Doman Building Materials Group (DBM) Q4 2024 earnings summary

Executive summary

• 2024 saw challenging pricing and macroeconomic headwinds, but also growth opportunities and successful acquisitions, expanding the North American footprint.

• Full year 2024 revenues reached CAD 2.66 billion (reported as $2.7 billion in some sources), up 6.9% from 2023, driven by acquisitions despite a slowing construction materials market.

• Q4 2024 revenues were CAD 708 million (reported as $707.8 million), a significant increase from Q4 2023.

• The business demonstrated resilience in volumes and strong gross margin performance despite lower year-over-year pricing in construction materials.

• Key acquisitions included CM Tucker Lumber and Southeast Forest Products, strengthening the U.S. presence.

Financial highlights

• Annual revenue reached CAD 2.66 billion, up 6.9% from 2023, driven by acquisitions.

• Gross margin was CAD 424.8 million (16%), up from CAD 402.7 million (16.2%) in 2023.

• Adjusted EBITDA was CAD 195.5 million, nearly flat year-over-year, excluding $3.3 million in non-recurring acquisition costs.

• Net earnings were CAD 54.2 million, down from CAD 75.8 million in 2023; adjusted net earnings before non-recurring acquisition costs were CAD 56.6 million.

• Q4 gross margin was 16%, with gross margin dollars at CAD 113.3 million, and adjusted EBITDA at CAD 51.9 million.

Outlook and guidance

• 2025 has started with unique challenges, particularly weather-related, but the company is prepared to manage them.

• No formal earnings guidance will be provided.

• Organic growth and further expansion in the U.S. and Canada remain focus areas, with ongoing integration of recent acquisitions.

• CapEx in 2025 is expected to be about 15% higher than 2024, with investments in automation and efficiency.