Richelieu Hardware (RCH) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales rose 8.6% year-over-year to CAD 442 million, equally driven by internal growth and acquisitions, despite stagnant market conditions.

• EBITDA increased 5% to CAD 42.4 million, with margin declining to 9.6% from 9.9% due to lower margins from acquisitions and higher marketing costs.

• Net earnings attributable to shareholders fell 8.6% to CAD 13.9 million ($0.25 per diluted share), mainly due to higher amortization from recent investments.

• Five acquisitions completed or announced since December 2024, expanding presence in key North American markets and adding about $50 million in annual sales.

• Canadian sales grew 4.1% to CAD 242 million; U.S. sales rose 7.6% in USD to $140 million (CAD 200 million), now 45% of total sales.

Financial highlights

• Q1 sales reached CAD 442 million, up 8.6% year-over-year.

• EBITDA was CAD 42.4 million, up 5% from Q1 2024, with margin at 9.6%.

• Net earnings attributable to shareholders were CAD 13.9 million, down 8.6% due to higher amortization.

• Diluted EPS was $0.25, compared to $0.27 last year.

• Adjusted cash flows from operating activities up 6.9% to $37.3 million; per share up 8.1% to $0.67.

Outlook and guidance

• Market expected to remain flat or show low single-digit growth, in line with industry peers.

• Excluding tariff impacts, management is positive about 2025 performance and market share gains.

• Growth strategies focus on integrating recent acquisitions and developing new synergies.

• Management expects to maintain growth and has sufficient capital resources for ongoing commitments and expansion.

• Continued focus on integrating acquisitions and seeking further M&A opportunities.