Mr. Ali Mahdavi reports

DOMAN BUILDING MATERIALS GROUP LTD. REPORTS 2025 FINANCIAL RESULTS

Doman Building Materials Group Ltd. has released its fourth quarter (Q4) and full year 2025 financial results (1) for the period ended Dec. 31, 2025.

Full year 2025 financial highlights (1):

• Revenues of $3.1-billion;
• Gross margin at 16.2 per cent;
• EBITDA (earnings before interest, taxes, depreciation and amortization) (3) amounted to $256.4-million;
• Net earnings amounted to $80.3-million;
• Total dividends of 56 cents per share declared (4).

Q4 2025 financial highlights(1):

• Revenues of $644.2-million;
• Gross margin at 16.6 per cent;
• EBITDA (3) amounted to $44.3-million;
• Net earnings amounted to $11.0-million;
• Quarterly dividend of 14 cents per share declared (4).

For the year ended Dec. 31, 2025 (1), consolidated revenues increased to $3.1-billion, compared with $2.7-billion in 2024, an increase of 17.1 per cent. Sales for the building materials segment increased by $472.5-million or 17.9 per cent, largely due to the impact of the results for the full year of the company's recent acquisitions. Sales for the company's legacy operations were impacted by decreases in pricing in certain construction materials categories. The company's sales by product group in the period were made up of 81 per cent construction materials, compared with 76 per cent last year, with the remaining balance resulting from specialty and allied products of 16 per cent, and other of 3 per cent.

Gross margin dollars were $505.5-million in 2025, versus $424.8-million in 2024, an increase of $80.7-million. Gross margin percentage was 16.2 per cent during the year, an increase from the 16.0 per cent achieved in 2024, largely due to the company's margin enhancement strategies and contribution for the full year from the Doman Tucker Lumber acquisition.

EBITDA (3) and adjusted EBITDA (2) amounted to $256.4-million, compared with EBITDA of $192.2-million and adjusted EBITDA of $195.5-million in 2024, an increase in adjusted EBITDA of 31.1 per cent. Net earnings for the year ended Dec. 31, 2025, were $80.3-million, versus $54.2-million.

The company declared a total of 56 cents per share (4) in dividends in 2025, which was unchanged compared with 2024.

For the three-month period ended Dec. 31, 2025 (1), revenues amounted to $644.2-million, compared with $707.8-million in the same period in 2024. The decrease was mainly due to declines in construction materials pricing in the United States during the quarter, as well as lower average year-over-year pricing. The company's sales by product group in the quarter were made up of 78 per cent construction materials, with the remaining balance of sales resulting from specialty and allied products of 18 per cent, and forestry and other of 4 per cent.

Gross margin dollars were $107.2-million in the three-month period, versus $113.3-million in the comparative quarter of 2024. Gross margin percentage was 16.6 per cent in the quarter, an increase from 16.0 per cent achieved in the same quarter of 2024.

EBITDA (3) and adjusted EBITDA (2) amounted to $44.3-million, compared with EBITDA of $51.0-million and adjusted EBITDA of $51.9-million in 2024. Net earnings for the three-month period ended Dec. 31, 2025, were $11.0-million, versus $8.3-million.

The company declared a 14-cent-per-share (4) dividend, which was paid on Jan. 15, 2026, to shareholders of record at the close of business on Dec. 31, 2025.

"Despite lower pricing for construction materials in the fourth quarter, we are proud of our overall financial performance in 2025, with revenues, gross margin and EBITDA showing strength and growth when compared to 2024," commented Amar S. Doman, chairman of the board. "With housing starts in the U.S. and in Canada down in the fourth quarter, combined with lower construction materials pricing across the board, we remain focused on managing costs and efficiencies."

About Doman Building Materials Group Ltd.

Founded in 1989, Doman is headquartered in Vancouver, B.C., and trades on the Toronto Stock Exchange under the symbol DBM.

As Canada's premier national distributor in the building materials and related products sector, Doman operates several distinct divisions with multiple treating plants, planing and specialty facilities, and distribution centres coast-to-coast in all major cities across Canada and coast-to-coast across the United States.

Strategically located across Canada, Doman Building Materials Canada operates distribution centres coast-to-coast and Doman Treated Wood Canada operates multiple treating plants near major cities. In the U.S.: headquartered in Dallas, Tex., Doman Lumber operates 21 treating plants, two specialty planing mills and five specialty sawmills located in nine states, distributing, producing and treating lumber, fencing and building material servicing the central U.S.; Doman Tucker Lumber operates three treating plants, specialty sawmilling operations and a captive trucking fleet serving the U.S. East Coast; Doman Building Materials USA and Doman Treated Wood USA serve the U.S. West Coast with multiple locations in California and Oregon; and in the state of Hawaii, the Honsador Building Products Group services 15 locations across all the islands.

(1) Please refer to the company's Q4 2025 management's discussion and analysis (MD&A) and financial statements for further information. The company's Q4 2025 financial statements filings are reported under international financial reporting standards (IFRS).

(2) In the discussion, reference is made to adjusted EBITDA, which is EBITDA as defined above, before certain non-recurring or unusual items. This is not a generally accepted earnings measure under IFRS and does not have a standardized meaning under IFRS. The measure as calculated by Doman may not be comparable with similarly titled measures reported by other companies. Adjusted EBITDA is presented as the company believes it is a useful indicator of Doman's ability to meet debt service and capital expenditure requirements from its regular business before non-recurring items. Adjusted EBITDA should not be considered by an investor as an alternative to net earnings or cash flows as determined in accordance with IFRS. For a reconciliation from adjusted EBITDA to the most directly comparable measures calculated in accordance with IFRS, refer to the reconciliation of net earnings to EBITDA and adjusted EBITDA.

(3) In the discussion, reference is made to EBITDA, which represents earnings from continuing operations before interest, including amortization of deferred financing costs, provision for income taxes, depreciation and amortization. This is not a generally accepted earnings measure under IFRS and does not have a standardized meaning under IFRS, and therefore the measure as calculated by Doman may not be comparable with similarly titled measures reported by other companies. EBITDA is presented as the company believes it is a useful indicator of a company's ability to meet debt service and capital expenditure requirements, and because the company interprets trends in EBITDA as an indicator of relative operating performance. EBITDA should not be considered by an investor as an alternative to net earnings or cash flows as determined in accordance with IFRS. For a reconciliation of EBITDA to the most directly comparable measures calculated in accordance with IFRS, refer to the reconciliation of net earnings to EBITDA and adjusted EBITDA.

(4) On Dec. 15, 2025, Doman declared a quarterly dividend of 14 cents per share, which was paid on Jan. 15, 2026, to shareholders of record on Dec. 31, 2025. Please refer to the company's Q4 2025 MD&A and financial statements for more information.

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