Decisive Dividend Corporation Reports Financial Results for the Three and Six Months Ended June 30, 2026

KELOWNA, BC, July 29, 2026 /CNW/ -- Decisive Dividend Corporation (TSXV: DE) (the "Company" or "Decisive") today reported its financial results for the three and six months ended June 30, 2026.

Highlights of the Company's performance in Q2 2026 include the following:

• Acquired Be Fire SA and its wholly-owned subsidiaries Jidé SA and New Bodart & Gonay SRL (collectively referred to as "Be Fire") in June 2026.
• Completed an $8.0 million private placement of common shares in April 2026, used to partially fund the Be Fire acquisition.
• Increased consolidated sales 6% to $38.5 million in Q2 2026. Growth in hearth, agriculture and merchandising product sales along with stable wear part sales outpaced customer specific industrial product softness.
• Generated $5.4 million in Adjusted EBITDA* in Q2 2026, an increase of 1% relative to Q2 2025. 
• Generated Free Cash Flow less Maintenance Capital* of $2.6 million in Q2 2026, a 7% decrease relative to Q2 2025, due primarily to current income tax and operating premises lease payment increases. With the increased share count from the private placement and only one month of contribution from the Be Fire acquisition, the trailing twelve-month dividend payout ratio increased to 83% at the end of Q2 2026.
• Announced a $25.0 million increase in the amount available under its syndicated credit facility, which now provides for a committed $125.0 million revolving term loan and a $75.0 million accordion, in June 2026.
• Overall leverage at June 30, 2026 of 3.0x after funding the Be Fire acquisition. Increased capacity under its syndicated credit facility, combined with April 2026 private placement, leaves Decisive with $47.5 million in available liquidity entering the second half of the year.

Selected Financial Information:

The following is selected financial information of Decisive for the three and six months ended June 30, 2026. All amounts are expressed in Canadian dollars. The Company's Unaudited - interim condensed consolidated financial statements as well as its management's discussion and analysis ("MD&A") are posted on SEDAR+ at www.sedarplus.ca and on Decisive's website (www.decisivedividend.com).

(Stated in thousands of dollars, except per share amounts)
	For the three months ended								For the six months ended
June 30,		2026			2025		Change			2026			2025		Change
Sales	$	38,511		$	36,260		6 %		$	76,404		$	75,444		1 %
Gross profit		14,171			13,256		7 %			28,706			28,326		1 %
Gross profit %		37 %			37 %					38 %			38 %
Adjusted EBITDA*		5,365			5,318		1 %			11,849			12,314		-4 %
Per share basic*		0.25			0.27		-7 %			0.57			0.62		-8 %
Profit (loss)		(307)			2,049		-115 %			572			3,019		-81 %
Per share basic		(0.01)			0.10		-110 %			0.03			0.15		-80 %
Free cash flow less maintenance capital*		2,634			2,832		-7 %			6,109			6,395		-4 %
Per share basic*		0.12			0.14		-14 %			0.30			0.32		-6 %
Dividends declared		2,873			2,677		7 %			5,593			5,342		5 %
Per share basic		0.14			0.14		0 %			0.27			0.27		0 %
For the trailing twelve month period ended June 30,										2026			2025
Dividend payout ratio*										83 %			74 %

* Adjusted EBITDA, Free Cash Flow, Free Cash Flow Less Maintenance Capital, and Dividend Payout Ratio are not recognized financial measures under International Financial Reporting Standards (IFRS) and therefore may not be comparable to similar measures presented by other issuers but are used by management to assess the performance of the Company and its segments. A reader should not place undue reliance on any Non-IFRS financial measures. See "Non-IFRS Financial Measures" later in this press release for detailed descriptions of these measures and reconciliations of applicable IFRS measures to non-IFRS measures.

Growth in revenue in 2026, with 6% growth in Q2 2026 compared to Q2 2025 and 1% growth in the first half of the year compared to the same period in 2025, was a result of both organic efforts in hearth, agriculture, merchandising, and wear parts, and the contributions from the businesses Decisive has acquired over the last twelve months (Be Fire and Venger, specifically). The growth in these verticals more than offset the impact of the decline in industrial product demand from certain commercial vehicle and oil and gas customers that was first experienced in Q3 2025. Investments have been made by Decisive's subsidiaries to support this growth, including through hiring of additional sales personnel and increasing facility capacity, which resulted in meaningful increases in sales from existing customers, new customers, and sales in new geographies, and have current consolidated backlogs ahead of this time last year. In addition to the investments in sales capabilities and facilities, further investment made to strengthen the future position of the organization, including with respect to succession planning and acquisition costs, resulted in additional operational expenditures, the benefits of which will be realized over time. As a result, the above note investments in operating expenses resulted in 4% declines Adjusted EBITDA* and Free Cash Flow less Maintenance Capital* in the first half of 2026 compared to the first half of 2025.

