• Dorel Juvenile delivers resilient third quarter financial results amid market challenges
• Dorel Home restructuring on plan
• New financing arrangements in place strengthen Company’s financial position

Montréal, November 7, 2025 — Dorel Industries Inc. (TSX: DII.B, DII.A) today announced its financial results for the third quarter and nine months ended September 30, 2025.

Third quarter revenue was US$298.6 million, compared to US$354.2 million, a decrease of 15.7% from the same period a year ago. Reported net loss was US$47.4 million or US$1.45 per diluted share, compared to US$21.9 million or US$0.67 per diluted share last year. Adjusted net loss¹  for 2025 was US$29.8 million or US$0.91 per diluted share as compared to US$20.2 million or US$0.62 per diluted share last year.
 
Revenue for the nine months was US$911.4 million, compared to US$1,053.4 million, a decrease of 13.5% from the prior year. Reported net loss was US$117.6 million or US$3.60 per diluted share, compared to US$99.0 million or US$3.04 per diluted share a year ago. Adjusted net loss¹ for the first nine months of 2025 was US$74.6 million or US$2.28 per diluted share as compared to US$50.7 million or US$1.56 per diluted share a year ago.

“The third quarter ended with our significant agreement with new financial partners that will fund our strategic agenda, in accelerating the growth of the Juvenile segment and executing the repositioning of the Home segment. The lack of liquidity prior to these agreements seriously impeded our ability to develop and bring new products to market. This was most acute in the Home segment, but as the quarter progressed it also delayed key product development initiatives in Juvenile, a problem that has now been resolved. This internal challenge was compounded by external pressures, particularly in the U.S. where tariff uncertainty and higher retail price points are creating a slowing retail environment. Despite this, Dorel Juvenile delivered a quarter characterized by stable revenue as strong international performance, led by our European operations, offset softness in the U.S. These results again demonstrated the strength of our global footprint and our commitment to building a more agile and competitive business. Dorel Home progressed on its restructuring plan, including the cessation of manufacturing operations, further workforce and footprint reductions and aggressive inventory liquidation,” stated Dorel President & CEO, Martin Schwartz.

Dorel Juvenile

For the third quarter of 2025, Dorel Juvenile reported revenue of US$220.2 million, a decline of 0.8% versus the same period last year. Revenue growth in Europe and International markets like Australia, Canada, and Export, was robust with a total increase of 9.6% in the quarter versus the prior year. This was more than offset by softer sales in the U.S. which was impacted by tariff-related pricing instability and cautious retailer behaviour. Organic revenue¹ for the Juvenile segment declined by 3.0%, after removing the impact of foreign exchange rate fluctuations year-over-year. 

As in the quarter, year-to-date revenue growth in Europe and International markets offset challenges in the U.S. with total segment year-to-date revenue of US$654.2 million, an increase of US$3.0 million, or 0.5%, from US$651.2 million in 2024. The year-to-date organic revenue¹ increase was approximately 0.1%, with International and Europe growing 10.3% year-to-date, offsetting declines in the U.S.

Liquidity issues in the quarter began to affect the new product roadmap as the launch of several new products was delayed. In the U.S. market this was compounded by the impact of tariffs creating market instability. Key retail partners adjusted their ordering behavior in response to pricing uncertainty and shifting cost structures. Core categories such as car seats, strollers, and travel systems remained important, but were affected by softer demand and tighter retailer inventory. Dorel Juvenile remains well positioned relative to its competitors with its domestic manufacturing facilities, however this opportunity did not positively impact the third quarter as retailers were extremely cautious. As major retailers adjust their supply chain choices as tariffs evolve, the stability of domestic manufacturing presents opportunities for domestically produced items versus imports.

Gross margin dollars and operating expenses for the quarter were broadly flat year-over-year resulting in an operating profit of US$4.9 million compared to US$7.2 million in 2024.  Excluding restructuring costs, adjusted operating profit¹ for the quarter was US$6.6 million, a decline of 17.3% from US$7.9 million the prior year. Year-to-date reported operating profit, including restructuring costs was US$14.4 million compared to US$14.0 million the prior year. Year-to-date adjusted operating profit¹ was US$18.6 million, an increase of 16.7% versus the prior year. Similarly to the split of revenue, operating profit declines in the U.S were more than offset by earnings in the remaining markets.

