HIGHLIGHTS OF THE SECOND QUARTER ENDED MAY 31, 2026

• Sales of $532.1 million, up 3.9%, including $291.1 million in Canada and US$175.5 million in the United States, up 5.5% and 4.4% (US$), respectively.
• EBITDA of $56.1 million – EBITDA margin of 10.6%.
• Net earnings attributable to shareholders of $23.2 million, or $0.42 per diluted share.
• Adjusted cash flows from operating activities of $47.9 million, or $0.87 per diluted share.
• Expansion: 1 acquisition (QC) on May 1, 2026, and 2 new acquisitions completed on June 26 and July 8, 2026 (QC and ON), adding $27 million in annual sales.

FIRST-HALF

• Sales of $995.6 million, up 4.4%, including $540.9 million in Canada and US$331.1 million in the United States, up 4.5 % and 7.5 % (US$) respectively.
• EBITDA of $99.4 million – EBITDA margin of 10.0%.
• Net earnings attributable to shareholders of $37.6 million, or $0.68 per diluted share.
• Adjusted cash flows from operating activities of $85.8 million, or $1.56 per diluted share.
• Strong financial position as at May 31, 2026, with working capital of $629.5 million (ratio of 3.0:1).

Quarterly dividend of $0.1566 per share payable on August 7, 2026, to shareholders registered as of July 23, 2026.

MONTREAL, July 9, 2026 /CNW/ - (TSX: RCH) – "Our principal market segments continued to perform well during the second quarter, generating sales growth of 5.5% in Canada and 4.4% (US$) in the United States. Total sales increased by 3.9% to reach $532.1 million; on a constant-currency basis with 2025, this increase would have been 5.0%. In the manufacturers market, where sales totalled $473.7 million, the 3.8% increase was driven equally by internal growth and acquisitions. Sales to hardware retailers and renovation superstores market increased by 4.2% to $58.4 million. We remained focused on our expansion strategy to seize new acquisition opportunities. On May 1, 2026, we acquired Fini U.V. International Inc. (Finium) in Quebec, followed by the acquisitions of Distributions Air-Cube Inc. (Solutions Acoustiques) in the Greater Montreal Area on June 26, 2026 and Winnec Inc. (Winnec) in the Greater Toronto Area on July 8, 2026. These three recent acquisitions represent $27 million in additional annual sales, while bringing valuable market expertise, new customers and future synergies through specialized products that complement our diversified offering. At Richelieu, we continue to differentiate ourselves by offering design and space planning professional products that reflect the latest market trends. The addition of Finium and Solutions Acoustiques strengthens our leadership in decorative and acoustic solutions—two fast-growing market segments—while further expanding our presence among architects and designers across North America. This strategy builds on the recognition we received earlier this year with our Best of KBIS award in the Decorative Hardware category and reflects our commitment to remaining a leader in innovation and product differentiation" said Mr. Richard Lord, President and Chief Executive Officer.

"The current economic environment is also creating attractive acquisition opportunities in our target markets. We continue to evaluate several opportunities and remain well positioned to pursue those that meet our strategic criteria and contribute to our long-term growth," added Richard Lord.

FOUR ACQUISITIONS COMPLETED SINCE THE BEGINNING OF FISCAL 2026 ADDING APPROXIMATELY $45 MILLION IN ANNUAL SALES

Following the acquisition of three McKillican American distribution centres in Oregon and Washington State during the first quarter, Richelieu acquired Finium on May 1, 2026, a distributor and manufacturer based in Frampton, Qc, specializing in premium decorative and acoustic wall covering panels for residential and commercial applications. On June 26, 2026, the Corporation completed the acquisition of Solutions Acoustiques, which operates in the Greater Montreal Area as a specialized distributor of standard and premium acoustic products recognized for their performance and architectural design. This acquisition was followed by the acquisition of Winnec on July 8, 2026, a specialized hardware distributor operating three distribution centres in the Greater Toronto Area. Over the coming periods, Richelieu will integrate these new operations while continuing to execute its strategy of innovation and expansion across the North American market.

