Decisive Dividend (DE) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales reached CAD 37.9 million, down 3% year-over-year, reflecting resilience from a diversified manufacturing portfolio as agriculture and wear parts offset declines in commercial vehicle, oil and gas, and hearth segments.

• Portfolio diversification offset declines in commercial vehicle, oil and gas, and industrial product sales.

• Completed $8.0 million private placement in April 2026, increasing balance sheet flexibility and acquisition capacity.

• Management expects to announce a new acquisition soon, leveraging over $40 million in available credit.

• Agriculture and wear parts businesses showed strong growth, while hearth and merchandising segments faced temporary declines.

Financial highlights

• Consolidated sales decreased 3% year-over-year to $37.9 million in Q1 2026.

• Adjusted EBITDA fell 7% to $6.5 million, and net profit declined 9% to $0.9 million ($0.04 per share).

• Gross profit dropped 4% to $14.5 million, with gross margin steady at 38%.

• Free Cash Flow less maintenance CapEx declined 3% year-over-year to $3.5 million.

• Trailing 12-month dividend payout ratio held steady at 80%, consistent with 2025 and improved from 82% in Q1 2025.

Outlook and guidance

• Anticipates completing an on-strategy acquisition soon, funded by increased credit facility capacity.

• Expects benefits from recent investments in products, sales, and productivity to support results for the remainder of 2026.

• Q2 2026 started strong, with April sales and orders ahead of the prior year.

• Anticipates meaningful increase in acquisition activity in 2026, supporting dividend growth.

• Continued focus on acquisitions and diversification expected to drive long-term value.