Richelieu Sales Rise 12.6% in Q3 as Acquisitions and U.S. Growth Lift Results

Richelieu Hardware Ltd. reported third-quarter sales of $562.0 million for the period ended Aug. 31, 2026, up 12.6% from $499.2 million a year earlier, supported by internal growth, acquisitions and stronger sales to retailers and home improvement superstores.

Internal growth accounted for 10.0% of the quarterly increase, while acquisitions contributed 2.6%. Sales in Canada rose 10.2% to $300.2 million. U.S. sales increased 12.9% in U.S. dollars to US$186.7 million, or 15.4% in Canadian dollars. On a constant-currency basis, consolidated sales would have increased 11.3%.

Sales to manufacturers increased 11.5% to $493.3 million, including 8.9% internal growth. Sales to retailers and home improvement superstores climbed 20.9% to $68.7 million. In the United States, retail sales rose 86.1% in U.S. dollars to US$14.7 million, largely reflecting initial deliveries to a major customer.

Richelieu said internal growth primarily reflected price increases implemented to offset higher product and freight costs.

EBITDA increased 14.8% to $65.5 million, with the EBITDA margin rising to 11.7% from 11.4% a year earlier. Results included a $3 million refund of certain U.S. customs duties, which added about 60 basis points to the EBITDA margin. The company said some products previously subject to tariffs under the International Emergency Economic Powers Act became eligible for U.S. government refunds.

Net earnings attributable to shareholders rose 22.4% to $29.2 million. Diluted earnings per share increased 23.3% to $0.53, including a $0.04-per-share contribution from the tariff refund. Adjusted cash flow from operating activities before changes in non-cash working capital increased 13.5% to $54.5 million.

The quarter also continued Richelieu’s acquisition strategy. The company acquired Solutions Acoustiques in Quebec and Winnec in Ontario during the third quarter, followed by the Sept. 1 acquisition of The Penrod Company’s hardware division in the United States.

Penrod represents approximately US$70 million in annual sales and adds seven distribution centres in North Carolina, Texas, Minnesota, California, Colorado, Arizona and Florida. Richelieu has completed five acquisitions since the beginning of fiscal 2026, representing approximately $145 million in additional annual sales.

The company is also investing $15 million to expand its Drummondville, Quebec, distribution centre from 40,000 to 180,000 square feet. Completion is expected in spring 2027.

For the first nine months of fiscal 2026, Richelieu recorded sales of $1.6 billion, up 7.2%, and EBITDA of $164.8 million, up 6.5%. Net earnings attributable to shareholders increased 11.0% to $66.9 million.

At Aug. 31, Richelieu reported $702.6 million in working capital, a current ratio of 3.2:1 and net cash of $50.9 million. The company declared a quarterly dividend of $0.1566 per share, payable Nov. 5 to shareholders of record on Oct. 22.