KELOWNA, BC, May 7, 2026 /CNW/ - Decisive Dividend Corporation (TSXV: DE) (the "Company" or "Decisive") today reported its financial results for the three months ended March 31, 2026.

In April 2026, Decisive completed an $8.0 million private placement, positioning it with significant balance sheet flexibility to aggressively pursue its acquisition strategy. As a result, Decisive's March 31, 2026 proforma leverage ratio was 2.4 times, with over $40 million in available capacity under its credit facilities. With the continued progression of M&A opportunities within its pipeline, management expects to announce an acquisition in the near term funded by its increased available credit capacity.

Highlights of the Company's financial performance in Q1 2026 include the following:

• Decisive and its diversified portfolio of manufacturing businesses demonstrated resilience amid a backdrop of trade and economic uncertainty. The benefits of diversification in the Group's portfolio of businesses were demonstrated in Q1 2026 as strength in agriculture, and wear parts businesses helped buffer the impact of the decline in demand from certain commercial vehicle and oil and gas customers as well as seasonality for the Company's hearth businesses.
• While Decisive's results have not been significantly affected by direct tariff costs, as substantially all of the products manufactured by the Group are compliant with the Canada-United States-Mexico Agreement ("CUSMA"), the impact that United States trade policy uncertainty has had on the overall economic environment in that country resulted in a decline in demand for certain commercial vehicle and oil and gas customers within the Group through the second half of 2025 and to-date in 2026. These declines were the primary drivers of the reduced sales and Adjusted EBITDA experienced in Q1 2026 relative to Q1 2025.
• Consolidated sales decreased 3% to $37.9 million in Q1 2026.
• Decisive generated $6.5 million in Adjusted EBITDA* in Q1 2026, a decrease of 7% relative to Q1 2025. 
• Decisive generated $3.5 million in Free Cash Flow less Maintenance Capital* in Q1 2026, while though a decrease of 3% relative to Q1 2025, the trailing twelve-month dividend payout ratio of 80% at the end of Q1 2026, remained consistent with the 79% payout ratio at the end of Q4 2025, and improved from 82% at the end of Q1 2025.

Overall, as 2026 continues to unfold, management expects that demand levels for the Group's hearth, agricultural, wear part, merchandising and other industrial products will mitigate the impacts of the above noted customer specific industrial product declines, illustrating the benefits of diversification in Decisive's portfolio of businesses.

Jeff Schellenberg, Chief Executive Officer of Decisive, noted:

"Our first-quarter results demonstrate the resilience of our diversified group of subsidiaries and the sustainability of our dividend-based capital allocation approach. The financing completed at the beginning of April 2026 has positioned us with a strong foundation for growth, especially as we evaluate acquisition opportunities, which we believe we'll be in a position to provide a more material update on in the near future. Continued geographical and product diversification within our industry vertical focused strategy will further strengthen the resilience and performance of our portfolio, which is an important feature of our business model. I am also encouraged by the progress being made on some of the systematic improvements we are making in our businesses, including with respect to aligning our organizational structure within industry verticals to unlock synergies between our subsidiaries. We believe these efforts collectively position the Company to capitalize on emerging opportunities and deliver meaningful long-term value."

Selected Financial Information:

The following is selected financial information of Decisive for the three months ended March 31, 2026. All amounts are expressed in Canadian dollars. The Company's Unaudited - interim condensed consolidated financial statements as well as its management's discussion and analysis ("MD&A") are posted on SEDAR+ at www.sedarplus.ca and on Decisive's website (www.decisivedividend.com).

Q1 2026 Results:

• Sales for the first quarter decreased 3% to $37.9 million from $39.2 million in Q1 2025. The Component Manufacturing segment realized a 2% sales increase and the Finished Product segment posted a sales decrease of 11% in the quarter relative to Q1 2025. The overall sales decrease in Q1 2026 compared to Q1 2025 was primarily driven by industrial product sales declines of 26% which impacted sales in both reporting segments. Industrial product sales declines were a result of decreased demand from one of Northside's commercial vehicle customers, one of Hawk's key oil and gas customers and a joint oil and gas customer of Hawk, Capital I and Unicast, based on the current economic environment in the United States, as well as the comparative impact of a large wastewater evaporator sale by Slimline in Q1 2025. Hearth product sales and merchandising product sales also both decreased in the quarter relative to Q1 2025, although these decreases appear to be timing related and are expected to bolster second quarter results, which is typically the lowest demand quarter of the year for the hearth businesses. The above decreases were largely offset by strong sales of the Company's wear parts products as well as increases in agricultural product sales. Strong demand for Unicast and Techbelt products were bolstered by the fulfilment of a significant order for one of Unicast's mining customers, which drove a 49% increase in wear part sales in Q1 2026 compared to Q1 2025. Both Slimline and IHT contributed to the increase in agricultural product sales on stronger order activity relative to Q1 2025.
• Consolidated gross profit decreased 4% to $14.5 million from $15.1 million in Q1 2025, based primarily on the decrease in sales. Consolidated gross profit percentages were consistent with Q1 2025.
• Consolidated Adjusted EBITDA* decreased 7% to $6.5 million from $7.0 million in Q1 2025, driven primarily by the decrease in sales and gross profit described above.
• Consolidated net profit in the quarter was $0.9 million, or $0.04 per share, compared to net profit of $1.0 million, or $0.05 per share, in Q1 2025. The decrease was driven primarily by the decrease in sales and gross profit described above.
• Consolidated free cash flow* decreased 2% to $3.8 million from $3.9 million in Q1 2025. The decrease in free cash flow* relative to Q1 2025, was primarily due to the decrease in Adjusted EBITDA* net of the decrease in current income tax expense and the increase in lease payments for operating premises relative to Q1 2025.

