FIVE ACQUISITIONS TO DATE IN FISCAL 2026, REPRESENTING $145 MILLION IN ANNUAL SALES

HIGHLIGHTS OF THE THIRDQUARTER ENDED AUGUST 31, 2026

   -- Sales of $562.0 million, an increase of 12.6%, including 10.0% internal 
      growth and 2.6% from acquisitions. Sales totaled $300.2 million in Canada 
      (+10.2%) and US$186.7 million in the United States (+12.9% in US 
      dollars). 
 
   -- EBITDA of $65.5 million, an increase of 14.8%. EBITDA margin: 11.7%, 
      including 60 basis points attributable to the tariff refund(1). 
 
   -- Net earnings attributable to shareholders of $29.2 million, an increase 
      of 22.4%, or $0.53 diluted earnings per share (+23.3%), including $0.04 
      per share from the tariff refund(1). 
 
   -- Adjusted cash flows from operating activities of $54.5 million, an 
      increase of 13.5%. 
 
   -- Expansion -- Two acquisitions completed during the third quarter 
      (Solutions Acoustiques, QC, and Winnec, ON), followed on September 1 by 
      the acquisition of Penrod's Hardware Division (U.S.). Launch of the $15 
      million expansion project at our Drummondville, Quebec, distribution 
      centre. 

FIRST NINE MONTHS

   -- Sales of $1.6 billion, an increase of 7.2%, including $841.1 million in 
      Canada and US$517.8 million in the United States, representing increases 
      of 6.5% and 9.4% (US$), respectively. 
 
   -- EBITDA of $164.8 million, an increase of 6.5%, with an EBITDA margin of 
      10.6%. 
 
   -- Net earnings attributable to shareholders of $66.9 million, or $1.21 
      diluted earnings per share. 
 
   -- Adjusted cash flows from operating activities of $140.4 million, an 
      increase of 6.7%. 
 
   -- Expansion: Five acquisitions completed since the beginning of fiscal 
      2026, representing approximately $145 million in additional annual sales. 
 
   -- Strong financial position at August 31, 2026, with working capital of 
      $702.6 million (current ratio of 3.2:1). 

Quarterly dividend of $0.1566 per share payable on November 5, 2026, to shareholders registered as of October 22, 2026.

(1) In the Canada-U.S. business environment of 2025-2026, certain Company products that had been subject to tariffs under the International Emergency Economic Powers Act (IEEPA) recently became eligible for tariff refunds authorized by the U.S. government. As a result, the Corporation recorded a tariff refund of $3 million during the third quarter, reflected as a reduction in the cost of goods sold and contributing to a modest improvement in margins and earnings.

MONTREAL, Oct. 7, 2026 /CNW/ -- (TSX: RCH) <<The strong growth and strategic expansion we have achieved once again demonstrate the relevance of our business model, which enables us to meet our customer needs, take advantage of excellent acquisition opportunities and continue driving the Corporation's future growth. Our market development efforts increased sales across all market segments despite an uncertain economic environment. In the manufacturers' market, sales increased 11.5% to $493.3 million, including 8.9% internal growth and 2.6% from acquisitions. Sales to retailers and home improvement superstores increased 20.9% to $68.7 million, reflecting, among other things, initial deliveries made to a major customer in the United States. 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. As for Penrod's Hardware Division, the largest acquisition we have completed to date, it contributes an additional US$70 million in annual sales, expanded market coverage through seven new centres located across seven U.S. states, and a service-oriented corporate culture fully compatible with Richelieu's," said Mr. Richard Lord, President and Chief Executive Officer.

<<In addition, we recently announced a $15 million investment to expand the scale of our Drummondville distribution centre and support our growth. We are proud of this new development in the Centre-du-Québec region, which relies on local expertise and plays an important role in strengthening our network,>> added Richard Lord.

RECENT ACQUISITIONS AND MAJOR FACILITY EXPANSION FOR FUTURE GROWTH

Acquired on September 1, 2026, The Penrod Company (<<Penrod>>) represents US$70 million in additional annual sales, adds seven distribution centres to Richelieu's U.S. network, and strengthens its presence in the following states: North Carolina, Texas, Minnesota, California, Colorado, Arizona, and Florida, while expanding service to a diversified customer base that includes door manufacturers, architects, residential and commercial contractors, and specialty distributors.

In September 2026, Richelieu announced a $15 million investment to expand its Drummondville distribution centre from 40,000 square feet to 180,000 square feet. The project is underway and is expected to be completed in spring 2027.

