Decisive Dividend (DE) Q3 2025 earnings summary

Executive summary

• Q3 2025 consolidated sales reached CAD 34 million, up 5% year-over-year, and year-to-date sales hit CAD 109.4 million, a 21% increase over the first nine months of 2024.

• Adjusted EBITDA increased 3% to CAD 5.8 million in Q3 and 39% to CAD 18.1 million for the nine-month period, both record levels.

• Free cash flow less maintenance capex improved 53% year-over-year for the first nine months, reaching $9.2 million.

• Order backlogs as of the press release date were 10% higher than the prior year, supporting expectations for strong results in the next two quarters.

• Three acquisitions were completed in 2025, supporting growth and integration within existing industry verticals.

Financial highlights

• Gross profit increased 11% to $13.4 million in Q3 and 25% to $41.7 million for the nine months year-over-year.

• Gross margin improved to 39% in Q3 2025 from 37% in Q3 2024.

• Net profit for Q3 was $0.8 million ($0.04 per share), down from $0.9 million ($0.05 per share) in Q3 2024; nine-month net profit was $3.8 million ($0.19 per share), up from $0.1 million ($0.01 per share) in 2024.

• Free cash flow for Q3 was $3.0 million, up 12% year-over-year; for nine months, $10.0 million, up 50%.

• Dividend payout ratio for the trailing twelve months declined to 76% from 95% a year earlier.

Outlook and guidance

• Order backlogs and current demand levels in key product areas are expected to support results over the next two quarters.

• Management anticipates further acquisitions in the near term, leveraging improved balance sheet strength and cost of capital.

• U.S. economic conditions and trade policy are expected to continue impacting certain segments, particularly oil and gas and commercial vehicle customers, into Q4 2025.

• Some oil and gas customer demand declines may be permanent, but other business strengths are expected to mitigate impacts.