TORONTO, Aug. 7, 2025 /CNW/ – Saltire Capital Ltd. (TSX:SLT) (TSX:SLT) (TSX: SLT.WT.U) (TSX:SLT) (“Saltire” or the “Company“) today reported its unaudited financial results for the three and six-month period ended June 30, 2025. The Company’s unaudited condensed consolidated interim financial statements (“Financial Statements“) and management’s discussion and analysis (“MD&A“) have been filed on the System for Electronic Document Analysis and Retrieval Plus (“SEDAR+“) and may be viewed under the Company’s profile at www.sedarplus.ca. All references to “$” herein are to United States Dollars.
Q2 2025 Highlights
For the six months ended June 30, 2025, the Company reported revenue of $9.3 million, an increase of 23.8% compared to $7.5 million for the same period in 2024. Growth was driven by a 35% increase in cinema-related sales, supported by strong order volumes from key clients including IMAX®. Non-cinema revenues declined approximately 19% in the quarter due to the timing of immersive project deliveries, which are expected to shift into Q3. Gross profit increased to $3.8 million, up 25.6% year-over-year, with gross margins of 40.9% (Q2 2024: 40.3%). Margin improvement was driven by favorable product mix, reduced raw material waste, and improved throughput efficiency.
Operating income was $1.2 million, compared to $1.3 million in the prior year period, reflecting higher public company costs following Saltire’s reverse takeover in late 2024. The Company reported a net loss of $11.4 million, compared to net income of $1.0 million in Q2 2024, due entirely to a non-cash fair value loss of $11.3 million on warrant liabilities, driven by market-based inputs such as volatility and rate changes. Adjusted EBITDA for the period was $1.0 million, down from $1.8 million in the prior year, primarily due to higher general & administrative and finance costs. MDI’s core operating performance remained strong.
The project pipeline for Strong/MDI Screen Systems, Inc. (“MDI“) heading into Q3 remains active, particularly across immersive and simulation markets, with multiple deliveries expected in the second half of 2025. Additionally, subsequent to quarter-end, Saltire completed the acquisition (“the Acquisition“) of SanStone Investments Limited, (“SanStone“) a leading owner and operator of heavy equipment dealerships and agricultural equipment dealerships in Eastern Canada that owns and operates the Wilson Equipment and Tidal Tractor dealership brands. In conjunction with the Acquisition, the Company entered into a loan agreement (the “Loan Agreement“) with, among others, Sagard Holdings Manager LP, as administrative agent and collateral agent, and Sagard Credit Partners II, LP (“Sagard“) and the other lenders party thereto from time to time (together with Sagard, the “Lenders“), pursuant to which the Lenders will, subject to the satisfaction of certain conditions precedent, make available certain credit facilities to Saltire up to an aggregate principal amount of US$100 million (the “Credit Facility“). The proceeds from the initial draw under the Credit Facility were used to, among other things, finance part of the cash purchase price under the Acquisition. The additional availability under the Credit Facility will be used to support future growth. The Acquisition marks Saltire’s second platform investment and represents a meaningful …