Five acquisitions since the beginning of fiscal 2026, representing $145 million in additional annual sales:

   -- (Q1) Three distribution centres of McKillican American, Oregon and 
      Washington State; 
 
   -- (Q2) Finium, a distributor and manufacturer of premium wall covering 
      panels, Frampton, Quebec; 
 
   -- (Q3) Solutions Acoustiques, distributor of standard and premium acoustic 
      products, Montreal region; and 
 
   -- Winnec, specialized hardware distributor with three distribution centres 
      in the Toronto region; 
 
   -- (Q4) ThePenrod Company, with seven distribution centres across the United 
      States. 

OPERATING RESULTS FOR THE THIRD QUARTER AND FIRST NINE MONTHS ENDED AUGUST 31, 2026

The following table provides an overview of Richelieu's sales in its two main markets for the quarters ended August 31, 2026 and 2025 :

 
Quarters ended August 31           2026   2025    % 
(in millions of dollars, except                  Total  Internal  Acquisitions 
exchange rates) 
Consolidated                       562.0  499.2   12.6      10.0           2.6 
Manufacturers                      493.3  442.4   11.5       8.9           2.6 
Retailers                           68.7   56.8   20.9      18.4           2.5 
Canada                             300.2  272.3   10.2       7.4           2.8 
Manufacturers                      252.1  226.3   11.4       8.4           3.0 
Retailers                           48.1   46.0    4.6       2.8           1.8 
United States in US$               186.7  165.3   12.9      10.5           2.4 
Manufacturers                      172.0  157.4    9.3       7.0           2.3 
Retailers                           14.7    7.9   86.1      81.2           4.9 
United States in CA$               261.8  226.9   15.4 
Average exchange rates             1.402  1.372 
 

For the third quarter ended August 31, 2026, consolidated sales totalled $562.0 million, compared with $499.2 million for the third quarter of 2025, representing an increase of $62.8 million, or 12.6%, of which 2.6% was attributable to the positive contribution of acquisitions and 10.0% to internal growth. Internal growth primarily reflects price increases aimed at offsetting higher product and freight costs. In addition, the strong sales growth in the retail and home improvement superstore market is mainly due to initial deliveries to a major customer in the United States. On a constant-currency basis relative to the third quarter of 2025, consolidated sales would have increased by 11.3% for the quarter ended August 31, 2026.

Operating expenses excluding amortization totalled $496.5M, representing 88.3% of sales, compared with $442.2M, or 88.6% of sales, for the corresponding period of fiscal 2025. The increase in absolute dollars was primarily attributable to sales growth, while the improvement as a percentage of sales reflects a $3M refund of certain U.S. customs duties, recorded as a reduction of cost of goods sold.

Earnings before income taxes, interest, and amortization (EBITDA) reached $65.5M, up $8.5M or 14.8% from the corresponding quarter of 2025. This improvement was primarily driven by sales growth and the $3M refund of certain U.S. customs duties. As a result, the EBITDA margin was 11.7%, compared to 11.4% for the corresponding quarter of 2025, and includes a favourable impact of approximately 60 basis points attributable to this refund.

Amortization expense for the third quarter of 2026 amounted to $20.1M, up $1.4M compared to the corresponding period in 2025, mainly reflecting the increase in right-of-use assets related mainly to lease renewals. Net financial costs totalled $3.3M, compared to $3.4M in the corresponding quarter of 2025, representing a decrease of $0.1M.

Net earnings amounted to $30.5M, an increase of 19.3% from the corresponding quarter of 2025. Including non-controlling interests, net earnings attributable to shareholders of the Corporation amounted to $29.2M, an increase of 22.4% from the third quarter of 2025. Net earnings per share were $0.53, basic and diluted, compared to $0.43, basic and diluted, for the third quarter of 2025, an increase of 23.3%.

Cash flow from operating activities, before net change in non-cash working capital balances, amounted to $54.5M, or $0.99 per diluted share, compared with $48.1M, or $0.87 per diluted share, for the third quarter of 2025. This 13.5% increase mainly reflects the increase in net earnings. Net change in non-cash working capital items represented a cash inflow of $4.8M, reflecting a $24.7M change in accounts payable, while accounts receivable, inventories and other items used cash flows of $19.9M. As a result, operating activities provided a cash inflow of $59.4M, compared to a cash inflow of $82.7M in the third quarter of 2025.