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Dec 31, 2024

Compass Diversified Q4 2024 Earnings Report

Expected Revenue:$625M
+8.3% YoY
Expected EPS:$0.56
+40.0% YoY

Key Takeaways

Compass Diversified reported a 13.8% increase in net sales for Q4 2024, driven by strong performance in both Consumer and Industrial Businesses. The company's adjusted EBITDA also saw a significant increase of 29.0%.

Net sales increased by 13.8% to $620.3 million.

Branded consumer net sales increased 15.2% to $403.0 million.

Industrial net sales increased 11.4% to $217.2 million.

Adjusted EBITDA was $118.2 million, up 29.0%.

Total Revenue
$549M
Previous year: $423M
+29.7%
Adjusted EBITDA
$118M
Previous year: $94.8M
+24.7%
Gross Profit
$206M
Previous year: $148M
+38.7%
Cash and Equivalents
$59.7M
Previous year: $450M
-86.7%
Free Cash Flow
-$12.2M
Previous year: -$33.7M
-63.7%
Total Assets
$4.16B
Previous year: $3.92B
+6.0%

Compass Diversified

Compass Diversified

Compass Diversified Revenue by Segment

Forward Guidance

For the full year 2025, CODI expects its current subsidiaries to produce consolidated Subsidiary Adjusted EBITDA of between $570 million and $610 million and Adjusted EBITDA to be between $480 million and $520 million. In addition, the Company expects to earn between $170 million and $190 million in Adjusted Earnings

Positive Outlook

  • Branded Consumer vertical to produce $440 million to $465 million
  • Industrial vertical to produce $130 million to $145 million
  • Subsidiary Adjusted EBITDA between $570 million and $610 million
  • Adjusted EBITDA between $480 million and $520 million
  • Adjusted Earnings between $170 million and $190 million

Challenges Ahead

  • Absent additional acquisitions or divestitures
  • Excludes corporate expenses such as interest expense
  • Excludes management fees paid by CODI
  • Excludes corporate overhead
  • Uncertainty regarding Income (Loss) from Continuing Operations or Net Income (Loss)