• Dorel Juvenile reports solid second quarter results supported by international market strength
• Dorel Home further reduces overhead structure focusing on the profitable Cosco division 

Montréal, August 5, 2026 — Dorel Industries Inc. (TSX: DII.B, DII.A) today announced its financial results for the second quarter and six months ended June 30, 2026. 

Second quarter revenue was US$249.5 million, compared to US$292.4 million, a decrease of 14.7% from the same period a year ago. Reported net loss was US$42.5 million or US$1.23 per diluted share, compared to US$44.9 million or US$1.38 per diluted share last year. Adjusted net loss1 was US$23.5 million or US$0.68 per diluted share compared to US$21.1 million or US$0.65 per diluted share last year.
  
Revenue for the six months was US$517.3 million, compared to US$612.8 million, down 15.6% from the prior year. Reported net loss was US$67.4 million or US$1.96 per diluted share, compared to US$70.2 million or US$2.15 per diluted share a year ago. Adjusted net loss1 for the six months was US$45.8 million or US$1.33 per diluted share, compared to US$44.8 million or US$1.37 per diluted share last year.

“Dorel Juvenile delivered a resilient second quarter, supported by strong international performance and continued momentum in its premium brands. The segment continued to improve underlying operating performance, with growth across several key international markets, despite aggressive promotional activity by direct competitors in the United States affecting sales. Ongoing investment in innovation, consumer engagement and commercial execution continues to reinforce Dorel Juvenile’s ability to navigate market challenges while strengthening its foundation for long-term profitable growth,” stated Dorel President & CEO, Martin Schwartz.

“As announced with our first quarter results, Dorel Home required a further reduction in its overhead structure. During the quarter, we advanced a new business model centred on Cosco product categories. In addition, our European furniture distribution company, Notio, will continue to supply key large retailers with select furniture SKUs. Although this transition resulted in a reduction in revenue in the quarter, we are very pleased that the Cosco business performed in line with expectations and was profitable under the new operating model,” added Mr. Schwartz.

Dorel Juvenile

Second quarter revenue was US$209.7 million, a decrease of 3.9% versus last year. Organic revenue1 decreased by 6.8%, after removing the impact of varying foreign exchange rates year-over-year. In the U.S. the main driver of the revenue decline was primarily due to aggressive discounting by market competition, which impacted order levels for Dorel. This revenue decline was partially offset by the double-digit revenue improvements in Australia, Brazil, Export markets and Canada which was across most brands and product categories. Year-to-date segment revenue was US$432.4 million compared to US$433.9 million in the prior year, representing a decrease of 0.3%. The year-to-date organic revenue1 decrease was approximately 4.7%. As for the quarter, the cause of the decrease was the U.S. market.

Adjusted operating profit1 for the quarter was US$5.1 million, US$2.7 million lower than the prior year. However, underlying operating performance continued to improve during the quarter as the prior year’s results included a significant benefit from foreign exchange gains. Excluding foreign exchange variations year-over-year, adjusted operating profit1 for the quarter improved by approximately US$4.0 million. The revenue growth in smaller markets translated into strong earnings contributions with Brazil, Australia, Canada and Export markets adjusted operating profit1 increasing by a combined 62% versus prior year. Year-to-date adjusted operating profit1 was US$10.4 million, a decrease of US$1.7 million or 13.8% versus prior year. As for the quarter, excluding foreign exchange variations, adjusted operating profit1 year-to-date improved by approximately US$7.9 million. 

 
Dorel Home

Second quarter revenue was US$39.8 million, a decrease of US$34.5 million, or 46.4%, from US$74.3 million last year. The decision to exit certain product categories and channels of distribution was the main driver of the decline. The adjusted operating loss1 for the quarter was US$6.5 million, compared to US$12.7 million in the same period last year. Six-month revenue was US$84.9 million, a decrease of US$94.0 million, or 52.6%, from US$178.9 million last year. Year-to-date adjusted operating loss1 was US$11.4 million versus US$23.9 million in the prior year. While a significant year-over-year improvement, the impact from the lower sales volume outweighed the benefit of a lower cost structure that was part of the prior years’ restructuring program.

The combination of softer consumer demand, industry-wide pricing pressure, tariffs and liquidity constraints experienced in 2025 accelerated the need for further change. In response, the Company initiated additional actions to restructure and stabilize Dorel Home. The plan is focused on preserving liquidity, reducing fixed costs, simplifying the organization and rebuilding the segment around its most viable businesses, including:

• the Cosco branded product line, including step stools, ladders, hand trucks and folding furniture;
• youth furniture, integrated within the Dorel Juvenile platform; and
• Notio, Dorel’s Europe-based furniture operations, complemented by select furniture items to be sold in North America.

Second-quarter results reflect this transition to a Cosco-focused business, with that product line accounting for approximately 88% of North American sales. The Cosco business model relies heavily on direct shipment sales to major retailers and eliminates the need for a substantial distribution footprint and will facilitate further reductions in warehouse space. However, despite much lower operating costs than prior year, excess warehousing space and the write-down of non-go forward inventories were the principal cause of losses in the quarter.

Restructuring

As a result of this decision, the Home segment second quarter results include non-cash restructuring costs of US$17.4 million primarily for the write-down of inventory and impairment on right-of-use assets. The write-down of inventory reflects the objective of aggressively moving items that are not part of the future business, allowing for the exit of excess distribution facilities. Headcount reductions continued in the quarter and in addition to the amounts recorded in the Home segment, the Juvenile segment eliminated certain positions, part of which was a result of the further merging of functions between the two segments. As a result, Juvenile results include restructuring costs of US$1.5 million primarily for severance.

Outlook

“Dorel Juvenile enters the second half of 2026 confident in its strategic priorities and the strength of its global platform. Building on solid performance in key international markets, the Company expects improved earnings in both the U.S. and Europe, supported by new product launches beginning in the fourth quarter of this year. As an early indicator, U.S. sales improved in July, and we expect that trend to continue. Dorel Juvenile remains focused on sustainable, profitable growth while further strengthening its position as a global leader in juvenile products,” commented Mr. Schwartz.

“Dorel Home remains focused on executing its transformation strategy and building a simpler, more agile and financially sustainable business. Supported by the continued profitability of Cosco and a stable European operation expected to contribute positively to earnings, the Company is focused on eliminating legacy costs and scaling its most profitable platforms,” concluded Mr. Schwartz.

Conference Call

Dorel Industries Inc. will hold a conference call to discuss these results on Thursday, August 6, 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 calling1-855-669-9658 and entering the passcode 6187551 on your phone. This recording will be available on Thursday, August 6, 2026 as of 2:30 PM until 11:59 PM on Thursday, August 13, 2026. 

Unaudited condensed consolidated interim financial statements as at June 30, 2026 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$1.1 billion and employs approximately 2,900 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_Q2-26PR_ENG_FINAL
DII_Q2-26PR_FR_FINAL 

 

[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.