BMTC GROUP INC. ANNOUNCES FINANCIAL RESULTS FOR THE SEMESTER ENDED JULY 31st, 2026

MONTRÉAL, Sept. 10, 2026 /CNW/ —

Results

For the six month period ended July 31, 2026, the Company’s revenues decreased by ($3,378,000) to $325,997,000, compared to $329,375,000 recorded for the corresponding period of 2025, a decrease of (1%). This decrease is primarily attributable to the Tanguay division, whose revenue declined by ($4,043,000) or (1.2%). Same-store sales also decreased by (1.2%) during the period. Revenue from the real estate division increased by $665,000 compared to the corresponding period in 2025.

Net earnings for the six month period ended July 31, 2026, amounted to $9,463,000 compared to net earnings of $4,104,000 recorded for the corresponding period in 2025. Basic net earnings per share amounted to $0.30 compared to $0.13 recorded for the corresponding period in 2025.

The variation in adjusted net earnings amounted to $9,890,000, or $0.31 per basic share, for the six month period ended July 31, 2026. This variation, as well as the variation recorded in the corresponding period in 2025, is explained as follows:

The variations in net adjusted earnings is allocated as follows :

Retail division

Net loss amounted to ($6,755,000), a decrease of ($12,381,000) compared to the net earnings for the corresponding period of 2025.

This variation was primarily attributable to a (1.2%) decline in revenue during the period, together with increased costs related to the implementation of outsourced warehousing and distribution operations, an initiative announced by management in the prior year.

The rollout of outsourcing began during the period, marking an important step in the reorganization of the Company’s logistics operations. However, the start-up and operating costs associated with this transition have been higher than anticipated. Management is actively working to stabilize these additional costs, although full normalization may extend over several periods.

Investment division

Net earnings amounted to $21,239,000, an improvement of $14,301,000 compared to the net earnings for the corresponding period of 2025. This variation is mainly due to the favorable performance of equity markets during the period, which contributed to an increase in the net unrealized gain on financial assets, compared to a net unrealized loss recorded in the corresponding period of 2025.

Real estate division

Adjusted net loss amounted to ($490,000), an improvement of $7,970,000 compared to the net loss for the corresponding period of 2025. This variation is mainly attributable to expansion and optimization work completed in the previous year, which had temporarily increased operating expenses. The completion of these projects, combined with the commencement of leasing activities, contributed to a gradual improvement in the division’s financial performance.

Annual financial information
($ in thousands, except for per share amounts)

Financial position and dividends

Cash and investments, net of bank overdrafts, increased by $13,977,000 during the six-month period ended July 31, 2026, compared to January 31, 2026. This increase is mainly driven by unrealized gains recorded on investments. Investments consist mainly of interest-bearing cash, common and preferred shares, which, as at the end of the six month period ended July 31, 2026, had a market value of $220,703,000 (including cash net of bank overdraft).

As at July 31, 2026, working capital was in a deficit position of ($9,600,000), an increase in the deficit of $7,157,000 compared to January 31, 2026. Although the Company has a working capital deficit, it maintained a largely undrawn credit facility as at July 31, 2026, as well as interest-bearing cash within its investment portfolio. Management believes that these resources are sufficient to meet its liquidity needs and short-term financial obligations. Shareholders’ equity increased from $584,415,000 as at January 31, 2026 to $587,275,000 as at July 31, 2026. As at July 31, 2026, the book value per share was $18.47, compared to $18.35 as at January 31, 2026.

Pursuant to the normal course issuer-bid put in place on April 15, 2025, and renewed on April 15, 2026, accordingly, 65,100 common shares were repurchased and cancelled by the Company. As a result of this change, the Company had, as at July 31, 2026, 31,788,500 common shares issued and outstanding.

For the six month period ended July 31, 2026, no options were granted. The Company may still grant pursuant to the Stock Option Plan a total of 5,710,864 options, representing 17.97% of the issued and outstanding shares of the Company.

Quarterly results

(Unaudited and $ in thousands, except for per share amounts)

For the three month period ended July 31, 2026, the Company’s revenue amounted to $184,421,000, an increase of $5,170,000, or 2.9%, compared to the $179,251,000 reported for the corresponding period of 2025. This increase was primarily attributable to higher revenue generated by the Tanguay division, whose revenue increased by $4,810,000, or 2.7%. Same-store sales also increased by 2.7% during the three month period. Revenue from the real estate division increased by $360,000 compared to the corresponding period of 2025.

