Earnings release
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Decisive Dividend Corporation Reports Financial Results for the Three and Nine Months Ended September 30, 2025 KELOWNA, BC , Nov. 4, 2025 /CNW/ - Decisive Dividend Corporation (TSXV: DE) (the "Company" or "Decisive") today reported its financial results for the three and nine months ended September 30, 2025 . Highlights of the Company's financial performance in Q3 2025 include the following: Consolidated sales increased 5% to $34.0 million in Q3 2025, bringing sales for the first nine months of 2025 to $109.4 million , 21% higher than the same period in 2024. Decisive generated $5.8 million in Adjusted EBITDA* in Q3 2025, an increase of 3% relative to Q3 2024, bringing Adjusted EBITDA* for the first nine months of 2025 to $18.1 million , 39% higher than the same period in 2024. Decisive generated $2.8 million in Free Cash Flow less Maintenance Capital* in Q3 2025, while though a decrease of 12% relative to Q3 2024 based on higher current income tax expenses in Q3 2025, brought Free Cash Flow less Maintenance Capital* for the first nine months of 2025 to $9.2 million , 53% higher than the same period in 2024. This improvement drove the trailing twelve-month dividend payout ratio down to 76% at the end of Q3 2025, from 96% at the end of Q4 2024. To the date of this press release, 2025 consolidated order levels have outpaced the same periods, on a pro forma basis, in both 2023 and 2024. Consolidated sales have also outpaced pro forma 2024 sales, although they remain behind consolidated pro forma sales for the same period in 2023. Based on higher year-to-date order levels, overall order backlogs as of the date of this press release are 10% higher than at this time last year. Decisive's year-to-date 2025 results were not significantly affected by United States trade policy or direct tariff costs as substantially all of the products manufactured by the Group are compliant with the Canada -United States-Mexico Agreement. Jeff Schellenberg , Chief Executive Officer of Decisive, noted: "In spite of the uncertainty prevalent in the marketplace, especially with respect to Canadian manufacturing businesses, the strength of our operating results in Q3 2025 reinforced the benefits of the diversified nature of the of the portfolio of businesses we own and the differentiated products these businesses produce. While customer specific demand declines based on United States economic conditions negatively impacted businesses like Hawk and Northside , others like IHT, Unicast and Techbelt witnessed strong year-over-year increases in demand for their products while our highly profitable hearth industry businesses remained very stable . Further, current demand levels and order backlogs for the hearth, agricultural, wear part, merchandising and certain industrial products our businesses produce, the introduction of new products, and stronger seasonal periods in some of our larger businesses, are expected to support results over the next two quarters, even though United States trade policies and economic conditions are expected to result in demand declines for certain commercial vehicle and oil and gas customers. Our performance in the face of this marketplace uncertainty has demonstrated the resilience of our current dividend level, with our trailing twelve-month dividend payout ratio sitting at 76%, a significant improvement from 96% where we sat at the end of Q4 2024, as well as reduced
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leverage ratios, which improves our balance sheet strength even after debt funding three acquisitions in 2025, and improved cost of capital since the beginning of 2025. We remain focused on continuing to grow our business both organically and through acquisition, and the three acquisitions announced in the third quarter demonstrate this. Further, these acquisitions are aligned with our focus of acquiring within the industry verticals we are already invested in, which supports more rapid integration and movement of these businesses into a growth trajectory . With our improved balance sheet strength and cost of capital, combined with the strong flow of deal opportunities we continue to see, we fully expect to complete additional acquisitions in the near term and remain confident in Decisive's business model and the potential for long-term growth within it . " Selected Financial Information: The following is selected financial information of Decisive for the three and nine months ended September 30, 2025 . All amounts are expressed in Canadian dollars. The Company's Unaudited - interim condensed consolidated financial statements as well as its management's discussion and analysis ("MD&A") are