Richelieu Hardware (RCH) Q1 2026 earnings summary

Executive summary

• Achieved 5% sales growth to CAD 463.6 million in Q1 2026, with 2% internal growth and 3% from acquisitions.

• Canadian sales rose 3.4% to CAD 249.8 million; US sales increased 11.3% to US$155.6 million.

• Integration of recent acquisitions progressing efficiently; two new letters of intent signed in Canada.

• Awarded two Best of KBIS 2026 honors for innovative product launches.

• Completed acquisition of three US distribution centers from McKillican American.

Financial highlights

• EBITDA rose 1.9% to CAD 43.2 million; excluding FX impact, up 5.6%.

• EBITDA margin at 9.3%, down from 9.6% last year, mainly due to FX and tariff impacts.

• Net income increased 3.6% to CAD 14.4 million; EPS up 4% to CAD 0.26.

• Cash flow from operations before working capital changes was CAD 37.9 million.

• Operating cash inflow of CAD 17.1 million, up from CAD 3.7 million last year.

Outlook and guidance

• Q2 sales trends remain positive, especially in Eastern Canada and the U.S.

• EBITDA margin expected to improve in subsequent quarters, targeting around 11% for 2026 and 12–13% longer term.

• M&A pipeline remains robust, with expectation of CAD 100 million in added revenue through acquisitions.

• Management expects continued growth through innovation, acquisitions, and market diversification.

• Plans to pursue further acquisition opportunities in fragmented markets.