ADI Global Distribution (ADIG) Investor Day 2026 summary

Strategic vision, market positioning, and business model

• Targets $6 billion+ in revenue by 2030, with 4%-6% CAGR and adjusted EBITDA growing from $295 million to $500 million, driven by omnichannel expansion, exclusive brands, and digital adoption.

• Focuses on category leadership in security, AV, fire/life safety, and Datacom, leveraging a $65 billion addressable market and a customer base of 100,000 professionals.

• Exclusive brands, now 18% of revenue at 3x the margin of branded products, are targeted to reach the low 20% range, with expansion into commercial segments.

• Digital sales account for 30% of revenue, with omnichannel and AI-enabled platforms driving higher margins and customer retention.

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

Financial guidance, targets, and capital allocation

• FY2025 standalone revenue projected at $4.8B with adjusted EBITDA of $295M and a 6.2% margin.

• Expects $1 billion+ in cumulative cash flow (EBITDA less CapEx) through 2030, with 80%-90% cash conversion and CapEx at ~1% of revenue.

• $80 million+ in annual run-rate cost savings targeted by end of 2027 through org realignment, store and DC consolidation, and platform rationalization.

• Margin expansion of 40-50 bps per year is driven by mix improvement, digital adoption, exclusive brands, and operating leverage, not reliant on macro recovery.

• Upon spin, expects a BB-/Ba3 credit rating, $1B in total debt, $150M in cash, and net leverage at spin of 3.0x, with a disciplined path to de-leveraging and $650 million in liquidity.

Operational transformation and growth levers

• Completed a rapid ERP and WMS rollout, enabling data-driven operations, improved productivity, and customer proximity.

• Store and distribution center consolidation will reduce from 15 to 10 DCs and merge overlapping stores, improving efficiency and cross-sell opportunities.

• AI is embedded in sales, pricing, and customer experience, with agentic AI tools for sales training and dynamic pricing for margin optimization.

• Expansion categories (Pro AV, Datacom) are growing at double-digit rates, with 50+ new suppliers and 30,000 SKUs added since 2020.

• Recent transformation includes Snap One acquisition, systems overhaul, and operational streamlining to enhance scalability and efficiency.