Earnings release
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DOREL DOREL JUVENILE Maxi - Cosi Tiny Love Safety 1st Bebe Confort Cosco Kids Little Seeds Infanti DOREL HOME Dorel Home Products Cosco Ameriwood Home Notio Signature Sleep EXCHANGES TSX : DII.B , DII.A CONTACTS : Dorel Industries Inc. John Paikopoulos ( 514 ) 934-3034 Dorel Industries Inc. Jeffrey Schwartz ( 514 ) 934-3034 • • COMM U N I QUÉ DOREL REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS Dorel Juvenile reports solid second quarter results supported by international market strength Dorel Home further reduces overhead structure focusing on the profitable Cosco division Montréal , August 5 , 2026 - Dorel Industries Inc. ( TSX : DII.B , DII.A ) today announced its financial results for the second quarter and six months ended June 30 , 2026 . Second quarter revenue was US $ 249.5 million , compared to US $ 292.4 million , a decrease of 14.7 % from the same period a year ago . Reported net loss was US $ 42.5 million or US $ 1.23 per diluted share , compared to US $ 44.9 million or US $ 1.38 per diluted share last year . Adjusted net loss¹ was US $ 23.5 million or US $ 0.68 per diluted share compared to US $ 21.1 million or US $ 0.65 per diluted share last year . Revenue for the six months was US $ 517.3 million , compared to US $ 612.8 million , down 15.6 % from the prior year . Reported net loss was US $ 67.4 million or US $ 1.96 per diluted share , compared to US $ 70.2 million or US $ 2.15 per diluted share a year ago . Adjusted net loss¹ for the six months was US $ 45.8 million or US $ 1.33 per diluted share , compared to US $ 44.8 million or US $ 1.37 per diluted share last year . " Dorel Juvenile delivered a resilient second quarter , supported by strong international performance and continued momentum in its premium brands . The segment continued to improve underlying operating performance , with growth across several key international markets , despite aggressive promotional activity by direct competitors in the United States affecting sales . Ongoing investment in innovation , consumer engagement and commercial execution continues to reinforce Dorel Juvenile's ability to navigate market challenges while strengthening its foundation for long - term profitable growth , " stated Dorel President & CEO , Martin Schwartz . " As announced with our first quarter results , Dorel Home required a further reduction in its overhead structure . During the quarter , we advanced a new business model centred on Cosco product categories . In addition , our European furniture distribution company , Notio , will continue to supply key large retailers with select furniture SKUs . Although this transition resulted in a reduction in revenue in the quarter , we are very pleased that the Cosco business performed in line with expectations and was profitable under the new operating model , ” added Mr. Schwartz . 1 This is a non - GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers . Refer to the section " Definition and reconciliation of non - GAAP financial ratios and measures " in this press release . 1
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2 2026 2025 Change $ $ % Revenue 249,495 292,391 (14.7)% Net loss (42,471) (44,934) (5.5)% Per share - Basic (1.23) (1.38) (10.9)% Per share - Diluted (1.23) (1.38) (10.9)% Adjusted net loss (1) (23,516) (21,145) 11.2% Per share - Diluted (1) (0.68) (0.65) 4.6% Number of shares outstanding – Basic weighted average 34,571,074 32,662,037 Diluted weighted average 34,571,074 32,662,037 2026 2025 Change $ $ % Revenue 517,335 612,847 (15.6)% Net loss (67,356) (70,184) (4.0)% Per share - Basic (1.96) (2.15) (8.8)% Per share - Diluted (1.96) (2.15) (8.8)% Adjusted net loss (1) (45,782) (44,771) 2.3% Per share - Diluted (1) (1.33) (1.37) (2.9)% Number of shares outstanding – Basic weighted average 34,449,107 32,649,733 Diluted weighted average 34,449,107 32,649,733 (1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release. (1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release. All figures in thousands of US $, except per share amounts Summary of Financial Information (unaudited) Three Months Ended June 30, All figures in thousands of US $, except per share amounts Summary of Financial Information (unaudited) Six Months Ended June 30,