OPERATING RESULTS FOR THE SECOND QUARTER AND FIRST SIX MONTHS ENDED MAY 31, 2026

The following table provides an overview of Richelieu's sales in its two main markets for the quarters ended May 31, 2026 and 2025 :

For the second quarter ended May 31, 2026, consolidated sales totalled $532.1M, compared with $512.2M for the second quarter of 2025, representing an increase of $19.9M, or 3.9%. This growth was driven by a 2.1% positive contribution from acquisitions and 1.8% internal growth. On a constant-currency basis, using the exchange rates applicable in the second quarter of 2025, consolidated sales would have increased by 5.0% for the quarter ended May 31, 2026.

Operating expenses excluding amortization totalled $475.9M, representing 89.4% of sales, compared to $457.0M, or 89.2% of sales, for the same period in 2025. The increase in absolute dollars reflects higher sales, while the percentage change reflects the impact of tariffs, which increase both sales and cost of sales by the same amount, thereby preserving gross margin in dollars while reducing the gross margin percentage.

Earnings before income taxes, interest, and amortization (EBITDA) reached $56.1M, up $0.9M or 1.7% from the corresponding quarter of 2025. This growth was mainly driven by higher sales. As a result, the EBITDA margin was 10.6%, compared to 10.8% for the corresponding quarter of 2025.

Amortization expense for the second quarter of 2026 amounted to $19.6M, up $0.6M compared to the same period in 2025, resulting from the growth of right-of-use assets, related mainly to lease renewals. Net financial costs totalled $3.6M, compared to $4.0M in the corresponding quarter of 2025, representing a decrease of $0.4M. 

Net earnings were $23.9M, an increase of 1.9% from the corresponding quarter of 2025. Including non-controlling interests, net earnings attributable to shareholders of the Corporation were $23.2M, an increase of 3.2% from the second quarter of 2025. Net earnings per share were $0.42, basic and diluted, compared to $0.41, basic and diluted, for the second quarter of 2025, an increase of 2.4%.

Cash flow from operating activities, before net change in non-cash working capital balances, was $47.9M or $0.87 per diluted share compared to $46.8M or $0.84 per diluted share for the second quarter of 2025. This 2.4% increase mainly reflects the increase in net earnings. Net change in non-cash working capital items used cash flows of $28.5M, reflecting a $14.8M increase in accounts receivable, while other items used cash flows of $13.7M. As a result, operating activities provided a cash inflow of $19.4M, compared to a cash inflow of $47.3M in the second quarter of 2025.

In the first six months of 2026, consolidated sales reached $995.6M, up $41.7M or 4.4% over the first half of 2025, of which 2.5% from the positive contribution of acquisitions and 1.9% from internal growth. On a currency-comparable basis with the corresponding period in 2025, the increase in consolidated sales would have been 5.9%.

Operating expenses excluding amortization totalled $896.3M, representing 90.0% of sales, compared to $856.3M, or 89.8% of sales, for the same period in 2025. The increase in absolute dollars reflects higher sales, while the percentage change reflects the impact of tariffs, which proportionately increase both sales and cost of sales.

EBITDA was $99.4M, up $1.7M or 1.8% from the corresponding six-month period of 2025 and net earnings attributable to shareholders were $37.6M, up 3.5% from the corresponding period of 2025. Net earnings per share were $0.69 basic and $0.68 diluted, compared to $0.66 basic and diluted for the same period of 2025, up 4.5% and 3.0% respectively.

Cash flow from operating activities, before net change in non-cash working capital balances, was $85.8M, or $1.56 per diluted share, compared to $84.1M, or $1.52 per diluted share, for the first six months of 2025. The net change in non-cash working capital items used cash flows of $49.2M, mainly reflecting the change in inventories which used cash flows of $31.6M, while other items used cash of $17.6M. As a result, operating activities represented a cash inflow of $36.6M, compared to a cash inflow of $51.0M in the first six months of 2025.

