• Dorel Juvenile completes third consecutive year of earnings improvements 
• Dorel Home restructuring near completion

Montréal, March 10, 2026 — Dorel Industries Inc. (TSX: DII.B, DII.A) today announced its financial results for the quarter and full year ended December 30, 2025.

Fourth quarter revenue was US$278.9 million, compared to US$326.8 million in the same period a year ago, a decrease of 14.7%. Reported net loss was US$24.6 million, or US$0.76 per diluted share, compared to US$73.0 million, or US$2.24 per diluted share, last year. Adjusted net loss¹  for 2025 was US$11.2 million, or US$0.35 per diluted share, compared to US$59.2 million, or US$1.82 per diluted share, last year.
 
Revenue for the year was US$1,190.4 million, compared to US$1,380.2 million in the prior year, a decrease of 13.8%. Reported net loss was US$142.2 million, or US$4.37 per diluted share, compared to US$172.0 million, or US$5.28 per diluted share, a year ago. Adjusted net loss¹ for the year was US$85.8 million, or US$2.63 per diluted share, compared to US$109.8 million, or US$3.37 per diluted share, a year ago.

“Dorel Juvenile delivered a strong performance in 2025, demonstrating resilience amid ongoing tariff-related pressure in the U.S. and mixed market conditions globally. While these external factors moderated revenue growth, improved margins and disciplined cost management contributed to an 84.7% increase in adjusted operating profit¹ for the year. Fourth quarter results were marked by a return to growth in the U.S., coupled with exceptional results in Europe and across several international markets. Innovation across core categories, particularly rotating car seats and Maxi Cosi products, continued to support the segment’s competitive positioning. These results underscore the benefits of Dorel Juvenile’s diversified geographic footprint and the segment’s ability to execute in a challenging operating environment.”

“Due to the ongoing downsizing of operations, Dorel Home operated in a lower sales environment during the fourth quarter, reflecting constrained product availability, deliberate SKU rationalization, and the final stages of its restructuring plan. Notwithstanding these pressures, the segment advanced its operational initiatives, including cost reductions associated with facility closures, workforce reductions, and administrative consolidation. Adjusted operating loss¹ improved year over year in the quarter, reflecting the benefit of a reduced cost base. With the conclusion of our major restructuring activities and the disposition of non core inventory near complete, Dorel Home enters 2026 with a streamlined operating footprint and a simplified business model intended to support improved execution and performance,” stated Dorel President & CEO, Martin Schwartz.

Dorel Juvenile 

For the fourth quarter of 2025, Dorel Juvenile reported revenue of US$226.8 million, an increase of 6.6% compared to the same period last year. Revenue growth was recorded across the U.S., European and International markets. Organic revenue¹ for the segment increased by 2.2% after removing the impact of year over year foreign exchange rate fluctuations. The U.S. market delivered revenue growth in the quarter, reversing the trend experienced earlier in the year, driven by market share gains and strong car seat performance supported by the Columbus, Indiana manufacturing facility. Revenue in Europe also increased despite an overall market decline, reflecting continued market share gains in this key region.

For the year, revenue increased by 2%, with growth in the European and International divisions more than offsetting challenges in the U.S. marketplace. Organic revenue¹ for the year was essentially flat, with growth in International and Europe offsetting declines in the U.S.

Reported operating profit for the quarter was US$14.6 million compared to US$1.6 million in 2024. Excluding restructuring costs, adjusted operating profit¹ for the quarter was US$15.2 million, an increase of US$12.8 million versus the prior year. Full year reported operating profit was US$29.0 million compared to US$15.6 million the prior year. Full year adjusted operating profit¹ was US$33.8 million compared to US$18.3 million the prior year, an increase of 84.7%.