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3 Dorel Juvenile Second quarter revenue was US$209.7 million, a decrease of 3.9% versus last year. Organic revenue1 decreased by 6.8%, after removing the impact of varying foreign exchange rates year-over-year. In the U.S. the main driver of the revenue decline was primarily due to aggressive discounting by market competition, which impacted order levels for Dorel. This revenue decline was partially offset by the double-digit revenue improvements in Australia, Brazil, Export markets and Canada which was across most brands and product categories . Year-to-date segment revenue was US$432.4 million compared to US$433.9 million in the prior year , representing a decrease of 0.3%. The year -to-date organic revenue 1 decrease was approximately 4.7%. As for the quarter, the cause of the decrease was the U.S. market. Adjusted operating profit1 for the quarter was US$5.1 million, US$2.7 million lower than the prior year. However, underlying operating performance continued to improve during the quarter as the prior year’s results included a significant benefit from foreign exchange gains. Excluding foreign exchange variations year -over-year, adjusted operating profit 1 for the quarter improved by approximately US$4.0 million . The revenue growth in smaller markets translated into strong earnings contributions with Brazil, Australia, Canada and Export markets adjusted operating profit 1 increasing by a combined 62% versus prior year. Year-to-date adjusted operating profit1 was US$10.4 million, a decrease of US$1.7 million or 13.8% versus prior year. As for the quarter , e xcluding foreign exchange variations, adjusted operating profit 1 year-to-date improved by approximately US$7.9 million. All figures in thousands of US $ Change $ % of rev. $ % of rev. % Revenue 209,658 218,060 (3.9)% Gross profit 58,568 27.9% 63,268 29.0% (7.4)% Operating profit 3,583 6,486 (44.8)% Adjusted operating profit (1) 5,107 7,841 (34.9)% All figures in thousands of US $ Change $ % of rev. $ % of rev. % Revenue 432,434 433,918 (0.3)% Gross profit 116,407 26.9% 122,116 28.1% (4.7)% Operating profit 7,229 9,510 (24.0)% Adjusted operating profit (1) 10,382 12,042 (13.8)% (1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and r econciliation of non-GAAP financial ratios and measures” in this press release. Three Months Ended June 30, (unaudited) 2026 2025 Six Months Ended June 30, (unaudited) 2026 2025 (1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and r econciliation of non-GAAP financial ratios and measures” in this press release.
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4 Dorel Home Second quarter revenue was US$39.8 million, a decrease of US$34.5 million, or 46.4%, from US$74.3 million last year. The decision to exit certain product categories and channels of distribution was the main driver of the decline. The adjusted operating loss1 for the quarter was US $6.5 million, compared to US$12.7 million in the same period last year. Six-month revenue was US$84.9 million, a decrease of US$94.0 million, or 52.6%, from US$178.9 million last year. Year-to-date adjusted operating loss1 was US$11.4 million versus US$23.9 million in the prior year. While a significant year-over-year improvement, the impact from t he lower sales volume outweighed the benefit of a lower cost structure that was part of the prior years’ restructuring program. The combination of softer consumer demand, industry -wide pricing pressure, tariffs and liquidity constraints experienced in 2025 accelerated the need for further change. In response, the Company initiated additional actions to restructure and stabilize Dorel Home. The plan is focused on preserving liquidity, reducing fixed costs, simplifying the organization and rebuilding the segment around its most viable businesses, including: • the Cosco branded product line, including step stools, ladders, hand trucks and folding furniture; • youth furniture, integrated within the Dorel Juvenile platform; and • Notio, Dorel’s Europe-based furniture operations, complemented by select furniture items to be sold in North America. All figures in thousands of US $ Change $ % of rev. $ % of rev. % Revenue 39,837 74, 331 (46.4)% Gross profit (18,286) ( 45.9)% (13,725) (18.5)% (33.2)% Operating loss (23,889) ( 35,163) (32.1)% Adjusted gross profit (1) (837) (2.1)% (472) (0.6)% (77.3)% Adjusted operating loss (1) (6,458) (12,729) (49.3)% All figures in thousands of US $ Change $ % of rev. $ % of rev. % Revenue 84,901 178, 929 (52.6)% Gross profit (18,226) ( 21.5)% (12,438) (7.0)% (46.5)% Operating loss (29,797) ( 46,657) (36.1)% Adjusted gross profit (1) (286) (0.3)% 1,173 0.7% n.m. Adjusted operating loss (1) (11,376) (23,864) (52.3)% n.m. = not meaningful (1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release. Three Months Ended June 30, (unaudited) 2026 2025 Six Months Ended June 30, (unaudited) 2026 2025 (1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.
