Building materials firm Doman's Q3 revenue misses estimates

Doman Building Materials

06/11/2025 21:15

Overview

Doman Q3 revenue rose to C$795.1 mln but missed analyst expectations

Adjusted EBITDA increased to C$62.0 mln from C$47.4 mln in 2024

Gross margin stable at 15.5% despite US pricing declines

Outlook

Doman anticipates price volatility to remain but expects modest gains if housing activity rebounds

Company continues to execute debt reduction strategies through strong cash flow generation

Doman's balance sheet is strong, providing a strategic platform for continued success

Result Drivers

ACQUISITION IMPACT - Revenue increase attributed to Doman Tucker Lumber acquisition

US PRICING PRESSURE - Decline in US construction materials pricing impacted gross margins

COST MANAGEMENT - Production cuts and supply shortages helped mitigate pricing pressures

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
C$795.10 mln
C$843.90 mln (5 Analysts)
Q3 Net Income
C$18.10 mln
Q3 Gross Margin
15.50%
Q3 Dividend
C$0.14
Q3 EBITDA
C$62 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "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 Doman Building Materials Group Ltd is C$11.00, about 17.9% above its November 5 closing price of C$9.03

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNXVrxvy

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(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.)