• Dorel Juvenile earnings improvement from international growth and disciplined cost management
• Dorel Home reports quarterly operating profit for the first time in over four years
• Company reports substantially lower net losses for the quarter and year-to-date periods

MONTRÉAL, Nov. 09, 2026 (GLOBE NEWSWIRE) -- Dorel Industries Inc. (TSX: DII.B, DII.A) today announced its financial results for the third quarter and nine months ended September 30, 2026.

Third quarter revenue was US$276.1 million, compared with US$298.6 million in the same period last year, a decrease of 7.5%. Reported net loss improved to US$3.5 million, or US$0.10 per diluted share, from US$47.4 million, or US$1.45 per diluted share, last year. Adjusted net loss¹ was US$13.3 million, or US$0.39 per diluted share, compared with US$29.8 million, or US$0.91 per diluted share, last year.

For the nine months, revenue was US$793.4 million, compared with US$911.4 million last year, a decrease of 12.9%. Reported net loss improved to US$70.9 million, or US$2.06 per diluted share, from US$117.6 million, or US$3.60 per diluted share. Adjusted net loss¹ was US$59.1 million, or US$1.72 per diluted share, compared with US$74.6 million, or US$2.28 per diluted share, last year.

“Dorel Juvenile delivered a strong improvement in third-quarter earnings despite continued pressure in the U.S. market and foreign-exchange headwinds. Europe and our international markets performed well, while disciplined cost management offset much of the impact of softer U.S. demand. The quarter also continued to demonstrate the strength of our global footprint, commercial momentum and industry-leading product innovation,” stated Dorel President and CEO Martin Schwartz.

“At Dorel Home, the restructuring program is producing meaningful results. Although revenue declined as we intentionally reduced non-core SKUs and resized the operation, gross margin and operating results improved substantially. The segment delivered an operating profit for the first time since the second quarter of 2022. We remain focused on completing the repositioning and establishing a smaller, more efficient and sustainable operating structure,” added Mr. Schwartz.

_{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.}

Third quarter revenue was US$221.9 million, an increase of US$1.7 million, or 0.8%, compared with the same period last year. Organic revenue¹ increased by 0.2% after excluding the year-over-year impact of foreign exchange rates. For the nine months, segment revenue was US$654.4 million, essentially flat with US$654.2 million last year, while organic revenue¹ decreased by approximately 3.1%.

Segment revenue is distributed evenly across three regions: the U.S., Europe and other international markets, reflecting the growing importance of markets outside the U.S. Europe remains a strong contributor, and innovation originating there is supporting growth across many international markets. This geographic diversification helps offset continued softness in the U.S., where consumer demand remained under pressure and the promotional environment was highly competitive.

Adjusted operating profit¹ for the quarter was US$12.1 million, compared with US$6.6 million last year, an increase of US$5.5 million, or 84.9%. During the quarter, the segment recorded a US$6.1 million benefit in cost of sales related to refunds under the International Emergency Economic Powers Act (IEEPA). The Company used this benefit to support promotional activities in a highly competitive environment and to offset the year-over-year negative impact of foreign exchange rate variations. Operating costs decreased by US$3.9 million in the quarter and US$8.0 million year to date.

In September, Dorel Juvenile hosted its Global Customer Event in Cologne, Germany, welcoming more than 600 customers and colleagues from around the world for three and a half days of training, customer engagement and product showcases across its global brand portfolio. New product highlights included the complete Oxford family of strollers (Cabin, Flex and Flash) and a new Maxi-Cosi feeding category, supported by launch presentations and the “Walk your way” consumer proposition. Retailer response was strong, with 88.0% of retail partners rating the event 8 out of 10 or higher, reinforcing commercial relationships and supporting future innovation, retail engagement and brand growth.

Third quarter revenue declined by US$24.2 million, or 30.9%, to US$54.1 million from US$78.3 million last year. The decrease reflects the planned reduction of active non-core SKUs as the operation continues to be resized. For the nine months, revenue was US$139.0 million, compared with US$257.3 million last year.