Conference Call

Decisive will host a conference call for interested parties to discuss the Company's Q1 2026 results. The call will be hosted by Jeff Schellenberg, Decisive's Chief Executive Officer, Rick Torriero, Chief Financial Officer, and Chris Goodchild, Chief Operating Officer.

Details for those who wish to participate in this conference call are as follows:

Conference Call Details: 
Friday, May 8, 2026, at 8:00am Pacific Time / 11:00am Eastern Time 
(please call 10 minutes ahead of time)

Participant Information:

To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/42ukaYy to receive an instant automated call back.

You can also dial direct to be entered into the call by an operator:
Dial in number – North America (toll free): 1-888-510-2154
Dial in number – United Kingdom (toll free): 0800 279 7040
Dial in number – International: +1-437-900-0527

Replay Information (replay available until May 15, 2026):
Replay number – North America (toll free): 1-888-660-6345
Replay number – International: +1-289-819-1450 
Replay access code 37147#

About Decisive Dividend Corporation

Decisive Dividend Corporation is an acquisition-oriented company, focused on opportunities in manufacturing. The Company's purpose is to be the sought-out choice for exiting legacy-minded business owners, while supporting the long-term success of the businesses acquired, and through that, creating sustainable and growing shareholder returns. The Company uses a disciplined acquisition strategy to identify already profitable, well-established, high quality manufacturing companies that have a sustainable competitive advantage, a focus on non-discretionary products, steady cash flows, growth potential and established, strong leadership.

For more information on Decisive, or to sign up for email notifications of Company press releases, please visit www.decisivedividend.com.

Cautionary Statements

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Non-IFRS Financial Measures

In this press release, reference is made to "Adjusted EBITDA", "Free Cash Flow", "Growth Capital Expenditures", "Maintenance Capital Expenditures" and "Dividend Payout Ratio", which are not recognized financial measures under IFRS Accounting Standards, but are believed to be meaningful in the assessment of the Company's performance as defined below.

"Adjusted EBITDA" is defined as earnings before finance costs, income taxes, depreciation, amortization, foreign exchange gains or losses, other non-cash items such as gains or losses recognized on the fair value of contingent consideration items, asset impairment, share-based compensation, and restructuring costs, and other non-operating items such as acquisition costs.

Adjusted EBITDA is a financial performance measure that management believes is useful for investors to analyze the results of the Company's operating activities prior to consideration of how those activities are financed and the impact of non-operating charges related to planned or completed acquisitions, foreign exchange, taxation, depreciation, amortization, and impairment charges.

The most directly comparable financial measure is profit or loss. Adjusted EBITDA per share is also presented, which is calculated by dividing Adjusted EBITDA, as defined above, by the weighted average number of shares outstanding during the period.

"Free Cash Flow" is defined as cash provided by operating activities, as defined by IFRS Accounting Standards, adjusted for changes in non-cash working capital, timing considerations between current income tax expense and income taxes paid, interest payments, required principal payments on long-term debt and right of use lease liabilities, and any unusual non-operating one-time items such as acquisition and restructuring costs (as described above).

Free Cash Flow is a financial performance measure used by management to analyze the cash generated from operations before the impact of changes in working capital items or other unusual items and after giving effect to expected income taxes thereon, as well as required interest and principal payments on long-term debt and right of use lease liabilities.

The most directly comparable financial measure is cash provided by operating activities. Adjustments made to cash provided by operating activities in the calculation of Free Cash Flow include other IFRS Accounting Standards measures, including changes in non-cash working capital, current income tax expense, income taxes paid, interest paid, and principal payments on long-term debt and right of use lease liabilities.

Free Cash Flow per share is also presented, which is calculated by dividing Free Cash Flow, as defined above, by the weighted average number of shares outstanding during the period.

"Free Cash Flow Less Maintenance Capital" is defined as Free Cash Flow, as defined above, less Maintenance Capital Expenditures, as defined below. Free Cash Flow Less Maintenance Capital is a financial performance measure used by management to analyze the cash generated from operations before the impact of changes in working capital items or other unusual items and after giving effect to expected income taxes thereon, as well as required interest and principal payments on long-term debt and right of use lease liabilities, and capital expenditures required to sustain the current operations of the Company.

