Saltire Capital Ltd. Reports Q1 2026 Financial Results

TORONTO, May 13, 2026 /CNW/ - Saltire Capital Ltd. (TSX: SLT.U) (TSX: SLT) (TSX: SLT.WT.U) (TSX: SLT.WT) (OTCQX: SLTEF) ("Saltire" or the "Company") today reported its unaudited condensed consolidated interim financial statements ("Financial Statements") for the three-month period ended March 31, 2026. The Company's Financial Statements and Management's Discussion and Analysis ("MD&A") have been filed on the System for Electronic Document Analysis and Retrieval Plus ("SEDAR+") and may be viewed under the Company's profile at www.sedarplus.ca. All references to "$" herein are to United States Dollars.

Saltire delivered strong growth in Q1 2026 as the Company continued executing on its strategy to build a diversified portfolio of resilient, cash-generating operating businesses focused on sectors that have historically demonstrated long-term durability and operational stability.

"Q1 marked an important step forward for Saltire," said Andrew Clark, CEO of Saltire. "With SanStone contributing for a full quarter and MDI continuing to execute, Saltire is becoming a more diversified operating platform with meaningful exposure to manufacturing, industrial, agricultural and infrastructure-related markets. We remain focused on disciplined execution, working capital management and long-term value creation."

Q1 2026 Highlights

For the three months ended March 31, 2026, revenue was $29.6 million, compared to $4.3 million in the prior year period. The increase was driven primarily by the acquisition of SanStone, which contributed approximately $25.6 million of revenue during the quarter. MDI continued to perform against an active project pipeline, although revenue was modestly lower than the prior year period due to project timing and lower cinema and non-cinema sales volumes.

Gross profit increased to $6.9 million, compared to $1.8 million in the prior year period. Consolidated gross margin was 23%, reflecting the addition of SanStone's low margin equipment dealership operations. MDI continued to generate solid margins, with near-term margin pressure driven by lower production volumes and project timing.

Operating income increased to $1.9 million, compared to $0.6 million in the prior year period, as the Company benefited from increased scale across its operating platform. Operating expenses increased as expected following the acquisition of SanStone and the transition to a larger consolidated business.

Net income for the quarter was $6.2 million, compared to net income of $10.3 million in the prior year period. Current period results included a non-cash fair value gain of $6.7 million related primarily to warrants and derivative liabilities, compared to a non-cash fair value gain of $10.1 million in the prior year period.

EBITDA was $9.6 million for the quarter, compared to $10.8 million in the prior year period. Adjusted EBITDA increased to $2.9 million, compared to $0.7 million in the prior year period, reflecting the contribution from SanStone and continued operating performance across the Company's platform.

Saltire ended the quarter with $11.9 million of cash, compared to $5.1 million at December 31, 2025, and generated positive operating cash flow of $7.3 million during the quarter. The improvement was supported by working capital management, including inventory management, and the financing structure established in connection with the SanStone acquisition.

Liquidity and Going Concern

As disclosed in the Company's Financial Statements, management has concluded that the going concern basis of preparation remains appropriate. The Company also disclosed that certain conditions give rise to a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. The material uncertainty relates primarily to the Company's ability to maintain sufficient liquidity, achieve forecast operating results and remain in compliance with future financial covenants.

Subsequent to quarter-end, Sagard approved certain covenant add-backs and the Company filed its related compliance certificate. As of the issuance date of the Financial Statements, the Company is in compliance with its Term Loan covenants. The Term Loan facility continues to be classified as current as at March 31, 2026 because the lender approval and related compliance confirmation were obtained subsequent to quarter-end. This classification does not, in itself, accelerate the facility or require repayment within twelve months in the absence of an event of default or acceleration by the lender.

Management believes the Company's underlying business performance and liquidity position improved during the quarter. Management continues to focus on operating performance, working capital efficiency, liquidity and covenant headroom as the Company progresses through 2026.

Operating Platform Update

MDI's pipeline remains active across cinema, immersive and simulation markets. The business continues to benefit from long-standing relationships with major exhibitors and demand associated with the transition to laser projection technology. Beyond cinema, MDI continues to pursue opportunities in immersive entertainment, theme park and simulation applications.

SanStone represents Saltire's second platform investment and significantly expands the Company's exposure to industrial, agricultural and infrastructure-related markets. Through the Wilson Equipment and Tidal Tractor dealership brands, SanStone serves customers across Atlantic Canada and maintains OEM relationships in key equipment categories. With SanStone now contributing for a full quarter and MDI continuing to execute, Saltire remains focused on building a diversified portfolio of resilient operating businesses, supported by disciplined capital allocation and active ownership..

"EBITDA" and "Adjusted EBITDA" are non-IFRS measures. See "Non-IFRS Measures" below.

