Andrew Peller (ADW) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 revenue rose 1.0% to CAD $389.6 million, achieving record revenue (excluding COVID anomaly), margin expansion, improved EBITDA, and free cash flow, while reducing debt and positioning for future growth.

• Net earnings reached $11.1 million versus a net loss last year, with EBITDA for the year up 25% to $62.9 million and Q4 EBITDA up 46% to $13.5 million.

• Outperformed the wine category, growing market share in all major markets despite modest industry-wide consumption declines.

• Benefited from strong demand in big box retail, new product formats, and expanded distribution in Ontario.

• Company is adapting to Ontario's evolving retail landscape and sees opportunity in new distribution guidelines.

Financial highlights

• Fiscal 2025 revenue increased CAD $3.8 million (1% year-over-year) to CAD $389.6 million; Q4 sales decreased 11.2% year-over-year to CAD $75.5 million, mainly due to timing of government support program revenue recognition.

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

• EBITDA for the year rose 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).

• Cash from operations increased to CAD $60.2 million from CAD $38.1 million in the prior year.

Outlook and guidance

• Expectation to maintain or exceed 42.5% gross margin run rate, supported by the five-year Ontario Grape Support Program.

• Management expects continued growth by expanding in new channels and adapting to Ontario's retail changes.

• Anticipate continued growth in domestic wine consumption and increased Canadian visitors to estates, driven by national pride and staycation trends.

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

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