Adentra Inc. reported Q4 2025 sales of $517.5 million, a 3% decrease from $530.8 million in the same period last year, driven by a 5% reduction in sales volume partially offset by a 2% increase in product prices.
Net income for the quarter was $32.1 million, or $1.32 per share, compared to $8.4 million, or $0.34 per share, in the Q4 2024. Adjusted EBITDA increased by 4% to $43.7 million.
For the full year 2025, sales increased 3% to $2.25 billion, supported by $94.3 million of acquisition-based growth from Woolf Distributing. Organic sales declined by 1%, reflecting a 2% reduction in sales volume partially offset by a 1% increase in product prices. Gross margin percentage remained steady at 22%.
The company's U.S. operations saw fourth quarter sales decrease by 2% to $477.9 million, while Canadian operations reported a 3% decline to $55.2 million, both primarily due to lower sales volumes partially offset by higher pricing.
Net finance expense decreased by $7.9 million to $1.0 million in the Q4 2025, largely attributable to increased foreign exchange gains from settlement of intercompany loans and interest income on duty refunds received.
The company generated operating cash flow of $99.6 million in the Q4 and $160.6 million for the full year. Adentra returned $29.5 million to shareholders through dividends and share repurchases, including a 7% dividend increase announced in November.
Adentra stated that Q1 2026 gross margin percentage is expected to moderate relative to the Q4 2025. The company continues to approach the near-term outlook with measured caution, citing elevated U.S. mortgage rates and limited housing inventory as ongoing affordability hurdles. The easing of interest rates in late 2025, combined with structural demand drivers, could support a more constructive backdrop later in 2026 and into 2027. The company is targeting double-digit returns on invested capital through platform efficiency, organic growth initiatives, and its acquisition strategy.
Adentra is one of North America's largest distributors of architectural building products to the residential, repair and remodel, and commercial construction markets.
