• Dorel Juvenile delivers resilient third quarter financial results amid market challenges
• Dorel Home restructuring on plan
• New financing arrangements in place strengthen Company’s financial position

MONTRÉAL, Nov. 07, 2025 (GLOBE NEWSWIRE) -- Dorel Industries Inc. (TSX: DII.B, DII.A) today announced its financial results for the third quarter and nine months ended September 30, 2025.

Third quarter revenue was US$298.6 million, compared to US$354.2 million, a decrease of 15.7% from the same period a year ago. Reported net loss was US$47.4 million or US$1.45 per diluted share, compared to US$21.9 million or US$0.67 per diluted share last year. Adjusted net loss¹ for 2025 was US$29.8 million or US$0.91 per diluted share as compared to US$20.2 million or US$0.62 per diluted share last year.
 
Revenue for the nine months was US$911.4 million, compared to US$1,053.4 million, a decrease of 13.5% from the prior year. Reported net loss was US$117.6 million or US$3.60 per diluted share, compared to US$99.0 million or US$3.04 per diluted share a year ago. Adjusted net loss¹ for the first nine months of 2025 was US$74.6 million or US$2.28 per diluted share as compared to US$50.7 million or US$1.56 per diluted share a year ago.

“The third quarter ended with our significant agreement with new financial partners that will fund our strategic agenda, in accelerating the growth of the Juvenile segment and executing the repositioning of the Home segment. The lack of liquidity prior to these agreements seriously impeded our ability to develop and bring new products to market. This was most acute in the Home segment, but as the quarter progressed it also delayed key product development initiatives in Juvenile, a problem that has now been resolved. This internal challenge was compounded by external pressures, particularly in the U.S. where tariff uncertainty and higher retail price points are creating a slowing retail environment. Despite this, Dorel Juvenile delivered a quarter characterized by stable revenue as strong international performance, led by our European operations, offset softness in the U.S. These results again demonstrated the strength of our global footprint and our commitment to building a more agile and competitive business. Dorel Home progressed on its restructuring plan, including the cessation of manufacturing operations, further workforce and footprint reductions and aggressive inventory liquidation,” stated Dorel President & CEO, Martin Schwartz.

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¹ This is a non-GAAP financial ratio or measure with no standardized meaning prescribed by IFRS and therefore is unlikely to be comparable to similar measures presented by other issuers. Refer to the section “Definition and reconciliation of non-GAAP financial ratios and measures” in this press release.

For the third quarter of 2025, Dorel Juvenile reported revenue of US$220.2 million, a decline of 0.8% versus the same period last year. Revenue growth in Europe and International markets like Australia, Canada, and Export, was robust with a total increase of 9.6% in the quarter versus the prior year. This was more than offset by softer sales in the U.S. which was impacted by tariff-related pricing instability and cautious retailer behaviour. Organic revenue¹ for the Juvenile segment declined by 3.0%, after removing the impact of foreign exchange rate fluctuations year-over-year.

As in the quarter, year-to-date revenue growth in Europe and International markets offset challenges in the U.S. with total segment year-to-date revenue of US$654.2 million, an increase of US$3.0 million, or 0.5%, from US$651.2 million in 2024. The year-to-date organic revenue¹ increase was approximately 0.1%, with International and Europe growing 10.3% year-to-date, offsetting declines in the U.S.

Liquidity issues in the quarter began to affect the new product roadmap as the launch of several new products was delayed. In the U.S. market this was compounded by the impact of tariffs creating market instability. Key retail partners adjusted their ordering behavior in response to pricing uncertainty and shifting cost structures. Core categories such as car seats, strollers, and travel systems remained important, but were affected by softer demand and tighter retailer inventory. Dorel Juvenile remains well positioned relative to its competitors with its domestic manufacturing facilities, however this opportunity did not positively impact the third quarter as retailers were extremely cautious. As major retailers adjust their supply chain choices as tariffs evolve, the stability of domestic manufacturing presents opportunities for domestically produced items versus imports.

Gross margin dollars and operating expenses for the quarter were broadly flat year-over-year resulting in an operating profit of US$4.9 million compared to US$7.2 million in 2024.  Excluding restructuring costs, adjusted operating profit¹ for the quarter was US$6.6 million, a decline of 17.3% from US$7.9 million the prior year. Year-to-date reported operating profit, including restructuring costs was US$14.4 million compared to US$14.0 million the prior year. Year-to-date adjusted operating profit¹ was US$18.6 million, an increase of 16.7% versus the prior year. Similarly to the split of revenue, operating profit declines in the U.S were more than offset by earnings in the remaining markets.

