Goodfellow Reports Its Results for the Third Quarter Ended August 31, 2025
MWN-AI** Summary
Goodfellow Inc. (TSX: GDL), based in Delson, Quebec, released its financial results for the third quarter ending August 31, 2025, showing a mixed performance compared to the previous year. The company reported net earnings of $3.7 million or $0.45 per share, a decline from $5.8 million or $0.68 per share in Q3 2024. Despite this drop in net earnings, consolidated sales increased slightly to $142 million from $140 million year-over-year.
For the nine-month period ended August 31, 2025, net earnings followed a similar trend, dropping to $3.9 million or $0.47 per share from $11 million or $1.29 per share in the prior year. Sales for the nine months rose to $406 million from $385 million in 2024. Goodfellow attributed its resilience in sales to disciplined cost management, margin protection, and focusing on growth opportunities in specialty markets and value-added products, all while navigating fluctuating economic conditions.
In addition to the financial results, the Board of Directors declared an eligible dividend of $0.35 per share, set to be distributed on November 11, 2025. Shareholders of record on October 28, 2025, will be eligible to receive this dividend.
Goodfellow Inc. is recognized as a diversified manufacturer of value-added lumber products and a wholesale distributor of building materials and floor coverings, with a robust operational presence across Canada and parts of the Northeastern U.S. The company continues to highlight its ability to serve both commercial and residential markets through a network of lumber yard retailers, manufacturers, and floor covering specialists, amid ongoing challenges in the economy.
MWN-AI** Analysis
Goodfellow Inc. (TSX: GDL) reported a mixed performance for the third quarter ended August 31, 2025, with net earnings declining from $5.8 million to $3.7 million year-over-year, a trend that continued for the nine-month period with earnings dropping significantly from $11 million to $3.9 million. Despite the decline in profitability, consolidated sales increased slightly from $140 million in Q3 2024 to $142 million in Q3 2025, indicating that while sales volume remains stable, profit margins are under pressure.
The company's focus on disciplined cost management and growth in value-added products reflects a strategic pivot in response to varying economic conditions. Goodfellow's diversified business model plays a crucial role in mitigating risks, and their approach appears prudent given the current economic landscape. This adaptability lends a degree of resilience to the company, even as challenges persist.
The Board of Directors’ declaration of a dividend of $0.35 per share signals confidence in the company’s cash flow position. Investors looking for income should view this as a positive sign but must also consider the context of decreasing net income. The substantial decrease in net earnings per share from $0.68 last year to $0.45 this year is worth noting, as it suggests that profit generation is becoming increasingly challenging.
From a technical standpoint, maintaining a close watch on Goodfellow's cost management initiatives and sales growth in specialty markets is essential. Shareholders should also monitor global economic conditions that might impact lumber prices and supply chain dynamics. While the dividend yield offers some compensation for the earnings decline, future returns will largely depend on the company’s ability to stabilize profit margins and capitalize on growth opportunities. Therefore, investors may approach shares with caution but with an eye on long-term potential, especially if operational efficiencies come to fruition.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
DELSON, Quebec, Oct. 14, 2025 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the third quarter ended August 31, 2025.
For the three months ended August 31, 2025, the Company reported net earnings of $3.7 million or $0.45 per share compared to net earnings of $5.8 million or $0.68 per share a year ago. Consolidated sales were $142 million compared to $140 million last year.
For the nine months ended August 31, 2025, the Company reported net earnings of $3.9 million or $0.47 per share compared to net earnings of $11 million or $1.29 per share a year ago, while consolidated sales were $406 million compared to $385 million last year.
In the third quarter of 2025, Goodfellow navigated on-going varying economic conditions nationally by focusing on disciplined cost management, margin protection, and targeted growth opportunities in value-added products and specialty markets. These measures, combined with its diversified business model and customer-focused approach, resulted in higher turnover and sales.
The Board of Directors declared an eligible dividend of $0.35 per share payable on November 11, 2025 to shareholders of record at the close of business on October 28, 2025. This dividend is designated as an eligible dividend under the Income Tax Act (Canada). The declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors.