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5 Second-quarter results reflect this transition to a Cosco-focused business, with that product line accounting for approximately 88% of North American sales. The Cosco business model relies heavily on direct shipment sales to major retailers and eliminates the need for a substantial distribution footprint and will facilitate further reductions in warehouse space. However, despite much lower operating costs than prior year, excess warehousing space and the write- down of non -go forward inventories were the principal cause of losses in the quarter. Restructuring As a result of this decision, the Home segment second quarter results include non-cash restructuring costs of US$17.4 million primarily for the write -down of inventory and impairment on right -of-use assets. The write-down of inventory reflects the objective of aggressively moving items that are not part of the future business , allowing for the exit of excess distribution facilities. Headcount reductions continued in the quarter and in addition to the amounts recorded in the H ome segment, the Juvenile segment eliminated certain positions, part of which was a result of the further merging of functions between the two segments. As a result, Juvenile results include restructuring costs of US$1.5 million primarily for severance. Outlook “Dorel Juvenile enters the second half of 2026 confident in its strategic priorities and the strength of its global platform. Building on solid performance in key international markets, the Company expects improved earnings in both the U.S. and Europe, supported by new product launches beginning in the fourth quarter of this year. As an early indicator, U.S. sales improved in July, and we expect that trend to continue. Dorel Juvenile remains focused on sustainable, profitable growth while further strengthening its position as a global leader in juvenile products,” commented Mr. Schwartz. “Dorel Home remains focused on executing its transformation strategy and building a simpler, more agile and financially sustainable business. Supported by the continued profitability of Cosco and a stable European operation expected to contribute positively to earnings, the Company is focused on eliminating legacy costs and scaling its most profitable platforms,” concluded Mr. Schwartz. Conference Call Dorel Industries Inc. will hold a conference call to discuss these results on Thursday , August 6, 2026 at 11:00 AM Eastern Time. Interested parties can join the call by dialing 1-833-752-3231. The conference call can also be accessed via live webcast at http://www.dorel.com. If you are unable to call in at this time, you may access a recording of the meeting by calling1- 855- 669-9658 and entering the passcode 6187551 on your phone. This recording will be available on Thursday , August 6, 2026 as of 2:30 PM until 11:59 PM on Thursday, August 13, 2026. Unaudited condensed c onsolidated interim financial statements as at June 30, 2026 will be available on the Company's website, www.dorel.com, and will be available through the SEDAR+ website. Profile Dorel Industries Inc. (TSX: DII.B, DII.A) is a global organization, operating two distinct businesses in juvenile products and home products. Dorel’s strength lies in the diversity, innovation and quality of its products as well as the superiority of i ts brands. Dorel Juvenile’s powerfully branded products include global brands Maxi -Cosi, Safety 1st and Tiny Love, complemented by regional brands such as BebeConfort, Cosco, Mother’s Choice and Infanti. Dorel Home, with its comprehensive e-commerce platform and brick-and-mortar distribution network, markets a wide assortment of furniture. Dorel has annual sales of US$1. 1 billion and employs approximately 2,900 people in facilities located in twenty -two countries worldwide.
