ADI Global Distribution (ADIG) investor relations material

Executive summary

• Q3 revenue rose 8.6% YoY to $1.306B and average daily sales increased 5%, while residential weakness and unfavorable mix pressured profitability.

• Net loss was $655M, including a $659M non-cash goodwill impairment; Adjusted Standalone EBITDA was $66M, down 13% YoY.

• FY26 guidance was lowered after Q3 performance and a weaker Q4 outlook; cost, pricing, product and integration actions are underway.

Financial highlights

• Net revenue was $1,306M vs. $1,203M a year ago; two additional selling days and an easier comparison also supported growth.

• Gross profit was $273M vs. $272M; gross margin was 20.9%, down 170 bps YoY.

• Operating cash flow was $64M in Q3; nine-month operating cash flow was a $12M use, with $37M of nine-month capex.

Outlook and guidance

• FY26 revenue guidance is $4.910B–$4.930B, down from $4.950B–$5.000B; Adjusted Standalone EBITDA guidance is $230M–$240M, down from $275M–$295M.

• Q4 revenue guidance is $1.112B–$1.132B and Adjusted Standalone EBITDA guidance is $28M–$38M; assumptions include mid-single-digit ADS growth and mid-single-digit declines in Exclusive Brands ADS.

• Q4 gross margin is expected to broadly match Q3 excluding tariff refunds and the separation-related inventory benefit; FY26 capex is expected at $50M–$55M.

• Guidance assumes continued residential and mix pressure; planned actions include pricing, improving product and customer mix, and increasing Exclusive Brands penetration.