Net earnings for the three month period ended July 31, 2026, amounted to $11,728,000 compared to the net earnings of $17,037,000 recorded for the corresponding period of 2025. Basic net earnings per share for the three month period ended July 31, 2026, amounted to $0.37 compared to $0.53 recorded for the corresponding period of 2025.

The variation in adjusted net earnings amounted to ($778,000), or ($0.02) per basic share, for the three month period ended July 31, 2026.  This variation, as well as the variation recorded in the corresponding period in 2025, is explained as follows:

Retail division

Net earnings amounted to $4,042,000, a decrease of ($4,253,000) compared to net earnings for the corresponding period of 2025.

The 2.7% increase in revenue during the period helped mitigate the impact of higher cost of sales and operating expenses resulting from the outsourcing of warehousing and distribution activities implemented during the previous period.

Investment division

Net earnings amounted to $12,430,000, a decrease of ($1,055,000) compared to net earnings for the corresponding period of 2025. This variation is mainly due to the less favourable performance of equity markets during the period, which contributed to a decrease in the net unrealized gain on financial assets, compared to the corresponding period of 2025.

Real estate division

Adjusted net loss amounted to ($213,000), an improvement of $4,530,000 compared to the net loss for the corresponding period of 2025. This variation is mainly attributable to expansion and optimization work completed in the previous year, which had temporarily increased operating expenses. The completion of these projects, combined with the commencement of leasing activities, contributed to a gradual improvement in the division’s financial performance.

Operations

BMTC Group Inc.

Retail division (Tanguay)

During the year ended January 31, 2026, the Company completed its expansion project of its Quebec distribution centre, which will increase available square footage while improving operational efficiency and optimizing logistics processes. Costs related to this expansion totaled $6,500,000, which is $1,000,000 less than the initially budgeted $7,500,000.

During the year ended January 31, 2026, the Company also announced its decision to modify the methods by which it carries out its distribution and warehousing activities in the Greater Montréal area and, accordingly, to outsource these activities.

Real estate division

As part of its long-term growth strategy and commitment to sustainable value creation, the Company undertook a strategic diversification into the real estate sector during the past years. The strategy includes the development of investment properties, strategic site repurposing, and the selective acquisition of assets with strong long-term value potential.

On June 26, 2026, the Company acquired a 50% interest in the CHAPITRE Bois-Franc real estate project, located at 5005 boulevard Henri-Bourassa West in Saint-Laurent, for a consideration of $12,374,000. The project is expected to include approximately 301 residential units and represents a total estimated development investment of approximately $129,500,000. Construction commenced in the summer of 2025 and is expected to be completed by the summer of 2027. Developed in partnership with MONTONI, the project is expected to contribute to the growth and diversification of the Company’s real estate portfolio while leveraging the expertise of an established development partner.

The Company’s investment in this project is estimated at approximately $14,600,000, of which $12,374,000 had been contributed as at the transaction closing date. The investment represents a joint venture and is accounted for using the equity method.

As part of its ongoing evaluation of development and value realization opportunities for its land located in Lévis, management identified indicators of impairment and reassessed the asset’s recoverable amount. Based on its preliminary analysis, management expects the land’s recoverable amount to be lower than it’s carrying amount, primarily due to the municipal moratorium currently in effect, which restricts the site’s development potential. As a result, the Company recognized an impairment loss of $5,223,000 during the period ended July 31, 2026. Management intends to obtain an independent valuation during the next reporting period to support its assessment of the land’s recoverable amount.

On April 15, 2024, the Company acquired the distribution centre located in Terrebonne for $96,000,000, including a sale-leaseback agreement with RONA. During the previous year, it completed expansion and optimization work totaling $48,935,000, aimed at improving operational efficiency and the property’s rental value. Following the decision to outsource distribution and warehousing activities, management reassessed the intended use of a portion of this asset, which resulted in its reclassification, as at January 31, 2026, from investment property to property, plant and equipment, at a carrying amount of $104,030,000.

