Decisive Dividend (DE) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly and annual sales in Q4 and full year 2025, with consolidated Q4 sales of CAD 42.8 million (up 14% year-over-year) and full-year sales of CAD 152.2 million (up 19%), marking the second strongest gross profit and Adjusted EBITDA in company history.

• Adjusted EBITDA reached CAD 7.3 million in Q4 2025 (flat year-over-year) and CAD 25.4 million for the year (up 25% from 2024).

• Net profit for 2025 was CAD 5.2 million, up 159% year-over-year, despite a 25% decline in Q4 net profit due to foreign exchange losses.

• Free Cash Flow less Maintenance CapEx improved 25% year-over-year to CAD 13.5 million, reducing the Dividend Payout Ratio to 79% from 96% in 2024.

• Completed three tuck-in acquisitions in 2025, enhancing capabilities in existing verticals.

Financial highlights

• Q4 2025 sales increased 14% year-over-year to CAD 42.8 million; full year sales rose 19% to CAD 152.2 million.

• Gross profit for Q4 was CAD 16.1 million (up 10%); annual gross profit was CAD 57.8 million (up 21%).

• Gross margin was 38% in Q4 (down from 39%) and 38% for the year (up from 37%).

• Merchandising product sales rose 10% year-over-year, aided by the integration of the Venture acquisition.

• Industrial products sales grew 3% for the year but declined in Q4 due to lower demand from certain US commercial vehicle and oil & gas customers.

Outlook and guidance

• 2026 is expected to benefit from investments in new products, sales capabilities, facility capacity, and productivity, along with favorable energy and commodity prices.

• Anticipates increased acquisition activity and improved per share financial metrics, supporting potential future dividend growth.

• Ongoing uncertainty from CUSMA renegotiation and global events, but management is confident in resilience and adaptability.