KELOWNA, BC, March 11, 2026 /CNW/ - Decisive Dividend Corporation (TSXV: DE) (the "Company" or "Decisive") today reported its financial results for the fourth quarter and year ended December 31, 2025.

Recent Operating Highlights

• Decisive and its diversified portfolio of manufacturing businesses delivered record quarterly and annual sales for the fourth quarter and year ended December 31, 2025.
  
  
• Consolidated sales increased 14% to a record $42.8 million in Q4 2025, bringing sales for the year ended 2025 to $152.2 million, 19% higher than 2024.
  
  
• Decisive generated $7.3 million in Adjusted EBITDA* in Q4 2025, consistent with Q4 2024, bringing Adjusted EBITDA* for the year ended 2025 to a record $25.4 million, 25% higher than 2024. 
  
  
• Decisive generated $4.3 million in Free Cash Flow less Maintenance Capital* in Q4 2025, 11% lower than Q4 2024 due to higher current income tax expenses in Q4 2025, and $13.5 million for the year ended 2025, 25% higher than the same period in 2024. This improvement drove the trailing twelve-month dividend payout ratio down to 79% at the end of Q4 2025, from 96% at the end of Q4 2024.
  
  
• Decisive's year end 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 ("CUSMA").  However, the impact that United States trade policy uncertainty has had on the overall economic environment resulted in a decline in demand for certain commercial vehicle and oil and gas customers within the Group through the second half of 2025.
  
  
• In Q4 and throughout 2025, Decisive and subsidiary management continued to invest in product and customer development, growth capital expenditures, succession planning and in bolstering shared services capabilities to better position the Company's business verticals to deliver long term future growth, including both organic growth and growth through acquisition.

Jeff Schellenberg, Chief Executive Officer of Decisive, noted:

"Our business performance in 2025 reflected the resiliency of our group of diversified businesses and their leadership teams, including their ability to respond to challenges.  Coming out of a difficult 2024 into a 2025 year full of significant volatility, with geopolitical and trade uncertainty impacting manufacturing businesses globally, 2025 results demonstrate a solid recovery for the business with Q4 2025 sales levels surpassing $40 million, a first in Decisive's history. This improvement was broad based, with each of the industry verticals we own businesses in (Hearth, Agriculture, Merchandising, Industrial and Wear Parts) experiencing growth in 2025 compared to 2024. In addition, we were able to acquire three smaller, but strategically aligned, businesses in 2025, continuing to build capability in our industry verticals. 

In terms of our 2026 outlook, we expect the investments we have made in new products, sales capabilities, facility capacity, and productivity, combined with the tailwinds we are seeing in recent energy prices (which our business results are highly correlated with), metal and mineral pricing and critical infrastructure investment, to benefit our businesses over the coming year.  We are facing some ongoing uncertainty, including the potential CUSMA renegotiation and global upheaval in different regions, and continue to see specific challenges in a few of our subsidiaries.  We experienced many of these same factors in 2025 and we have been able to demonstrate a track record of being able to respond to challenges, while improving business performance.  In addition, we are anticipating a meaningful increase in acquisition activity in 2026, aligned in the verticals we have invested in already, as we continue to see strong traction with exiting, legacy minded business owners who value our long-term buy, build and hold approach. 

As a result, we anticipate an improvement in our results and per share financial metrics that, we believe, will help support a return to our target payout ratio levels which will present the opportunity to pursue dividend growth, a key objective to achieving dividend aristocrat status.  We continue to believe that Decisive's business model — grounded in the acquisition of profitable, low capital intensity manufacturing businesses, who produce low-obsolescence products distributed through channels that support re-occurring revenue at disciplined valuation levels — supports long-term stewardship and positions the Company well for sustained growth and yield performance."

Selected Financial Information:

The following is selected financial information of Decisive for the quarter and year ended December 31, 2025. All amounts are expressed in Canadian dollars. The Company's  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).