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6 Caution Regarding Forward-Looking Statements Certain statements included in this press release may constitute “forward-looking statements” within the meaning of applicable Canadian securities legislation. Except as may be required by Canadian securities laws, the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties, including statements regarding the substantial reduction in size of Dorel’s Home segment, the impact of the macro-economic environment, including inflationary pressures, changes in consumer spending, exchange rate fluctuations, the imposition of tariffs, and interest rate fluctuations on the Company’s business, financial position and operations, and are based on several assumptions which give rise to the possibility that actual results could differ materially from the Company’s expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. As a result, the Company cannot guarantee that any forward-looking statement will materialize, or if any of them do, what benefits the Company will derive from them, including statements relating to the substantial reduction in the size of the Home segment. Forward-looking statements are provided in this press release for the purpose of giving information about management’s current expectations and plans and allowing investors and others to get a better understanding of the Company’s operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose. Forward-looking statements made in this press release are based on a number of assumptions that the Company believed were reasonable on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations expressed in or implied by the forward-looking statements include: • general economic and financial conditions, including those resulting from the current high inflationary environment; • changes in applicable laws or regulations; • changes in product costs and supply channels, including disruption of the Company’s supply chain resulting from the macro-economic environment; • foreign currency fluctuations, including high levels of volatility in foreign currencies with respect to the US dollar reflecting uncertainties related to the macro-economic environment; • the effect of tariffs on imported goods; • customer and credit risk, including the concentration of revenues with a small number of customers; • there is no certainty that benefits expected to be derived from the substantial reduction in size of Dorel’s Home segment will occur; • costs associated with product liability; • changes in income tax legislation or the interpretation or application of those rules; • the continued ability to develop products and support brand names; • changes in the regulatory environment; • outbreak of public health crises that could adversely affect global economies and financial markets, resulting in an economic downturn which could be for a prolonged period of time and have a material adverse effect on the demand for the Company’s products and on its business, financial condition and results of operations; • the effect of international conflicts on the Company’s sales; • continued access to capital resources, including compliance by the Company with all of the covenants under its senior secured asset based revolving credit facility and term loan facility, and the related costs of borrowing, all of which may be adversely impacted by the macro-economic environment; • failures related to information technology systems; • changes in assumptions in the valuation of other intangible assets and any future decline in market capitalization; • there being no certainty that the Company will declare any dividend in the future; • increased exposure to cybersecurity risks as a result of remote work by the Company’s employees; • the Company’s ability to protect its current and future technologies and products and to defend its intellectual property rights; • potential damage to the Company’s reputation; and
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7 • the effect of climate change on the Company. These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking statements are discussed in the Company’s annual MD&A and Annual Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors set out in the previously mentioned documents are expressly incorporated by reference herein in their entirety. The Company cautions readers that the risks described above are not the only ones that could impact it. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial may also have a material adverse effect on the Company’s business, financial condition, or results of operations. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