About Goodfellow
Goodfellow is a diversified manufacturer of value-added lumber products, as well as a wholesale distributor of building materials and floor coverings. With a distribution footprint from coast-to-coast in Canada and in the Northeastern U.S., Goodfellow effectively serves commercial and residential sectors through lumber yard retailer networks, manufacturers, industrial and infrastructure project partners, and floor covering specialists. Goodfellow also leverages its value-added product capabilities to serve lumber markets internationally. Goodfellow Inc. is a publicly traded company, and its shares are listed on the Toronto Stock Exchange under the symbol “GDL”.
| GOODFELLOW INC. | ||||
| Consolidated Statements of Comprehensive Income | ||||
| For the three and nine months ended August 31, 2025 and 2024 | ||||
| (in thousands of dollars, except per share amounts) | ||||
| Unaudited | ||||
| For the three months ended | For the nine months ended | |||
| August 31 2025 | August 31 2024 | August 31 2025 | August 31 2024 | |
| $ | $ | $ | $ | |
| Sales | 141,910 | 139,668 | 406,030 | 385,336 |
| Expenses | ||||
| Cost of goods sold | 106,690 | 105,280 | 312,594 | 294,025 |
| Selling, administrative and general expenses | 28,779 | 25,447 | 84,719 | 74,439 |
| Net financial costs | 1,242 | 955 | 3,240 | 1,662 |
| 136,711 | 131,682 | 400,553 | 370,126 | |
| Earnings before income taxes | 5,199 | 7,986 | 5,477 | 15,210 |
| Income taxes | 1,456 | 2,236 | 1,534 | 4,259 |
| Total comprehensive income | 3,743 | 5,750 | 3,943 | 10,951 |
| Net earnings per share – Basic | 0.45 | 0.68 | 0.47 | 1.29 |
| Net earnings per share – Diluted | 0.44 | 0.68 | 0.47 | 1.29 |
| GOODFELLOW INC. | |||
| Consolidated Statements of Financial Position | |||
| (in thousands of dollars) | |||
| Unaudited | |||
| As at | As at | As at | |
| August 31 2025 | November 30 2024 | August 31 2024 | |
| $ | $ | $ | |
| Assets | |||
| Current Assets | |||
| Cash | 4,098 | 5,314 | 6,273 |
| Trade and other receivables | 64,632 | 56,601 | 73,775 |
| Income taxes receivable | 5,003 | 6,634 | 4,849 |
| Inventories | 148,403 | 131,284 | 131,853 |
| Prepaid expenses | 1,640 | 4,047 | 2,101 |
| Total Current Assets | 223,776 | 203,880 | 218,851 |
| Non-Current Assets | |||
| Property, plant and equipment | 42,545 | 43,883 | 43,610 |
| Intangible assets | 483 | 896 | 1,044 |
| Right-of-use assets | 20,356 | 19,936 | 15,818 |
| Defined benefit plan asset | 21,385 | 21,925 | 15,325 |
| Other assets | 1,885 | 1,336 | 1,343 |
| Total Non-Current Assets | 86,654 | 87,976 | 77,140 |
| Total Assets | 310,430 | 291,856 | 295,991 |
| Liabilities | |||
| Current Liabilities | |||
| Bank indebtedness | 22,000 | 5,913 | 21,636 |
| Trade and other payables | 50,234 | 49,028 | 50,043 |
| Provision | 804 | 930 | 1,747 |
| Current portion of lease liabilities | 6,562 | 6,271 | 5,326 |
| Total Current Liabilities | 79,600 | 62,142 | 78,752 |
| Non-Current Liabilities | |||
| Lease liabilities | 15,447 | 15,203 | 11,966 |
| Deferred income taxes | 8,303 | 8,303 | 4,112 |
| Total Non-Current Liabilities | 23,750 | 23,506 | 16,078 |
| Total Liabilities | 103,350 | 85,648 | 94,830 |
| Shareholders’ Equity | |||
| Share capital | 9,214 | 9,309 | 9,337 |
| Retained earnings | 197,866 | 196,899 | 191,824 |
| 207,080 | 206,208 | 201,161 | |
| Total Liabilities and Shareholders’ Equity | 310,430 | 291,856 | 295,991 |
| GOODFELLOW INC. | ||||
| Consolidated Statements of Cash Flows | ||||
| For the three and nine months ended August 31, 2025 and August 31, 2024 | ||||
| (in thousands of dollars) Unaudited | ||||
| For the three months ended | For the nine months ended | |||
| August 31 2025 | August 31 2024 | August 31 2025 | August 31 2024 | |
| $ | $ | $ | $ | |
| Operating Activities | ||||
| Net earnings | 3,743 | 5,750 | 3,943 | 10,951 |
| Adjustments for: | ||||
| Depreciation and amortization of: | ||||
| Property, plant and equipment | 1,308 | 1,099 | 3,857 | 2,816 |
| Intangible assets | 147 | 148 | 438 | 443 |
| Right-of-use assets | 1,597 | 1,266 | 4,607 | 3,389 |