Q4 2025 Results:

• Sales for the fourth quarter increased 14% to $42.8 million from $37.6 million in Q4 2024. The Finished Product segment posted a sales increase of 4% and the Component Manufacturing segment realized a 23% sales increase in the quarter relative to Q4 2024. The overall sales increase in Q4 2025 compared to Q4 2024 was primarily driven by strong sales of the Company's wear parts products as well as increases in hearth products, agricultural products and merchandising products. Strong demand for Unicast and Techbelt products were bolstered by the fulfilment of a significant order for a mining customer and another for a belting customer, which drove a 93% increase in wear part sales in Q4 2025 compared to Q4 2024. Both Blaze King and ACR capitalized on strong seasonal demand for their hearth products and realized sales increases in the quarter relative to 2024. Increased IHT sales on stronger order conversion in 2025, drove the majority of the agricultural product sales increase relative to Q4 2024. The acquisition of Venger in August 2025, drove increases in merchandising sales in the quarter compared to Q4 2024. These increases more than offset decreases in industrial product sales. The industrial product sales declines were driven by decreased demand from one of Northside's commercial vehicle customers, one of Hawk's key oil and gas customers and a joint oil and gas customer of Hawk, Capital I and Unicast, based on the current economic environment in the United States, as well as the comparative impact of a large wastewater evaporator sale by Slimline in Q4 2024.
  
  
• Consolidated gross profit increased 10% to $16.1 million from $14.6 million in Q4 2024, based primarily on the increase in sales.
  
  
• Consolidated gross profit percentages decreased to 38% from 39% in Q4 2024 driven primarily by a change in product mix.
  
  
• Consolidated Adjusted EBITDA* of $7.3 million in Q4 2025 was consistent with Q4 2024 Adjusted EBITDA*. Increased sales and gross profit in the quarter, as described above, were offset by higher operating expenses and resulted in consistent Adjusted EBITDA* in Q4 2025, compared to Q4 2024. Operating expenses increased primarily as a result of the overall increase in sales and the associated variable costs in Q4 2025, compared to Q4 2024, including commissions, short-term incentive costs in certain subsidiaries, insurance costs and recruitment costs, as well as the impact of acquisitions completed in 2025. In addition, investments were made in succession planning and in bolstering shared services to better position the Company's business verticals for future growth, including both organic growth and growth through acquisition.
  
  
• Consolidated net profit in the quarter was $1.4 million, or $0.07 per share, compared to net profit of $1.9 million, or $0.10 per share, in Q4 2024. Despite consistent Adjusted EBITDA and operating income in Q4 2025, compared to Q4 2024, the impact of foreign exchange losses in Q4 2025 resulted in a decrease in net profit in the respective periods.
  
  
• Consolidated free cash flow* decreased 12% to $4.5 million relative to Q4 2024. The decrease in free cash flow* relative to Q4 2024, was a primarily result of the increase in current income tax expense relative to Q4 2024.

2025 Annual Results:

• Sales in 2025 increased by 19% to $152.2 million from $127.9 million in 2024. The overall sales increase in 2025 was driven by strong sales activity throughout the portfolio, with the Finished Product segment and the Component Manufacturing segment posting sales increases in 2025 of 18% and 20%, respectively, compared to 2024. In the Component Manufacturing segment, a 56% increase in wear part sales was the primary driver of the year-over-year increase in segment sales. The increase in wear parts sales was in part due to the timing of the acquisition of Techbelt in April 2024, but also as a result of increased belting demand and sales in general, and a significant increase in demand for Unicast's cast steel wear parts and valves relative to 2024. In the Finished Product segment, the sales increase in 2025 was driven primarily by increased agricultural product sales, with IHT in particular capitalizing on improved profitability and demand from its customers, which led to nearly double the amount of sales relative to 2024. Sales in the hearth division increased 13% in 2025 compared to 2024, driven by stronger year-over-year order activity, and sales in the merchandising division also increased in the year relative to 2024 driven by the acquisition of Venger in August 2025. Industrial product sales in 2025, which are spread between both the Finished Product and Component Manufacturing segments, were 3% higher overall compared to 2024, as strong demand and sales for industrial products in the first half of the year were offset by second half sales declines. The second half sales declines were in large part driven by the state of the United States economy which caused demand declines for one of Northside's commercial vehicle customers as well as for Hawk's key oil and gas customers, including a joint customer with Capital I, and by declines in Slimline's more project-based wastewater evaporator sales.
  