Jeff Schellenberg, Chief Executive Officer of Decisive, noted:

"Despite ongoing uncertainty surrounding trade policy and broader economic activity, we delivered revenue growth through a combination of organic growth and contributions from recent acquisitions, including Be Fire, which we acquired during the quarter.

During the quarter, we deliberately chose to invest in leadership succession across our operating companies and strengthen the organizational capabilities that support future growth. While these investments impacted near-term profitability, we are confident these deliberate decisions will strengthen the quality, resilience and earnings power of our business over the long term.

The completion of the private placement with L6 Holdings and the expansion of our syndicated credit facility, along with the investments we have made in our subsidiaries and people, enhances Decisive's ability to maintain performance at its subsidiaries, capitalize on future growth opportunities, strengthen profitability and cash flow, and support our long-standing objective of delivering sustainable and growing dividends to our shareholders." 

Q2 2026 Results:

• Sales for the second quarter increased 6% to $38.5 million from $36.3 million in Q2 2025. The Finished Product segment drove the overall improvement with a 26% sales increase which more than offset a decline in Component Manufacturing segment sales of 17% in the quarter relative to Q2 2025. The overall sales increase in Q2 2026 compared to Q2 2025 was primarily driven by increases in hearth, agriculture and merchandising product sales. Hearth product sales increased $2.3 million in the quarter compared to Q2 2025, with 60% of that increase a result of organic sales growth from Blaze King and ACR and the remainder generated by Be Fire in its first month post-acquisition. A 24% increase in agricultural product sales in the quarter relative to Q2 2025 was driven by increases in both Slimline's Turbo-Mist sprayer sales and IHT heating mat sales. Merchandising product sales increased by 72% in the quarter compared to Q2 2025, as lead generation activity over the last number of months resulted in strong sales in Q2 2026, with 25% of the increase driven by organic growth at Marketing Impact and 75% of the increase driven by the results of the Venger, which was acquired in August 2025. Offsetting these increases were industrial product sales declines of 24% which impacted sales in both reporting segments. Industrial product sales declines were a result of demand declines from key oil and gas customers of Hawk and Capital I as well as from one of Northside's commercial vehicle customers, which began to materialize in Q3 2025 based on challenges those customers have been facing due to the economic environment in the United States. Wear parts sales (Unicast, Procore and Techbelt) in the quarter were consistent with Q2 2026, as demand for the wear parts these businesses produce remained resilient.
• Consolidated gross profit increased 7% to $14.2 million from $13.3 million in Q2 2025, based primarily on the increase in sales. Consolidated gross profit percentages were consistent in Q2 2026 compared to Q2 2025.
• Consolidated Adjusted EBITDA* increased 1% to $5.4 million from $5.3 million in Q2 2025, driven primarily by the increase in sales and gross profit described above.
• Consolidated net profit (loss) in the quarter was ($0.3) million, or ($0.01) per share, compared to net profit of $2.0 million, or $0.10 per share, in Q2 2025. The decrease was impacted by increases in operating expenses due primarily to the increase in overall sales and scale, investments made through acquisition costs, sales capabilities, and succession planning, as well as the comparative impact of a Q2 2025 $1.7 million gain on the insurance settlement to replace assets lost in a 2024 fire at Northside.
• Consolidated free cash flow less maintenance capital* decreased 7% to $2.6 million from $2.8 million in Q2 2025. The decrease in free cash flow less maintenance capital* relative to Q2 2025, was primarily a result of the increase in Adjusted EBITDA* being more than offset by the increase in current income tax expense and the increase in lease payments for operating premises relative to Q2 2025.