The Company started the development and construction of its property at 500 boulevard Le Corbusier in Laval into several residential rental towers. The Company intends to finance this real estate project at 75% with a long-term mortgage. The estimated value of the entire project is approximately $600,000,000. The Company created a new subsidiary, Le Corbusier-Concorde S.E.C. for this real estate project on January 31, 2022. The project contemplates the construction of five rental residential towers totaling approximately 1,200 units, over a period of 8 to 10 years. The real estate project was initially expected to be launched in the summer of 2025; however, delays were encountered in obtaining the required authorizations. Demolition work was completed during the summer of 2026, and the project is currently progressing toward its next phase of development.

The Company intends to proceed with the real estate development of several rental residential towers on its property located at 125 boul. Desjardins Est in Sainte-Thérèse. The Company is currently evaluating the initial budget estimates and financial models to complete the project’s profitability analysis. At the same time, the Company has initiated preliminary steps with the City of Ste-Thérèse, with a view to proactive planning aimed at optimizing completion times. Following the profitability analysis and the conclusion of an agreement with a potential developer, the Company should be able to announce the details of this real estate project during the coming quarters.

Management discussion and outlook for the Future of the Company

In a constantly evolving retail environment, forecasting consumer behaviour is an increasing challenge. Preferences shift rapidly, economic conditions influence both purchasing power and willingness to spend, and consumption habits are increasingly migrating toward digital channels.

Despite these uncertainties, management believes that the Company succeeds in setting itself apart through a set of complementary strengths. Its well-established brand image, widely recognized customer service quality, and its network of stores and distribution across Québec ensure strong local presence. In addition, its continuously improving digital platform enables it to respond effectively to the evolving expectations of consumers. This combination of factors allows the Company to maintain a solid market position and stable performance, even in a complex and ever-changing commercial environment.

The diversification into the real estate sector, although outside the Company’s core operations, presents natural synergies with its retail network, particularly in asset management and the generation of stable cash flows. Management believes that this diversification will enhance the Company’s financial resilience, create new growth levers, and reduce its reliance on the retail sector.

Management intends to continue its growth and performance improvement initiatives. Although sales rebounded in the second quarter, it will continue to adopt a cautious approach given the results recorded since the beginning of the year and the slowdown in sales within its Retail division.

Caution regarding forward-looking statements

This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”, “estimate”, expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, as well as the opposites of these terms and similar terminology, including references to assumptions.

Forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, which the Company has identified in the 2026 Annual Information Form under “Narrative Description of the Business – Risk Factors”, and other risks detailed from time to time in the Company’s continuous disclosure documents.

The reader is cautioned that the factors we refer above are not exhaustive of the factors that may affect any of the Company’s forward-looking statements. The reader is also cautioned to consider these and other factors carefully and not to put undue reliance on forward-looking statements.

The Company made a number of assumptions in making forward-looking statements in this press release. The Company considers the assumptions on which these forward-looking statements are based to be reasonable.

These statements reflect current expectations regarding future events and operating performance and speak only as of the date of release of this press release and represent the Company’s expectations as of that date. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.

Non International Financial Reporting Standards (IFRS) financial measures

The Company discloses adjusted net earnings, which includes or excludes certain amounts that are not considered representative of the performance measures and financial recurrence of the Company. Management believes that this measure is useful in understanding and analyzing the operational performance of the Company and that it can provide additional information.

Adjusted net earnings as well as same store revenues are not an earnings measure recognized by IFRS and do not have a standardized meanings prescribed by IFRS. Therefore, adjusted net earnings and same store revenues as discussed in this press release may not be compared to similar measures presented by other issuers. These measures of performance should not be considered as alternatives to indicators of performance calculated according to IFRS, but rather as a source of additional information.

The Company discloses in this press release under the section “Results” a reconciliation between net earnings and adjusted net earnings.

BMTC Group Inc. is a company governed the Business Companies Act (Quebec). Its registered office is located at 4 Place Ville-Marie, 4^th, floor, suite 400, Montreal, Quebec, H3B 2E7. Its common shares are listed on the Toronto Stock Exchange. The BMTC Group Inc. is now formed of the Tanguay division and its subsidiaries Le Corbusier-Concorde S.E.C., Commandité Le Corbusier-Concorde Inc. and 9519-2340 Québec Inc. (collectively designated as the “Company”). The Company manages and operates a retail network of furniture, household appliances and electronic products, in Quebec, while also overseeing the management of its real estate division.

SOURCE BMTC Group Inc.