Compass Diversified (CODI) Q4 2024 earnings summary

Executive summary

• Achieved double-digit sales growth and over 30% increase in adjusted EBITDA for full year 2024, with Q4 growth accelerating beyond expectations, driven by strong consumer and improving industrial performance.

• 2024 marked a transformational year with a strategic shift toward innovative, disruptive businesses and significant M&A activity, including the acquisition of The Honey Pot and Lifoam, and divestitures of Ergobaby and Crosman Airgun.

• Raised over $115 million in preferred equity and repurchased more than 400,000 shares, supporting deleveraging and shareholder returns.

• CODI's permanent capital structure and public company transparency differentiate it from private equity models, supporting long-term investments.

• Established centers of excellence in audit, sustainability, AI, and automation to drive operational improvements and innovation.

Financial highlights

• Full year 2024 net sales reached $2.2B, up 11.9% year-over-year; Q4 consolidated net sales were $620.3M, up 13.8% year-over-year.

• Full year 2024 adjusted EBITDA was $424.8M, up 30% year-over-year; Q4 adjusted EBITDA was $118M, a 29% increase year-over-year.

• Full year 2024 adjusted earnings were $161.6M; Q4 adjusted earnings were $46.6M, up 34% year-over-year.

• Branded consumer subsidiaries contributed $1.48B in TTM revenue (10% growth) and $392M in TTM adjusted EBITDA (28% growth); industrial subsidiaries delivered $729M in TTM revenue (flat) and $125M in TTM adjusted EBITDA (down 3%).

• Lugano delivered $195M in adjusted EBITDA for 2024, up 76.4% year-over-year, with annual sales growth exceeding 50%.

Outlook and guidance

• 2025 consolidated subsidiary adjusted EBITDA expected between $570M–$610M; branded consumer vertical $440M–$465M; industrial vertical $130M–$145M.

• Consolidated adjusted EBITDA guidance for 2025 is $480M–$520M; adjusted earnings expected at $170M–$190M.

• CapEx for 2025 projected at $80M–$90M, mainly for Lugano growth and productivity investments at Altor.

• Guidance assumes no major impact from tariffs or trade war and excludes potential M&A.