Decisive Dividend Corporation Reports Financial Results for the Three Months Ended March 31, 2025

KELOWNA, BC, May 6, 2025 /CNW/ – Decisive Dividend Corporation (TSXV:DE) (the “Company” or “Decisive”) today reported its financial results for the three months ended March 31, 2025.

Highlights of the Company’s financial performance in Q1 2025 include the following:

Decisive and its diversified portfolio of manufacturing businesses delivered strong operating results in Q1 2025, which was the strongest first quarter in the Company’s history.
Consolidated sales increased 34% to $39.2 million in Q1 2025, the highest revenue quarter in Decisive’s history, compared to $29.4 million in Q1 2024, with the sales increase balanced throughout the portfolio.
Decisive generated $7.0 million in Adjusted EBITDA* in Q1 2025, an increase of 76% relative to Q1 2024, representing 94% of the Adjusted EBITDA* generated in both Q1 2024 and Q2 2024 combined.
Decisive generated $3.6 million in Free Cash Flow less Maintenance Capital* in Q1 2025, an increase of 128% relative to Q1 2024, representing 128% of the Free Cash Flow less Maintenance Capital* generated in both Q1 2024 and Q2 2024 combined. This dramatic improvement drove the trailing twelve-month dividend payout ratio down to 82% in Q1 2025, from 96% in Q4 2024.
To the date of this press release, year-to-date 2025 consolidated order levels have outpaced the same periods in both 2023 and 2024, while being based on more balanced contributions from across the Group. Consolidated sales have also outpaced 2024, although they remain behind consolidated sales for the same period in 2023.
The higher year-to-date order levels resulted in the Group exiting Q1 2025 with 60% higher backlogs than it had at the end of Q1 2024.
There remains significant uncertainty surrounding United States trade policies and what impact those policies may have on the overall economy. Decisive is currently somewhat insulated from the direct impact of tariffs as substantially all products manufactured by the Group and sold into the United States are compliant with the Canada-United States-Mexico Agreement. Additionally, Q2 2025 order levels, to the date of this press release, continue to outpace Q2 2024 and Q2 2023 order levels.
Expected continued operational improvement in Q2 2025, relative to Q2 2024, should continue to reduce the payout ratio through the next quarter.

Jeff Schellenberg, Chief Executive Officer of Decisive, noted:

“Q1 2025 is the strongest first quarter and the strongest revenue quarter in Decisive’s history, following on the heals of our Q4 2024 performance, which was the strongest fourth quarter in Decisive’s history. With the strength of this operational performance, we are back on the path of improving per share financial metrics (on a trailing twelve-month basis), which is the path of value creating growth.

We are especially pleased with the balanced contribution to the year-over-year improvement in operating metrics from across our diverse portfolio of businesses, illustrating the benefits of diversification while also demonstrating the work done in each subsidiary to improve performance and return to organic growth.

The strength of our operating results also continues to demonstrate the strength in the free cash flow generation capabilities of our business and the sustainability of the current dividend level. Our trailing twelve-month dividend payout ratio improved to 82% from 96% at the end of Q4 2024. In addition, the improved operating results led to reduced leverage ratios, which improves our financing capacity.

Despite the uncertainty imposed on industry by the United States administration’s trade policies and the election in Canada, our to date order levels and backlogs in Q2 2025, relative to Q2 2024, result in an expectation of continued operational improvement in Q2 2025, relative to Q2 2024. This should result in continued improvement in our payout ratio and leverage ratio lower, which will support further financing capacity and improvement in our cost of capital to support acquisition activity as the year progresses. 

While all businesses are currently facing varying degrees of economic uncertainty, we have a diverse portfolio of businesses that produce differentiated products with large addressable markets. Decisive’s leadership group, which includes its dedicated business leaders and its experienced independent board of directors, are committed to strengthening the teams, strategies and processes that support long term growth. This continues to give us confidence in Decisive’s business model and the potential for long-term growth within it.”

James Paterson, Board Chair of Decisive, noted:

“Decisive’s strong Q1 2025 operating results are directly related to the combined efforts of management and the subsidiary Presidents to ensure a more balanced and sustainable contribution to our financial success. There was a lot of work undertaken last year, in particular during last year’s challenging first two quarters, which generated a stronger and more balanced subsidiary group success that directly contributes to the success of our company. This resulted in Q4 2024 and now Q1 2025 being record quarters and demonstrate that the board and management’s joint efforts to create sustainable long-term value for Decisive stakeholders is working. The board commends the entire Decisive leadership team for delivering the strongest first quarter in Decisive’s history.” 

Selected Financial Information:

The following is selected financial information of Decisive for the three months ended March 31, 2025. All amounts are expressed in Canadian dollars. The Company’s Unaudited – interim condensed consolidated financial statements as well as its management’s discussion and analysis (“MD&A”) are posted on SEDAR+ at www.sedarplus.ca and on Decisive’s website (www.decisivedividend.com).

Full story available on Benzinga.com