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8 All figures in the tables below are in thousands of US $, except per share amounts. Consolidated Results Jun 30, Jun 30, Jun 30, Jun 30, 2026 2025 $ % 2026 2025 $ % 249,495 292,391 (42,896) (14.7)% 517,335 612,847 (95,512) (15.6)% Cost of sales 209,213 242,848 (33,635) (13.9)% 419,154 503,169 (84,015) (16.7)% 40,282 49,543 (9,261) (18.7)% 98,181 109,678 (11,497) (10.5)% Adjusted gross profit (1) 57,731 62,796 (5,065) (8.1)% 116,121 123,289 (7,168) (5.8)% 28,968 31,782 (2,814) (8.9)% 57,762 64,161 (6,399) (10.0)% 29,301 39,329 (10,028) ( 25.5)% 57,535 74,389 (16,854) (22.7)% 4,474 5,028 (554) (11.0)% 9,328 10,667 (1,339) (12.6)% 318 113 205 181.4% 437 27 410 n.m. 1,506 10,536 (9,030) (85.7)% 3,634 11,802 (8,168) (69.2)% (24,285) (37,245) (12,960) (34.8)% (30,515) (51,368) (20,853) (40.6)% Adjusted operating loss (1) (5,330) (13,456) (8,126) (60.4)% (8,941) (25,955) (17,014) (65.6)% 16,953 8,322 8,631 103.7% 35,164 17,690 17,474 98.8% (41,238) (45,567) (4,329) ( 9.5)% (65,679) (69,058) (3,379) (4.9)% 1,233 (633) 1,866 n.m. 1,677 1,126 551 48.9% Net loss (42,471) (44,934) (2,463) (5.5)% (67,356) (70,184) (2,828) (4.0)% Adjusted net loss (1) (23,516) (21,145) 2,371 11.2% (45,782) (44,771) 1,011 2.3% Basic loss per share (1.23) (1.38) (0.15) (10.9)% (1.96) (2.15) (0.19) (8.8)% (1.23) (1.38) (0.15) ( 10.9)% (1.96) (2.15) (0.19) (8.8)% (0.68) (0.65) 0.03 4.6% (1.33) (1.37) (0.04) (2.9)% Weighted average number of shares - Basic 34,571,074 32,662,037 n/a n/a 34,449,107 32,649,733 n/a n/a Weighted average number of shares - Diluted 34,571,074 32,662,037 n/a n/a 34,449,107 32,649,733 n/a n/a Gross margin (2) 16.1% 16.9% n/a (80) bp 19.0% 17.9% n/a 110 bp Adjusted gross margin (1) 23.1% 21.5% n/a 160 bp 22.4% 20.1% n/a 230 bp Selling expenses as a percentage of revenue (3) 11.6% 10.9% n/a 70 bp 11.2% 10.5% n/a 70 bp percentage of revenue (4) 11.7% 13.5% n/a (180) bp 11.1% 12.1% n/a (100) bp n.m. = not meaningful n/a = not applicable bp = basis point (1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release. (2) Gross margin is defined as gross profit divided by revenue. (3) Selling expenses as a percentage of revenue is defined as selling expenses divided by revenue. (4) General and administrative expenses as a percentage of revenue is defined as general and administrative expenses divided by revenue. Adjusted diluted loss per share (1) Variation Three Months Ended General and administrative expenses as a Six Months Ended Variation Diluted loss per share Research and development expenses Impairment loss on trade accounts receivable Restructuring costs Gross profit Selling expenses General and administrative expenses Revenue Operating loss Finance expenses Loss before income taxes Income taxes expense (recovery)
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9 Dorel Juvenile Dorel Home Jun 30, Jun 30, Jun 30, Jun 30, 2026 2025 $ % 2026 2025 $ % 209,658 218,060 (8,402) (3.9)% 432,434 433,918 (1,484) (0.3)% Cost of sales 151,090 154,792 (3,702) (2.4)% 316,027 311,802 4,225 1.4% 58,568 63,268 (4,700) (7.4)% 116,407 122,116 (5,709) (4.7)% 27,136 27,528 (392) (1.4)% 53,878 55,120 (1,242) (2.3)% 21,974 23,463 (1,489) (6.3)% 43,304 46,000 (2,696) (5.9)% 4,093 4,210 (117) (2.8)% 8,469 8,825 (356) (4.0)% 258 226 32 14.2% 374 129 245 189.9% 1,524 1,355 169 12.5% 3,153 2,532 621 24.5% 3,583 6,486 (2,903) (44.8)% 7,229 9,510 (2,281) (24.0)% Adjusted operating profit (1) 5,107 7,841 (2,734) (34.9)% 10,382 12,042 (1,660) (13.8)% Gross margin (2) 27.9% 29.0% n/a (110) bp 26.9% 28.1% n/a (120) bp Selling expenses as a percentage of revenue (3) 12.9% 12.6% n/a 30 bp 12.5% 12.7% n/a (20) bp percentage of revenue (4) 10.5% 10.8% n/a (30) bp 10.0% 10.6% n/a (60) bp n/a = not applicable bp = basis point (1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release. (2) Gross margin is defined as gross profit divided by revenue. (3) Selling expenses as a percentage of revenue is defined as selling expenses divided by revenue. (4) General and administrative