| Gain on disposal of property, plant and equipment | (3 ) | (18) | (12 ) | (95) |
| Provision | 16 | (1,027) | (126 ) | (1,042) |
| Income taxes | 1,456 | 2,236 | 1,534 | 4,259 |
| Interest expense | 610 | 519 | 1,442 | 894 |
| Interest on lease liabilities | 362 | 212 | 1,068 | 486 |
| Funding in excess (deficit) of pension plan expense | 169 | (61) | 540 | 22 |
| Share-based compensation | 89 | - | 89 | - |
| Other | (4 ) | (19) | (185 ) | (11) |
| 9,490 | 10,105 | 17,195 | 22,112 | |
| Changes in non-cash working capital items | 30,034 | 17,964 | (21,600 ) | (38,912) |
| Interest paid | (979 ) | (706) | (2,447 ) | (1,413) |
| Income taxes recovered (paid) | 107 | 201 | 97 | (2,822) |
| 29,162 | 17,459 | (23,950 ) | (43,147) | |
| Net Cash Flows from Operating Activities | 38,652 | 27,564 | (6,755 ) | (21,035) |
| Financing Activities | ||||
| Net (decrease) increase in bank loans | - | (6,000) | 2,000 | - |
| Net (decrease) increase in CORRA loans | (35,000 ) | (3,000) | 20,000 | 15,000 |
| Payment of lease liabilities | (1,488 ) | (1,322) | (4,307 ) | (3,778) |
| Redemption of shares | (216 ) | (368) | (1,055 ) | (537) |
| Dividends paid | - | - | (2,105 ) | (4,256) |
| Net Cash Flows from Financing Activities | (36,704 ) | (10,690) | 14,533 | 6,429 |
| Investing Activities | ||||
| Acquisition of property, plant and equipment | (1,009 ) | (10,082) | (2,519 ) | (13,982) |
| Increase in intangible assets | (15 ) | - | (25 ) | - |
| Proceeds on disposal of property, plant and equipment | 3 | 22 | 12 | 412 |
| Other assets | 9 | (116) | (549 ) | (566) |
| Net Cash Flows from Investing Activities | (1,012 ) | (10,176) | (3,081 ) | (14,136) |
| Net cash (outflow) inflow | 936 | 6,698 | 4,697 | (28,742) |
| Cash position, beginning of period | 3,162 | (7,061) | (599 ) | 28,379 |
| Cash position, end of period | 4,098 | (363) | 4,098 | (363) |
| Cash position is comprised of | ||||
| Cash | 4,098 | 6,273 | 4,098 | 6,273 |
| Bank overdraft | - | (6,636) | - | (6,636) |
| 4,098 | (363) | 4,098 | (363) |
| GOODFELLOW INC. | |||
| Consolidated Statements of Changes in Shareholders’ Equity | |||
| For the nine months ended August 31, 2025 and August 31, 2024 | |||
| (in thousands of dollars) Unaudited | |||
| Share Capital | Retained Earnings | Total | |
| $ | $ | $ | |
| Balance as at November 30, 2023 | 9,379 | 185,624 | 195,003 |
| Net earnings | - | 10,951 | 10,951 |
| Total comprehensive income | - | 10,951 | 10,951 |
| Dividend | - | (4,256) | (4,256) |
| Redemption of Shares | (42) | (495) | (537) |
| Balance as at August 31, 2024 | 9,337 | 191,824 | 201,161 |
| Balance as at November 30, 2024 | 9,309 | 196,899 | 206,208 |
| Net earnings | - | 3,943 | 3,943 |
| Total comprehensive income | - | 3,943 | 3,943 |
| Dividend | - | (2,105) | (2,105) |
| Share-based compensation | - | 89 | 89 |
| Redemption of Shares | (95) | (960) | (1,055) |
| Balance as at August 31, 2025 | 9,214 | 197,866 | 207,080 |
| From: | Goodfellow Inc. Patrick Goodfellow President and CEO T: 450 635-6511 F: 450 635-3730 info@goodfellowinc.com |
FAQ**
Given the decline in net earnings per share from $0.68 to $0.45 year-over-year for Goodfellow Inc. GDL:CC, what strategies is the company implementing to enhance profitability in the upcoming quarters?
Goodfellow Inc. GDL:CC reported consolidated sales of $142 million, slightly up from last year's $140 million. How does the company plan to sustain sales growth in the face of varying economic conditions?
The Board of Directors declared a dividend of $0.per share for Goodfellow Inc. GDL:CC. What factors are considered in determining future dividend payments, given the recent drop in net earnings?
With total liabilities increasing from $94.83 million to $103.35 million, what steps is Goodfellow Inc. GDL:CC taking to manage debt levels while ensuring continued investment in value-added products and specialty markets?
**MWN-AI FAQ is based on asking OpenAI questions about Goodfellow Inc. (TSXC: GDL:CC).
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