Decisive Dividend (DE) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered record revenue of CAD 42.8 million, up 14% year-over-year, and full-year 2025 sales reached CAD 152.2 million, a 19% increase over 2024, with Adjusted EBITDA up 25% to CAD 25.4 million.

• All business verticals posted sales growth, with notable strength in agriculture (58% increase), wear parts (56% increase), and component manufacturing (23% Q4 YoY).

• Free Cash Flow less Maintenance CapEx improved 25% year-over-year, with annual free cash flow at CAD 14.5 million.

• Acquired three strategically aligned businesses in 2025, expanding capabilities in key verticals.

• Leverage Ratio improved from 3.1x to 2.5x year-over-year.

Financial highlights

• Q4 2025 Adjusted EBITDA was CAD 7.3 million, flat year-over-year; annual Adjusted EBITDA was CAD 25.4 million, up 25%.

• Q4 gross profit was CAD 16.1 million (+10% YoY); annual gross profit was CAD 57.8 million (+21% YoY).

• Q4 net profit was CAD 1.4 million (-25% YoY); annual net profit was CAD 5.2 million (+159% YoY).

• Q4 free cash flow was CAD 4.5 million (-12% YoY); annual free cash flow was CAD 14.5 million (+23% YoY).

• Merchandising product sales rose 10% year-over-year, aided by the Venture acquisition.

Outlook and guidance

• 2026 is expected to benefit from investments in new products, sales capabilities, facility capacity, and productivity.

• Anticipates increased acquisition activity and improved per share financial metrics, supporting potential future dividend growth.

• Ongoing uncertainty from CUSMA renegotiation and global events, but management is confident in resilience and adaptability.