Mr. Andrew Clark reports

SALTIRE CAPITAL LTD. REPORTS 2025 ANNUAL FINANCIAL RESULTS

Saltire Capital Ltd. has released its financial results for the year ended Dec. 31, 2025. The company's audited consolidated financial statements, along with its management discussion and analysis, have been filed on SEDAR+ and may be viewed by shareholders and interested parties under the company's profile on SEDAR+. All dollar amounts are in U.S. dollars.

Saltire delivered strong year-over-year growth in 2025 as the company marked a pivotal step forward in the third quarter following the successful acquisition and integration of SanStone Investments Ltd., a leading equipment dealer based in Atlantic Canada. The company continued executing on its strategy to build a diversified portfolio of resilient, cash-generating operating businesses, focused on sectors that have been the backbone of the real-world economy for decades.

"The progress we made in 2025 demonstrates the value of our buy-and-build model and permanent capital structure," said Andrew Clark, chief executive officer of Saltire. "We aim to provide companies with the long-term investment and resources to scale effectively. We do this by seeking businesses backed by strong leadership teams, prioritizing management continuity -- and importantly, ensuring alignment on business goals and growth opportunities.

"Revenue more than tripled year over year as we significantly diversified our business with the integration of SanStone Investments, while Strong/MDI Screen Systems Inc. (MDI) delivered another solid year. These results highlight the strength and discipline of our investment approach, which we will continue to leverage as we pursue additional opportunities to scale and drive further value for Saltire's shareholders," Mr. Clark added.

2025 annual results

For the year ended Dec. 31, 2025, revenue was $49.1-million, an increase of $33.4-million or 213 per cent compared with $15.7-million for the year ended Dec. 31, 2024. This increase was driven primarily by the acquisition of SanStone Investments, which contributed approximately $29.8-million of revenue following the Aug. 1, 2025, acquisition date. The remaining $3.6-million increase relates to MDI, which recorded a 20-per-cent increase in cinema-related revenue, supported by continued upgrade activity from key customers, including IMAX, Regal Cinemas and AMC. Cinema-related revenue represented approximately 32 per cent of total revenue, compared with 87 per cent in the comparative period, reflecting a shift in revenue mix due to the acquisition of SanStone Investments. In addition, other product revenue increased by 43 per cent, further contributing to overall growth at MDI.

Gross profit for the year ended Dec. 31, 2025, was $15-million, compared with $6.3-million for the year ended Dec. 31, 2024, an increase of $8.7-million, or 139 per cent. Gross margin was 31 per cent, compared with 40.0 per cent in the prior year. The decrease reflects the consolidation of the margin profile of SanStone Investments' dealership operations beginning Aug. 1, 2025. MDI maintained margins in line with the prior year due to a favourable product mix (higher Eclipse and IMAX-compatible screen sales) and pricing discipline.

Operating income for the year ended Dec. 31, 2025, was $1.2-million, compared with $1.8-million in the prior year ended Dec. 31. Despite higher gross profit, the decline reflects transaction expenses related to the acquisition of SanStone Investments. Operating income is expected to normalize as the company achieves year-over-year comparability in future years.

The company reported a net loss of $3.0-million for the year ended Dec. 31, 2025, compared with a net loss of $47.4-million for the prior year ended Dec. 31, 2024. The improvement is primarily attributable to the $44.6-million listing expense recognized in the prior year related to the company's going-public transaction in the fall of 2024. No such expense was recorded in 2025, however, $1.81-million worth of acquisition expenses related to SanStone Investments was recorded. The attributable net loss to the parent and non-controlling interest amounted to $3.2-million and $200,000, respectively.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the year ended Dec. 31, 2025, were $3.5-million, compared with a loss of $46-million in the prior year ended Dec. 31, 2024, which included the $44.6-million listing expense.

Adjusted EBITDA for the year ended Dec. 31, 2025, was $3.94-million, compared with $2.69-million in the prior year ended Dec. 31, 2024, an increase of $1.25-million or 46.47 per cent. The increase was primarily driven by improved underlying EBITDA, including the contribution from SanStone Investments. This was partially offset by the absence of listing expense add-backs in the current year (which were included in the prior year as a non-recurring adjustment), year-over-year fair value movements on financial instruments (approximately $5.48-million) and approximately $1.81-million of acquisition-related costs incurred in connection with the SanStone transaction. Adjusted EBITDA for the current period reflects strong underlying operating performance across MDI and SanStone.

Liquidity and capital structure

On Aug. 1, 2025, the company drew $50.1-million under its $100-million senior secured term loan facility with Sagard Credit Partners II. The facility was used to refinance existing debt, finance the SanStone acquisition and support transaction-related costs.

As at Dec. 31, 2025, total cash was $5.1-million.

Going concern

As disclosed in the company's audited financial statements, certain conditions, including the classification of borrowings as current at year-end, give rise to a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern.

From an operational perspective, these conditions are primarily driven by the timing of covenant-related matters at year-end rather than any deterioration in the underlying performance of the business. The company remains in active and constructive dialogue with its lenders and does not anticipate any acceleration or enforcement action under its credit facilities.

With the full-year contribution of SanStone expected in 2026, alongside continued performance at MDI, management expects improved earnings and cash flow generation, supporting the company's ability to meet its obligations as they come due.

EBITDA and adjusted EBITDA are non-IFRS (international financial reporting standards) measures.

About Saltire Capital Ltd.

Saltire Capital is a publicly traded permanent capital vehicle that invests in strong, undervalued businesses operating in foundational sectors of the real-world economy. The company takes meaningful stakes in private businesses with high barriers to entry, predictable cash flows and a defined competitive advantage, providing business owners with a long-term capital partner that supports management continuity and preserves company legacy. Using a disciplined buy-and-build approach, Saltire identifies growth opportunities in fragmented industries, improves business fundamentals and scales businesses into standalone platforms. This structure ensures the interests of shareholders and company leaders remain aligned for the long term.

Non-IFRS measures

EBITDA and adjusted EBITDA are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable with similar measures presented by other companies. Rather, these measures are provided as additional information to complement the IFRS measures disclosed in the financial statements by providing further understanding of Saltire's results of operations from management's perspective. Accordingly, these measures should neither be considered in isolation nor as a substitute for analysis of the company's financial information reported under IFRS.

EBITDA and adjusted EBITDA are used to provide shareholders with supplemental measures of the company's operating performance and thus highlight trends in the company's business that may not otherwise be apparent when relying solely on IFRS measures.

Securities regulations require non-IFRS measures to be clearly defined and reconciled with their most directly comparable IFRS measure. Management believes that EBITDA and adjusted EBITDA are useful measures to assess the performance of the company as they provide more meaningful operating results by excluding the effects of items that are not reflective of underlying business performance and other one-time or non-recurring items.

The attached table provides the reconciliation of net loss to EBITDA and adjusted EBITDA for the years ended Dec. 31, 2025, and Dec. 31, 2024.

We seek Safe Harbor.