Non-IFRS Measures

EBITDA and Adjusted EBITDA are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement the IFRS measures disclosed in the Financial Statements by providing further understanding of Saltire's results of operations from management's perspective. Accordingly, these measures should neither be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS.

EBITDA and Adjusted EBITDA are used to provide shareholders with supplemental measures of the Company's operating performance and thus highlight trends in the Company's business that may not otherwise be apparent when relying solely on IFRS measures.

Securities regulations require non-IFRS measures to be clearly defined and reconciled with their most directly comparable IFRS measure. Management believes that EBITDA and Adjusted EBITDA are useful measures to assess the performance of the Company as they provide more meaningful operating results by excluding the effects of items that are not reflective of underlying business performance and other one-time or non-recurring items.

The following table provides the reconciliation of net income to EBITDA and Adjusted EBITDA for the 3-month period ended March 31, 2026 and 2025:

For 3-months ended	March 31, 2026	March 31, 2025
	$	$
Net income	6,247,413	10,264,296
Add: Interest expense	1,990,394	167,387
Add: Income tax expense	645,234	247,987
Add: Depreciation and amortization	682,094	120,013
EBITDA	9,565,135	10,799,683
Add: Stock-based compensation	-	45,177
Add: Fair valuation of NCI put option	(76,812)	-
Add: Fair valuation of Interest & FX swaps	(57,025)	-
Add: Fair valuation of Warrants	(6,554,395)	(10,106,000)
Adjusted EBITDA	2,876,903	738,860

About Saltire

Saltire is a long-term capital partner that allocates capital to equity, debt and/or hybrid securities of high-quality private companies. Investments made by Saltire consist of meaningful and influential stakes in carefully selected private companies that it believes are under-valued businesses with the potential to significantly improve fundamental value over the long-term. These businesses will generally have high barriers to entry, predictable revenue streams and cash flows and defensive characteristics. Although Saltire primarily allocates capital to private companies, Saltire may, in certain circumstances if the opportunity arises, also pursue opportunities with orphaned or value-challenged small and micro-cap public companies. Saltire provides investors with access to private and control-level investments typically reserved for larger players, while maintaining liquidity.

Forward Looking Information

This press release may contain forward-looking information and forward-looking statements within the meaning of applicable securities laws ("Forward-Looking Statements"). The Forward-Looking Statements contained in this press release relate to future events or Saltire's future plans, operations, strategy, performance or financial position and are based on Saltire's current expectations, estimates, projections, beliefs and assumptions, including, among other things, in respect of MDI's performance and project pipeline, Saltire's ability to satisfy the conditions to funding additional draws under the Loan Agreement, the future performance of SanStone, Saltire's ability to maintain compliance with covenants under the Loan Agreement, and management's ability to execute on Saltire's growth plans. Such Forward-Looking Statements have been made by Saltire in light of the information available to it at the time the statements were made and reflect its experience and perception of historical trends. All statements and information other than historical fact may be Forward-Looking Statements. Such Forward-Looking Statements are often, but not always, identified by the use of words such as "may", "would", "should", "could", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe", "continue", "expect", "potential", "proposed" and other similar words and expressions.

Forward-Looking Statements are based on certain expectations and assumptions and are subject to known and unknown risks and uncertainties and other factors, many of which are beyond Saltire's control, that could cause actual events, results, performance and achievements to differ materially from those anticipated in these Forward-Looking Statements. Forward-Looking Statements are provided for the purpose of assisting the reader in understanding Saltire and its business, operations, prospects and risks at a point in time in the context of historical and possible future developments, and the reader is therefore cautioned that such information may not be appropriate for other purposes. Forward-Looking Statements should not be read as guarantees of future performance or results. Readers are cautioned not to place undue reliance on Forward-Looking Statements, which speak only as of the date of this press release. Unless otherwise noted or the context otherwise indicates, the Forward-Looking Statements contained herein are provided as of the date hereof, and Saltire disclaims any intention or obligation, except to the extent required by law, to update or revise any Forward-Looking Statements as a result of new information or future events, or for any other reason.

This press release should be read in conjunction with the management's discussion and analysis and Financial Statements and notes thereto as at and for the three months ended March 31, 2026 and Saltire's Annual Information Form for the year ended December 31, 2025 dated April 1, 2026.

Additional information about Saltire, including with respect to the risk factors that should be taken into consideration when reading this press release and the Forward-Looking Statements, is available on Saltire's profile on SEDAR+ at www.sedarplus.ca.

SOURCE Saltire Capital Ltd.

FOR FURTHER INFORMATION PLEASE CONTACT: Andrew Clark, Director & Chief Executive Officer, Saltire Capital Ltd., [email protected], [phone]