Mr. Andrew Clark reports

SALTIRE CAPITAL LTD. REPORTS Q3 2025 FINANCIAL RESULTS CANADA NEWSWIRE

Saltire Capital Ltd. has released its unaudited condensed consolidated interim financial statements for the three- and nine-month periods ended Sept. 30, 2025. The company's financial statements and management discussion and analysis (MD&A) have been filed on SEDAR+ and may be viewed under the company's profile on SEDAR+. All references to dollars herein are to U.S. dollars.

Q3 2025 highlights

Saltire delivered strong year-over-year growth in Q3 2025 as the company continued executing on its strategy to build a diversified portfolio of resilient, cash-generating operating businesses.

For the nine months ended Sept. 30, 2025, the company reported revenue of $28.8-million, an increase of 144 per cent compared with $11.8-million in the same period in 2024. Growth was driven primarily by the addition of SanStone Investments Ltd., together with continued strength in Strong/MDI Screen Systems Inc.'s (MDI) cinema-related sales, which increased 16.4 per cent year over year. Demand from major customers, including Imax, Regal Cinemas and AMC remained robust, supported by an industry-wide shift toward premium auditoriums and laser projection upgrades.

Gross profit increased to $9.5-million, up 91 per cent year over year, with gross margins of 32.9 per cent (2024: 42 per cent). As expected, margins reflect the consolidation of SanStone's high-volume, lower-margin dealership operations beginning in Q3. MDI maintained healthy margins supported by favourable product mix, particularly higher Eclipse and Imax-compatible screen sales. Management expects consolidated margins to stabilize as SanStone's mix normalizes and integration initiatives advance.

Operating income was $1-million, compared with $2.4-million in the prior-year period, reflecting the addition of SanStone's operating structure and higher public company, audit and regulatory costs following the reverse takeover with MDI completed in late 2024. Integration efforts are progressing as planned, with early alignment across finance, reporting and commercial functions.

The company reported a net loss of $3.2-million, a significant improvement compared with the $42.9-million net loss in the prior-year period. The improvement is driven primarily by the one-time $44.6-million listing expense recorded in 2024 as part of the RTO transaction. Current-period results also include non-cash fair-value movements relating to warrant liabilities, interest and foreign exchange swaps, the company's investment in Sound Tech Connect Corp., and the put option granted to the minority shareholders of SanStone.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the period was $1.6-million, compared with $2.8-million in the prior year. The decline reflects the non-recurrence of the prior year's large listing-expense adjustment. Excluding non-cash adjustments, adjusted EBITDA reflects continued underlying strength across both MDI and the newly added SanStone operations. SanStone contributed positively in its first two months under Saltire ownership, supported by steady demand across equipment, parts and service. Additionally, this performance delivered strong normalized operating income for the period of $3.4-million, compared with $2.8-million in the prior year.

Saltire ended the quarter with $4.1-million in cash, supported by disciplined working-capital management and the financing structure implemented in connection with the SanStone acquisition. During the quarter, the company drew $50.1-million under its $100-million senior secured credit facility with Sagard Credit Partners II. Remaining availability under the facility will support future acquisitions and strategic growth initiatives.

"Q3 marked a pivotal step forward for Saltire," said Andrew Clark, chief executive officer of Saltire. "With SanStone now a part of the platform and MDI continuing to execute, we are building a foundation of steady, diversified growth. The strength across both businesses gives us confidence as we continue to scale with discipline and a long-term ownership mindset."

MDI's project pipeline remained active through Q3 across cinema, immersive and simulation markets. The company continues to benefit from long-standing partnerships with major exhibitors and holds exclusive supply agreements with several of the largest cinema chains in North America. Beyond cinema, MDI's Eclipse immersive screens and haptic flooring technologies continue to gain traction in theme park, experiential and simulation environments.

The successful closing of SanStone marks Saltire's second platform investment and represents a meaningful step in advancing its long-term strategy to build a growing portfolio of high-quality private businesses. SanStone operates two established dealership brands -- Wilson Equipment and Tidal Tractor -- that hold exclusive OEM (original equipment manufacturer) relationships within Atlantic Canada and serve diversified customer bases across agriculture, construction, forestry and industrial markets.

Note: As disclosed in the MD&A, Saltire's results reflect the reverse takeover accounting treatment under IFRS (international financial reporting standards), with MDI as the accounting acquirer and Saltire as the acquiree. Comparative figures prior to Sept. 25, 2024, reflect MDI stand-alone operations. EBITDA, adjusted EBITDA and normalized operating income are non-IFRS measures.

About Saltire Capital Ltd.

Saltire is a long-term capital partner that allocates capital to equity, debt and/or hybrid securities of high-quality private companies. Investments made by Saltire consist of meaningful and influential stakes in carefully selected private companies that it believes are undervalued businesses with the potential to significantly improve fundamental value over the long term. These businesses will generally have high barriers to entry, predictable revenue streams and cash flows and defensive characteristics. Although Saltire primarily allocates capital to private companies, Saltire may, in certain circumstances if the opportunity arises, also pursue opportunities with orphaned or value-challenged small-cap and microcap public companies. Saltire provides investors with access to private and control-level investments typically reserved for larger players while maintaining liquidity.

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