Andrew Peller (ADW) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 revenue rose 1% to CAD $389.6 million, achieving record revenue (excluding COVID anomaly), margin expansion, improved profitability, and net earnings of $11.1 million versus a net loss last year.

• Gross margin improved to 42.8% for the year, aided by cost savings and the Ontario Grape Support Program.

• EBITDA increased 25% to CAD $62.9 million for the year; Q4 EBITDA up 46% to CAD $13.5 million.

• Gained market share across all major markets, outperforming the overall wine category despite industry-wide consumption softness.

• Successfully adapted to Ontario's expanded retail distribution, driving growth in big box and grocery channels.

Financial highlights

• Fiscal 2025 revenue rose 1% year-over-year to CAD $389.6 million; Q4 revenue fell 11.2% year-over-year to CAD $75.5 million due to timing of government support program recognition.

• Gross margin for the year reached 42.8% (CAD $166.6 million), up from 39.0% in fiscal 2024; Q4 gross margin surged to 52.6% due to Ontario Grape Support Program benefits.

• EBITDA for the year increased 25% to CAD $62.9 million; Q4 EBITDA up 46% to CAD $13.5 million.

• Net earnings: $11.1 million for the year ($0.26 per Class A share); Q4 net loss: $0.7 million (improved from $6.9 million loss).

• Net debt reduced to CAD $182.4 million from CAD $208.5 million; debt-to-EBITDA ratio improved to under 3:1.

Outlook and guidance

• Expecting continued top-line and profitability growth in fiscal 2026, supported by strong brands, distribution, and government policies.

• Anticipate gross margins stabilizing above 42.5% long-term, with the Ontario Grape Support Program in place for at least five years.

• CapEx for fiscal 2026 projected at CAD $15–$17 million, in line with historical run rate.

• Optimistic about increased Canadian estate visits and staycations, with enhanced programming and events planned.

• Company remains committed to investing in the long-term health and growth of the grape and wine sector.