Earnings release
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Doman Building Materials Group Ltd. Announces Third Quarter 2025 Financial Results THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES. Q3 2025 Financial Highlights(1): • Revenues of $795.1 million • Gross Margin at 15.5% • Adjusted EBITDA(2)(3) amounted to $62.0 million • Net Earnings amounted to $18.1 million • Quarterly dividend of $0.14 per share declared(4) VANCOUVER, British Columbia, Nov. 06, 2025 -- Doman Building Materials Group Ltd. (“Doman” or “the Company”) (TSX:DBM) announced today its third quarter 2025 financial results(1) for the period ended September 30, 2025. For the three-month period ended September 30, 2025(1), consolidated revenues increased to $795.1 million, compared to $663.1 million in 2024, largely due to the impact of the results from the Doman Tucker Lumber Acquisition. The Company’s sales by product group in the period were made up of 79% construction materials, with the remaining balance resulting from specialty and allied products of 17%, and other sources of 4%. Gross margin dollars increased to $123.1 million during the three-month period in 2025, versus $103.0 million in 2024. Gross margin percentage was 15.5% during the quarter, consistent with 2024, despite being impacted by declines in construction materials pricing in the US during the quarter. EBITDA(3) and Adjusted EBITDA(2) amounted to $62.0 million, compared to EBITDA of $46.3 million, and Adjusted EBITDA of $47.4 million in 2024. Net earnings for the three-month period ended September 30, 2025, were $18.1 million versus $14.6 million in the comparative period of 2024. The Company declared a $0.14 per share(4) dividend, which was paid on October 15, 2025, to shareholders of record at the close of business on September 29, 2025. For the nine-month period ended September 30, 2025(1), the Company generated EBITDA and Adjusted EBITDA of $212.1 million, on revenues of $2.48 billion. Gross margin and gross margin percentage during the period amounted to $398.3 million, and 16.1%, respectively. This compares to 2024 EBITDA of $141.3 million, and Adjusted EBITDA of $143.6 million, on revenues of $1.96 billion. Gross margin and gross margin percentage during the 2024 period amounted to $311.5 million and 15.9%. Net earnings for the nine-month period ended September 30, 2025, were $69.3 million versus $45.9 million in the comparative period of 2024. “While overall pricing in Canada has remained stable year-to-date, the significant decline in Southern Yellow Pine pricing in the US impacted our margins during the third quarter,” commented Amar S. Doman, Chairman of the Board. "Despite the continued market volatility, we are seeing production cuts, supply shortages, and steady export demand which somewhat mitigated negative pressures on pricing. While we anticipate price volatility to remain, we expect modest gains during the remainder of the year if housing activity rebounds and policy conditions, including tariffs and trade measures, stabilize. In response to this challenging backdrop, we continue to execute debt reduction strategies through strong cash flow generation. Our balance sheet at September 30th is strong and provides a strategic platform for our continued success.” Reconciliation of Net Earnings to EBITDA and Adjusted EBITDA: Three months ended September 30, Nine months ended September 30, 2025 2024 2025 2024 (in thousands of dollars) $ $ $ $ Net earnings 18,060 14,567 69,300 45,923 Provision for income taxes 890 1,920 11,297 6,984 Finance costs 18,051 11,783 56,691 35,202 Depreciation and amortization 25,018 18,008 74,799 53,146 EBITDA 62,019 46,278 212,087 141,255 Acquisition costs - 1,161 - 2,349
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Adjusted EBITDA 62,019 47,439 212,087 143,604 About Doman Building Materials Group Ltd. Founded in 1989, Doman is headquartered in Vancouver, British Columbia, and trades on the Toronto Stock Exchange under the symbol DBM. As Canada’s only fully integrated national distributor in the building materials and related products sector, Doman operates several distinct divisions with multiple treating plants, planing and specialty facilities and distribution centres coast-to-coast in all major cities across Canada and coast-to-coast across the United States. Strategically located across Canada, Doman Building Materials Canada operates distribution centres coast-to-coast, and Doman Treated Wood Canada operates multiple treating plants near major cities. In the United States: headquartered in Dallas, Texas, Doman Lumber operates 21 treating plants, two specialty planing mills and five specialty sawmills located in nine states, distributing, producing and treating lumber, fencing and building material servicing the central U.S.; Doman Tucker Lumber operates three treating plants, specialty sawmilling operations and a captive trucking fleet serving the U.S. east coast; Doman Building Materials USA and Doman Treated Wood USA serve the U.S. west coast with multiple locations in California and