Richelieu Hardware (RCH) investor relations material

Executive summary

• Achieved Q3 sales of $499.2 million, up 6.7% year-over-year, with growth from both internal initiatives and acquisitions.

• Completed eight acquisitions since the start of 2025, adding over $75 million in annual sales; two more post-quarter acquisitions contributed $22 million.

• Net earnings attributable to shareholders reached $23.9 million in Q3, up 4.9% year-over-year, with diluted EPS at $0.43.

• Cash flow from operating activities in Q3 was $82.7 million, reflecting strong operational performance and inventory reduction.

• All market segments in Canada and the U.S. performed well except Ontario, which faced a more challenging environment.

Financial highlights

• Q3 EBITDA was $57 million, with an EBITDA margin of 11.4%.

• Q3 sales reached $499.2 million, up $31.5 million or 6.7% year-over-year.

• First nine months sales totaled $1.45 billion, up 7.2% year-over-year; EBITDA for the period was $154.7 million (margin 10.6%).

• Net earnings for the first nine months were $60.3 million, or $1.08 per diluted share.

• Net cash position as of August 31, 2025, was $12.4 million; working capital stood at $632.7 million.

Outlook and guidance

• Q4 performance expected to be in line with Q3, with similar margin trends.

• Management expects to finish fiscal 2025 with strong results, continuing disciplined execution of the growth strategy.

• Focus remains on exclusive products and private brands to strengthen margins and expand offerings.

• Internal growth in the U.S. is mainly driven by price increases, largely due to inflation and tariffs.

• 2026 EBITDA margins expected to continue at current levels if market conditions remain stable.