For the three months ended June 30, 2025, Adentra's total sales increased by $47.6 million to $597.1 million, from $549.5 million in Q2 2024. The 8.7% year-over-year sales increase was primarily driven by our acquired Woolf operations. Organic sales remained at as compared to Q2 2024, with product price appreciation of 2.3% offset by lower volumes.
Q2 2025 gross margin grew to $130.1 million, an increase of $10.9 million, or 9.1%, from the same period in 2024. The year-over-year improvement was primarily driven by sales growth related to the Woolf acquisition, and also reflects a slightly higher gross margin percentage of 21.8%, compared to 21.7% in Q2 2024.
Q2 2025 Adjusted EBITDA grew to $54.3 million, from $48.5 million in Q2 2024. The $5.8 million, or 12.0%, improvement reflects the $10.9 million increase in gross margin and the $5.1 million increase in operating expenses (before changes in depreciation and amortization, net recovery of trade duties, and LTIP expense).
Net income increased to $22.1 million (basic earnings per share of $0.89) in the Q2 2025, from $17.0 million (basic earnings per share of $0.74) in Q2 2024. The $5.1 million, or 29.9%, year-over-year improvement reflects the $17.8 million increase in EBITDA, which included a $9.7 million net recovery of trade duties, partially offset by the $3.3 million increase in depreciation and amortization, the $3.5 million increase in net finance expense, and the $5.9 million increase in income tax expense.
Q2 2025 adjusted net income was $21.9 million, a decrease of 6.7% from $23.5 million in the same period in 2024. Despite higher operating income, excluding the net recovery of trade duties, adjusted net income declined driven by the higher interest and income tax expense as explained above. Adjusted basic earnings per share for Q2 2025 were $0.88, compared to $1.03 in Q2 2024.
Results from Operations - Six Months Ended June 30, 2025
For the six months ended June 30, 2025, total sales increased to $1.14 billion, up $55.0 million or 5.1%, from $1.08 billion in the first half of 2024. This growth primarily reflects $80.5 million of acquisition-based revenue from the acquired Woolf business, representing a 7.4% sales increase.
Gross margin for the six months ended June 30, 2025 increased to $247.1 million, up $9.6 million, or 4.0%, from the same period in 2024.
For the six months ended June 30, 2025, we generated Adjusted EBITDA of $94.3 million, a modest increase of $0.2 million or 0.2%, from $94.0 million in the same period in 2024.
Net income for the six months ended June 30, 2025 was $26.2 million, a decrease of 5.3% from $27.7 million in the same period last year. Basic earnings per share declined to $1.05 from $1.22.
Adjusted net income in the first six months of 2025 was $32.7 million, a decrease of 19.3% from $40.5 million in the prior-year period. Adjusted basic earnings per share were $1.31, compared to $1.79 in the same period in 2024, a decrease of 26.8%.
Adentra is one of North America's largest distributors of architectural building products to the residential, repair and remodel, and commercial construction markets.