Third quarter revenue was US$78.3 million, a decrease of US$53.8 million, or 40.7%, from US$132.1 million last year. Dorel Home is being substantially reduced in size through the intentional reduction of active SKUs that are now considered non-core. In addition, sales were impacted by product availability issues, compounded by most customers holding orders due to the uncertainty of tariff rates on imports from Asia. As was the case in the second quarter, the marked decline in revenue in the third quarter was most acute in the e-commerce channel as this channel is being de-emphasized in the go-forward business model. Year-to-date revenue was US$257.3 million, a decrease of US$144.9 million, or 36.0%, compared to last year.

Gross profit for the third quarter decreased by US$16.0 million compared to last year’s third quarter. The current year amount includes restructuring costs, consisting mainly of inventory write-downs, as part of the Home segment’s restructuring program to exit non-profitable items and reduce its overall distribution footprint. Adjusted gross profit¹ excluding these amounts decreased by US$5.7 million and was primarily due to lower sales volumes on imported products, which more than offset the benefits of lower overhead, and a reduced domestic operations loss. Operating expenses were significantly reduced for the quarter at US$8.1 million versus US$15.6 million in the prior year’s quarter, a direct result of the restructuring activities since December of last year.

As a result, the adjusted operating loss¹ for the quarter was US$10.2 million, compared to US$12.0 million in the same period last year. Reported operating loss for the quarter, including restructuring costs was US$25.6 million compared to US$13.2 million the prior year. Year-to-date reported operating loss, including restructuring costs was US$72.3 million compared to US$70.4 million the prior year. Year-to-date adjusted operating loss¹ was US$34.0 million compared to US$23.8 million the prior year.

Liquidity issues in the quarter became more acute and prevented the segment from launching new items that were on the new product pipeline. As such sales were limited to existing items and the sale of items that are being eliminated from the product portfolio in the long term. This situation was worsened by the business environment created by new and evolving tariffs announced since the start of the year, which affected sourcing and pricing strategies.

Restructuring Update

During the quarter, manufacturing ceased at the Cornwall, Ontario facility as part of a broader transition to a leaner organization with a reduced product line, focused on profitable categories. In addition, the segment exited its California warehouse at the end of the quarter and shipments are now managed out of a much smaller space at the Juvenile segment’s facility in nearby Fontana, California. At the end of October, the same occurred at the segment’s Montreal facility with Dorel Home occupying a small portion of a new Juvenile warehouse. Both moves were facilitated by the active reduction of inventory levels of non-core go forward items.

Work is on-going on the integration of back-office administrative functions and systems into Dorel Juvenile and the Company remains on track to complete its transition with a go-live date planned in the fourth quarter. At the end of the third quarter North American non-manufacturing headcount has been reduced from approximately 470 employees to 240 employees. By year end this figure is expected to be further reduced to approximately 160 employees, with a permanent run rate of approximately 100 employees by the second quarter of 2026. This will be split evenly between Juvenile managed distribution/support functions, with a core Home segment team focused on sales, marketing and product development.

In connection with these activities, the Home segment recorded total restructuring costs of US$15.4 million, of which US$11.1 million was for write-downs on discontinued inventory items, grouped in cost of sales, and US$4.3 million was for accrued employee severance and termination costs.

New Credit Facilities and Issue of Preferred Shares

As announced on September 29, 2025, the Company entered into a new financing agreement with a group of lenders led by affiliates of TCW Asset Management Company LLC (“TCW”), that includes senior secured credit facilities in an amount up to US$310.0 million, consisting of a US$175.0 million senior secured asset based revolving credit facility subject to a borrowing base, of which US$110.0 million was drawn at the closing of the transaction, and a US$135.0 million term loan facility. In connection with the term loan, the Company issued warrants to TCW and certain other lenders under the credit facilities in an amount equal to 5% of the number of Dorel’s outstanding shares on a fully diluted basis, representing 1,877,408 warrants (the “Lender Warrants”). Each Lender Warrant entitles the holder thereof to acquire one Class “Bˮ Share at an exercise price of CAD$0.01 per Lender Warrant for a period of seven years.  

