Richelieu Hardware (RCH) Q3 2025 earnings summary

Executive summary

• Achieved Q3 2025 sales of $499.2 million, up 6.7% year-over-year, with growth from both internal initiatives and acquisitions.

• Completed eight acquisitions since the start of 2025, adding over $75 million in annual sales; two more acquisitions post-quarter contributed $22 million.

• Net earnings attributable to shareholders reached $23.9 million in Q3, up 5.2% year-over-year; diluted EPS increased 4.9% to $0.43.

• Cash flow from operating activities in Q3 was $82.7 million, reflecting strong operational performance and inventory reduction.

• All market segments in Canada and the U.S. performed well except Ontario, which faced a more challenging environment.

Financial highlights

• Q3 EBITDA was $57 million, up 7.7% year-over-year, with an EBITDA margin of 11.4%.

• First nine months sales totaled $1.45 billion, up 7.2% year-over-year; EBITDA of $154.7 million, up 5.1%.

• Q3 diluted EPS: $0.43, up from $0.41 last year.

• Cash flows from operating activities for the first nine months were $133.6 million, up from $106.4 million in the prior year.

• Working capital stood at $632.7 million with a positive cash position of $12.4 million at quarter-end.

Outlook and guidance

• Q4 performance expected to be in line with Q3, with similar margin trends.

• Management expects to finish fiscal 2025 with strong results, continuing disciplined execution of its growth strategy.

• Internal growth in the U.S. is mainly driven by price increases, largely due to inflation and tariffs.

• 2026 EBITDA margins expected to continue at current levels if market conditions remain stable.

• Focus remains on exclusive products and private brands to strengthen margins and expand offerings.