TORONTO, Nov. 13, 2026 /CNW/ -- Saltire Capital Ltd. (TSX: SLT.U) (TSX: SLT) (TSX: SLT.WT.U) (TSX: SLT.WT) (OTCQX: SLTEF) ("Saltire" or the "Company") today reported its unaudited condensed consolidated interim financial statements ("Financial Statements") for the nine-month period ended September 30, 2026. The Company's Financial Statements and Management's Discussion and Analysis ("MD&A") have been filed on the System for Electronic Document Analysis and Retrieval Plus ("SEDAR+") and may be viewed under the Company's profile at www.sedarplus.ca. All references to "$" herein are to United States Dollars.

Saltire continued to build momentum in Q3 2026, reflecting the Company's continued execution of its strategy to build a diversified portfolio of resilient, cash-generating operating businesses in sectors that have historically demonstrated long-term durability and operational stability.

"We saw continued strong execution across SanStone and MDI this quarter, alongside continued progress in developing the broader Saltire platform," said Larry G. Swets Jr., Interim Chief Executive Officer of Saltire. "Our focus remains on building a portfolio of high-quality operating businesses with durable earnings, strong market positions and long-term relevance in the real economy. As the platform continues to mature, we remain focused on strengthening our existing businesses and creating long-term value for shareholders."

Q3 2026 Highlights

For the nine-months ended September 30, 2026, revenue was $97.19 million, compared to $28.79 million in the prior period. The increase was driven primarily by the acquisitions of SanStone and Tool Shed, which contributed approximately $82.3 million of revenue, during the nine-month period ended September 30, 2026. MDI continued to perform against an active project pipeline, and revenue was modestly higher than the prior period, driven by higher cinema sales volumes, partially offset by lower non-cinema activity.

Gross profit increased to $24.77 million, compared to $9.46 million in the prior year period. Consolidated gross margin was 25%, reflecting the addition of SanStone's lower margin equipment dealership operations and Tool Shed's rental and sales operations. MDI continued to generate solid margins, while managing near-term margin pressure driven by lower production volumes and project timing.

Operating income increased to $7 million, compared to $1.01 million in the prior year period, as the Company benefited from increased scale across its operating platform. Operating expenses increased as expected following the acquisitions of SanStone and Tool Shed and the transition to a larger consolidated business.

Net income for the nine-month period was $26.82 million, compared to net loss of $3.15 million in the prior year period. Current period results included a non-cash fair value gain of $27.87 million related primarily to derivative and financial liabilities, compared to a non-cash fair value loss of $0.94 million in the prior year period.

EBITDA¹ was $37.5 million for the nine-month period, compared to $0.6 million in the prior year period. Adjusted EBITDA¹ increased to $10.21 million, compared to $1.61 million in the prior year period, reflecting the contribution from SanStone and Tool Shed and continued operating performance across the Company's platform.

Saltire ended the quarter with $7.03 million of cash, compared to $5.10 million at December 31, 2025, and generated positive operating cash flow of $4.55 million during the nine-month period. The improvement was supported by working capital management, including inventory management, and the financing structure established in connection with the SanStone acquisition.

Subsequent Event

On November 12, 2026, the Company adjourned the special meeting of shareholders to approve the conversion of SanStone Investments Limited minority shares into common shares of the Company from December 15, 2026 to December 29, 2026.

Going Concern

As disclosed in the Company's unaudited condensed consolidated interim financial statements for the three and nine months ended September 30, 2026, the Company's accumulated losses and the future assessment of covenant compliance are indicators of 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 future assessment of covenant-related matters rather than any deterioration in the underlying performance of the business. As at September 30, 2026, the Company had a working capital surplus and, as of the issuance date of the financial statements, is in compliance with its covenants under its loan agreement (the "Loan Agreement"). With the full-year contribution of SanStone in 2026, the addition of Tool Shed and continued performance at MDI, management expects improving earnings and cash flow generation to support the Company's ability to meet its obligations as they come due.

Operating Platform Update

MDI's pipeline remains active across cinema, immersive and simulation markets. The business continues to benefit from long-standing relationships with major exhibitors, including the renewal of multi-year supply agreements, and from demand linked to the transition to laser projection technology. Beyond cinema, MDI continues to pursue opportunities in immersive entertainment, theme park and simulation applications, with several projects expected to advance to fulfillment.