posted on SEDAR+ at www.sedarplus.ca and on Decisive's website ( www.decisivedividend.com ). (Stated in thousands of dollars, except per share amounts) For the three months ended For the nine months ended September 30, 2025 2024 Change 2025 2024 Change Sales $ 33,972 $ 32,240 5 % $ 109,416 $ 90,289 21 % Gross profit 13,366 11,999 11 % 41,692 33,235 25 % Gross profit % 39 % 37 % 38 % 37 % Adjusted EBITDA* 5,812 5,627 3 % 18,125 13,007 39 % Per share basic 0.29 0.29 0 % 0.91 0.67 36 % Profit 780 948 -18 % 3,800 139 2634 % Per share basic 0.04 0.05 -20 % 0.19 0.01 1800 % Free cash flow* 2,967 3,380 -12 % 9,989 6,669 50 % Per share basic 0.15 0.17 -12 % 0.50 0.35 43 % Free cash flow less maintenance capital* 2,831 3,227 -12 % 9,225 6,019 53 % Per share basic 0.14 0.17 -18 % 0.47 0.31 52 % Dividends declared 2,698 2,642 2 % 8,040 7,745 4 % Per share basic 0.14 0.14 0 % 0.41 0.40 2 % For the trailing twelve month period ended September 30, 2025 2024 Dividend payout ratio* 76 % 95 % * Adjusted EBITDA, Free Cash Flow, Free Cash Flow Less Maintenance Capital, and Dividend Payout Ratio are not recognized financial measures under International Financial Reporting Standards (IFRS) and therefore may not be comparable to similar measures presented by other issuers but are used by management to assess the performance of the Company and its segments. A reader should not place undue reliance on any Non-IFRS financial measures. See "Non-IFRS Financial Measures" later in this press release for detailed descriptions of these measures and reconciliations of applicable IFRS measures to non-IFRS measures. Q3 2025 Results: Consolidated sales increased 5% to $34 .0 million compared to sales of $32.2 million in Q3 2024. The Finished Product segment posted sales increases of 20% which more than offset the 8% sales decrease in the Component Manufacturing segment in the quarter relative to Q3 2024. The overall sales increase in Q3 2025 compared to Q3 2024 was primarily driven by strong sales of the Company's agricultural products and wear parts products. Increased IHT sales on stronger order conversion to date in 2025, was the key contributor to more than doubling agricultural product sales relative to Q3 2024. Unicast and Techbelt each experienced strong demand for their products, resulting in a 14% increase in wear part sales in Q3 2025 compared to Q3 2024. The acquisition of Venger in August 2025 drove increases in merchandising sales in the quarter compared to Q3 2024. Hearth division sales in the quarter were consistent relative to Q3 2024. Increased demand for Capital I's industrial products was more than offset by sales decreases of Northside's industrial products. Decreased demand from one of Northside's commercial vehicle customers, based on the current economic environment in the United States , was the main driver of decreased Component Manufacturing segment sales in the quarter compared to Q3 2024. Consolidated gross profit increased 11% to $13.4 million from $12 .0 million in Q3 2024, based
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primarily on the increase in sales. Gross profit percentages increased by 2 percentage points year-over-year to 39% in Q3 2025 compared to 37% in Q3 2024. Consolidated Adjusted EBITDA* increased to $5.8 million , up 3% relative to Q3 2024 Adjusted EBITDA*. Consolidated net profit in the quarter was $0 .8 million, or $0 .04 per share, compared to net profit of $0.9 million , or $0 .05 per share, in Q3 2024. Consolidated free cash flow* increased 12% to $3.0 million relative to Q3 2024. Increased sales in the quarter, as described above, was the main driver of the increase in Adjusted EBITDA* and free cash flow* relative to Q3 2024. Increased current income tax expenses also impacted free cash flow*, net profit and net profit per share in the quarter relative to Q3 2024. 2025 Year-to-Date Results: Consolidated sales increased 21% to $109.4 million , compared to $90.3 million in the first nine months of 2024. The overall sales increase in the first nine months of 2025 was driven by strong sales activity throughout the portfolio, with the Finished Product segment and the Component Manufacturing segment posting sales increases of 24% and 19%, respectively, in the first nine months of the year compared to the same period in 2024. In the Component Manufacturing segment, each of Unicast and Hawk achieved over 30% and 20% sales increases respectively relative to the first nine months of 2024 with Techbelt, which was acquired in April 2024 , also contributing significantly to the increase, generating sales levels well ahead of pre-acquisition averages. In terms of the Finished Product segment, the increase in sales in first nine months of 2025 was driven by more than