FINANCIAL POSITION

As at May 31, 2026, net bank overdraft was $25.5M, compared to a net cash of $22.6M as at November 30, 2025, total assets were $1.49B, compared to $1.44B as at November 30, 2025, and the Corporation had a working capital of $629.5M, for a ratio of 3.0:1, compared to $624.0M (ratio of 3.3:1) as at November 30, 2025, with an average return on shareholders' equity of 9.1%.

SHARE CAPITAL

As at May 31, 2026, the Corporation's share capital consisted of 54,832,762 common shares [54,911,836 common shares as at November 30, 2025]. For the three and six-month periods ended May 31, 2026, the weighted average number of diluted shares outstanding was 55,118,918 and 55,141,270 [55,420,350 and 55,440,570 in 2025].

DIVIDENDS

On July 9, 2026, the Board of Directors approved the payment of a quarterly dividend of 0.1566$ per share to shareholders of record as at July 23, 2026, payable on August 7, 2026. The declared dividend is designated as an eligible dividend under the Income Tax Act of Canada.

MAIN TRADEMARKS

PROFILE AS AT MAY 31, 2026

Richelieu is a leading North American importer, manufacturer, and distributor of specialty hardware and complementary products. Its products are targeted to an extensive customer base of kitchen and bathroom cabinets, storage and closets, home furnishing and office furniture manufacturers, residential and commercial woodworkers, doors and windows, and hardware retailers including renovation superstores. Richelieu offers customers a broad mix of high-end products sourced from manufacturers worldwide. Its product selection consists of over 145,000 different items targeted to a base of more than 120,000 customers who are served by 121 centres in North America – 51 distribution centres in Canada, 66 in the United States, and four manufacturing plants in Canada, specifically, Les Industries Cedan Inc., Menuiserie des Pins Ltée, USIMM UNIGRAV Inc., and Fini U.V. International Inc., which manufacture a variety of veneer sheets and edge banding products, a broad selection of decorative moldings and components for the window and door industry as well as a 3D scanning centre offering custom products, including premium decorative and acoustic wall panels.

Notes to readers — Richelieu uses earnings before interest, income taxes, and amortization ("EBITDA") because this measure enables management to assess the Corporation's operational performance. This measure is a financial indicator of a corporation's ability to service its debt. However, EBITDA should not be considered by an investor as an alternative to operating income, net earnings, cash flows or as a measure of liquidity. Because EBITDA is not a standardized measurement as prescribed by IFRS, it may not be comparable to the EBITDA of other companies. Richelieu also uses adjusted cash flows from operating activities, which are based on net earnings plus the amortization of property, plant and equipment, intangible assets and right-of-use assets, deferred tax expense (or recovery), share-based compensation expense, and financial costs. These additional measures do not account for the net change in non-cash working capital items to exclude seasonality effects and are used by management in its assessments of cash flows from long-term operations. Therefore, adjusted cash flows from operating activities may not be comparable to those of other companies. Certain statements set forth in this report (generally identified by terms such as "may", "could", "might", "intend", "expect", "believe", "estimate" or comparable variants) constitute forward-looking statements which, by their very nature, remain subject to other risks and uncertainties as set forth in the Corporation's annual and quarterly reports. Although management considers these assumptions and expectations reasonable based on the information available at the time they are provided, such assumptions and expectations could prove inaccurate, and actual results could differ materially. Richelieu is under no obligation to update or revise any forward-looking statements made herein to account for future events or circumstances, except as required by applicable legislation. The unaudited interim consolidated financial statements, accompanying notes and interim MD&A for the second quarter and first half ended May 31, 2026 will be available on SEDAR+ at www.sedarplus.com and on the Corporation's website at www.richelieu.com.

SOURCE Richelieu Hardware Ltd.