GROWTH AND EXPANSION IN THE 3rd QUARTER - 8 ACQUISITIONS SINCE THE BEGINNING OF 2025, ADDING MORE THAN $75 MILLION IN ANNUAL SALES Français
HIGHLIGHTS OF THE THIRD QUARTER ENDED AUGUST 31, 2025
- Sales of $499.2M, up 6.7 %, of which 4.1 % came from internal growth and 2.6 % from acquisitions.
- EBITDA of $57.0M - EBITDA margin of 11.4 %.
- Net earnings attributable to shareholders of $23.9M, or $0.43 per diluted share, up 4.9 %.
- Cash flow from operating activities of $82.7M.
- Expansion: two acquisitions completed after the quarter (Quebec - Manitoba), adding a further $22M in annual sales.
FIRST NINE MONTHS
- Sales of $1.45 billion, up 7.2 %,including $789.8M in Canada and US$473.2M in the United States.
- EBITDA of 154.7M$ - EBITDA margin of 10.6 %.
- Net earnings attributable to shareholders of $60.3M, or $1.08 per diluted share.
- Cash flows provided by operating activities of $133.6M.
- Healthy and solid financial situation as at August 31, 2025, with a net cash of $12.4M and a working capital of $632.7M (ratio of 3.2:1).
Quarterly dividend of $0.1533 per share payable on November 6, 2025, to shareholders registered as of October 23, 2025.
MONTREAL, Oct. 9, 2025 /CNW/ - (TSX: RCH) "The solid performance of all of our market segments in the United States and in all regions of Canada, with the exception of Ontario, resulted in sales growth of 6.7 % in the third quarter. Our sales increased by 6.5 % in the manufacturers' market to reach $442.5M and they rose by 8.6 % in the retailers' market to $56.7M. Following the end of the quarter, we completed two strategic acquisitions. The acquisition of Ideal Security, a Canadian distributor of door and window products mainly for the retails' market, enables us to increase our sales and broaden our offering in Canada and in the United States. As for the acquisition of Finmac Lumber, it strengthens our presence in Manitoba and allows us to complete our product lines in this market. We are thus continuing the disciplined execution of our growth strategy and expect to finish the 2025 fiscal year with strong results," said Mr. Richard Lord, President and Chief Executive Officer.
"I am also proud to highlight that our operations generated $82.7M in cash flow during the quarter, including a $16M reduction in inventories, generating a positive cash position. This reflects the strength of our financial position and an exceptional balance sheet. Despite uncertainties related to tariffs, our business model remains strong: it enables us to protect our margins, stay competitive, and respond with agility to our customers' needs. We also continue to focus on our exclusive products and private brands, with the goal of strengthening our margins and expanding our offering. This is at the core of our strategy and sets us apart from the competition," added Mr. Richard Lord.
CLOSING OF EIGHT ACQUISITIONS SINCE THE BEGINNING OF 2025 REPRESENTING ADDITIONAL ANNUAL SALES OF MORE THAN $75M
To the six acquisitions completed in the first half of the year, including two in Canada (Nova Scotia, Prince Edward Island and in Quebec) and four in the United States (Colorado, Minnesota, New Jersey (2)), were added the acquisitions of Ideal Security on September 2, 2025 and Finmac Lumber on October 1, 2025. Specializing in hardware products for doors and windows, Ideal Security is based in the Greater Montreal area and primarily serves the North American retailer and renovation superstore market. As for Finmac Lumber, a distributor of specialized wood products, its customer base consists mainly of woodworkers, cabinetmakers, and building material retailers in the Winnipeg area. These eight acquisitions completed since the beginning of fiscal 2025 represent sales of more than $75M on an annual basis, in addition to offering customers complementary high-quality product lines.
OPERATING RESULTS FOR THE THIRD QUARTER AND FIRST NINE MONTHS ENDED AUGUST 31, 2025
The following table provides an overview of Richelieu's sales in its two main markets for the quarters ended August 31, 2025 and 2024 :
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| Quarters ended August 31 |
2025 |
2024 |
∆ % |
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| (in millions of dollars, except exchange rates) |
Total |
Internal |
Acquisitions |
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| Consolidated |
499.2 |
467.7 |
6.7 |
4.1 |
2.6 |
| Manufacturers |
442.5 |
415.5 |
6.5 |
3.6 |
2.9 |
| Retailers |
56.7 |
52.2 |
8.6 |
8.6 |
-- |
| Canada |
272.4 |
264.6 |
2.9 |
1.5 |
1.4 |
| Manufacturers |
226.3 |
222.1 |
1.9 |
0.1 |
1.8 |
| Retailers |
46.1 |
42.5 |
8.5 |
8.5 |
-- |
| United States in US$ |
165.3 |
148.4 |
11.4 |
7.3 |
4.1 |
| Manufacturers |
157.6 |
141.2 |
11.6 |
7.3 |
4.3 |
| Retailers |
7.7 |
7.2 |
6.9 |
6.9 |
-- |
| United States in CA$ |
226.8 |
203.1 |
11.7 |
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| Average exchange rates |
1.372 |
1.369 |
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For the third quarter ended August 31, 2025, consolidated sales totaled $499.2M, compared to $467.7M for the third quarter of 2024, representing an increase of $31.5M, or 6.7% of which 2.6% comes from the positive contribution of acquisitions and 4.1% from internal growth. Internal growth in the U.S. manufacturers' market was supported by higher selling prices. Part of this internal growth came from price adjustments applied to reflect the new tariffs, representing essentially a cost pass-through with no impact on gross margin. In Canada, overall sales remained stable, reflecting good performance in the Eastern manufacturing markets, offset by a decline in Ontario due to a more challenging economic environment. On a currency-adjusted basis compared to the third quarter of 2024, consolidated sales for the third quarter ended August 31, 2025, would have increased by 6.6%.