2026 Year-to-Date Results:

• Sales in the first half of 2026 increased by 1% to $76.4 million from $75.4 million in the first half of 2025. The overall sales increase in the first half of 2026 was driven by a 6% increase in Finished Product segment sales which more than offset a decline in Component Manufacturing segment sales of 7%, compared to the first half of 2025. The overall year-over-year sales increase was driven by increases in hearth, agriculture, merchandising and wear part product sales. Merchandising product sales increased 30% in the first half of 2026 compared to the same period in 2025 driven by strong second quarter sales at Venger, which was acquired in August 2025. Agricultural product sales increased 20% in the first half of 2026, with both Slimline and IHT experiencing improved demand compared to the same period in 2025. Hearth product sales increased 13% in the first half of 2026 relative to the first half of 2025, with 42% of that increase a result of organic sales growth from Blaze King and ACR and the remainder generated by Be Fire post-acquisition. The 22% increase in wear parts sales was driven by increased sales of Unicast's cast steel products, including the fulfilment of a significant order for a mining customer in the first quarter of 2026. Offsetting these increases were industrial product sales declines of 23% which impacted sales in both reporting segments. Industrial product sales declines were a result of the comparative impact of a large wastewater evaporator sale by Slimline in the first half of 2025 as well as demand declines from one of Northside's commercial vehicle customers, one of Hawk's key oil and gas customers and a joint oil and gas customer of Hawk, Capital I and Unicast, each of which had driven strong activity levels in the first half of 2025 before challenging economic conditions began curtailing demand from these three customers in Q3 2025.
• Consolidated gross profit increased 1% to $28.7 million from $28.3 million in the first half of 2025, driven primarily by increased sales. Consolidated gross profit percentages were consistent in the first half of 2026 compared to the first half of 2025.
• Consolidated Adjusted EBITDA* decreased 4% to $11.8 million relative to the first half of 2025. The decrease was impacted by increased operating costs due primarily to the increase in overall sales and scale, and investments in sales capabilities and succession planning.
• Consolidated net profit was $0.6 million, or $0.03 per share, a decrease of $2.4 million, or $0.12 per share compared to the first half of 2025. The decrease in net profit in the first half of 2026 was impacted by acquisition costs, as well as the comparative impact of a 2025 $1.7 million gain on the insurance settlement to replace assets lost in a 2024 fire at Northside.
• Consolidated free cash flow less maintenance capital* decreased 4% to $6.1 million relative to 2025, due primarily to the decrease in Adjusted EBITDA*.

Conference Call

Decisive will host a conference call for interested parties to discuss the Company's Q2 2026 results. The call will be hosted by Jeff Schellenberg, Decisive's Chief Executive Officer, Rick Torriero, Chief Financial Officer, and Chris Goodchild, Chief Operating Officer.

Details for those who wish to participate in this conference call are as follows:

Conference Call Details:
Thursday, July 30, 2026, at 8:00am Pacific Time / 11:00am Eastern Time
(please call 10 minutes ahead of time)

Participant Information:
To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4w1Xax7 to receive an instant automated call back.

You can also dial direct to be entered into the call by an operator:
Dial in number – North America (toll free): 1-888-510-2154
Dial in number – United Kingdom (toll free): 0800 279 7040
Dial in number – International: [phone]

Replay Information (replay available until August 6, 2026):
Replay number – North America (toll free): 1-888-660-6345
Replay number – International: [phone]
Replay access code 48801#

About Decisive Dividend Corporation

Decisive Dividend Corporation is an acquisition-oriented company, focused on opportunities in manufacturing. The Company's purpose is to be the sought-out choice for exiting legacy-minded business owners, while supporting the long-term success of the businesses acquired, and through that, creating sustainable and growing shareholder returns. The Company uses a disciplined acquisition strategy to identify already profitable, well-established, high quality manufacturing companies that have a sustainable competitive advantage, a focus on non-discretionary products, steady cash flows, growth potential and established, strong leadership.

For more information on Decisive, or to sign up for email notifications of Company press releases, please visit www.decisivedividend.com.

Cautionary Statements

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Non-IFRS Financial Measures

In this press release, reference is made to "Adjusted EBITDA", "Free Cash Flow", "Growth Capital Expenditures", "Maintenance Capital Expenditures" and "Dividend Payout Ratio", which are not recognized financial measures under IFRS Accounting Standards, but are believed to be meaningful in the assessment of the Company's performance as defined below.

"Adjusted EBITDA" is defined as earnings before finance costs, income taxes, depreciation, amortization, foreign exchange gains or losses, other non-cash items such as gains or losses recognized on the fair value of contingent consideration items, asset impairment, share-based compensation, and restructuring costs, and other non-operating items such as acquisition costs.

Adjusted EBITDA is a financial performance measure that management believes is useful for investors to analyze the results of the Company's operating activities prior to consideration of how those activities are financed and the impact of non-operating charges related to planned or completed acquisitions, foreign exchange, taxation, depreciation, amortization, and impairment charges.

The most directly comparable financial measure is profit or loss. Adjusted EBITDA per share is also presented, which is calculated by dividing Adjusted EBITDA, as defined above, by the weighted average number of shares outstanding during the period.

