ADENTRA (ADEN) investor relations material

Executive summary

• Sales for 2025 reached $2.25 billion, up 3% year-over-year, driven by the Woolf acquisition and improved pricing, despite lower organic volumes and FX headwinds.

• Adjusted EBITDA for 2025 was $187.9 million, up 2% year-over-year, with a margin of 8.4%.

• Strong operating cash flow of over $160 million enabled share repurchases, dividend increases, and capital returns to shareholders.

• The company maintained operational excellence and margin discipline despite a muted construction environment.

• Integration of Woolf Distributing expanded U.S. Midwest presence and specialty product exposure.

Financial highlights

• Q4 2025 sales were $517.5 million, down 2.5% year-over-year, mainly due to lower volumes, partially offset by improved pricing.

• Q4 gross margin was $114.4 million (22.1% of sales), up from 21.7% in Q4 2024, aided by procurement discipline and vendor rebate true-ups.

• Adjusted EBITDA for Q4 was $43.7 million, up 3.7% year-over-year.

• Q4 net income was $32.1 million ($1.32 per share), up from $8.4 million in the prior year quarter, driven by lower finance expense and deferred tax asset recognition.

• Adjusted EPS for Q4 was $0.67, up from $0.51 year-over-year.

Outlook and guidance

• Entering 2026 with measured caution due to elevated U.S. mortgage rates, limited housing inventory, and macroeconomic/geopolitical uncertainty.

• Sales in the first two months of 2026 were down approximately 2% year-over-year, mainly due to lower volumes and weather impacts.

• Long-term fundamentals remain positive, supported by housing undersupply, demographics, and aging housing stock.

• Effective tax rate expected to normalize around 27% in 2026, barring one-time items.

• CapEx for 2026 projected in the $10–12 million range, focused on maintenance.