expenses as a percentage of revenue is defined as general and administrative expenses divided by revenue. General and administrative expenses as a Operating profit Three Months Ended Six Months Ended Variation Variation Revenue Gross profit Selling expenses General and administrative expenses Research and development expenses Impairment loss on trade accounts receivable Restructuring costs Jun 30, Jun 30, Jun 30, Jun 30, 2026 2025 $ % 2026 2025 $ % 39,837 74,331 (34,494) (46.4)% 84,901 178,929 (94,028) ( 52.6)% Cost of sales 58,123 88,056 (29,933) (34.0)% 103,127 191,367 (88,240) (46.1)% (18,286) (13,725) (4,561) (33.2)% (18,226) (12,438) (5,788) (46.5)% Adjusted gross profit (1) (837) (472) (365) (77.3)% (286) 1,173 (1,459) n.m. 1,832 4,254 (2,422) (56.9)% 3,884 9,041 (5,157) (57.0)% 3,348 7,298 (3,950) (54.1)% 6,284 14,256 (7,972) (55.9)% 381 818 (437) (53.4)% 859 1,842 (983) (53.4)% 60 (113) 173 n.m. 63 (102) 165 n.m. (18) 9,181 (9,199) n.m. 481 9,182 (8,701) (94.8)% (23,889) (35,163) (11,274) (32.1)% (29,797) (46,657) (16,860) (36.1)% Adjusted operating loss (1) (6,458) (12,729) (6,271) (49.3)% (11,376) (23,864) (12,488) (52.3)% Gross margin (2) (45.9)% (18.5)% n/a (2740) bp (21.5)% (7.0)% n/a (1450) bp Adjusted gross margin (1) (2.1)% (0.6)% n/a (150) bp (0.3)% 0.7% n/a (100) bp Selling expenses as a percentage of revenue (3) 4.6% 5.7% n/a (110) bp 4.6% 5.1% n/a (50) bp percentage of revenue (4) 8.4% 9.8% n/a (140) bp 7.4% 8.0% n/a (60) bp n.m. = not meaningful n/a = not applicable bp = basis point (1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release. (2) Gross margin is defined as gross profit divided by revenue. (3) Selling expenses as a percentage of revenue is defined as selling expenses divided by revenue. (4) General and administrative expenses as a percentage of revenue is defined as general and administrative expenses divided by revenue. General and administrative expenses as a Operating loss Three Months Ended Six Months Ended Variation Variation Revenue Gross profit Selling expenses General and administrative expenses Research and development expenses Impairment loss (reversal) on trade accounts receivable Restructuring costs
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10 Definition and Reconciliation of Non-GAAP Financial Ratios and Measures Dorel presents in this press release certain non-GAAP financial ratios and measures, as described below. These non-GAAP financial ratios and measures do not have a standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to similar measures presented by other issuers. These non- GAAP financial ratios and measures should not be considered in isolation or as a substitute for a measure prepared in accordance with IFRS. Contained within this press release are reconciliations of the non- GAAP financial ratios and measures to the most directly comparable financial measures calculated in accordance with IFRS. Dorel believes that the non-GAAP financial ratios and measures used in this press release provide investors with additional information to analyze its results and to measure its financial performance by excluding the variation caused by certain items that Dorel believes do not reflect its core business performance and provides better comparability between the periods presented. Excluding these items does not imply they are necessarily non- recurring. The non-GAAP financial measures are also used by management to assess Dorel's financial performance and to make operating and strategic decisions. Adjustments to non-GAAP financial ratios and measures As noted above, certain of our non-GAAP financial measures and ratios exclude the variation caused by certain adjustments that affect the comparability of Dorel ’s financial results and could potentially distort the analysis of trends in its business performance. Adjustments which impact more than one non-GAAP financial ratio and measure are explained below. Restructuring costs Restructuring costs are comprised of costs directly related to significant exit activities, including the sale of manufacturi ng facilities, closure of businesses, reorganization, optimization, transformation, and consolidation to improve the competitive position of the Company in the marketplace and to reduce costs and bring efficiencies, and acquisition- related costs in connection with business acquisitions. Restructuring