by Revenue declines tied to downsizing in its furniture segment contributed to overall sales decreases during the quarter ended Dec. 30
MONTRÉAL — Dorel Industries reported a 14.7% decline in revenue, while also significantly reducing its net loss for the fourth quarter ended Dec. 30, 2025.
The company also reported a 13.8% decline in revenue and decreased its reported net loss for the full year ended Dec. 30.
Total fourth quarter revenue was $278.9 million, compared with $326.8 million the same period in 2024. Its net loss $24.6 million, or 76 cents per share, compared with a net loss of $73 million, or $2.24 per share the same period in 2024.
Revenue for the full year was nearly $1.2 billion, down from nearly $1.4 billion the same period a year earlier. Its net loss was $142.2 million, or $4.37 per share, compared with a loss of $172 million, or $5.28 per share in calendar year 2024.
The decline in revenue in both periods was tied to performance at Dorel Home, the company’s furniture segment.
Fourth quarter revenue in the segment totaled $52.1 million, down 54.3% from $114 million the same period in 2024. The segment also reported an operating loss of $21.6 million, down 13.4% from an operating loss of nearly $25 million in 2024.
The company attributed the quarterly decrease to the ongoing downsizing of its operation, adding that inventory also was limited at the start of the quarter “despite improved liquidity conditions following the company-wide refinancing at the end of the third quarter. The time required to normalize supplier payments, re-start ordering and ramp-up production of both new and existing items, meant that many go-forward inventory items were not in-stock during the quarter.”
During the quarter Dorel concluded the largest segments of its restructuring initiative, including the exit of major warehousing and manufacturing operations in Ontario, California, Montreal and Cornwall, Ontario. During the quarter it also closed its administrative offices in Wright City, Missouri, and Asheville, North Carolina, while also migrating ongoing operations in its Juvenile division to the back office. In addition, it noted it has consolidated warehousing within the Juvenile network and that it has consolidated warehousing within the Juvenile segment and that sublease efforts are now “underway for excess capacity remaining in Savannah, Georgia, and Cornwall, Ontario.”
“Due to the ongoing downsizing of operations, Dorel Home operated in a lower sales environment during the fourth quarter, reflecting constrained product availability, deliberate SKU rationalization, and the final stages of its restructuring plan,” said Dorel President and CEO Martin Schwartz. “Notwithstanding these pressures, the segment advanced its operational initiatives, including cost reductions associated with facility closures, workforce reductions, and administrative consolidation. Adjusted operating loss1 improved year‑over‑year in the quarter, reflecting the benefit of a reduced cost base. With the conclusion of our major restructuring activities and the disposition of non‑core inventory near complete, Dorel Home enters 2026 with a streamlined operating footprint and a simplified business model intended to support improved execution and performance.”
For the full year, the segment reported revenue of $309.4 million, down 40.1% from $516.2 million the same period a year earlier. Its operating loss was $93.9 million, compared with a loss of $95.3 million in 2024, a 1.5% decrease.
For the fourth quarter, the Juvenile segment reported revenue of $226.8 million, up 6.6% from $212.8 million the same period in 2024. Operating profit totaled $14.6 million, compared with $1.6 million in 2024.
For the full year, the segment reported $881 million in revenue, up 2% from $864.1 million in 2024. Operating profit was $29 million, up 85.3% from $15.6 million in 2024.
“Dorel Juvenile delivered a strong performance in 2025, demonstrating resilience amid ongoing tariff-related pressure in the U.S. and mixed market conditions globally,” Schwartz said. “While these external factors moderated revenue growth, improved margins and disciplined cost management contributed to an 84.7% increase in adjusted operating profit for the year.
“Fourth quarter results were marked by a return to growth in the U.S., coupled with exceptional results in Europe and across several international markets,” he added. “Innovation across core categories, particularly rotating car seats and Maxi‑Cosi products, continued to support the segment’s competitive positioning. These results underscore the benefits of Dorel Juvenile’s diversified geographic footprint and the segment’s ability to execute in a challenging operating environment.”