Oregon; and in the state of Hawaii the Honsador Building Products Group services 15 locations across all the islands. For additional information on Doman Building Materials Group Ltd., please refer to the Company’s filings on SEDAR+ and the Company’s website www.domanbm.com For further information regarding Doman please contact: Ali Mahdavi Investor Relations 416-962-3300 ali.mahdavi@domanbm.com Certain statements in this press release may constitute “forward-looking” statements. When used in this press release, forward-looking statements often but not always, can be identified by the use of forward-looking words such as, including but not limited to, “may”, “will”, “intend”, “should”, “expect”, “believe”, “outlook”, “predict”, “remain”, “anticipate”, “estimate”, “potential”, “continue”, “plan”, “could”, “might”, “project”, “targeting” or the inverse or negative of these terms or other similar terminology. Forward-looking information in the Q3 2025 MD&A and the associated Unaudited Interim Condensed Consolidated Financial Statements for the three months ended September 30, 2025 (the” Interim Financial Report”) includes, without limitation, statements regarding funding requirements, dividends, commodity pricing, debt repayment, interest rates, economic conditions data and housing starts. Additionally, the ultimate impact of COVID-19 on the Company’s results is difficult to quantify, as it will depend on, inter alia, the ongoing duration and impact of the pandemic, the impact of government policies, and the pace of economic recovery. These statements are based on management’s current expectations regarding future events and operating performance, and on information currently available to management, speak only as of the date of the Interim Financial Report and are subject to risks which are described in the Company’s current Annual Information Form dated March 31, 2025 (“AIF”) and the Company’s public filings on the Canadian Securities Administrators’ website at www.sedarplus.ca (“SEDAR+”) and as updated from time to time, and would include, but are not limited to, dependence on market economic conditions, risks related to the impact of geopolitical conflicts, local, national, and international health concerns, including but not limited to COVID-19 or other viruses, epidemics or pandemics, sales and margin risk, acquisition and integration risks and operational risks related thereto, competition, information system risks, technology risks, cybersecurity risks, availability of supply of products, interest rate risks, inflation risks, risks associated with the introduction of new product lines, product design risk, product liability risk, modern slavery and supply chain risks, environmental risks, climate change risks, political risks, volatility of commodity prices, inventory risks, customer and vendor risks, contract performance risk, availability of credit, credit risks, performance bond risk, currency risks, insurance risks, tax risks, risks of legislative or regulatory changes, international trade and tariff risks, operational and safety risks, resource industry risks, resource extraction risks, risks relating to remote operations, forestry management and silviculture, fire and natural disaster risks, key executive risk and litigation risks. These risks and uncertainties may cause actual results to differ materially from those contained in the statements. Such statements reflect management’s current views and are based on certain assumptions. Some of the key assumptions include, but are not limited to, assumptions regarding the performance of the Canadian and the United States (“US”) economies, the impact of COVID-19, other viruses, epidemics, pandemics or health risks, interest rates, exchange rates, inflation, capital and loan availability, commodity pricing, the Canadian and the US housing and building materials markets; the impact of international trade matters on the Company, its suppliers, customers, cost of goods, sales pricing and the overall economic environment; post-acquisition operation of a business; the amount of the Company’s cash flow from operations; tax laws; laws and regulations relating to the protection of the environment, including the impacts of climate change, and natural resources; and the extent of the Company’s future acquisitions and capital spending requirements or planning in respect thereto, including but not limited to the performance of any such business and its operation; availability or more limited availability of access to equity and debt capital markets to fund, at acceptable costs, the Company’s future growth plans, the implementation and success of the integration of acquisitions, the ability of the Company to refinance its debts as they mature; the direct and indirect effect of the US housing market and economy; exchange rate fluctuations between the Canadian and US dollar; retention of key personnel; the Company’s ability to sustain its level of sales and earnings margins; the Company’s ability to grow its business long-term and to manage its growth; the Company’s management information systems upon which it is dependent are not impaired, ransomed or unavailable; the Company’s insurance is sufficient to cover losses that may occur as a result of its operations as well as the general level of economic activity, in Canada and the US, and abroad, discretionary spending and unemployment levels; the effect of general
