B2B distributor ODP's Q2 revenue misses estimates

ODP

06/08/2025 12:02

Overview

ODP Q2 revenue declines 8%, missing analyst expectations, per LSEG data

Adjusted EPS of $0.51 beats analyst estimates, indicating strong operational efficiency

Adjusted EBITDA and operating income exceed forecasts, driven by B2B and consumer divisions

Outlook

Company expects over $115 mln in adjusted free cash flow for 2025

ODP anticipates improved revenue trends in B2B distribution in H2 2025

Company sees robust consumer segment results supporting cash generation

ODP remains confident in driving continued improvement and value creation

Result Drivers

RETAIL CLOSURES - Revenue decline attributed to 60 fewer retail locations and reduced consumer traffic

B2B IMPROVEMENTS - B2B division showed improved revenue trends, driven by new customer onboarding

OPERATIONAL DISCIPLINE - Strong cash conversion and working capital management contributed to improved cash flow, per co-CFO Adam Haggard

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$1.59 bln
$1.59 bln (3 Analysts)
Q2 Adjusted EPS
Beat
$0.51
$0.36 (3 Analysts)
Q2 Adjusted EBITDA
Beat
$47 mln
$45.70 mln (3 Analysts)
Q2 Adjusted Operating Income
Beat
$25 mln
$18.50 mln (3 Analysts)
Q2 Adjusted EPS continuing operations
$0.51
Q2 Free Cash Flow
$4 mln
Q2 Operating Income
$9 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

Wall Street's median 12-month price target for ODP Corp is $35.00, about 49.9% above its August 5 closing price of $17.55

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBw2LcLXLa

(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.)