a 100% increase in IHT sales, as well as an over 30% increase in Capital I sales relative to the same period in 2024. Sales in the hearth division, merchandising division, and Slimline also each increased in the first nine months of the year compared to the same period in 2024. Consolidated gross profit increased 25% to $41.7 million from $33.2 million in the first nine months of 2024, driven primarily by increased sales. Consolidated gross profit percentages increased to 38% from 37% in the first nine months of 2024 driven primarily by a change in product mix and the impact of foreign exchange rates. Consolidated Adjusted EBITDA* increased to $18.1 million , an increase of 39% relative to the first nine months of 2024. Consolidated net profit was $3 .8 million, or $0.19 per share, an increase of $3 .7 million, or $0.18 per share compared to the first nine months of 2024. Consolidated free cash flow* increased 50% to $10.0 million relative to the first nine months of 2024. Higher sales in the first nine months of the year, as described above, were the main drivers of the increase in Adjusted EBITDA*, net profit, and free cash flow* relative to the first nine months of 2024. A $1.7 million gain on the insurance settlement to replace assets lost in a 2024 fire at Northside was included in net profit in the first nine months of 2025. Conference Call Decisive will host a conference call for interested parties to discuss the Company's Q3 2025 results. The call will be hosted by Jeff Schellenberg , Decisive's Chief Executive Officer, Rick Torriero , Chief Financial Officer, and Chris Goodchild , Chief Operating Officer. Details for those who wish to participate in this conference call are as follows: Conference Call Details: Wednesday, November 5, 2025 , at 8:00am Pacific Time / 11:00am Eastern Time (please call 10 minutes ahead of time)
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Participant Information: To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3KKAZJe to receive an instant automated call back. You can also dial direct to be entered into the call by an operator: Dial in number – North America (toll free): 1-888-510-2154 Dial in number – United Kingdom (toll free): 0800 279 7040 Dial in number – International: +1-437-900-0527 Replay Information (replay available until November 12, 2025 ): Replay number – North America (toll free): 1-888-660-6345 Replay number – International: +1-289-819-1450 Replay access code 44808# About Decisive Dividend Corporation Decisive Dividend Corporation is an acquisition-oriented company, focused on opportunities in manufacturing. The Company's purpose is to be the sought-out choice for exiting legacy-minded business owners, while supporting the long-term success of the businesses acquired, and through that, creating sustainable and growing shareholder returns. The Company uses a disciplined acquisition strategy to identify already profitable, well-established, high quality manufacturing companies that have a sustainable competitive advantage, a focus on non-discretionary products, steady cash flows, growth potential and established, strong leadership. For more information on Decisive, or to sign up for email notifications of Company press releases, please visit www.decisivedividend.com . Cautionary Statements Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Non-IFRS Financial Measures In this press release, reference is made to "Adjusted EBITDA", "Free Cash Flow", "Growth Capital Expenditures", "Maintenance Capital Expenditures" and "Dividend Payout Ratio", which are not recognized financial measures under IFRS Accounting Standards, but are believed to be meaningful in the assessment of the Company's performance as defined below. " Adjusted EBITDA " is defined as earnings before finance costs, income taxes, depreciation, amortization, foreign exchange gains or losses, other non-cash items such as gains or losses recognized on the fair value of contingent consideration items, asset impairment, share-based compensation, and restructuring costs, and other non-operating items such as acquisition costs. Adjusted EBITDA is a financial performance measure that management believes is useful for investors to analyze the results of the Company's operating activities prior to consideration of how those activities are financed and the impact of non-operating charges related to planned or completed acquisitions, foreign exchange, taxation, depreciation, amortization, and impairment charges. The most directly comparable financial measure is profit or loss. Adjusted EBITDA per share is also presented, which is calculated by dividing Adjusted EBITDA, as defined above, by the weighted average number of shares outstanding during the period.