Also, as announced on September 29, 2025, the Company entered into an agreement with Alberta Investment Management Corporation (“AIMCoˮ) for a private placement of 3,000,000 preferred shares issued for a total amount of US$75.0 million. The preferred shares have an initial annual dividend yield of 17%, paid quarterly. In connection with the issuance of the preferred shares, the Company issued warrants to AIMCo (the “AIMCo Warrants”) in an amount equal to 8% of the number of Dorel’s outstanding shares on a fully diluted basis, representing 3,003,853 AIMCo Warrants. Similar to the Lender Warrants, each of the AIMCo Warrants entitles the holder thereof to acquire one Class “Bˮ Share at an exercise price of CAD$0.01 per AIMCo Warrant for a period of seven years.

The Company used the proceeds from the new credit facilities and preferred shares to repay in full Dorel’s previous senior secured debt, to pay for certain restructuring costs of Dorel’s Home segment and for working capital purposes. The new credit facilities and the proceeds from the preferred shares re-capitalized Dorel’s financial position and the Company now believes to be well positioned to advance its strategic agenda, particularly in accelerating the growth of the Juvenile segment and executing the repositioning of the Home segment.

In connection with the repayment of Dorel’s previous senior secured debt, the Company recorded a loss on extinguishment of debts in the amount of US$9.7 million mainly explaining the increase in finance expenses for both the quarter and year-to-date periods.

Dorel to Launch Normal Course Issuer Bid

Dorel also announced today that the Toronto Stock Exchange (“TSX”) has approved Dorel’s normal course issuer bid (“NCIB”). Under the NCIB, Dorel may purchase for cancellation a maximum of 1,643,612 Class “B” Shares, representing 10% of the 16,436,129 Class “B” Shares forming the public float as at October 30, 2025. The shares may be purchased through the facilities of the TSX and on alternative trading systems in Canada over the twelve-month period from November 12, 2025 to November 11, 2026. As of October 30, 2025, Dorel had 28,530,351 Class “B” Shares issued and outstanding.

Any shares purchased by Dorel under the NCIB will be at the market price of the shares at the time of such purchases. The actual number of Class B Shares that may be purchased and the timing of any such purchases will be determined by Dorel. Any purchases made by Dorel pursuant to the NCIB will be made in accordance with the rules and policies of the TSX. TSX rules permit Dorel to purchase daily, through TSX facilities, a maximum of 6,862 Class B Shares under the NCIB, representing 25% of the average daily trading volume of 27,450 Class B Shares on the TSX over the last six calendar months, subject to an exception for a “block purchase” on the TSX once per calendar week. Dorel has not repurchased any Class B Shares during the last twelve months.

The Board of Directors of Dorel believes that, at appropriate times, repurchasing its shares through the NCIB represents a good use of Dorel’s financial resources, as such action can protect and enhance shareholder value when opportunities arise.

In connection with the NCIB, Dorel has entered into an automatic share purchase plan with TD Securities Inc. in order to allow for purchases under the NCIB during Dorel’s “black-out” periods, as permitted by the TSX Company Manual and the Securities Act (Québec). Outside of these “black-out” periods, Dorel may repurchase shares at its discretion.

Outlook

“The outlook for Dorel Juvenile remains very positive and our resilience to a difficult environment is evident in our results thus far this year. We remain confident in Dorel Juvenile’s ability to navigate ongoing market challenges and capitalize on growth opportunities across our global footprint. As we look to the fourth quarter, we expect further improvement in our U.S. business, which coupled with our other markets, gives us confidence that we deliver results that will well exceed prior year,” commented Dorel President & CEO, Martin Schwartz.

“In the Home segment, our focus remains firmly on executing the transformation of the segment into a leaner, more agile organization. We are confident that the structural changes underway, including back-office integration with Dorel Juvenile, inventory liquidation, and facility consolidation, will position us for improved financial performance in 2026. For both our segments, while the retail environment remains challenging, and tariff pressures persist, we are actively working with our key customers and suppliers to stabilize pricing, rebuild trust, and re-establish momentum. Our team’s resilience and commitment throughout this transition give us confidence that we will enter the new year with a strong foundation to deliver significantly improved earnings,” concluded Mr. Schwartz.

Conference Call

Dorel Industries Inc. will hold a conference call to discuss these results on Monday, November 10, 2025 at 11:00 AM Eastern Time. Interested parties can join the call by dialing 1-833-752-3231. The conference call can also be accessed via live webcast at http://www.dorel.com. If you are unable to call in at this time, you may access a recording of the meeting by calling 1-855-669-9658 and entering the passcode 8354761 on your phone. This recording will be available on Monday, November 10, 2025 as of 2:30 PM until 11:59 PM on Monday, November 17, 2025. 

