Richelieu Hardware Ltd

Latest Results (19.01.2026):

Richelieu Hardware Ltd — Q1 2025 (three-month period ended February 28, 2025): Richelieu opened fiscal 2025 with solid top‑line growth—sales of $441.7 million, up 8.6% year‑over‑year—driven equally by internal growth and acquisitions, while EBITDA rose modestly to $42.4 million and diluted EPS was $0.25. The quarter included five acquisitions (one completed after quarter end), a major Vancouver distribution consolidation, higher amortization and financing costs linked to acquisitions, and a dividend increase to $0.1533 per share.

Sales

Consolidated sales were $441.7M (+8.6% vs Q1 2024). Internal growth contributed 4.3% and acquisitions 4.3%. Manufacturers market sales were $385.1M (+9.9%); retail/renovation superstore segment held steady at $56.6M. U.S. sales were US$139.8M (45% of total), up 7.6% in USD.

Profitability (EBITDA & margin)

EBITDA was $42.4M, up 5.0% YoY. EBITDA margin was 9.6% vs 9.9% a year earlier—compression attributed to lower margins from recent acquisitions and marketing costs for new retailer product lines.

Net earnings and EPS

Net earnings attributable to shareholders were $13.9M (total net earnings $14.7M). Diluted EPS was $0.25 vs $0.27 in Q1 2024 (≈7.4% decline); net earnings attributable fell ~8.6% YoY. Effective tax rate ~26.4% for the quarter.

Acquisitions & network development

Five acquisitions announced/completed since start of fiscal 2025 (Mill Supply, Darant Distributing, Midwest Specialty Products, Modulex Partition and Rhoads & O’Hara—completed April 1 post‑quarter), together adding ~US$ (or CA$) $50M of annual sales. Richelieu also consolidated two Vancouver DCs into a single 140,000 sq. ft. facility for the manufacturers market.

Cash flow & liquidity

Adjusted cash flows from operating activities were $37.3M (+6.9% YoY; $0.67 per diluted share). Reported operating cash flow after working capital was $3.7M as inventory increases used cash (~$33.6M). Net bank overdraft widened to $56.0M (from $12.3M at Nov. 30, 2024) largely reflecting acquisition cash outflows and inventory.

Balance sheet and capital

Total assets were $1.48B (+6.2% vs Nov. 30, 2024). Working capital $613.2M with current ratio 2.9:1. Long‑term debt remains low ($8.5M) while lease obligations increased. Book value per share $17.08.

Dividend

Board approved a quarterly dividend of $0.1533 per share on April 10, 2025, payable May 8, 2025 to shareholders of record April 24, 2025.

Key drivers and near‑term considerations

Growth was supported by market development efforts, product/service diversification and acquisitions. Near‑term margin and cash impacts reflect integration of lower‑margin acquisitions, marketing investments and inventory build; management notes potential exposure to recent U.S. tariff announcements and continues to assess impacts.