Richelieu Hardware (RCH) Q3 2026 earnings summary

Executive summary

• Q3 sales rose 12.6% to CAD 562.0m, with 10.0% internal growth and 2.6% from acquisitions; EBITDA increased 14.8% to CAD 65.5m.

• Net earnings attributable to shareholders rose 22.4% to CAD 29.2m; diluted EPS increased 23.3% to CAD 0.53, including CAD 0.04 per share from a tariff refund.

• Five FY26 acquisitions represent CAD 145m in additional annual sales; strategic investments in innovation, service and market coverage support growth plans amid economic uncertainty.

Financial highlights

• Q3 operating expenses excluding amortization were CAD 496.5m, or 88.3% of sales, versus CAD 442.2m, or 88.6%, a year earlier.

• Q3 net earnings were CAD 30.5m, up 19.3%; net financial costs were CAD 3.3m versus CAD 3.4m, and amortization was CAD 20.1m, up CAD 1.4m.

• 9M sales reached CAD 1.6bn, up 7.2%; EBITDA was CAD 164.8m, up 6.5%, and net earnings attributable to shareholders rose 11.0% to CAD 66.9m.

• 9M diluted EPS was CAD 1.21 versus CAD 1.08; cash flow from operating activities before non-cash working-capital changes was CAD 140.4m, up 6.7%.

Outlook and guidance

• Internal growth since quarter-end was 3%-4% in September and early October; pricing contributed ~40% of growth.

• Management targets Q4 EBITDA margin of ~11% and aims to maintain that level through 2027; stronger volume would support margin expansion.

• Tariff-related pricing adjustments are largely behind results; pricing is expected to remain stable near term, subject to supplier price increases.

• Recurring sales to a major U.S. customer are expected to begin in Q4 at an annualized pace of US$10m, or US$2.5m per quarter.