Overall Revenue Growth
Quarterly sales rose 5% to $463.6 million. Excluding the Canadian dollar appreciation versus the U.S. dollar, sales growth would have been 7%. Growth composition: 2% internal and 3% from acquisitions.
Manufacturers Market Strength
Sales to manufacturers increased 6% to ~$408 million, comprised of ~3.1% internal growth and ~2.9% from acquisitions.
Strong U.S. Performance
U.S. sales grew 11.3% to $155.6 million (or $214 million in Canadian dollars, up 6.8%) and represented 46% of total sales; U.S. contributed both internal growth and acquisition lift.
Canadian Sales Growth
Sales in Canada increased 3.4% to $249.8 million, driven by strength in certain regions and the manufacturers channel.
EBITDA and Adjusted Margin Improvement
First quarter EBITDA was $43.2 million, up 1.9% YoY. Excluding foreign exchange impacts, EBITDA would have been up ~5.6%, and management noted EBITDA margin excluding FX/tariff effects would be slightly higher than last year.
Net Income and EPS Growth
Net earnings attributable to shareholders rose 3.6% to $14.4 million. Diluted EPS increased 4% to $0.26 from $0.25.
Healthy Cash Flow and Balance Sheet
Cash flow from operations before noncash working capital was $37.9 million ($0.69 per diluted share). Operating activities provided a $17.1 million inflow versus $3.7 million year-ago. Working capital was $625.7 million and the company has almost no debt. Dividends of $8.6 million paid; $13.2 million invested (including $10 million acquisition and $3.2 million CapEx).
Active M&A Pipeline and Recent Deal
Completed an acquisition in December adding two distribution centers (McKillican American in Oregon and Washington). Two letters of intent signed for acquisitions in Canada. Management reaffirmed expectation to add roughly ±$100 million in revenue through M&A and described the pipeline as healthy.
Product Innovation Recognition
Richelieu won two Best of KBIS 2026 awards (silver for Atipica decorative hardware; gold for VERTI 440 motorized cabinet system), highlighting product innovation and market differentiation.