The segment recorded adjusted operating profit¹ of US$1.7 million for the quarter, its first quarterly adjusted operating profit¹ since the second quarter of 2022. This compares with an adjusted operating loss¹ of US$10.2 million last year, an improvement of US$11.9 million. For the nine months, adjusted operating loss¹ improved to US$9.7 million from US$34.0 million last year. Third quarter results included a US$3.6 million benefit related to IEEPA tariff refunds.

As detailed in the second quarter earnings release, Dorel Home’s new business model is focused on the Cosco branded product line, with Dorel Home Europe absorbing select North American furniture SKUs for key customers. Cosco recorded its highest quarterly sales since the first quarter of 2025, supported by successful promotions and improved engagement with key retail customers. The segment continued to clear legacy inventory and prepare for a smaller North American distribution footprint. In Europe, demand remained soft, although performance improved at selected accounts and management continued to pursue targeted promotions and assortment expansion.

Excluded from adjusted operating profit¹ in the quarter was a net restructuring benefit of US$10.6 million, principally related to a gain on the sale of an idle facility in Tiffin, Ohio, for net proceeds of approximately US$12.5 million.

Other

On September 30, 2026, the Company amended its financing agreement. As at that date, the Company was compliant with all financial and other customary covenants and classified its loans under the senior secured asset-based revolving credit facility and term loan facility as long-term. Total financing costs consist of both cash and non-cash items, as detailed in the Company’s public disclosures. Of the US$22.0 million recorded in the third quarter, US$13.2 million was non-cash and year-to-date amounts were US$57.2 million and US$24.9 million, respectively.

Outlook

“Looking ahead, we expect market conditions in the United States to remain difficult through the fourth quarter with continued pressure on consumer demand, retailer ordering patterns and competitive pricing. Outside the United States, we remain encouraged by the performance of our European and international businesses, supported by strong customer relationships and a promising pipeline of innovative new products and we have made several strategic changes within the segment to deliver those same benefits to the U.S. market. Additionally, we will continue to take a disciplined approach to pricing, cost management and inventory, while working closely with our retail partners to strengthen our competitive position,” commented Mr. Schwartz.

“At Dorel Home, the priority is continued execution of the transformation plan. We are concentrating the business on its strongest platforms, eliminating costs around our excess warehouse footprint and maintaining discipline around inventory, working capital and cash management. We are encouraged by the momentum at Cosco and expect it to continue, driving the turnaround of Dorel Home’s new business model. Across Dorel, our teams are operating with focus and accountability. While the external environment remains uncertain, the third quarter demonstrated that the actions we are taking are producing tangible improvements in profitability and operating discipline,” concluded Mr. Schwartz.

Conference Call

Dorel Industries Inc. will hold a conference call to discuss these results on Tuesday, November 10, 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 8505313 on your phone. This recording will be available on Tuesday, November 10, 2026 as of 2:30 PM until 11:59 PM on Tuesday, November 17, 2026.

Unaudited condensed consolidated interim financial statements as at September 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 2,800 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.

All figures in the tables below are in thousands of US $, except per share amounts.

Definition and Reconciliation of Non-GAAP Financial Ratios and Measures

Dorel presents in this press release certain non-GAAP financial ratios and measures, as described below. These non-GAAP financial ratios and measures do not have a standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to similar measures presented by other issuers. These non-GAAP financial ratios and measures should not be considered in isolation or as a substitute for a measure prepared in accordance with IFRS. Contained within this press release are reconciliations of the non-GAAP financial ratios and measures to the most directly comparable financial measures calculated in accordance with IFRS.

Dorel believes that the non-GAAP financial ratios and measures used in this press release provide investors with additional information to analyze its results and to measure its financial performance by excluding the variation caused by certain items that Dorel believes do not reflect its core business performance and provides better comparability between the periods presented. Excluding these items does not imply they are necessarily non-recurring. The non-GAAP financial measures are also used by management to assess Dorel's financial performance and to make operating and strategic decisions.

Adjustments to non-GAAP financial ratios and measures
As noted above, certain of our non-GAAP financial measures and ratios exclude the variation caused by certain adjustments that affect the comparability of Dorel’s financial results and could potentially distort the analysis of trends in its business performance. Adjustments which impact more than one non-GAAP financial ratio and measure are explained below.

