Richards Group (RIC) Q2 2026 earnings summary

Executive summary

• Revenue increased 5.2% year-over-year to $221.6M for the first half of 2026, driven by 27.2% healthcare growth and recent acquisitions, while packaging declined 14.4%.

• Net income rose to $19.8M from $8.6M year-over-year, aided by $3.1M in IEEPA tariff refunds and absence of prior year non-recurring costs.

• Gross margins improved, supported by tariff refunds and margin management initiatives, though operating expenses increased due to acquisitions.

• Completed significant share buybacks, including 770,000 shares at CAD 28.50 and 450,926 shares under NCIB, and executed major acquisitions.

• Packaging segment continued to decline due to macroeconomic pressures in the U.S., but showed sequential improvement in Q2.

Financial highlights

• Gross profit increased 18% year-over-year to $98.6M, with gross margin rising to 44.5% from 40.4%.

• Healthcare segment up 23% in the quarter and 27.2% year-to-date; aesthetics up 50% and pharma up 8% year-to-date.

• Free cash flow conversion at 67% for the quarter and 65% year-to-date, an improvement over last year.

• Diluted EPS for the first half was $1.80, up from $0.79 year-over-year.

• Maintenance capital spending increased by CAD 300,000 year-to-date due to investments in systems and people.

Outlook and guidance

• Management expects continued healthcare growth, both organic and through acquisitions, while packaging remains challenged by macroeconomic factors.

• Expect continued growth in international revenue, with rest of world share rising from 2.6% to 9%.

• Anticipate stabilization or modest growth in packaging in the second half, with June showing the strongest month of the quarter.

• Ongoing integration of recent acquisitions expected to drive future efficiency and earnings growth.

• Focus remains on achieving 15% adjusted EBITDA as integration and operational improvements mature.