"Free Cash Flow" is defined as cash provided by operating activities, as defined by IFRS Accounting Standards, adjusted for changes in non-cash working capital, timing considerations between current income tax expense and income taxes paid, interest payments, required principal payments on long-term debt and right of use lease liabilities, and any unusual non-operating one-time items such as acquisition and restructuring costs (as described above).

Free Cash Flow is a financial performance measure used by management to analyze the cash generated from operations before the impact of changes in working capital items or other unusual items and after giving effect to expected income taxes thereon, as well as required interest and principal payments on long-term debt and right of use lease liabilities.

The most directly comparable financial measure is cash provided by operating activities. Adjustments made to cash provided by operating activities in the calculation of Free Cash Flow include other IFRS Accounting Standards measures, including changes in non-cash working capital, current income tax expense, income taxes paid, interest paid, and principal payments on long-term debt and right of use lease liabilities.

Free Cash Flow per share is also presented, which is calculated by dividing Free Cash Flow, as defined above, by the weighted average number of shares outstanding during the period.

"Free Cash Flow Less Maintenance Capital" is defined as Free Cash Flow, as defined above, less Maintenance Capital Expenditures, as defined below. Free Cash Flow Less Maintenance Capital is a financial performance measure used by management to analyze the cash generated from operations before the impact of changes in working capital items or other unusual items and after giving effect to expected income taxes thereon, as well as required interest and principal payments on long-term debt and right of use lease liabilities, and capital expenditures required to sustain the current operations of the Company.

The Company presents Free Cash Flow Less Maintenance Capital Expenditures per share, which is calculated by dividing Free Cash Flow Less Maintenance Capital, as defined above, by the weighted average number of shares outstanding during the period.

"Growth and Maintenance Capital Expenditures" maintenance capital expenditures are defined as capital expenditures required to maintain the operations of the Group at the current level and are net of proceeds from the sale of property and equipment. Growth capital expenditures are defined as capital expenditures that are expected to generate incremental cash inflows and are not considered by management in determining the cash flows required to sustain the current operations of the Company. While there are no comparable IFRS Accounting Standards measures for Maintenance Capital Expenditures or Growth Capital Expenditures, the total of Maintenance Capital Expenditures and Growth Capital Expenditures is equivalent to the total purchases of property and equipment, net of proceeds from the sale of property and equipment, on the Company's statement of cash flows.

"Dividend Payout Ratio" the Company presents a dividend payout ratio, which is calculated by dividing dividends declared by the Company by Free Cash Flow Less Maintenance Capital, as defined above. The Dividend Payout Ratio is a financial ratio used by management to analyze the percentage of cash generated from operations, before the impact of changes in working capital items or other unusual items and after giving effect to expected income taxes thereon, as well as required interest and principal payments on long-term debt and right of use lease liabilities, and capital expenditures required to sustain the current operations of the Company, returned to shareholders as dividends. Dividend Payout Ratio is analyzed on a trailing twelve-month basis in order to reduce the impact of seasonality on the analysis. 

While the above Non-IFRS financial measures are used by management to assess the historical financial performance of the Company, readers are cautioned that:

• Non-IFRS financial measures, such as Adjusted EBITDA, Free Cash Flow, Growth Capital Expenditures, Maintenance Capital Expenditures and Dividend Payout Ratio, are not recognized financial measures under IFRS Accounting Standards;
• The Company's method of calculating Non-IFRS financial measures may differ from that of other corporations or entities and therefore may not be directly comparable to measures utilized by other corporations or entities;
• Non-IFRS financial measures should not be viewed as an alternative to measures that are recognized under IFRS such as profit or loss or cash provided by operating activities; and
• A reader should not place undue reliance on any Non-IFRS financial measures.

Set forth below are reconciliations of Non-IFRS financial measures to their most relevant IFRS Accounting Standards measures.

