Richelieu Hardware Ltd

Latest Results (14.10.2025):

Richelieu Hardware Ltd. reported a strong start to fiscal year 2025 in the first quarter, achieving an 8.6% increase in sales despite traditionally weak market conditions. The growth was fueled equally by internal expansion and strategic acquisitions, reflecting the company's robust performance in the manufacturers' market and steady sales in the retail sector.

Sales Growth

Total sales for Q1 2025 reached $441.7 million, marking an 8.6% increase compared to the same period in 2024. Internal growth contributed 4.3%, while acquisitions added an equivalent growth rate. Notably, sales in Canada rose by 4.1%, and the United States experienced a 7.6% increase, accounting for 45% of total sales.

Manufacturers' Market Performance

Sales within the manufacturers' market surged by 9.9% to $385.1 million. This growth was driven by a 5.1% increase from internal operations and an additional 4.8% from recent acquisitions, underscoring Richelieu's strong presence and expanding footprint in this sector.

Strategic Acquisitions

During the first quarter, Richelieu Hardware Ltd. successfully completed five acquisitions, including Modulex Partition and Rhoads & O’Hara Architectural Products. These acquisitions have expanded the company's reach into strategic markets and diversified its product offerings, contributing approximately an additional $50 million in annual sales.

EBITDA and Profit Margins

EBITDA for Q1 2025 stood at $42.4 million, reflecting a 5% increase from the previous year. However, the EBITDA margin slightly decreased to 9.6% from 9.9%, primarily due to lower margins from recent acquisitions and increased marketing expenses related to new product lines.

Dividend Declaration

The Board of Directors approved a quarterly dividend of $0.1533 per share, to be paid on May 8, 2025, to shareholders of record as of April 24, 2025. This decision underscores the company's commitment to returning value to its shareholders amidst its ongoing growth initiatives.