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economic conditions; market demand for the Company’s products, and prices for such products; the effect of forestry, land use, environmental and other governmental regulations; and the risk of losses from fires, floods and other natural disasters and unemployment levels. They are, by necessity, only estimates of future developments and actual developments may differ materially from these statements due to a number of known and unknown factors. Investors are cautioned not to place undue reliance on these forward-looking statements. All forward-looking information in the Interim Financial Report is qualified by these cautionary statements. Although the forward-looking information contained in the Interim Financial Report is based on what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Certain statements included in the Interim Financial Report may be considered “financial outlook” for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than the Interim Financial Report. In addition, there are numerous risks associated with an investment in the Company’s common shares and senior unsecured notes, which are also further described in the “Risks and Uncertainties” section in the Interim Financial Report and include but are not limited to the factors and risks described in the periodic and other reports filed by Doman with Canadian securities commissions and available on SEDAR+ in the “Risk Factors” sections of Doman’s AIF, as may be updated from time to time. These forward-looking statements speak only as of the date of this press release. We caution that the foregoing factors that may affect future results are not exhaustive. When relying on our forward-looking statements to make decisions with respect to Doman, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Neither Doman nor any of its associates or directors, officers, partners, affiliates, or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in these communications will actually occur. You are cautioned not to place undue reliance on these forward-looking statements. Except as required by applicable securities laws and legal or regulatory obligations, Doman is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. (1) Please refer to our Q3 2025 MD&A and Financial Statements for further information. Our Q3 2025 Financial Statements filings are reported under International Financial Reporting Standards (“IFRS”). (2) In the discussion, reference is made to Adjusted EBITDA, which is EBITDA as defined above, before certain non-recurring or unusual items. This is not a generally accepted earnings measure under IFRS and does not have a standardized meaning under IFRS. The measure as calculated by Doman may not be comparable to similarly-titled measures reported by other companies. Adjusted EBITDA is presented as we believe it is a useful indicator of Doman’s ability to meet debt service and capital expenditure requirements from its regular business before non-recurring items. Adjusted EBITDA should not be considered by an investor as an alternative to net earnings or cash flows as determined in accordance with IFRS. For a reconciliation from Adjusted EBITDA to the most directly comparable measures calculated in accordance with IFRS refer to “Reconciliation of Net Earnings to Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) and Adjusted EBITDA”. (3) In the discussion, reference is made to EBITDA, which represents earnings from continuing operations before interest, including amortization of deferred financing costs, provision for income taxes, depreciation, and amortization. This is not a generally accepted earnings measure under IFRS and does not have a standardized meaning under IFRS, and therefore the measure as calculated by Doman may not be comparable to similarly titled measures reported by other companies. EBITDA is presented as we believe it is a useful indicator of a company’s ability to meet debt service and capital expenditure requirements and because we interpret trends in EBITDA as an indicator of relative operating performance. EBITDA should not be considered by an investor as an alternative to net earnings or cash flows as determined in accordance with IFRS. For a reconciliation of EBITDA to the most directly comparable measures calculated in accordance with IFRS refer to “Reconciliation of Net Earnings to Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) and Adjusted EBITDA”. (4) On September 15, 2025, Doman declared a quarterly dividend of $0.14 per share, which was paid on October 15, 2025, to shareholders of record on September 29, 2025. Please refer to our Q3 2025 MD&A and Financial Statements for more information.