ADI Global Distribution (ADIG) Investor Day 2026 summary

Strategic Vision and Market Positioning

• Focus on category leadership in large, growing addressable markets, including security, residential AV, fire/life safety, Pro AV, and Datacom, with a $65B total addressable market and a global footprint of ~200 stores and 100,000 customers.

• Emphasis on a digital-first, omnichannel experience, with over $1.4B in e-commerce sales and 30% of revenue now transacted digitally, driving higher margins and customer loyalty.

• Exclusive brands represent 18% of revenue at 3x the margin of branded products, with a goal to reach the low 20% range and expand into commercial segments.

• Growth is driven by both organic initiatives and M&A, especially in expansion categories like AV and DataComm, with exclusive brands and digital platforms central to differentiation and margin expansion.

• Industry trends such as channel convergence and digital emergence align with the company’s strengths and investments.

Financial Outlook and Growth Drivers

• FY2025 standalone revenue projected at $4.8B with adjusted EBITDA of $295M and a 6.2% margin, targeting $6B+ revenue and >8% adjusted EBITDA margin by 2030, with a 4%-6% revenue CAGR and >10% EBITDA CAGR.

• Gross margin expansion of 40-50 basis points over five years, primarily from exclusive brands and digital sales, expected to exceed 22.7% by 2030.

• $80M+ in annual run-rate cost savings identified by 2027 through organizational realignment, store and distribution center consolidation, and platform rationalization.

• CapEx-light model (1% of revenue), with 80%-90% EBITDA-to-cash conversion, supporting $1B+ cumulative cash flow target through 2030.

• Disciplined capital allocation prioritizing deleveraging, organic growth, margin expansion, and targeted M&A, with a focus on accretive, complementary acquisitions in ProAV and DataComm.

Operational Transformation and Execution

• Completed a rapid ERP and WMS rollout, enabling improved productivity, scalability, and customer experience.

• Store and distribution network optimization underway, reducing 15 DCs to 10 and consolidating overlapping stores to create superstores with full product assortments; 10 store combinations completed in 2026 and 20 more planned for 2027.

• AI and automation deployed across sales, pricing, and customer experience, including agentic AI for sales training and dynamic pricing for margin enhancement.

• Recent transformation includes Snap One integration, systems overhaul, and expense streamlining.

• Expansion of exclusive brands into commercial categories to diversify revenue and reduce reliance on residential AV, which faces near-term macro headwinds.