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Dorel Industries (DII-B) investor relations material

Dorel Industries Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary11 Aug, 2025

Executive summary

  • Juvenile segment delivered strong performance, offsetting U.S. tariff headwinds with growth in Europe and international markets, while U.S. revenue declined due to tariffs.

  • Home segment faced significant challenges due to tariffs and liquidity constraints, prompting major restructuring, plant closures, and exit from North American manufacturing and e-commerce.

  • Strategic launches in Juvenile, including new product lines and global rollouts, drove brand momentum and market share gains.

  • Expanded restructuring in Home aims to streamline operations, reduce costs, and focus on profitable categories, with full benefits expected in 2026.

  • Q2 2025 revenue declined 16% year-over-year to $292.4M, with a net loss of $44.9M, improved from a $59.5M loss in Q2 2024.

Financial highlights

  • Q2 2025 revenue: $292.4M (down 16% year-over-year); six-month revenue: $612.8M (down 12.3%).

  • Juvenile revenue was flat overall, but up 12% outside the U.S.; Home revenue dropped 43% year-over-year.

  • Gross margin for Q2: 16.9% (down 210 bps); Juvenile gross margin rose by 50 bps to 29%.

  • Operating loss for Q2 was $37.2M, improved from $49.3M last year; adjusted operating loss increased by $10M to $13.5M.

  • Free cash flow for Q2: $56.3M; for six months: $31.3M.

Outlook and guidance

  • Juvenile segment expected to continue outperforming, leveraging global footprint and U.S. manufacturing.

  • Home segment transformation to yield profitability in 2026, with Q4 2025 showing initial benefits and wind-down of certain operations by Q3 2025.

  • Management expects continued uncertainty due to macroeconomic factors, tariffs, and consumer spending shifts, with further operational improvements ongoing.

  • Additional financing is being secured to support liquidity and growth, with a new lending structure targeted by end of the quarter.

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Frequently asked questions

Dorel Industries Inc. designs, manufactures, sources, markets and distributes home products, juvenile products and bicycles. It operates through three segments: Dorel Home Furnishings, Dorel Juvenile and Dorel Sports. The company also provides a wide range of ready-to-assemble furniture for all parts of the home, including bedroom, kitchen and work spaces.

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