Saltire Capital Ltd. Reports Q2 2026 Financial Results

TORONTO, Aug. 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 six-month period ended June 30, 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 operating performance in Q2 2026 as the Company continued to execute on its strategy of building a diversified portfolio of resilient, cash-generating operating businesses focused on sectors that have historically demonstrated long-term durability and operational stability.

"Q2 was an important quarter for Saltire. We expanded the platform with the closing of Tool Shed, saw continued strong execution at both SanStone and MDI, and generated positive operating cash flow as our strategy continued to take shape in the numbers," said Andrew Clark, CEO of Saltire. "What we are building is a platform of high-quality operating businesses with durable earnings, strong market positions and long-term relevance in the real economy. We are now increasingly well positioned to build on the momentum and execute on the next phase of Saltire's growth strategy, continuing to scale our acquisitions."

Q2 2026 Highlights

For the six months ended June 30, 2026, revenue was $64.69 million, compared to $9.25 million in the prior year period. The increase was driven primarily by the acquisition of SanStone, which contributed approximately $55.31 million of revenue during the six-month period ended June 30, 2026. MDI continued to perform against an active project pipeline, and revenue was modestly higher than the prior year period due to project timing and cinema and non-cinema sales volumes.

Gross profit increased to $15.72 million, compared to $3.78 million in the prior year period. Consolidated gross margin was 24%, reflecting the addition of SanStone's lower margin equipment dealership operations. MDI continued to generate solid margins, while managing near-term margin pressure driven by lower production volumes and project timing.

Operating income increased to $4.69 million, compared to $1.18 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 six-month period was $9.98 million, compared to net loss of $11.39 million in the prior year period. Current period results included a non-cash fair value gain of $10.16 million related primarily to warrants and derivative liabilities, compared to a non-cash fair value loss of $11.29 million in the prior year period.

EBITDA^[1] was $16.86 million for the six-month period, compared to negative EBITDA of $10.30 million in the prior year period. Adjusted EBITDA¹ increased to $6.70 million, compared to $1.03 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 $5.56 million of cash, compared to $5.10 million at December 31, 2025, and generated positive operating cash flow of $2.77 million during the six-month period. The improvement was supported by working capital management, including inventory management, and the financing structure established in connection with the SanStone acquisition.

Subsequent Event: Non-Controlling Interest Conversation

On August 8, 2026, the Company received notice from the Key Minority Holders of SanStone Investments Limited pursuant to the Shareholders' Agreement that all SanStone minority shareholders intend to convert their SanStone shares into common shares of Saltire. 

The conversion process, including the determination of the fair market value of the SanStone shares and the resulting number of Saltire common shares to be issued, has not been completed as at the date these interim financial statements were authorized for issuance. Accordingly, the financial effect of the conversion cannot yet be determined and is not incorporated into the financial statements.

Liquidity and Going Concern

As disclosed in the Company's audited financial statements, 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.

From an operational perspective, these conditions are primarily driven by the future assessment of covenant-related matters rather than any deterioration in the underlying performance of the business. The company is performing ahead of plan for the six-months ended June 30, 2026. As of the issuance date of the Financial Statements, the Company is in compliance with its contractual covenants under its loan agreement (the "Loan Agreement").  With the full-year contribution of SanStone expected in 2026, the addition of Tool Shed, and the continued performance at MDI, management expects continued and improving earnings and cash flow generation, supporting the Company's ability to continue to comply with its contractual covenants and meet its obligations as they come due.

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 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.

On June 1, 2026, the Company announced the successful acquisition of Tool Shed Sales and Rental Inc. ("Tool Shed").  Tool Shed is a leading Nova Scotia-based rental and sales business providing contractor supplies, pro-grade tools, safety equipment and scaffolding. The acquisition builds on Saltire's 2025 integration of SanStone and significantly expands the Company's industrial services footprint in Atlantic Canada.

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 6-month period ended June 30, 2026 and 2025:

For 6-months ended	June 30, 2026	June 30, 2025
	$	$
Revenues	64,694,189	9,252,014
Gross profit	15,721,422	3,783,412
Operating income	4,692,101	1,179,645
Income (Loss) before taxes	11,304,015	(10,923,700)
Net income (loss)*	9,980,629	(11,391,050)
Comprehensive income(loss)**	7,861,514	(11,131,215)
EBITDA	16,864,055	(10,302,062)
Adjusted EBITDA	6,704,075	1,031,115
*Net income (loss) attributable to:
Parent	9,315,767	(11,391,050)
NCI	664,862	-
**Comprehensive income (loss) attributable to:
Parent	7,728,222	(11,131,215)
NCI	133,292	-

About Saltire

Saltire Capital Ltd. is a publicly traded permanent capital vehicle that invests in strong, undervalued businesses operating in foundational sectors of the real-world economy. The company takes meaningful stakes in private businesses with high barriers to entry, predictable cash flows and a defined competitive advantage, providing business owners with a long-term capital partner that supports management continuity and preserves company legacy. Using a disciplined buy-and-build approach, Saltire identifies growth opportunities in fragmented industries, improves company fundamentals and scales businesses into standalone platforms. This structure ensures the interests of shareholders and company leaders remain aligned for the long term. Learn more at www.saltirecapitalltd.com. 

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 its subsidiaries' performance and project pipeline, Saltire's ability to satisfy the conditions to funding additional draws under the Loan Agreement, the future performance of its subsidiaries, Saltire's ability to maintain compliance with covenants under the Loan Agreement, management's ability to execute on Saltire's growth plans and the receipt of required approvals regarding the conversion process triggered by SanStone's minority shareholders. 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 six months ended June 30, 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.

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¹ Represents a non-IFRS measure. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. See "Non-IFRS Measures".

SOURCE Saltire Capital Ltd.

FOR FURTHER INFORMATION PLEASE CONTACT:  Andrew Clark, Director & Chief Executive Officer, Saltire Capital Ltd., [email protected], [phone], 1383-1647-1330