Dorel Industries Inc. Class A · TSX:DII.A
Dorel Industries Inc. Class A — Q2 2026 Earnings Presentation
43 slides from Dorel Industries Inc. Class A's earnings presentation, Aug 6, 2026
Slide 1: Second Quarterly Report for the Six Months Ended June 30, 2026
SECOND QUARTERLY REPORT FOR THE SIX MONTHS ENDED JUNE 30, 2026
Slide 2: Management's Discussion and Analysis
Management’s Discussion and Analysis of Financial Conditions and Results of Operations For the three and six months ended June 30, 2026 All figures in US dollars This Interim Management’s Discussion and Analysis of Financial Conditions and Results of Operations (“MD&A”) should be read in conjunction
Slide 3: Operating Results: Macro-economic Conditions
1. OPERATING RESULTS a) Macro-economic conditions There continues to be uncertainty in the macro-economic environment, including inflationary pressures, changes in consumer spending, exchange rate fluctuations, the imposition of tariffs and interest rate fluctuations. These events and conditions are
Slide 4: Non-GAAP financial ratios and measures
b) Non-GAAP financial ratios and measures Dorel uses non-GAAP financial ratios and measures to assess its operating performance and liquidity. Securities regulations require that companies caution readers that earnings and other measures adjusted to a basis other than IFRS do not have standardized m
Slide 5: Restructuring costs
d) Restructuring costs The details of restructuring costs are presented below: Three Months Ended Six Months Ended Jun 30, Jun 30, Jun 30, Jun 30, 2026 2025 2026 2025 Inventory write-downs (1) 10,634 8,489 11,125 8,847 Impairment on equipment (1) 740 4,764 740 4,764 Impairment on right-of-use assets
Slide 6: Selected financial information
e) Selected financial information The table below shows selected financial information for the eight most recently completed quarters ended: 2026 2025 2024 Jun 30 Mar 31 Dec 30 Sep 30 Jun 30 Mar 31 Dec 30 Sep 30 Revenue 249,495 267,840 278,942 298,565 292,391 320,456 326,846 354,220 Net loss (42,471
Slide 7: Revenue decline was mainly in the U.S. market
revenue decline was mainly in the U.S. market. The revenue declines were partially offset by the double-digit revenue and organic revenue improvements in Australia, Brazil, Export markets and Canada and was across most brands and product categories. For the six months ending June 30, 2026, Dorel’s r
Slide 8: Operating expenses, restructuring and operating loss
In Dorel Juvenile, the decreases are mainly due to controlled spending and the timing of new product development projects. Restructuring costs Restructuring costs were $1.5 million for the second quarter and $3.6 million year-to-date and are attributed to the restructuring plan that was initiated in
Slide 9: Income taxes and net loss
implementation of the Pillar Two legislation for the three and six months ended June 30, 2026 and 2025. The Company applies the temporary mandatory exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the ame
Slide 10: Dorel Juvenile segment results
The segment’s revenue for the six months declined by $1.5 million, or 0.3%, to $432.4 million versus the prior year’s $433.9 million. Organic revenue declined by approximately 4.7%, after removing the impact of varying foreign exchange rates year-over-year. Year-to-date, revenue and organic revenue
Slide 11: Dorel Home
Dorel Home Three Months Ended Six Months Ended Jun 30, Jun 30, Variation Jun 30, Jun 30, Variation 2026 2025 $ % 2026 2025 $ % Revenue 39,837 74,331 (34,494) (46.4)% 84,901 178,929 (94,028) (52.6)% Cost of sales 58,123 88,056 (29,933) (34.0)% 103,127 191,367 (88,240) (46.1)% Gross profit (18,286) (1
Slide 12: Financial Condition, Liquidity and Capital Resources
addition, year-over-year expenses were lower due to a positive foreign exchange impact on non-U.S. denominated liabilities, whereas last year included a foreign exchange loss. Research and development expenses in the second quarter declined by $0.4 million, or 53.4%, to $0.4 million from $0.8 millio
Slide 13: Debt-to-equity ratio and cash flow
• partly offset by an increase in lease liabilities of $16.2 million from the additions, reassessment of lease liabilities and lease modifications recorded during the six months ended June 30, 2026, net of the payment of lease liabilities. b) Debt-to-equity ratio June 30, December 30, 2026 2025 Long
Slide 14: Cash flow used in financing and investing activities
Cash flow used in financing activities When compared to 2025, cash flow used in financing activities decreased by $62.2 million to $2.0 million for the second quarter of 2026 and is mostly explained by repayments of long-term debt. For the six months, cash flow used in financing activities decreased
Slide 15: Critical Accounting Estimates and Judgments
Details of the issued and outstanding Series “Aˮ Preferred Shares are as follows: Initial issuance of Series “Aˮ Preferred Shares on September 29, 2025 3,000,000 Issuance of Series “Aˮ Preferred Shares for the payment of dividend on January 2, 2026 129,945 Issuance of Series “Aˮ Preferred Shares for
Slide 16: Going concern basis of presentation
accordance with IFRS Accounting Standards (“IFRS”). The going concern basis of presentation assumes that the Company will continue its operations for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. In assessing
Slide 17: Accounting Changes and Other Information
twelve month projected leverage ratio targets, and its minimum trailing twelve month projected fixed charge coverage ratio targets. However, there can be no assurance that the Company will be successful in meeting its quarterly covenants during the next twelve months, or that the Company will genera
Slide 18: Disclosure Controls and Forward-Looking Information
Details of the issued and outstanding shares are as follows: Class “A” Class “B” Total Number $('000) Number $('000) $('000) 4,136,551 1,742 30,295,772 209,911 211,653 Outstanding Deferred Share Units are disclosed in Note 11 of Dorel’s unaudited condensed consolidated interim financial statements.
