Dorel Industries (DIIB) investor relations material

Executive summary

• Q2 2026 revenue declined 14.7% year-over-year to $249.5 million, driven by intentional SKU reductions in Home and softer U.S. demand in Juvenile, but international markets delivered robust growth.

• Net loss for Q2 was $42.5 million, with adjusted net loss of $23.5 million; six-month revenue fell 15.6% to $517.3 million, with a net loss of $67.4 million.

• Strategic restructuring in Home centered on Cosco, youth furniture transfer to Juvenile, and Notio's expanded role, aiming for a leaner, more profitable business.

• Dorel Juvenile's premium brands, especially Maxi-Cosi, gained share in key export markets, offsetting U.S. softness from aggressive competitor promotions.

• Innovation, brand strength, and new product launches remain core to long-term strategy.

Financial highlights

• Q2 revenue decreased by $42.9 million (14.7%) year-over-year; organic revenue down 16.9%.

• Q2 gross profit was $40.3 million, down 18.7%; adjusted gross profit was $57.7 million, with adjusted gross margin improving to 23.1% from 21.5%.

• Operating loss was $24.3 million vs. $37.2 million last year; adjusted operating loss (ex-restructuring) was $5.3 million.

• Q2 adjusted diluted loss per share was $0.68, compared to $0.65 last year.

• Finance expenses rose by $8.6 million to $17 million, with $5.9 million being non-cash.

Outlook and guidance

• Juvenile expects improved earnings in H2 2026 in both U.S. and Europe, supported by new product launches and July sales rebound.

• Home segment to remain impacted by legacy costs in H2, but Cosco and Notio expected to be profitable.

• Focus remains on eliminating legacy costs and scaling profitable platforms.

• Dorel Home will continue transformation, focusing on Cosco and European operations, aiming for a more agile and sustainable business.