Richelieu Reports 5.0% Q1 Sales Growth, Driven by Acquisitions and U.S. Expansion
Richelieu Hardware reported first-quarter sales of $463.6 million for the period ended February 28, 2026, marking a 5.0% increase over the same period last year, supported by both acquisition activity and organic growth.
The growth was driven by a 2.0% increase in internal sales and a 3.0% contribution from acquisitions. In Canada, sales reached $249.8 million, up 3.4%, while U.S. operations delivered stronger performance with revenues of US$155.6 million, an 11.3% increase. Adjusted for currency fluctuations, total consolidated sales growth would have reached 7.0%, reflecting the impact of a stronger Canadian dollar during the quarter.
EBITDA for the quarter totaled $43.2 million, up 1.9% year-over-year, with an EBITDA margin of 9.3%, slightly down from 9.6% in Q1 2025 due primarily to a $1.6 million negative foreign exchange impact. Net earnings attributable to shareholders rose to $14.4 million, or $0.26 per diluted share, representing a 4.0% increase compared to the prior year.
President and CEO Richard Lord noted that the company’s performance remains strong despite seasonal headwinds typical of the first quarter. He attributed the results to Richelieu’s ongoing strategy focused on innovation, acquisitions, and diversification across market segments.
The company continued its expansion strategy during the quarter, completing the acquisition of three U.S. distribution centres located in Portland, Seattle, and Spokane. This transaction, acquired from McKillican American, represents the 100th acquisition in Richelieu’s history and builds on a series of nine acquisitions completed in 2025. The new facilities strengthen the company’s presence in the Pacific Northwest and expand its customer base in regions where it already operates.
In Canada, Richelieu has also signed letters of intent for two additional acquisitions, signalling continued consolidation efforts in its domestic market. Management indicated that the fragmented nature of the specialty hardware and woodworking supply sector continues to present opportunities aligned with its growth criteria.
Operationally, Richelieu generated $37.9 million in cash flow from operating activities before working capital changes, a 3.0% increase year-over-year. After accounting for a $20.8 million investment in non-cash working capital, primarily inventory growth, net cash provided by operating activities totaled $17.1 million, significantly higher than $3.7 million in Q1 2025.
The company maintains a strong financial position, reporting working capital of $625.7 million and a current ratio of 3.2:1 as of February 28, 2026. Total assets stood at $1.45 billion, reflecting stable balance sheet growth.
With continued acquisition activity, strong U.S. market performance, and a diversified product offering of more than 145,000 items serving over 120,000 customers, Richelieu Hardware remains positioned for further growth across North America’s woodworking and cabinetry supply chain.