10.1M or 6.5% from the corresponding nine-month period of 2025. Net earnings attributable to shareholders were $66.9M, up 11.0% compared with the corresponding period of 2025. Net earnings per share were $1.22 basic and $1.21 diluted, compared to $1.09 basic and $1.08 diluted for the same period of 2025, up 11.9% and 12.0% respectively.

Cash flow from operating activities, before net change in non-cash working capital balances, was $140.4M, or $2.54 per diluted share, compared to $132.1M, or $2.38 per diluted share, for the first nine months of 2025. The net change in non-cash working capital items used cash flows of $44.5M, mainly due to changes in inventories and accounts receivable which used cash flows of $73.5M, while changes in accounts payable and other items represented a cash inflow of $29.0M. As a result, operating activities represented a cash inflow of $95.9M, compared to a cash inflow of $133.6M in the first nine months of 2025.

FINANCIAL POSITION

As at August 31, 2026, net cash was $50.9M, compared to a net cash of $22.6M as at November 30, 2025, total assets were $1.58B, compared to $1.44B as at November 30, 2025, and the Corporation had a working capital of $702.6M, for a ratio of 3.2:1, compared to $624.0M (ratio of 3.3:1) as at November 30, 2025, with an average return on shareholders' equity of 9.5%.

SHARE CAPITAL

As at August 31, 2026, the Corporation's share capital consisted of 54,845,937 common shares [54,911,836 common shares as at November 30, 2025]. For the three and nine-month periods ended August 31, 2026, the weighted average number of diluted shares outstanding was 55,072,174 and 55,180,510 [55,561,110 and 55,570,600 in 2025].

DIVIDENDS

On October 7, 2026, the Board of Directors approved the payment of a quarterly dividend of $0.1566 per share to shareholders of record as at October 22, 2026, payable on November 5, 2026. The declared dividend is designated as an eligible dividend under the Income Tax Act of Canada.

MAIN TRADEMARKS

PROFILE AS AT AUGUST 31, 2026

Richelieu is a leading North American importer, manufacturer, and distributor of specialty hardware and complementary products. Its products serve an extensive customer base of kitchen and bathroom cabinets, storage and closets, home furnishing and office furniture manufacturers, residential and commercial woodworkers, doors and windows, and hardware retailers including renovation superstores. Richelieu offers customers a broad mix of high-end products sourced from manufacturers worldwide. Its product selection consists of over 145,000 different items targeted to a base of more than 120,000 active customers who are served by 124 centres in North America – 54 distribution centres in Canada, 66 in the United States, and 4 manufacturing plants in Canada (Les Industries Cedan, Menuiserie des Pins, Finium and USIMM UNIGRAV), which produce, among other things, veneer and edge-banding product lines, a broad selection of decorative mouldings, components for the door and window industry, and custom-made products, including high-end decorative and acoustic wall panel solutions. The Corporation also operates a 3D scanning centre.

Notes to readers -- Richelieu uses earnings before interest, income taxes, and amortization ("EBITDA") because this measure enables management to assess the Corporation's operational performance. This measure is a financial indicator of a corporation's ability to service its debt. However, EBITDA should not be considered by an investor as an alternative to operating income, net earnings, cash flows or as a measure of liquidity. Because EBITDA is not a standardized measurement as prescribed by IFRS, it may not be comparable to the EBITDA of other companies. Richelieu also uses adjusted cash flows from operating activities, which are based on net earnings plus the amortizations, deferred tax expense (or recovery), share-based compensation expense, and financial costs. These additional measures do not account for the net change in non-cash working capital items to exclude seasonality effects and are used by management in its assessments of cash flows from long-term operations. Therefore, adjusted cash flows from operating activities may not be comparable to those of other companies. Certain statements set forth in this report (generally identified by terms such as "may", "could", "might", "intend", "expect", "believe", "estimate" or comparable variants) constitute forward-looking statements which, by their very nature, remain subject to other risks and uncertainties as set forth in the Corporation's annual and quarterly reports. Although management considers these assumptions and expectations reasonable based on the information available at the time they are provided, such assumptions and expectations could prove inaccurate, and actual results could differ materially. Richelieu is under no obligation to update or revise any forward-looking statements made herein to account for future events or circumstances, except as required by applicable legislation. The unaudited interim consolidated financial statements, accompanying notes and interim MD&A for the third quarter and first nine months ended August 31, 2026 will be available on SEDAR+ at www.sedarplus.com and on the Corporation's website at www.richelieu.com.

Richard Lord		Antoine Auclair
President and Chief Executive Officer		Chief Financial Officer and Chief Operating Officer

OCTOBER 8, 2026, CONFERENCE CALL AT 10:00 A.M. (EASTERN TIME)

Financial analysts and investors interested in participating in the Corporation's earnings conference call, scheduled for October 8, 2026, at 10:00 a.m., can dial 1-800-990-4777 a few minutes before the start of the call. For those unable to participate in real-time, a recording will be available starting October 8, 2026, at 5:45 p.m. until midnight on October 15, 2026. Simply dial 1-888-660-6345 and enter the access code: 01245 # to access the recording. Members of the media are invited to listen in.

SOURCE Richelieu Hardware Ltd.

For information: Tel: [phone] / www.richelieu.com