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" Free Cash Flow " is defined as cash provided by operating activities, as defined by IFRS Accounting Standards , adjusted for changes in non-cash working capital, timing considerations between current income tax expense and income taxes paid, interest payments, required principal payments on long-term debt and right of use lease liabilities, and any unusual non-operating one- time items such as acquisition and restructuring costs (as described above). Free Cash Flow is a financial performance measure used by management to analyze the cash generated from operations before the impact of changes in working capital items or other unusual items and after giving effect to expected income taxes thereon, as well as required interest and principal payments on long-term debt and right of use lease liabilities. The most directly comparable financial measure is cash provided by operating activities. Adjustments made to cash provided by operating activities in the calculation of Free Cash Flow include other IFRS Accounting Standards measures, including changes in non-cash working capital, current income tax expense, income taxes paid, interest paid, and principal payments on long-term debt and right of use lease liabilities. Free Cash Flow per share is also presented, which is calculated by dividing Free Cash Flow, as defined above, by the weighted average number of shares outstanding during the period . " Free Cash Flow Less Maintenance Capital " is defined as Free Cash Flow, as defined above, less Maintenance Capital Expenditures, as defined below. Free Cash Flow Less Maintenance Capital is a financial performance measure used by management to analyze the cash generated from operations before the impact of changes in working capital items or other unusual items and after giving effect to expected income taxes thereon, as well as required interest and principal payments on long-term debt and right of use lease liabilities, and capital expenditures required to sustain the current operations of the Company. The Company presents Free Cash Flow Less Maintenance Capital Expenditures per share, which is calculated by dividing Free Cash Flow Less Maintenance Capital, as defined above, by the weighted average number of shares outstanding during the period. " Growth and Maintenance Capital Expenditures " maintenance capital expenditures are defined as capital expenditures required to maintain the operations of the Group at the current level and are net of proceeds from the sale of property and equipment. Growth capital expenditures are defined as capital expenditures that are expected to generate incremental cash inflows and are not considered by management in determining the cash flows required to sustain the current operations of the Company. While there are no comparable IFRS Accounting Standards measures for Maintenance Capital Expenditures or Growth Capital Expenditures, the total of Maintenance Capital Expenditures and Growth Capital Expenditures is equivalent to the total purchases of property and equipment, net of proceeds from the sale of property and equipment, on the Company's statement of cash flows. " Dividend Payout Ratio " the Company presents a dividend payout ratio, which is calculated by dividing dividends declared by the Company by Free Cash Flow Less Maintenance Capital, as defined above. The Dividend Payout Ratio is a financial ratio used by management to analyze the percentage of cash generated from operations, before the impact of changes in working capital items or other unusual items and after giving effect to expected income taxes thereon, as well as required interest and principal payments on long-term debt and right of use lease liabilities, and capital expenditures required to sustain the current operations of the Company, returned to shareholders as dividends. Dividend Payout Ratio is analyzed on a trailing twelve-month basis in order to reduce the impact of seasonality on the analysis.