SanStone represents Saltire's second platform investment and significantly expands the Company's exposure to industrial, agricultural and infrastructure-related markets. Through the Wilson Equipment, Tidal Tractor and Tool Shed brands, SanStone serves customers across Atlantic Canada and maintains OEM relationships in key equipment categories.

On June 1, 2026, the Company completed the acquisition of Tool Shed Sales and Rentals Inc. ("Tool Shed"), a Nova Scotia-based rental and sales business providing contractor supplies, pro-grade tools, safety equipment and scaffolding. The third quarter marked Tool Shed's first full quarter under Saltire's umbrella. Tool Shed continues to be integrated into the SanStone platform, bringing a new customer base and cross-selling opportunities for Wilson Equipment and Tidal Tractor, while its rental business supports expansion beyond the Maritimes. The acquisition builds on Saltire's 2025 acquisition of SanStone and significantly expands the Company's industrial services footprint in Atlantic Canada.

With MDI, SanStone and Tool Shed continuing to execute, Saltire remains focused on building a diversified portfolio of resilient operating businesses, supported by disciplined capital allocation and active ownership.

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 to 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 following table provides the reconciliation of net income to EBITDA and Adjusted EBITDA for the nine-month period ended September 30, 2026 and 2025:

About Saltire

Saltire Capital Ltd. 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 company fundamentals and scales businesses into standalone platforms. This structure ensures the interests of shareholders and company leaders remain aligned for the long term. Learn more at www.saltirecapitalltd.com.

Forward Looking Information

This press release may contain forward-looking information and forward-looking statements within the meaning of applicable securities laws ("Forward-Looking Statements"). The Forward-Looking Statements contained in this press release relate to future events or Saltire's future plans, operations, strategy, performance or financial position and are based on Saltire's current expectations, estimates, projections, beliefs and assumptions, including, among other things, in respect of its subsidiaries' performance and project pipeline, Saltire's ability to satisfy the conditions to funding additional draws under the Loan Agreement, the future performance of its subsidiaries, Saltire's ability to maintain compliance with covenants under the Loan Agreement, management's ability to execute on Saltire's growth plans and the receipt of required approvals regarding the conversion process triggered by SanStone's minority shareholders. Such Forward-Looking Statements have been made by Saltire in light of the information available to it at the time the statements were made and reflect its experience and perception of historical trends. All statements and information other than historical fact may be Forward-Looking Statements. Such Forward-Looking Statements are often, but not always, identified by the use of words such as "may", "would", "should", "could", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe", "continue", "expect", "potential", "proposed" and other similar words and expressions.

Forward-Looking Statements are based on certain expectations and assumptions and are subject to known and unknown risks and uncertainties and other factors, many of which are beyond Saltire's control, that could cause actual events, results, performance and achievements to differ materially from those anticipated in these Forward-Looking Statements. Forward-Looking Statements are provided for the purpose of assisting the reader in understanding Saltire and its business, operations, prospects and risks at a point in time in the context of historical and possible future developments, and the reader is therefore cautioned that such information may not be appropriate for other purposes. Forward-Looking Statements should not be read as guarantees of future performance or results. Readers are cautioned not to place undue reliance on Forward-Looking Statements, which speak only as of the date of this press release. Unless otherwise noted or the context otherwise indicates, the Forward-Looking Statements contained herein are provided as of the date hereof, and Saltire disclaims any intention or obligation, except to the extent required by law, to update or revise any Forward-Looking Statements as a result of new information or future events, or for any other reason.

This press release should be read in conjunction with the management's discussion and analysis and Financial Statements and notes thereto as at and for the nine-month period ended September 30, 2026 and Saltire's Annual Information Form for the year ended December 31, 2025 dated April 1, 2026.

Additional information about Saltire, including with respect to the risk factors that should be taken into consideration when reading this press release and the Forward-Looking Statements, is available on Saltire's profile on SEDAR+ at www.sedarplus.ca.

SOURCE Saltire Capital Ltd.