Improved gross margins and lower operating costs were key contributors to the stronger earnings performance for both the quarter and the full year. Management’s continued emphasis on cost containment, portfolio discipline, and an improved product and sales mix also supported the increase in earnings. Ongoing investment in product innovation and new product introductions contributed to performance relative to market trends across the Company’s geographies. During the quarter, tariff conditions in the U.S. market remained stable, with prior adjustments continuing to influence category demand and retailer purchasing behaviour. Supplier collaboration remained important in supporting product launches and mitigating cost pressures.

Dorel Home

Fourth quarter revenue was US$52.1 million, a decrease of US$61.9 million, or 54.3%, from US$114.0 million last year. The ongoing downsizing of operations contributed to the lower sales. Inventory availability was also limited to start the quarter, despite improved liquidity conditions following the company-wide refinancing at the end of the third quarter. The time required to normalize supplier payments, re-start ordering and ramp-up production of both new and existing items, meant that many go-forward inventory items were not in-stock during the quarter. For the year, revenue was US$309.4 million versus US$516.2 million in 2024, a decrease of US$206.8 million, or 40.1%.

The quarter marked the conclusion of the most significant elements of Dorel Home’s restructuring program, including the exit of major warehousing and manufacturing sites in Ontario, California, Montréal, Québec and Cornwall, Ontario; the closure of administrative offices in Wright City, Missouri and Asheville, North Carolina; and the migration of ongoing operations to the Juvenile back office ecosystem. Warehousing has been consolidated within Juvenile’s network, and sublease efforts are underway for excess capacity remaining in Savannah, Georgia and Cornwall, Ontario.

Adjusted gross margin1, both in dollars and percentage were down versus prior year as lower sales volume offset the benefits of lower overhead costs, which in North America were US$5.0 million in the fourth quarter of 2025 versus US$12.4 million in the prior year. For the segment, operating expenses were also lower in 2025 at US$7.6 million versus US$13.5 million in the prior year as facility closures, staffing reductions, and administrative consolidation took effect.

Despite the much lower cost structure now in place, lower sales resulted in a reported operating loss for the quarter of US$21.6 million compared to US$25.0 million in 2024. Excluding restructuring costs, adjusted operating loss¹ for the quarter was US$8.8 million, an improvement from US$11.7 million in the prior year. Full year reported operating loss was US$93.9 million compared to US$95.3 million the prior year. Full year adjusted operating loss¹ was US$42.8 million compared to US$35.4 million the prior year. 

Outlook

“As we enter 2026, we remain focused on building on Dorel Juvenile’s momentum while managing continued market uncertainty. Priorities include operational efficiency, strengthened supplier partnerships, and continued investment in product innovation. While volatility is expected to persist in the U.S. and in certain Latin American markets, the Company’s diversified international footprint and disciplined execution provide important sources of resilience. We expect 2026 to continue the trend of year-over-year earnings improvement,” commented Dorel President & CEO, Martin Schwartz.

“At Dorel Home, we remain focused on completing the final stages of our transformation and cementing the foundations of a more efficient operating model. With the principal restructuring actions mostly completed and the cost structure materially reduced, we are positioned to focus on stabilizing the business and improving execution. Key priorities include completing the sell through of remaining non core inventory, completing the integration within the Juvenile operational ecosystem, and re-igniting our everyday living furniture business alongside our successful Cosco folding furniture product lines. As we start 2026, we continue to drive down legacy costs and the ramp-up is slow on our traditional furniture product portfolio. As such, earnings improvements are expected as 2026 progresses,” concluded Mr. Schwartz.

Conference Call

Dorel Industries Inc. will hold a conference call to discuss these results on Wednesday, March 11, 2026 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 7179497 on your phone. This recording will be available on Wednesday, March 11, 2026 as of 2:30 PM until 11:59 PM on Wednesday, March 18, 2026. 

Consolidated financial statements as at December 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 and brick-and-mortar distribution network, markets a wide assortment of furniture. Dorel has annual sales of US$1.2 billion and employs approximately 3,000 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 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.

DII_Q4-25PR_ENG_FINAL (.pdf)
DII_Q4-25PR_FR_FINAL (.pdf)

^{(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.}