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While the above Non-IFRS financial measures are used by management to assess the historical financial performance of the Company, readers are cautioned that: Non- IFRS financial measures, such as Adjusted EBITDA, Free Cash Flow, Growth Capital Expenditures, Maintenance Capital Expenditures and Dividend Payout Ratio, are not recognized financial measures under IFRS Accounting Standards ; The Company's method of calculating Non-IFRS financial measures may differ from that of other corporations or entities and therefore may not be directly comparable to measures utilized by other corporations or entities; Non- IFRS financial measures should not be viewed as an alternative to measures that are recognized under IFRS such as profit or loss or cash provided by operating activities; and A reader should not place undue reliance on any Non-IFRS financial measures. Set forth below are reconciliations of Non-IFRS financial measures to their most relevant IFRS Accounting Standards measures. Adjusted EBITDA (Stated in thousands of dollars) For the three months ended For the nine months ended September 30, 2025 2024 2025 2024 Profit for the period $ 780 $ 948 $ 3,800 $ 139 Add (deduct): Financing costs 1,317 1,529 3,973 4,200 Income tax expense 633 225 1,949 325 Amortization and depreciation 2,857 2,544 8,239 7,120 Acquisition and restructuring costs 280 186 433 880 Inventory fair value adjustments and write downs 11 4 14 7 Share-based compensation expense 288 230 1,740 781 Foreign exchange gains (363) (31) (336) (374) Other (income) expense 9 (5) (3) (34) Gain on disposal of property and equipment - (3) (1,684) (37) Adjusted EBITDA 5,812 5,627 18,125 13,007 Free Cash Flow (Stated in thousands of dollars) For the three months ended For the nine months ended September 30, 2025 2024 2025 2024 Cash provided by operating activities $ 6,998 $ 8,003 $ 15,712 $ 7,789 Add (deduct): Changes in non-cash working capital (1,389) (2,557) 380 2,184 Income taxes paid (refunded) (86) - 1,603 2,188 Current income tax expense (912) (141) (2,438) (608) Acquisition and restructuring costs 280 186 433 880 Interest paid (1,246) (1,451) (3,734) (4,032) Lease payments (619) (598) (1,787) (1,556) Required principal repayments on debt (59) (62) (180) (176) Free cash flow $ 2,967 $ 3,380 9,989 6,669 Free Cash Flow Less Maintenance Capital and Dividend Payout Ratio (Stated in thousands of dollars) For the trailing twelve month period ended September 30, 2025 2024 Cash provided by operating activities $ 20,699 $ 15,649 Add (deduct): Changes in non-cash working capital 2,654 132 Income taxes paid 1,522 3,564 Current income tax expense (2,666) (1,473) Acquisition and restructuring costs 590 881 Interest paid (5,093) (5,090) Lease payments (2,358) (1,988) Required principal repayments on debt (235) (236) Free cash flow 15,113 11,439 Maintenance capital expenditures (1,041) (932)
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Free cash flow less maintenance capital 14,072 10,507 Dividends declared 10,696 10,011 Dividend payout ratio 76 % 95 % Forward- Looking Statements Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "believes", "expects", "could", "will", "may", "intends", "projects", "anticipates", "plans", "estimates", "continues" and similar words or the negative and grammatical variations thereof and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on management's current beliefs, assumptions and expectations as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this press release contains forward-looking information relating to the future prospects of the Company and its operating subsidiaries, demand levels, demand from customers, the timing of product sales and/or deliveries under existing customer contracts or orders received from customers, and potential future acquisitions . Risk factors that could cause actual results or outcomes to differ materially from the results expressed or implied by forward-looking information include, among other things: (i) operational risks, including risks related to acquisitions; dependence on customers, distributors and strategic relationships; supply and cost of raw materials and purchased parts; operational performance and growth, implementation of the growth strategy; product liability and warranty claims; litigation; reliance on technology, intellectual property, and information systems; (ii) financial risks, including risks relating to the availability of future financing; interest rates and debt financing; income tax matters; foreign exchange; dividends; trading volatility of common shares; dilution risk; (iii) external risks, including risks relating to general economic conditions; government regulation (including trade restrictions and tariffs); pandemics; competition; environmental regulation; access to capital; market trends and innovation; climate risk; general uninsured losses; and (iv) human capital risks, including reliance on management and key personnel; employee and labour relations; and conflicts of interest, all as more particularly described in the most recent annual MD&A of the Company available on the Company's profile at www.sedarplus.ca . There can also be no assurance as to the future financial performance of the Company or that the board of directors of the Company will declare or pay any dividends in the future or, if dividends are declared and paid, there can be no assurance as to the frequency or amount of such dividends . The Company cautions the reader that the risk factors referenced above are not exhaustive. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein . SOURCE Decisive Dividend Corporation View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2025/04/c1999.html %SEDAR: 00034593E For further information: FOR FURTHER INFORMATION PLEASE CONTACT: Jeff Schellenberg, Chief Executive Officer, Rick Torriero, Chief Financial Officer, #260 - 1855 Kirschner Road, Kelowna, BC V1Y 4N7, Telephone: (250) 870-9146 CO: Decisive Dividend Corporation
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CNW 18:23e 04-NOV-25