Unaudited condensed consolidated interim financial statements as at September 30, 2025 will be available on the Company's website, www.dorel.com, and will be available through the SEDAR+ website.

Profile

Dorel Industries Inc. (TSX: DII.B, DII.A) is a global organization, operating two distinct businesses in juvenile products and home products. Dorel’s strength lies in the diversity, innovation and quality of its products as well as the superiority of its brands. Dorel Juvenile’s powerfully branded products include global brands Maxi-Cosi, Safety 1st and Tiny Love, complemented by regional brands such as BebeConfort, Cosco, Mother’s Choice and Infanti. Dorel Home, with its comprehensive e-commerce platform, markets a wide assortment of domestically produced and imported furniture. Dorel has annual sales of US$1.25 billion and employs approximately 3,200 people in facilities located in twenty-two countries worldwide.

Caution Regarding Forward-Looking Statements

Certain statements included in this press release may constitute “forward-looking statements” within the meaning of applicable Canadian securities legislation. Except as may be required by Canadian securities laws, the Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements, by their very nature, are subject to numerous risks and uncertainties, including statements regarding the substantial reduction in size of Dorel’s Home segment, the impact of the macro-economic environment, including inflationary pressures, changes in consumer spending, exchange rate fluctuations, the imposition of tariffs, and interest rate fluctuations on the Company’s business, financial position and operations, and are based on several assumptions which give rise to the possibility that actual results could differ materially from the Company’s expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. As a result, the Company cannot guarantee that any forward-looking statement will materialize, or if any of them do, what benefits the Company will derive from them including statements relating to the substantial reduction in the size of the Home segment. Forward-looking statements are provided in this press release for the purpose of giving information about management’s current expectations and plans and allowing investors and others to get a better understanding of the Company’s operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose.

Forward-looking statements made in this press release are based on a number of assumptions that the Company believed were reasonable on the day it made the forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations expressed in or implied by the forward-looking statements include:

• general economic and financial conditions, including those resulting from the current high inflationary environment;
• changes in applicable laws or regulations;
• changes in product costs and supply channels, including disruption of the Company’s supply chain resulting from the macro-economic environment;
• foreign currency fluctuations, including high levels of volatility in foreign currencies with respect to the US dollar reflecting uncertainties related to the macro-economic environment;
• the effect of tariffs on imported goods;
• customer and credit risk, including the concentration of revenues with a small number of customers;
• there is no certainty that benefits expected to be derived from the substantial reduction in size of Dorel’s Home segment will occur;
• costs associated with product liability;
• changes in income tax legislation or the interpretation or application of those rules;
• the continued ability to develop products and support brand names;
• changes in the regulatory environment;
• outbreak of public health crises that could adversely affect global economies and financial markets, resulting in an economic downturn which could be for a prolonged period of time and have a material adverse effect on the demand for the Company’s products and on its business, financial condition and results of operations;
• the effect of international conflicts on the Company’s sales;
• 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;
• failures related to information technology systems;
• changes in assumptions in the valuation of goodwill and other intangible assets and any future decline in market capitalization;
• there being no certainty that the Company will declare any dividend in the future;
• increased exposure to cybersecurity risks as a result of remote work by the Company’s employees;
• the Company’s ability to protect its current and future technologies and products and to defend its intellectual property rights;
• potential damage to the Company’s reputation; and
• the effect of climate change on the Company.
  
  

These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking statements are discussed in the Company’s annual MD&A and Annual Information Form filed with the applicable Canadian securities regulatory authorities. The risk factors set out in the previously mentioned documents are expressly incorporated by reference herein in their entirety.

The Company cautions readers that the risks described above are not the only ones that could impact it. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial may also have a material adverse effect on the Company’s business, financial condition, or results of operations. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

All figures in the tables below are in thousands of US $, except per share amounts.

Definition and Reconciliation of Non-GAAP Financial Ratios and Measures

Dorel presents in this press release certain non-GAAP financial ratios and measures, as described below. These non-GAAP financial ratios and measures do not have a standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to similar measures presented by other issuers. These non-GAAP financial ratios and measures should not be considered in isolation or as a substitute for a measure prepared in accordance with IFRS. Contained within this press release are reconciliations of the non-GAAP financial ratios and measures to the most directly comparable financial measures calculated in accordance with IFRS.

Dorel believes that the non-GAAP financial ratios and measures used in this press release provide investors with additional information to analyze its results and to measure its financial performance by excluding the variation caused by certain items that Dorel believes do not reflect its core business performance and provides better comparability between the periods presented. Excluding these items does not imply they are necessarily non-recurring. The non-GAAP financial measures are also used by management to assess Dorel's financial performance and to make operating and strategic decisions.

