Canada's Adentra Q4 sales miss expectations on low volumes

ADENTRA

11/03/2026 23:52

Overview

Canada-U.S. building products distributor's Q4 sales fell 2.5% yr/yr, missing analyst expectations

Adjusted basic EPS for Q4 rose to $0.67 from $0.51 yr/yr

Company increased quarterly dividend by 7% in November 2025

Outlook

Company flags sales in first two months of 2026 were down 2% compared to same period last year due to winter weather

Adentra expects Q1 2026 gross margin percentage to moderate but exceed benchmark

Company cites elevated US mortgage rates and trade uncertainty as ongoing headwinds

Result Drivers

LOWER SALES VOLUMES - Q4 sales decline was mainly due to a 4.8% drop in sales volumes, partially offset by a 2.3% increase in product prices

IMPROVED GROSS MARGIN - Gross margin percentage rose to 22.1% from 21.7% in Q4 2024, supported by price pass-through and product mix

LOWER NET FINANCE EXPENSE - Q4 net finance expense fell by $7.9 mln, mainly due to increased foreign exchange gains and interest income on duty refunds

Company press release: ID:nCNWT6Z97a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Miss
$517.50 mln
$536.25 mln (6 Analysts)
Q4 Adjusted EBITDA
$43.70 mln
Q4 Gross Margin
22.10%
Q4 Cash Flow from Operations
$99.60 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

Wall Street's median 12-month price target for ADENTRA Inc is C$47.00, about 36.1% above its March 11 closing price of C$34.53

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)