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Dec 31, 2024
Compass Diversified Q4 2024 Earnings Report
Compass Diversified reported strong financial results for the fourth quarter of 2024, with double-digit sales growth and significant increases in Adjusted EBITDA.
Key Takeaways
Compass Diversified delivered strong financial results in Q4 2024, with net sales increasing by 13.8% to $620.3 million and Adjusted EBITDA growing by 29.0% to $118.2 million. This growth was primarily driven by strong performance in branded consumer businesses and improving industrial businesses.
Net sales increased by 13.8% to $620.3 million in Q4 2024 compared to Q4 2023.
Branded consumer net sales rose by 15.2% to $403.0 million, while industrial net sales increased by 11.4% to $217.2 million.
Subsidiary Adjusted EBITDA was $140.9 million, up 25% from Q4 2023, with branded consumer Adjusted EBITDA up 29.0% and industrial Adjusted EBITDA up 5.2%.
Adjusted EBITDA, a non-GAAP financial measure, increased by 29.0% to $118.2 million.
Compass Diversified
Compass Diversified
Compass Diversified Revenue by Segment
Revenue by Segment
Branded Consumer Revenue
CapyFin.comIndustrial Revenue
CapyFin.com Forward Guidance
For the full year 2025, CODI expects its current subsidiaries to produce consolidated Subsidiary Adjusted EBITDA between $570 million and $610 million, with branded consumer vertical contributing $440 million to $465 million and industrial vertical contributing $130 million to $145 million. Overall Adjusted EBITDA, including management fees and corporate expenses, is expected to be between $480 million and $520 million, and Adjusted Earnings between $170 million and $190 million.
Positive Outlook
- Expected consolidated Subsidiary Adjusted EBITDA between $570 million and $610 million for FY 2025.
- Branded consumer vertical expected to contribute $440 million to $465 million to Subsidiary Adjusted EBITDA.
- Industrial vertical expected to contribute $130 million to $145 million to Subsidiary Adjusted EBITDA.
- Overall Adjusted EBITDA, including management fees and corporate expenses, expected to be between $480 million and $520 million for FY 2025.
- Adjusted Earnings expected to be between $170 million and $190 million for FY 2025.
Challenges Ahead
- Estimates are based on current subsidiaries and do not include additional acquisitions or divestitures.
- Excludes corporate expenses such as interest expense, management fees paid by CODI, and corporate overhead from Subsidiary Adjusted EBITDA.
- No reconciliation to comparable GAAP measures (Income/Loss from Continuing Operations or Net Income/Loss) is provided due to uncertainty and potential variability of items.
- Unable to address the probable significance of unavailable information, which could be material to future results.
- Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially.
Revenue & Expenses
Visualization of income flow from segment revenue to net income