Operating expenses excluding amortization totaled $442.2M, representing 88.6% of sales, compared to $414.8M, or 88.7% of sales, for the same period in 2024. The increase in operating expenses in absolute terms reflects the growth in sales.
Earnings before income taxes, interest, and amortization (EBITDA) reached $57.0M, up $4.1M or 7.7% from the corresponding quarter of 2024. This growth was mainly driven by higher sales. As a result, the EBITDA margin was 11.4%, compared to 11.3% for the corresponding quarter of 2024.
Amortization expense for the third quarter of 2025 amounted to $18.7M, up $1.4M compared to the same period in 2024. This increase is primarily attributable to the growth in right-of-use assets related to expansion projects, lease renewals, and business acquisitions completed over the past 12 months. Net financial costs totaled $3.4M, compared to $3.0M in the corresponding quarter of 2024, representing an increase of $0.4M.
Net earnings were $25.6M, an increase of 6.7% from the corresponding quarter of 2024. Including non-controlling interests, net earnings attributable to shareholders of the Corporation were $23.9M, an increase of 5.2% from the third quarter of 2024. Net earnings per share were $0.43, basic and diluted, compared to $0.41, basic and diluted, for the third quarter of 2024, an increase of 4.9%.
Cash flow from operating activities, before net change in non-cash working capital balances, was $48.1M or $0.87 per diluted share compared to $42.7M or $0.76 per diluted share for the third quarter of 2024. This 12.5% increase mainly reflects the increase in earnings before income taxes, interest, and amortization. Net change in non-cash working capital items represented a cash inflow of $34.6M, reflecting a $16.2M reduction in inventories, while other items represented a cash inflow of $18.4M. As a result, operating activities provided a cash inflow of $82.7M, compared to a cash inflow of $50.2M in the third quarter of 2024.
In the first nine months of 2025, consolidated sales reached $1.45B, up $97.1M or 7.2% over the first nine months of 2024, of which 3.2% from the positive contribution of acquisitions and 4.0% from internal growth. On a currency-comparable basis with the corresponding period in 2024, the increase in consolidated sales would have been 5.7%.
Operating expenses excluding amortization totalled $1.30B, representing 89.4% of sales, compared to $1.21B, or 89.1% of sales, for the same period in 2024. The variations in monetary terms and as a percentage of sales reflect the aforementioned elements.
EBITDA was $154.7M, up $7.5M or 5.1% from the corresponding nine-month period of 2024 and net earnings attributable to shareholders were $60.3M, down 1.8% from the corresponding period of 2024. Net earnings per share were $1.09 basic and $1.08 diluted, compared to $1.10 basic and $1.09 diluted for the same period of 2024, down 0.9%..
Cash flow from operating activities, before net change in non-cash working capital balances, was $132.1M or $2.38 per diluted share compared to $122.7M or $2.18 per diluted share for the first nine months of 2024. The net change in non-cash working capital items represented a cash inflow of $1.5M, mainly reflecting the change in inventories which generated a cash inflow of $3.5M, while other items used cash of $2.0M. As a result, operating activities represented a cash inflow of $133.6M, compared to a cash inflow of $106.4M in the first nine months of 2024.
FINANCIAL POSITION
As at August 31, 2025, net cash was $12.4M, compared to a net cash of $12.3M as at November 30, 2024, total assets were $1.44B, compared to $1.39B as at November 30, 2024, and the Corporation had a working capital of $632.7M, for a ratio of 3.2:1, compared to $612.9M (ratio of 3.1:1) as at November 30, 2024, with an average return on shareholders' equity of 9.0%.
SHARE CAPITAL
As at August 31, 2025, the Corporation's share capital consisted of 55,219,988 common shares [55,218,678 common shares as at November 30, 2024]. For the three and nine-month periods ended August 31, 2025, the weighted average number of diluted shares outstanding was 55,561,110 and 55,570,600 [56,260,000 and 55,971,950 in 2024].
DIVIDENDS
On October 9, 2025, the Board of Directors approved the payment of a quarterly dividend of 0.1533$ per share to shareholders of record as at October 23, 2025, payable on November 6, 2025. The declared dividend is designated as an eligible dividend under the Income Tax Act of Canada.
MAIN TRADEMARKS
PROFILE AS AT AUGUST 31, 2025
Richelieu is a leading North American importer, manufacturer, and distributor of specialty hardware and complementary products. Its products are targeted to 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 customers who are served by 117 centres in North America – 49 distribution centres in Canada, 65 in the United States, and three manufacturing plants in Canada, specifically, Les Industries Cedan Inc., Menuiserie des Pins Ltée, and USIMM UNIGRAV Inc., which manufacture a variety of veneer sheets and edge banding products, a broad selection of decorative moldings and components for the window and door industry as well as custom products, including 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 amortization of property, plant and equipment, intangible assets and right-of-use assets, 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, 2025 will be available on SEDAR+ at www.sedarplus.com and on the Corporation's website at www.richelieu.com.
| OCTOBER 9, 2025 , CONFERENCE CALL AT 2:30 P.M. (EASTERN TIME) |
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| Financial analysts and investors interested in participating in the Corporation's earnings conference call, scheduled for October 9, 2025, at 2:30 p.m., can dial 1-800-990-4777 |
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SOURCE Richelieu Hardware Ltd.
Richard Lord, President and Chief Executive Officer; Antoine Auclair, Chief Financial Officer and Chief Operating Officer; For information: Tel: (514) 832-4010 / www.richelieu.com
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