The Company presents Free Cash Flow Less Maintenance Capital Expenditures per share, which is calculated by dividing Free Cash Flow Less Maintenance Capital, as defined above, by the weighted average number of shares outstanding during the period.

"Growth and Maintenance Capital Expenditures" maintenance capital expenditures are defined as capital expenditures required to maintain the operations of the Group at the current level and are net of proceeds from the sale of property and equipment. Growth capital expenditures are defined as capital expenditures that are expected to generate incremental cash inflows and are not considered by management in determining the cash flows required to sustain the current operations of the Company. While there are no comparable IFRS Accounting Standards measures for Maintenance Capital Expenditures or Growth Capital Expenditures, the total of Maintenance Capital Expenditures and Growth Capital Expenditures is equivalent to the total purchases of property and equipment, net of proceeds from the sale of property and equipment, on the Company's statement of cash flows.

"Dividend Payout Ratio" the Company presents a dividend payout ratio, which is calculated by dividing dividends declared by the Company by Free Cash Flow Less Maintenance Capital, as defined above. The Dividend Payout Ratio is a financial ratio used by management to analyze the percentage of cash generated from operations, before the impact of changes in working capital items or other unusual items and after giving effect to expected income taxes thereon, as well as required interest and principal payments on long-term debt and right of use lease liabilities, and capital expenditures required to sustain the current operations of the Company, returned to shareholders as dividends. Dividend Payout Ratio is analyzed on a trailing twelve-month basis in order to reduce the impact of seasonality on the analysis. 

While the above Non-IFRS financial measures are used by management to assess the historical financial performance of the Company, readers are cautioned that:

• Non-IFRS financial measures, such as Adjusted EBITDA, Free Cash Flow, Growth Capital Expenditures, Maintenance Capital Expenditures and Dividend Payout Ratio, are not recognized financial measures under IFRS Accounting Standards;
• The Company's method of calculating Non-IFRS financial measures may differ from that of other corporations or entities and therefore may not be directly comparable to measures utilized by other corporations or entities;
• Non-IFRS financial measures should not be viewed as an alternative to measures that are recognized under IFRS such as profit or loss or cash provided by operating activities; and
• A reader should not place undue reliance on any Non-IFRS financial measures.

Set forth below are reconciliations of Non-IFRS financial measures to their most relevant IFRS Accounting Standards measures.

Adjusted EBITDA

Free Cash Flow

Free Cash Flow Less Maintenance Capital and Dividend Payout Ratio

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "believes", "expects", "could", "will", "may", "intends", "projects", "anticipates", "plans", "estimates", "continues" and similar words or the negative and grammatical variations thereof and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on management's current beliefs, assumptions and expectations as to the outcome and timing of such future events.  Actual future results may differ materially. In particular, this press release contains forward-looking information relating to the future prospects of the Company and its operating subsidiaries, demand levels, demand from customers, the timing of product sales and/or deliveries under existing customer contracts or orders received from customers, and potential future acquisitions. Forward-looking statements are necessarily based upon a number of expectations or assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are beyond the Company's control and many of which are subject to change. Readers are cautioned to not place undue reliance on forward-looking statements which only speak as to the date they are made. Although management believes that the expectations and assumptions underlying such forward-looking statements are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. A number of risk factors could cause actual future results, performance, achievements and developments of the Company to differ materially from anticipated results, performance, achievements and developments expressed or implied by such forward-looking statements. Such risk factors include, but are not limited to: (i) operational risks, including risks related to acquisitions; dependence on customers, distributors and strategic relationships; supply and cost of raw materials and purchased parts; operational performance and growth; implementation of the growth strategy; product liability and warranty claims; litigation; reliance on technology, intellectual property, and information systems; (ii) financial risks, including risks relating to the availability of future financing; interest rates and debt financing; income tax matters; foreign exchange; capital allocation including dividends; trading volatility of common shares; dilution risk; valuation risk; insurance adequacy (iii) external risks, including risks relating to general economic and geopolitical conditions; industry specific conditions; government regulation (including trade restrictions and tariffs); pandemics; competition; environmental regulation; access to capital; market trends and innovation; commodity prices; climate risk; public perception or brand event; and (iv) human capital risks, including reliance on management and key personnel; employee and labour relations; conflicts of interest; quality of leadership and succession; culture misalignment; workforce skills gap; and talent retention and attraction, all as more particularly described in the most recent annual MD&A of the Company available on the Company's profile at www.sedarplus.ca. There can also be no assurance as to the future financial performance of the Company or that the board of directors of the Company will declare or pay any dividends in the future or, if dividends are declared and paid, there can be no assurance as to the frequency or amount of such dividends. The Company cautions the reader that the risk factors referenced above are not exhaustive. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

SOURCE Decisive Dividend Corporation