For the three months ended December 31, 2024, ADENTRA's total sales grew by $16.0 million to $530.8 million, from $514.9 million in Q4 2023. The year-over-year growth was driven by the acquired Woolf business, which contributed sales of $34.3 million during the Q4 2024 period. This was partially offset by a $17.3 million, or 3.4%, decrease in organic sales, reflecting an approximate 1% decrease in product prices and a 2% decrease in sales volumes compared to Q4 2023. Foreign exchange fluctuations in the Canadian dollar had an additional $1.1 million unfavorable impact on sales results.

Gross margin percentage of 21.7% was 10 basis points higher than the same period in 2023.

ADENTRA generated Q4 2024 Adjusted EBITDA of $42.2 million, as compared to $44.5 million in Q4 2023. This $2.3 million, or 5.1%, change reflects a $6.2 million increase in operating expenses (before changes in depreciation and amortization, LTIP expense, accrued trade duties, and transaction expense), partially offset by the $3.9 million improvement in gross margin.

Net income for the Q4 2024 decreased 6.8% to $8.4 million (basic earnings per share of $0.34), from $9.0 million (basic earnings per share of $0.40) in Q4 2023. The $0.6 million decrease reflects the $1.7 million decrease in EBITDA and a $2.8 million increase in depreciation and amortization, partially offset by a $3.5 million reduction in net finance expense and a $0.3 million decrease in income tax expense.

Q4 2024 adjusted net income was $12.7 million, a decrease of 14.3% from $14.8 million in the same period in 2023. Adjusted basic earnings per share for Q4 2024 were $0.51, compared to $0.66 in Q4 2023, a decrease of 22.7%.

FY 2024 results

For the year ended December 31, 2024, ADENTRA generated total sales of $2.18 billion, compared to $2.24 billion in 2023, a decrease of $55.1 million or 2.5%. Organic sales decreased by $118.2 million, or 5.3%, with product prices representing 4% of the decrease and lower sales volumes representing approximately 1%. The decline in organic sales was partially offset by $65.7 million, or 2.9%, of acquisition-based revenue growth generated by the acquired Woolf business. Foreign exchange fluctuations in the Canadian dollar negatively impacted sales results by $2.6 million.

Gross margin for the year ended December 31, 2024 increased to $474.1 million, up $8.0 million, or 1.7%, from 2023. This improvement was driven by an increase in gross margin percentage to 21.7%, from 20.8% in 2023, partially offset by lower sales year over year. The improvement in gross margin percentage primarily reflects the positive impact of our strategic initiatives, operating efficiency, and a reduction in inventory write-downs.

For the year ended December 31, 2024, we generated Adjusted EBITDA of $184.3 million, a $1.0 million or 0.5% decrease from $185.2 million in 2023. The modest year-over-year decrease reflects the $8.9 million increase in operating expenses (before changes in depreciation and amortization, LTIP expense, accrued trade duties, and transaction costs), largely offset by the $8.0 million increase in gross margin.

Net income for the year ended December 31, 2024 grew 28.9% to $46.5 million (basic earnings per share of $1.95), from $36.0 million (basic earnings per share of $1.61) in 2023. The $10.4 million increase was driven by the $10.8 million improvement in EBITDA and the $7.8 million decrease in net finance expense, partially offset by the $6.2 million increase in depreciation and amortization and income tax expense that was $2.0 million higher year over year. 

Adjusted net income grew 0.8% to $71.8 million in 2024, from $71.3 million in the prior year. Adjusted basic earnings per share were $3.01, compared to $3.18 in 2023, a decrease of 5.4%.

“We achieved solid operational performance in 2024, executing effectively on our strategy and building on our track record of resilience and success,” said Rob Brown, President and CEO of ADENTRA.

“We achieved our results in a year that brought substantial market headwinds, including affordability constraints, a slower-than-anticipated pace of mortgage interest rate reductions in the US, and the negative impact of product price deflation, the latter of which reduced organic sales by 4%. Despite these challenges, we maintained steady product volumes, improved our gross margin percentage by 90 basis points to 21.7%, and achieved solid Adjusted EBITDA and Adjusted net income results. We also continued to generate strong cash flows with 80% of our Adjusted EBITDA converting efficiently to $142.8 million of operating cash flow before changes in working capital.”

ADENTRA is one of North America’s largest distributors of architectural building products to the residential, repair and remodel, and commercial construction markets. The Company operates a network of 86 facilities in the United States and Canada.