Adjustments to non-GAAP financial ratios and measures
As noted above, certain of our non-GAAP financial measures and ratios exclude the variation caused by certain adjustments that affect the comparability of Dorel’s financial results and could potentially distort the analysis of trends in its business performance. Adjustments which impact more than one non-GAAP financial ratio and measure are explained below.

Restructuring costs
Restructuring costs are comprised of costs directly related to significant exit activities, including the sale of manufacturing facilities, closure of businesses, reorganization, optimization, transformation, and consolidation to improve the competitive position of the Company in the marketplace and to reduce costs and bring efficiencies, and acquisition-related costs in connection with business acquisitions. Restructuring costs are included as an adjustment of adjusted gross profit, adjusted gross margin, adjusted operating profit (loss), adjusted net income (loss) and adjusted diluted earnings (loss) per share. Restructuring costs were respectively US$17.6 million and US$43.0 million for the three and nine months ended September 30, 2025 (2024 – US$1.9 million and US$3.2 million). From this amount, restructuring costs recorded within cost of sales were respectively US$11.1 million and US$24.7 million for the three and nine months ended September 30, 2025 (2024 – US$0.7 million and US$0.7 million). Refer to the section “Impairment loss on goodwill and restructuring costs” in the MD&A for more details.

Impairment loss on goodwill
Impairment loss on goodwill is included as an adjustment of adjusted operating profit (loss), adjusted net income (loss) and adjusted diluted earnings (loss) per share. Impairment loss on goodwill was respectively nil and US$45.3 million for the three and nine months ended September 30, 2024 (none in 2025). Refer to the section “Impairment loss on goodwill and restructuring costs” in the MD&A for more details.

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 gross margin to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. Dorel also uses adjusted gross profit and adjusted gross margin on a segment basis to measure its performance at the segment level. Dorel excludes this item because it affects the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use the adjusted gross profit and adjusted gross margin to measure the business performance of the Company as a whole and at the segment level from one period to the next, without the variation caused by the impact of the restructuring costs. Excluding this item does not imply it is necessarily non-recurring. These ratios and 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.

Adjusted operating profit (loss)
Adjusted operating profit (loss) is calculated as operating profit (loss) excluding the impact of restructuring costs. Adjusted operating profit (loss) also excludes impairment loss on goodwill. Management uses adjusted operating profit (loss) to measure its performance from one period to the next, without the variation caused by the impact of the items described above. Dorel also uses adjusted operating profit (loss) on a segment basis to measure its performance at the segment level. Dorel excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use the adjusted operating profit (loss) to measure the business performance of the Company as a whole and at the segment level from one period to the next, without the variation caused by the impact of the restructuring costs and impairment loss on goodwill. Excluding these items does not imply they are necessarily non-recurring. This measure does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to a similar measure presented by other companies.

Adjusted net income (loss) and adjusted diluted earnings (loss) per share
Adjusted net income (loss) is calculated as net income (loss) excluding the impact of restructuring costs and impairment loss on goodwill, as well as income taxes expense (recovery) relating to the adjustments above. Adjusted diluted earnings (loss) per share is a non-GAAP ratio and is calculated as adjusted net income (loss) divided by the weighted average number of diluted shares. Management uses adjusted net income (loss) and adjusted diluted earnings (loss) per share to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. Dorel excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use the adjusted net income (loss) and adjusted diluted earnings (loss) per share to measure the business performance of the Company from one period to the next. Excluding these items does not imply they are necessarily non-recurring. 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.

Organic revenue growth (decline) and adjusted organic revenue growth (decline)
Organic revenue growth (decline) is calculated as revenue growth (decline) compared to the previous period, excluding the impact of varying foreign exchange rates. Adjusted organic revenue growth (decline) is calculated as revenue growth (decline) compared to the previous period, excluding the impact of varying foreign exchange rates and the impact of the acquired businesses for the first year of operation and the sale of divisions. Management uses organic revenue growth (decline) and adjusted organic revenue growth (decline) to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. Dorel excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use organic revenue growth (decline) and adjusted organic revenue growth (decline) to measure the business performance of the Company as a whole and at the segment level from one period to the next. Excluding these items does not imply they are necessarily non-recurring. 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.

CONTACTS:
Dorel Industries Inc.
John Paikopoulos
(514) 934-3034

Dorel Industries Inc.
Jeffrey Schwartz
(514) 934-3034