Decisive Dividend (DE) Q3 2026 earnings summary

Executive summary

• Q3 sales rose 20% YoY to CAD 40.8M, the second-highest quarter on record, driven by organic gains and contributions from Be Fire and Venger.

• Revenue growth outpaced profitability as input-cost inflation, lower-margin sales mix and higher operating costs pressured margins and Adjusted EBITDA.

Financial highlights

• Q3 gross profit increased 13% to $15.1M; gross margin fell to 37% from 39%, while Adjusted EBITDA rose 3% to $6.0M.

• Q3 net profit was $0.2M, or $0.01/share, versus $0.8M, or $0.04/share; FX contributed to a $0.4M YoY decline.

• 9M sales rose 7% to $117.2M and gross profit increased 5% to $43.8M; Adjusted EBITDA fell 2% to $17.8M and net profit declined 80% to $0.8M.

• 9M net profit reflected the absence of a $1.7M insurance settlement gain in 2025, alongside higher costs and FX losses.

• Q3 free cash flow less maintenance capital rose 6% to $3.0M; 9M declined 1% to $9.1M.

Outlook and guidance

• Management expects benefits from investments in inventory, products, sales capabilities, facilities and productivity during the rest of 2026 and into 2027.

• Cost reductions, subsidiary pricing increases and efficiency initiatives aim to address inflation, improve returns and convert revenue growth into stronger earnings.

• New hearth products and higher energy prices are expected to support sales; two fireplace products are targeted for 2027 launch, subject to regulatory approval.

• Orchard IQ and IHT cooling mats are expected to support agricultural activity in 2027; cooling mats are expected to launch for sale that year.