Richelieu Hardware (RCH) Q2 2025 earnings summary

Executive summary

• Q2 sales rose 6.4% to $512.2 million, with strong U.S. growth (up 11.7%) and stable Canadian results despite regional challenges.

• Six acquisitions in the first half added over $53 million in annualized sales and expanded the North American network.

• Internal U.S. growth was driven by price adjustments to offset new tariffs, with no impact on gross margin.

• Net earnings attributable to shareholders were $22.5 million in Q2, down 3.9% year-over-year; diluted EPS at $0.41.

• Maintained a robust financial position with $614.2 million working capital and a 2.9:1 current ratio.

Financial highlights

• Q2 sales reached $512.2 million, up $30.8 million year-over-year, driven by internal growth and acquisitions.

• Q2 EBITDA was $55.2 million (margin 10.8%), up 2.7% from last year; Q2 net earnings $22.5 million, down 3.9%.

• First-half sales totaled $953.9 million, up 7.4% year-over-year; EBITDA $97.6 million (margin 10.2%).

• Q2 operating cash flow was $47.3 million, down from $55.7 million last year; adjusted cash flows from operations were $46.8 million, up 5.0%.

• Dividend of $0.1533 per share declared, payable August 7, 2025.

Outlook and guidance

• Expect continued growth through innovation, acquisitions, and network investments.

• Recent acquisitions are expected to strengthen distribution, diversify segments, and create synergies.

• Canadian retail market anticipated to improve in the second half, with optimism for stronger performance.

• U.S. market remains steady; Canadian market expected to be flat overall, with regional variations.