Restructuring costs
Restructuring costs are comprised of costs directly related to significant exit activities, including the sale of manufacturing facilities, closure of businesses, reorganization, optimization, transformation, and consolidation to improve the competitive position of the Company in the marketplace and to reduce costs and bring efficiencies, and acquisition-related costs in connection with business acquisitions. Restructuring costs are included as an adjustment of adjusted gross profit, adjusted gross margin, adjusted operating profit (loss), adjusted net income (loss) and adjusted diluted earnings (loss) per share. Restructuring gains of US$9.8 million and costs of US$11.7 million were recorded for the three and nine months ended September 30, 2026, respectively (2025 – costs of US$17.6 million and US$43.0 million). From this amount, restructuring gains of US$2.1 million and costs of US$15.9 million were recorded within cost of sales for the three and nine months ended September 30, 2026 (2025 – costs of US$11.1 million and US$24.7 million). Refer to the section “Restructuring (gains) costs” in the MD&A for more details.

Adjusted gross profit and adjusted gross margin
Adjusted gross profit is calculated as gross profit excluding the impact of restructuring costs. Adjusted gross margin is a non-GAAP ratio and is calculated as adjusted gross profit divided by revenue. Dorel uses adjusted gross profit and adjusted gross margin to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. Dorel also uses adjusted gross profit and adjusted gross margin on a segment basis to measure its performance at the segment level. Dorel excludes this item because it affects the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use the adjusted gross profit and adjusted gross margin to measure the business performance of the Company as a whole and at the segment level from one period to the next, without the variation caused by the impact of the restructuring costs. Excluding this item does not imply it is necessarily non-recurring. These ratios and measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to a similar measure presented by other companies.

Adjusted operating profit (loss)
Adjusted operating profit (loss) is calculated as operating profit (loss) excluding the impact of restructuring costs. Adjusted operating profit (loss) also excludes impairment loss on goodwill. Management uses adjusted operating profit (loss) to measure its performance from one period to the next, without the variation caused by the impact of the items described above. Dorel also uses adjusted operating profit (loss) on a segment basis to measure its performance at the segment level. Dorel excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use the adjusted operating profit (loss) to measure the business performance of the Company as a whole and at the segment level from one period to the next, without the variation caused by the impact of the restructuring costs and impairment loss on goodwill. Excluding these items does not imply they are necessarily non-recurring. This measure does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to a similar measure presented by other companies.

Adjusted net income (loss) and adjusted diluted earnings (loss) per share
Adjusted net income (loss) is calculated as net income (loss) excluding the impact of restructuring costs and impairment loss on goodwill, as well as income taxes expense (recovery) relating to the adjustments above. Adjusted diluted earnings (loss) per share is a non-GAAP ratio and is calculated as adjusted net income (loss) divided by the weighted average number of diluted shares. Management uses adjusted net income (loss) and adjusted diluted earnings (loss) per share to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. Dorel excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use the adjusted net income (loss) and adjusted diluted earnings (loss) per share to measure the business performance of the Company from one period to the next. Excluding these items does not imply they are necessarily non-recurring. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to a similar measure presented by other companies.

Organic revenue growth (decline) and adjusted organic revenue growth (decline)
Organic revenue growth (decline) is calculated as revenue growth (decline) compared to the previous period, excluding the impact of varying foreign exchange rates. Adjusted organic revenue growth (decline) is calculated as revenue growth (decline) compared to the previous period, excluding the impact of varying foreign exchange rates and the impact of the acquired businesses for the first year of operation and the sale of divisions. Management uses organic revenue growth (decline) and adjusted organic revenue growth (decline) to measure its performance from one period to the next, without the variation caused by the impacts of the items described above. Dorel excludes these items because they affect the comparability of its financial results and could potentially distort the analysis of trends in its business performance. Certain investors and analysts use organic revenue growth (decline) and adjusted organic revenue growth (decline) to measure the business performance of the Company as a whole and at the segment level from one period to the next. Excluding these items does not imply they are necessarily non-recurring. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to a similar measure presented by other companies.