Slide 19: Definition and Reconciliation of Non-GAAP Financial Ratios and Measures
• continued access to capital resources, including compliance by the Company with all of the covenants under its senior secured asset based revolving credit facility and term loan facility, and the related costs of borrowing, all of which may be adversely impacted by the macro-economic environment;
Slide 20: Adjusted gross profit and adjusted gross margin
Adjusted gross profit and adjusted gross margin Adjusted gross profit is calculated as gross profit excluding the impact of restructuring costs. Adjusted gross margin is a non-GAAP ratio and is calculated as adjusted gross profit divided by revenue. Dorel uses adjusted gross profit and adjusted gros
Slide 21: Adjusted net income (loss) and adjusted diluted earnings (loss) per share
Three Months Ended Six Months Ended Jun 30, Jun 30, Jun 30, Jun 30, Dorel Juvenile 2026 2025 2026 2025 Operating profit 3,583 6,486 7,229 9,510 Adjustment for: Restructuring costs 1,524 1,355 3,153 2,532 Adjusted operating profit 5,107 7,841 10,382 12,042 Three Months Ended Six Months Ended Jun 30,
Slide 22: Free cash flow
ratio to measure the financial leverage of Dorel. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to a similar measure presented by other companies. Refer to the reconciliation of total debt and debt to equity ratio in section 2.b)
Slide 23: Condensed Consolidated Interim Statements of Financial Position
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION ALL FIGURES IN THOUSANDS OF US $ (UNAUDITED) As at As at June 30, 2026 December 30, 2025 ASSETS Current assets Cash and cash equivalents (Note 14 b)) $ 28,755 $ 46,576 Restricted deposits (Note 14 b)) 10,476 14,036 Trade accounts receiv
Slide 24: Condensed Consolidated Interim Income Statements
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENTS ALL FIGURES IN THOUSANDS OF US $, EXCEPT PER SHARE AMOUNTS (UNAUDITED) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 REVENUE (Note 15) $ 249,495 $ 292,391 $ 517,335 $ 612,847 Cost of sales (Notes 4 and 6)
Slide 25: Condensed Consolidated Interim Statements of Comprehensive Loss
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS ALL FIGURES IN THOUSANDS OF US $ (UNAUDITED) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 NET LOSS $ (42,471) $ (44,934) $ (67,356) $ (70,184) OTHER COMPREHENSIVE (LOSS) INCOME: Items that
Slide 26: Condensed Consolidated Interim Statements of Changes in Equity
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY ALL FIGURES IN THOUSANDS OF US $ (UNAUDITED) Attributable to equity holders of the Company Accumulated other comprehensive loss Cumulative Defined Share Contributed Translation Cash Flow Benefit Other Total Capital Surplus Account Hedges
Slide 27: Condensed Consolidated Interim Statements of Cash Flows
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS ALL FIGURES IN THOUSANDS OF US $ (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2026 2025 2026 2025 CASH PROVIDED BY (USED IN): OPERATING ACTIVITIES Net loss $ (42,471) $ (44,934) $ (67,356) $ (70,184) Items
Slide 28: Notes: Nature of Operations and Going Concern
Notes to the Condensed Consolidated Interim Financial Statements For the periods ended June 30, 2026 and 2025 All figures in thousands of US $, except per share amounts (Unaudited) 1. NATURE OF OPERATIONS AND GOING CONCERN Dorel Industries Inc. (the “Company”) is a global consumer products company w
Slide 29: Nature of Operations and Going Concern (continued)
1. NATURE OF OPERATIONS AND GOING CONCERN (continued) On September 29, 2025, the Company entered into a new financing agreement that included senior secured credit facilities in an amount up to $310,000 and a private placement of preferred shares of $75,000. The Company used the proceeds from the ne
Slide 30: Statement of Compliance, Basis of Preparation and Measurement
2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND MEASUREMENT The unaudited condensed consolidated interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting as adopted by the International Accounting Standards Board (“IASB”), using the US dollar as the
Slide 31: Accounting Changes
