Doman Building Materials Group (DBM) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues rose 3% year-over-year to CAD 663.1 million, driven by higher volumes and recent acquisitions, including Southeast Forest Products.

• Gross margin was 15.5% (CAD 103 million), down from 16% last year.

• Adjusted EBITDA was CAD 47.4 million, excluding acquisition costs.

• Net earnings were CAD 14.6 million, down from CAD 21.2 million in Q3 2023.

• Quarterly dividend of CAD 0.14 per share was declared and paid.

Financial highlights

• Sales increased 3% year-over-year to CAD 663.1 million, driven by higher volumes and acquisitions.

• Gross margin dollars slightly increased to CAD 103 million, but margin percentage declined to 15.5% from 16%.

• Adjusted EBITDA (excluding acquisition costs) was CAD 47.4 million, down 8.8% year-over-year.

• Net earnings fell to CAD 14.6 million from CAD 21.2 million; adjusted net earnings were CAD 15.4 million.

• Nine-month 2024 revenues were CAD 1.96 billion, flat year-over-year.

Outlook and guidance

• Management notes market volatility and lower average pricing compared to Q3 2023.

• Early Q4 shows strong volumes, especially in Texas and the Carolinas, aided by post-storm demand.

• Recent Tucker Lumber acquisition and strong North American housing fundamentals position the company for growth.

• No formal earnings guidance will be provided in future communications.