Adjusted EBITDA

(Stated in thousands of dollars)
	For the three months ended						For the six months ended
June 30,		2026			2025			2026			2025
Profit (loss) for the period	$	(307)		$	2,049		$	572		$	3,019
Add (deduct):
Financing costs		1,283			1,277			2,582			2,656
Income tax expense		176			587			703			1,317
Amortization and depreciation		3,024			2,741			5,904			5,382
Acquisition and restructuring costs		732			147			836			154
Inventory fair value adjustments and write downs		77			3			99			3
Share-based compensation expense		491			300			1,382			1,452
Foreign exchange losses (gains)		(99)			(99)			(210)			27
Other income		(19)			(6)			(22)			(12)
Gain on disposal of property and equipment		7			(1,681)			3			(1,684)
Adjusted EBITDA		5,365			5,318			11,849			12,314

Free Cash Flow and Free Cash Flow Less Maintenance Capital

(Stated in thousands of dollars)
	For the three months ended					For the six months ended
June 30,		2026			2025			2026			2025
Cash provided by operating activities	$	1,300		$	3,499		$	4,036		$	8,713
Add (deduct):
Changes in non-cash working capital		3,143			1,292			3,882			1,770
Income taxes paid		209			386			3,117			1,689
Current income tax expense		(531)			(339)			(1,292)			(1,527)
Acquisition and restructuring costs		732			147			836			154
Interest paid		(1,208)			(1,190)			(2,436)			(2,488)
Lease payments		(815)			(599)			(1,517)			(1,168)
Required principal repayments on debt		-			(59)			-			(120)
Free cash flow	$	2,830		$	3,137			6,626			7,023
Maintenance capital expenditures		(196)			(305)			(517)			(628)
Free cash flow less maintenance capital		2,634			2,832			6,109			6,395

Free Cash Flow Less Maintenance Capital and Dividend Payout Ratio

(Stated in thousands of dollars)
For the trailing twelve month period ended June 30,								2026			2025
Cash provided by operating activities							$	16,944		$	21,704
Add (deduct):
Changes in non-cash working capital								3,494			1,486
Income taxes paid								3,464			1,607
Current income tax expense								(3,080)			(1,895)
Acquisition and restructuring costs								1,121			496
Interest paid								(4,957)			(5,298)
Lease payments								(2,782)			(2,337)
Required principal repayments on debt								(82)			(237)
Free cash flow								14,122			15,526
Maintenance capital expenditures								(864)			(1,059)
Free cash flow less maintenance capital								13,258			14,467
Dividends declared								10,997			10,640
Dividend payout ratio								83 %			74 %

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "believes", "expects", "could", "will", "may", "intends", "projects", "anticipates", "plans", "estimates", "continues" and similar words or the negative and grammatical variations thereof and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on management's current beliefs, assumptions and expectations as to the outcome and timing of such future events.  Actual future results may differ materially. In particular, this press release contains forward-looking information relating to the future prospects of the Company and its operating subsidiaries, demand levels, demand from customers, the timing of product sales and/or deliveries under existing customer contracts or orders received from customers, and potential future acquisitions. Forward-looking statements are necessarily based upon a number of expectations or assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are beyond the Company's control and many of which are subject to change. Readers are cautioned to not place undue reliance on forward-looking statements which only speak as to the date they are made. Although management believes that the expectations and assumptions underlying such forward-looking statements are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. A number of risk factors could cause actual future results, performance, achievements and developments of the Company to differ materially from anticipated results, performance, achievements and developments expressed or implied by such forward-looking statements. Such risk factors include, but are not limited to: (i) operational risks, including risks related to acquisitions; dependence on customers, distributors and strategic relationships; supply and cost of raw materials and purchased parts; operational performance and growth; implementation of the growth strategy; product liability and warranty claims; litigation; reliance on technology, intellectual property, and information systems; (ii) financial risks, including risks relating to the availability of future financing; interest rates and debt financing; income tax matters; foreign exchange; capital allocation including dividends; trading volatility of common shares; dilution risk; valuation risk; insurance adequacy (iii) external risks, including risks relating to general economic and geopolitical conditions; industry specific conditions; government regulation (including trade restrictions and tariffs); pandemics; competition; environmental regulation; access to capital; market trends and innovation; commodity prices; climate risk; public perception or brand event; and (iv) human capital risks, including reliance on management and key personnel; employee and labour relations; conflicts of interest; quality of leadership and succession; culture misalignment; workforce skills gap; and talent retention and attraction, all as more particularly described in the most recent annual MD&A of the Company available on the Company's profile at www.sedarplus.ca. There can also be no assurance as to the future financial performance of the Company or that the board of directors of the Company will declare or pay any dividends in the future or, if dividends are declared and paid, there can be no assurance as to the frequency or amount of such dividends. The Company cautions the reader that the risk factors referenced above are not exhaustive. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

SOURCE Decisive Dividend Corporation

FOR FURTHER INFORMATION PLEASE CONTACT: Jeff Schellenberg, Chief Executive Officer, Rick Torriero, Chief Financial Officer, #260 - 1855 Kirschner Road, Kelowna, BC V1Y 4N7, Telephone: [phone]