Decisive Dividend (DE) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 results, with the third consecutive quarter of record revenue and adjusted EBITDA, marking the strongest second quarter in company history, with all business verticals contributing to year-over-year improvements.

• Year-to-date 2025 consolidated order levels and backlogs are significantly higher than prior years, supporting continued momentum.

• Recent tuck-in acquisitions under Techbelt and a strong pipeline of deal opportunities are expected to drive further growth.

Financial highlights

• Q2 2025 consolidated sales reached CAD 36.3 million, up 26% year-over-year; adjusted EBITDA rose 56% to $5.3M.

• First half 2025 sales totaled CAD 75.4 million, a 30% increase year-over-year, with adjusted EBITDA up 67% to $12.3M.

• Free cash flow less maintenance capital surged 131% to $2.8M in Q2 and 129% to $6.4M for the first half.

• Net profit for Q2 was $2.0M ($0.10/share) versus a loss in Q2 2024; first half net profit reached $3.0M ($0.15/share).

• Dividend payout ratio improved to 74% in Q2 2025 from 96% in Q4 2024.

Outlook and guidance

• Order backlogs are 40% higher year-over-year, supported by strong demand and new product introductions.

• Strong demand and backlogs in hearth, agricultural, wear part, merchandising, and industrial products expected to drive results for the remainder of 2025.

• Some commercial vehicle and oil & gas customers expect demand declines in H2 2025 due to U.S. economic conditions, but anticipate a rebound in 2026.

• Additional acquisitions anticipated as the year progresses, leveraging improved balance sheet and cost of capital.

• U.S. trade policy and economic activity remain key variables for future performance.