costs are included as an adjustment of adjusted gross profit, adjusted gross margin, adjusted operating profit (loss), adjusted net income (loss) and adjusted diluted earnings (loss) per share. Restructuring costs were respectively US$19.0 million and US$21.6 million for the three and six months ended June 30, 2026 (2025 – US$23.8 million and US$25.4 million). From this amount, restructuring costs recorded within cost of sales were respectively US$17.4 million and US$17.9 million for the three and six months ended June 30, 2026 (2025 – US$13.3 million and US$13.6 million). Refer to the section “Restructuring costs” in the MD&A for more details. Adjusted gross profit and adjusted gross margin Adjusted gross profit is calculated as gross profit excluding the impact of restructuring costs. Adjusted gross margin is a non- GAAP ratio and is calculated as adjusted gross profit divided by revenue. Dorel uses adjusted gross profit and adjusted gross margin to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. Dorel also uses adjusted gross profit and adjusted gross margin on a segment basis to measure its performance at the segm ent level. Dorel excludes this item because it affects the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use the adjusted gross profit and adjusted gross margin to measure the business performance of the Company as a whole and at the segment level from one period to the next, without the variation caused by the impact of the restructuring costs. Excluding this item does not imply it is necessarily non-recurring. These ratios and measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to a similar measure presented by other companies. Jun 30, Jun 30, Jun 30, Jun 30, 2026 2025 2026 2025 Gross profit 40,282 49,543 98,181 109,678 Adjustment for: Restructuring costs recorded within gross profit 17,449 13,253 17,940 13,611 Adjusted gross profit 57,731 62,796 116,121 123,289 Adjusted gross margin (1) 23.1% 21.5% 22.4% 20.1% (1) This is a non-GAAP financial ratio and it is calculated as adjusted gross profit divided by revenue. Three Months Ended Six Months Ended
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11 Adjusted operating profit (loss) Adjusted operating profit (loss) is calculated as operating profit (loss) excluding the impact of restructuring costs. Adjust ed operating profit (loss) also excludes impairment loss on goodwill. Management uses adjusted operating profit (loss) to measure its performance from one period to the next, without the variation caused by the impact of the items described above. Dorel also uses adjusted operating profit (loss) on a segment basis to measure its performance at the segment level. Dorel excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use the adjusted operating profit (loss) to measure the business performance of the Company as a whole and at the segment level from one period to the next, without the variation caused by the impact of the restructuring costs and impairment loss on goodwill. Excluding these items does not imply they are necessarily non-recurring. This measure does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to a similar measure presented by other companies. Adjusted net income (loss) and adjusted diluted earnings (loss) per share Adjusted net income (loss) is calculated as net income (loss) excluding the impact of restructuring costs and impairment loss on goodwill, as well as income taxes expense (recovery) relating to the adjustments above. Adjusted diluted earnings (loss) per share is a non -GAAP ratio and is calculated as adjusted net income (loss) divided by the weighted average number of diluted shares. Management uses adjusted net income (loss) and adjusted diluted earnings (loss) per share to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. Dorel excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use the adjusted net income (loss) and adjusted diluted earnings (loss) per share to measure the business performance of the Company from one period to the next. Excluding these Jun 30, Jun 30, Jun 30, Jun 30, Dorel Home 2026 2025 2026 2025 Gross profit (18,286) (13,725) (18,226) (12,438) Adjustment for: Restructuring costs recorded within gross profit 17,449 13,253 17,940 13,611 Adjusted gross profit (837) (472) (286) 1,173 Adjusted gross margin (1) (2.1)% (0.6)% (0.3)% 0.7% (1) This is a