Dorel Home 

Third quarter revenue was US$78.3 million, a decrease of US$53.8 million, or 40.7%, from US$132.1 million last year. Dorel Home is being substantially reduced in size through the intentional reduction of active SKUs that are now considered non-core. In addition, sales were impacted by product availability issues, compounded by most customers holding orders due to the uncertainty of tariff rates on imports from Asia. As was the case in the second quarter, the marked decline in revenue in the third quarter was most acute in the e-commerce channel as this channel is being de-emphasized in the go-forward business model. Year-to-date revenue was US$257.3 million, a decrease of US$144.9 million, or 36.0%, compared to last year.

Gross profit for the third quarter decreased by US$16.0 million compared to last year’s third quarter. The current year amount includes restructuring costs, consisting mainly of inventory write-downs, as part of the Home segment’s restructuring program to exit non-profitable items and reduce its overall distribution footprint. Adjusted gross profit¹ excluding these amounts decreased by US$5.7 million and was primarily due to lower sales volumes on imported products, which more than offset the benefits of lower overhead, and a reduced domestic operations loss. Operating expenses were significantly reduced for the quarter at US$8.1 million versus US$15.6 million in the prior year’s quarter, a direct result of the restructuring activities since December of last year.

As a result, the adjusted operating loss¹ for the quarter was US$10.2 million, compared to US$12.0 million in the same period last year. Reported operating loss for the quarter, including restructuring costs was US$25.6 million compared to US$13.2 million the prior year. Year-to-date reported operating loss, including restructuring costs was US$72.3 million compared to US$70.4 million the prior year. Year-to-date adjusted operating loss¹ was US$34.0 million compared to US$23.8 million the prior year. 

Liquidity issues in the quarter became more acute and prevented the segment from launching new items that were on the new product pipeline. As such sales were limited to existing items and the sale of items that are being eliminated from the product portfolio in the long term. This situation was worsened by the business environment created by new and evolving tariffs announced since the start of the year, which affected sourcing and pricing strategies.

Restructuring Update

During the quarter, manufacturing ceased at the Cornwall, Ontario facility as part of a broader transition to a leaner organization with a reduced product line, focused on profitable categories. In addition, the segment exited its California warehouse at the end of the quarter and shipments are now managed out of a much smaller space at the Juvenile segment’s facility in nearby Fontana, California. At the end of October, the same occurred at the segment’s Montreal facility with Dorel Home occupying a small portion of a new Juvenile warehouse. Both moves were facilitated by the active reduction of inventory levels of non-core go forward items. 

Work is on-going on the integration of back-office administrative functions and systems into Dorel Juvenile and the Company remains on track to complete its transition with a go-live date planned in the fourth quarter. At the end of the third quarter North American non-manufacturing headcount has been reduced from approximately 470 employees to 240 employees. By year end this figure is expected to be further reduced to approximately 160 employees, with a permanent run rate of approximately 100 employees by the second quarter of 2026. This will be split evenly between Juvenile managed distribution/support functions, with a core Home segment team focused on sales, marketing and product development.

In connection with these activities, the Home segment recorded total restructuring costs of US$15.4 million, of which US$11.1 million was for write-downs on discontinued inventory items, grouped in cost of sales, and US$4.3 million was for accrued employee severance and termination costs. 

New Credit Facilities and Issue of Preferred Shares

As announced on September 29, 2025, the Company entered into a new financing agreement with a group of lenders led by affiliates of TCW Asset Management Company LLC (“TCW”), that includes senior secured credit facilities in an amount up to US$310.0 million, consisting of a US$175.0 million senior secured asset based revolving credit facility subject to a borrowing base, of which US$110.0 million was drawn at the closing of the transaction, and a US$135.0 million term loan facility. In connection with the term loan, the Company issued warrants to TCW and certain other lenders under the credit facilities in an amount equal to 5% of the number of Dorel’s outstanding shares on a fully diluted basis, representing 1,877,408 warrants (the “Lender Warrants”). Each Lender Warrant entitles the holder thereof to acquire one Class “Bˮ Share at an exercise price of CAD$0.01 per Lender Warrant for a period of seven years.  

