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Richelieu Hardware: Richelieu Hardware's Q4 Earnings: A Strong Finish to a Solid Year

Richelieu Hardware reported a robust fourth-quarter performance, with sales reaching $511 million, representing a 7.3% year-over-year increase driven by a combination of acquisitions and internal growth. EBITDA rose 9.1% to $59.2 million, resulting in an EBITDA margin of 11.6%. The company's diluted earnings per share (EPS) was reported at $0.46, a 4.5% increase from the prior year. For the full year, total sales amounted to $1.96 billion, up 7.2%, while EBITDA grew 6.2% and cash flow from operations reached $202 million. Notably, the actual EPS figure was not disclosed, but it was relative to estimates of $0.3.

RCH.TO

CAD 42.81

3.48%

A-Score: 5.6/10

Publication date: January 15, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Q4 Sales Growth: Fourth-quarter sales rose 7.3% to $511 million, driven by acquisitions and internal growth.
  • EBITDA Expansion: Q4 EBITDA increased 9.1% to $59.2 million, with a margin of 11.6%.
  • Full-Year Cash Flow: 2023 cash flow from operations reached $202 million, supported by $1.96 billion in total sales (+7.2% YoY).
  • Acquisition Impact: 10 acquisitions over 13 months added ~$100 million in sales, including three U.S. McKillican distribution centers.
  • Liquidity Strength: Closed the year with $622 million in working capital, minimal debt, and a positive cash position.

Acquisition-Driven Growth and Operational Efficiency

Richelieu completed three acquisitions during the year, including Ideal Security, Finmac Lumber, and Klassen Bronze, contributing to its growth trajectory. Over 13 months, the company executed 10 acquisitions in Canada and the U.S., adding approximately $100 million in sales. The recent acquisition of McKillican American distribution centers further expanded its reach. The company's business model has demonstrated resilience and flexibility, enabling it to respond effectively to customer needs and protect its margins.

Outlook and Valuation

For 2026, Richelieu expects to continue its growth, with organic growth rates in Q1 so far being flat for hardware sales to retailers and around 5% for manufacturers. The company targets an EBITDA margin slightly above 11% for the year. Analysts estimate revenue growth at 3.6% for next year. With a current P/E Ratio of 27.62 and an EV/EBITDA of 12.07, the market appears to have priced in a certain level of growth. The company's strong cash position, minimal debt, and working capital of $622 million provide a solid foundation for future acquisitions and investments.

Return Metrics and Dividend Yield

Richelieu's return metrics, including an ROIC of 8.07% and an ROE of 9.02%, indicate a decent return on capital employed. The company's dividend yield stands at 1.43%, providing a relatively stable source of return for investors. With a Free Cash Flow Yield of 7.95%, Richelieu appears to be generating sufficient cash to support its growth initiatives and reward shareholders.

Richelieu Hardware's A-Score