- Richelieu Hardware’s (TSX:RCH) third-quarter sales rose 12.6% to C$562 million, driven by strong organic growth and recent acquisitions
- Net earnings attributable to shareholders increased 22.4% to C$29.2 million, while diluted earnings per share climbed 23.3% to $0.53
- The company completed five acquisitions in fiscal 2026 representing C$145 million in annual sales and is investing C$15 million to expand its Drummondville distribution centre
- Richelieu Hardware stock (TSX:RCH) opened trading at C$36.72
Specialty hardware distributor Richelieu Hardware (TSX:RCH) reported stronger third-quarter results, posting double-digit revenue growth as the company benefited from solid demand across its key markets and continued expansion through acquisitions.
The Montreal-based company said sales for the quarter ended Aug. 31, 2026, rose 12.6% to C$562.0 million, compared with C$499.2 million in the same period a year earlier. The increase was driven by 10.0% internal growth and 2.6% growth from acquisitions completed over the past year.
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Sales in Canada increased 10.2% to C$300.2 million, while U.S. sales climbed 12.9% to USC$186.7 million.
Richelieu’s profitability also improved during the quarter. EBITDA rose 14.8% to C$65.5 million, representing an EBITDA margin of 11.7%, compared with 11.4% a year earlier. The company said results were helped by a C$3 million refund of certain U.S. customs duties, which positively impacted margins.
Net earnings attributable to shareholders increased 22.4% to C$29.2 million, while diluted earnings per share rose 23.3% to $0.53 from C$0.43 in the prior-year quarter.
President and chief executive officer Richard Lord said the company’s performance reflects the strength of its business model and ongoing market development efforts despite an uncertain economic environment.
Sales in Richelieu’s manufacturers segment rose 11.5% to C$493.3 million, while sales to retailers and home improvement stores jumped 20.9% to C$68.7 million. The retailer category was boosted in part by initial deliveries to a major U.S. customer.
The company continued to pursue growth through acquisitions, completing purchases of Solutions Acoustiques in Quebec and Winnec in Ontario during the quarter. On Sept. 1, Richelieu also acquired The Penrod Company’s Hardware Division, its largest acquisition to date.
Richelieu said the Penrod deal is expected to contribute approximately USC$70 million in annual sales and adds seven distribution centres across seven U.S. states, strengthening the company’s presence in North Carolina, Texas, Minnesota, California, Colorado, Arizona and Florida.
The company has completed five acquisitions so far in fiscal 2026, representing roughly C$145 million in additional annual sales.
“Our market development efforts increased sales across all market segments despite an uncertain economic environment,” the company’s president and CEO, Richard Lord, explained in a media statement. “The acquisitions of Solutions Acoustiques in the Montreal region and Winnec in the Toronto region completed during the third quarter have added expertise, specialized products, customers, and additional sales.”
Looking ahead, Richelieu is investing in its distribution network to support future growth. The company recently launched a C$15 million expansion project at its Drummondville, Que., distribution centre, which will increase the facility’s size from 40,000 square feet to 180,000 square feet. The project is expected to be completed in spring 2027.
For the first nine months of fiscal 2026, Richelieu reported sales of C$1.6 billion, up 7.2% year over year, while net earnings attributable to shareholders increased 11.0% to C$66.9 million.
The company also announced a quarterly dividend of $0.1566 per share, payable on Nov. 5, 2026, to shareholders of record as of Oct. 22, 2026.
Richelieu Hardware Ltd. manufactures, imports, and distributes specialty hardware and complementary products in Canada and the United States.
Richelieu Hardware stock (TSX:RCH) opened trading 5.88% higher at C$36.72 but has lost more than 6% since the year began, though it still sits 8% higher now than where it was a year ago.
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