Also, as announced on September 29, 2025, the Company entered into an agreement with Alberta Investment Management Corporation (“AIMCoˮ) for a private placement of 3,000,000 preferred shares issued for a total amount of US$75.0 million. The preferred shares have an initial annual dividend yield of 17%, paid quarterly. In connection with the issuance of the preferred shares, the Company issued warrants to AIMCo (the “AIMCo Warrants”) in an amount equal to 8% of the number of Dorel’s outstanding shares on a fully diluted basis, representing 3,003,853 AIMCo Warrants. Similar to the Lender Warrants, each of the AIMCo Warrants entitles the holder thereof to acquire one Class “Bˮ Share at an exercise price of CAD$0.01 per AIMCo Warrant for a period of seven years.

The Company used the proceeds from the new credit facilities and preferred shares to repay in full Dorel’s previous senior secured debt, to pay for certain restructuring costs of Dorel’s Home segment and for working capital purposes. The new credit facilities and the proceeds from the preferred shares re-capitalized Dorel’s financial position and the Company now believes to be well positioned to advance its strategic agenda, particularly in accelerating the growth of the Juvenile segment and executing the repositioning of the Home segment.

In connection with the repayment of Dorel’s previous senior secured debt, the Company recorded a loss on extinguishment of debts in the amount of US$9.7 million mainly explaining the increase in finance expenses for both the quarter and year-to-date periods.

Dorel to Launch Normal Course Issuer Bid

Dorel also announced today that the Toronto Stock Exchange (“TSX”) has approved Dorel’s normal course issuer bid (“NCIB”). Under the NCIB, Dorel may purchase for cancellation a maximum of 1,643,612 Class “B” Shares, representing 10% of the 16,436,129 Class “B” Shares forming the public float as at October 30, 2025. The shares may be purchased through the facilities of the TSX and on alternative trading systems in Canada over the twelve-month period from November 12, 2025 to November 11, 2026. As of October 30, 2025, Dorel had 28,530,351 Class “B” Shares issued and outstanding.

Any shares purchased by Dorel under the NCIB will be at the market price of the shares at the time of such purchases. The actual number of Class B Shares that may be purchased and the timing of any such purchases will be determined by Dorel. Any purchases made by Dorel pursuant to the NCIB will be made in accordance with the rules and policies of the TSX. TSX rules permit Dorel to purchase daily, through TSX facilities, a maximum of 6,862 Class B Shares under the NCIB, representing 25% of the average daily trading volume of 27,450 Class B Shares on the TSX over the last six calendar months, subject to an exception for a “block purchase” on the TSX once per calendar week. Dorel has not repurchased any Class B Shares during the last twelve months.

The Board of Directors of Dorel believes that, at appropriate times, repurchasing its shares through the NCIB represents a good use of Dorel’s financial resources, as such action can protect and enhance shareholder value when opportunities arise.

In connection with the NCIB, Dorel has entered into an automatic share purchase plan with TD Securities Inc. in order to allow for purchases under the NCIB during Dorel’s “black-out” periods, as permitted by the TSX Company Manual and the Securities Act (Québec). Outside of these “black-out” periods, Dorel may repurchase shares at its discretion.

Outlook 

“The outlook for Dorel Juvenile remains very positive and our resilience to a difficult environment is evident in our results thus far this year. We remain confident in Dorel Juvenile’s ability to navigate ongoing market challenges and capitalize on growth opportunities across our global footprint. As we look to the fourth quarter, we expect further improvement in our U.S. business, which coupled with our other markets, gives us confidence that we deliver results that will well exceed prior year,” commented Dorel President & CEO, Martin Schwartz.

“In the Home segment, our focus remains firmly on executing the transformation of the segment into a leaner, more agile organization. We are confident that the structural changes underway, including back-office integration with Dorel Juvenile, inventory liquidation, and facility consolidation, will position us for improved financial performance in 2026. For both our segments, while the retail environment remains challenging, and tariff pressures persist, we are actively working with our key customers and suppliers to stabilize pricing, rebuild trust, and re-establish momentum. Our team’s resilience and commitment throughout this transition give us confidence that we will enter the new year with a strong foundation to deliver significantly improved earnings,” concluded Mr. Schwartz.

Conference Call

Dorel Industries Inc. will hold a conference call to discuss these results on Monday, November 10, 2025 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 8354761 on your phone. This recording will be available on Monday, November 10, 2025 as of 2:30 PM until 11:59 PM on Monday, November 17, 2025. 

Unaudited condensed consolidated interim financial statements as of September 30, 2025 will be available on the Company's website, www.dorel.com, and will be available through the SEDAR+ website.

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^{(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.}