Decisive Dividend (DE) Q2 2026 earnings summary

Executive summary

• Completed the acquisition of Be Fire SA and subsidiaries in June 2026, marking the first European transaction and expanding product offerings and geographic reach.

• Raised CAD 8 million via private placement in April 2026 and upsized the credit facility by CAD 25 million to support the Be Fire acquisition and future growth.

• Achieved 6% year-over-year sales growth in Q2 2026, driven by organic expansion and acquisitions across hearth, agriculture, merchandising, and wear parts segments.

• Integration of Be Fire is underway, focusing on cross-selling and product development across European and North American markets.

• Investments in sales, facilities, and succession planning increased operational expenditures, impacting near-term profitability.

Financial highlights

• Q2 2026 sales reached CAD 38.5 million, up 6% year-over-year; first half sales totaled CAD 76.4 million, up 1%.

• Adjusted EBITDA rose 1% year-over-year to $5.4 million in Q2 2026, despite increased operating costs; first half Adjusted EBITDA was $11.8 million, down 4%.

• Q2 2026 net loss of $0.3 million versus $2.0 million profit in Q2 2025; first half net profit of $0.6 million, down from $3.0 million.

• Free cash flow less maintenance CapEx was CAD 2.6 million in Q2 2026, down 7% year-over-year; first half down 4% to $6.1 million.

• Trailing 12-month dividend payout ratio increased to 83%, expected to improve as Be Fire ramps up.

Outlook and guidance

• Management expects investments in leadership, products, and productivity to strengthen long-term earnings power and resilience.

• Higher energy prices and regulatory approvals for new hearth products expected to provide tailwinds.

• Q3 2026 started strong, with backlogs and orders ahead of the prior year, especially in agriculture and merchandising.

• Expanded credit facility and private placement enhance liquidity and support future growth opportunities.