  
• Consolidated gross profit increased 21% to $57.8 million from $47.9 million in 2024, driven primarily by increased sales.
  
  
• Consolidated gross profit percentages increased to 38% from 37% in 2024 driven primarily by a change in product mix and the impact of foreign exchange rates.
  
  
• Consolidated Adjusted EBITDA* increased to $25.4 million, an increase of 25% relative 2024.
  
  
• Consolidated net profit was $5.2 million, or $0.26 per share, an increase of $3.2 million, or $0.16 per share compared to 2024.
  
  
• Consolidated free cash flow* increased 23% to $14.5 million relative to 2024.
  
  
• Higher sales and gross profit in the year, as described above, were the main drivers of the increase in Adjusted EBITDA*, net profit, and free cash flow* relative to 2024.
  
  
• The Company's annual impairment testing of goodwill and review of contingent consideration liabilities associated with historical acquisitions in 2025, resulted in $0.8 million in non-cash goodwill impairment losses and a $0.8 million reduction in the estimated fair value of accrued contingent consideration recorded on the acquisition of Capital I. The 2025 impairment losses related to the goodwill associated with the tools and implements cash generating unit, which includes Hawk and Capital I, and were offset by the reduction in the remaining contingent consideration associated with Capital I. The 2025 goodwill impairment losses and reduction in the estimated fair value of accrued contingent consideration were both a result of the expectation of reduced future order activity from certain oil and gas customers. There was a similar impact in 2024, when the $4.5 million in non-cash impairment losses were offset by a $4.5 million reduction to the estimated amount required to settle contingent consideration obligations, both of which related primarily to IHT which had been directly impacted by challenging agricultural industry conditions at that time. Although these changes did not have a significant impact on overall net profit, this highlights a strength in Decisive's acquisition structure where it pays reasonable up-front acquisition multiples on historical earnings, with the ability for vendors of the businesses acquired to earn more only if those businesses perform to specified levels post-acquisition.

Conference Call

Decisive will host a conference call for interested parties to discuss the Company's Q4 and year end 2025 results. The call will be hosted by Jeff Schellenberg, Decisive's Chief Executive Officer, and Rick Torriero, Chief Financial Officer.

Details for those who wish to participate in this conference call are as follows:

Conference Call Details:
Thursday, March 12, 2026, at 8:00am Pacific Time / 11:00am Eastern Time
(please call 10 minutes ahead of time)

Participant Information:
To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4rwsZMl 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 March 19, 2026):
Replay number – North America (toll free): 1-888-660-6345
Replay number – International: +1-289-819-1450
Replay access code 65122#

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.

"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. 

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

Free Cash Flow

Free Cash Flow Less Maintenance Capital and Dividend Payout Ratio

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. Forward-looking statements are necessarily based upon a number of expectations or assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are beyond the Company's control and many of which are subject to change. Readers are cautioned to not place undue reliance on forward-looking statements which only speak as to the date they are made. Although management believes that the expectations and assumptions underlying such forward-looking statements are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. A number of risk factors could cause actual future results, performance, achievements and developments of the Company to differ materially from anticipated results, performance, achievements and developments expressed or implied by such forward-looking statements. Such risk factors include, but are not limited to: (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; capital allocation including dividends; trading volatility of common shares; dilution risk; valuation risk; insurance adequacy (iii) external risks, including risks relating to general economic and geopolitical conditions; industry specific conditions; government regulation (including trade restrictions and tariffs); pandemics; competition; environmental regulation; access to capital; market trends and innovation; commodity prices; climate risk; public perception or brand event; and (iv) human capital risks, including reliance on management and key personnel; employee and labour relations; conflicts of interest; quality of leadership and succession; culture misalignment; workforce skills gap; and talent retention and attraction, 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