non-GAAP financial ratio and it is calculated as adjusted gross profit divided by revenue. Three Months Ended Six Months Ended Jun 30, Jun 30, Jun 30, Jun 30, 2026 2025 2026 2025 Operating loss (24,285) (37,245) (30,515) (51,368) Adjustment for: Total restructuring costs 18,955 23,789 21,574 25,413 Adjusted operating loss (5,330) (13,456) (8,941) (25,955) Jun 30, Jun 30, Jun 30, Jun 30, Dorel Juvenile 2026 2025 2026 2025 Operating profit 3,583 6,486 7,229 9,510 Adjustment for: Restructuring costs 1,524 1,355 3,153 2,532 Adjusted operating profit 5,107 7,841 10,382 12,042 Jun 30, Jun 30, Jun 30, Jun 30, Dorel Home 2026 2025 2026 2025 Operating loss (23,889) (35,163) (29,797) (46,657) Adjustment for: Restructuring costs 17,431 22,434 18,421 22,793 Adjusted operating loss (6,458) (12,729) (11,376) (23,864) Three Months Ended Six Months Ended Six Months Ended Three Months Ended Six Months Ended Three Months Ended
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12 items does not imply they are necessarily non-recurring. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to a similar measure presented by other companies. Organic revenue growth (decline) and adjusted organic revenue growth (decline) Organic revenue growth (decline) is calculated as revenue growth (decline) compared to the previous period, excluding the impact of varying foreign exchange rates. Adjusted organic revenue growth (decline) is calculated as revenue growth (decline) compared to the previous period, excluding the impact of varying foreign exchange rates and the impact of the acquired businesses for the first year of operation and the sale of divisions. Management uses organic revenue growth (decline) and adjusted organic revenue growth (decline) to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. Dorel excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use organic revenue growth (decline) and adjusted organic revenue growth (decline) to measure the business performance of the Company as a whole and at the segment level from one period to the next. Excluding these items does not imply they are necessarily non-recurring. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to a similar measure presented by other companies. Jun 30, Jun 30, Jun 30, Jun 30, 2026 2025 2026 2025 Net loss (42,471) (44,934) (67,356) (70,184) Adjustment for: Total restructuring costs 18,955 23,789 21,574 25,413 Adjusted net loss (23,516) (21,145) (45,782) (44,771) Basic loss per share (1.23) (1.38) (1.96) (2.15) Diluted loss per share (1.23) (1.38) (1.96) (2.15) Adjusted diluted loss per share (1) (0.68) (0.65) (1.33) (1.37) (1) This is a non-GAAP financial ratio and it is calculated as adjusted net income (loss) divided by weighted average number of diluted shares. Three Months Ended Six Months Ended $ % $ % $ % $ % $ % $ % Revenue of the period 249,495 292,391 209,658 218,060 39,837 74,331 Revenue of the comparative period (292,391) (348,077) (218,060) (216,434) (74,331) (131,643) (42,896) (14.7) (55,686) (16.0) (8,402) (3.9) 1,626 0.8 (34,494) (46.4) (57,312) (43.5) (6,478) (2.2) (2,911) (0.8) (6,343) (2.9) (2,546) (1.2) (135) (0.2) (365) (0.3) (49,374) (16.9) (58,597) (16.8) (14,745) (6.8) (920) (0.4) (34,629) (46.6) (57,677) (43.8) $ % $ % $ % $ % $ % $ % Revenue of the period 517,335 612,847 432,434 433,918 84,901 178,929 Revenue of the comparative period (612,847) (699,149) (433,918) (429,124) (178,929) (270,025) (95,512) (15.6) (86,302) (12.3) (1,484) (0.3) 4,794 1.1 (94,028) (52.6) (91,096) (33.7) (20,075) (3.3) 2,837 0.4 (18,893) (4.4) 2,825 0.7 (1,182) (0.6) 12 - (115,587) (18.9) (83,465) (11.9) (20,377) (4.7) 7,619 1.8 (95,210) (53.2) (91,084) (33.7) Revenue (decline) growth Impact of varying foreign exchange rates Organic revenue (decline) growth (1) Impact of varying foreign exchange rates Organic revenue decline (1) 2026 (1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “ Definition and reconciliation of non-GAAP financial ratios and measures ” in this press release. Six Months Ended June 30, Consolidated Dorel Juvenile Dorel Home 2026 2025 2026 (1) This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “ Definition and reconciliation of non-GAAP financial ratios and measures ” in this press release. Three Months Ended June 30, Dorel Juvenile Dorel Home 2026 2025 2026 2025 2026 2025 2025 2025 Consolidated Revenue (decline) growth