3. ACCOUNTING CHANGES New standards and amendments adopted during the period No standards and amendments were adopted during the six months ended June 30, 2026. New standards and amendments not yet adopted New standards and amendments to existing standards have been issued by the IASB, which are man
Slide 32: Restructuring Costs
4. RESTRUCTURING COSTS (continued) Six Months Ended June 30, Total Dorel Juvenile Dorel Home Corporate 2026 2025 2026 2025 2026 2025 2026 2025 Inventory write-downs (Note 6) $ 11,125 $ 8,847 $ – $ – $ 11,125 $ 8,847 $ – $ – Impairment on equipment 740 4,764 – – 740 4,764 – – Impairment on right-of-u
Slide 33: Assets Held for Sale
4. RESTRUCTURING COSTS (continued) Dorel Juvenile Dorel Juvenile identified opportunities to reduce redundancy and improve efficiencies and also initiated headcount reductions in several divisions. For the three and six months ended June 30, 2026, Dorel Juvenile incurred respectively $1,524 and $3,1
Slide 34: Long-Term Debt
7. LONG-TERM DEBT June 30, 2026 December 30, 2025 Nominal interest Maturity Face Carrying Face Carrying Currency rate date value amount value amount Senior secured asset based revolving credit facility bearing interest at Variable rates variable rates, averaging 11.99% plus a Sept. 29, (2025 – 12.58
Slide 35: Preferred Shares
8. PREFERRED SHARES (continued) Details of the issued and outstanding Series “Aˮ Preferred Shares are as follows: Initial issuance of Series “Aˮ Preferred Shares on September 29, 2025 3,000,000 Issuance of Series “Aˮ Preferred Shares for the payment of dividend on January 2, 2026 129,945 Issuance of
Slide 36: Financial Instruments
9. FINANCIAL INSTRUMENTS (continued) Assessing the Company’s estimated future cash flows and liquidity, including its future compliance with covenants under its senior secured credit facilities, requires significant judgment. As there is significant uncertainty surrounding the Company’s cash flows p
Slide 37: Share Capital
10. SHARE CAPITAL (continued) Normal Course Issuer Bid On November 7, 2025, the Company received approval from the TSX on its normal course issuer bid (“NCIB”) program. Under the NCIB, the Company may purchase for cancellation a maximum of 1,643,612 Class “B” Subordinate Voting Shares, representing
Slide 38: Loss per Share
12. LOSS PER SHARE The following table provides a reconciliation between the number of basic and fully diluted shares outstanding that were used in the computation of the basic and diluted loss per share: Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Net
Slide 39: Finance Expenses, Depreciation and Amortization
13. FINANCE EXPENSES, DEPRECIATION AND AMORTIZATION, AND OTHER INFORMATION (continued) b) Depreciation and amortization Depreciation of property, plant and equipment and right-of-use assets, and amortization of intangible assets are included in the following unaudited condensed consolidated interim
Slide 40: Supplemental Cash Flow Information
13. FINANCE EXPENSES, DEPRECIATION AND AMORTIZATION, AND OTHER INFORMATION (continued) The Company has performed an assessment of the exposure to Pillar Two income taxes. The assessment is based on the projected figures for the year. Based on this assessment, there are a limited number of jurisdicti
Slide 41: Segmented Information
14. SUPPLEMENTAL CASH FLOW INFORMATION (continued) c) Non-cash transactions The unaudited condensed consolidated interim statements of cash flows exclude the following non-cash transactions: June 30, June 30, 2026 2025 Acquisition of property, plant and equipment financed by trade and other payables
Slide 42: Segmented Information (continued)
15. SEGMENTED INFORMATION (continued) Six Months Ended June 30, Total Dorel Juvenile Dorel Home 2026 2025 2026 2025 2026 2025 Revenue $ 517,335 $ 612,847 $ 432,434 $ 433,918 $ 84,901 $ 178,929 Cost of sales 419,154 503,169 316,027 311,802 103,127 191,367 Gross profit 98,181 109,678 116,407 122,116 (
Slide 43: Segmented Information: Geographic Area and Channels
15. SEGMENTED INFORMATION (continued) Six Months Ended June 30, Total Dorel Juvenile Dorel Home 2026 2025 2026 2025 2026 2025 Geographic area Canada $ 18,655 $ 39,522 $ 15,220 $ 13,726 $ 3,435 $ 25,796 United States 207,866 321,176 145,962 181,799 61,904 139,377 Europe 187,764 168,465 168,202 154,70