ADI Global Distribution Inc. Common Stock (NYSE:ADIG) Announces Quarterly Earnings Results

Key Points

• ADI reported a steep quarterly loss: EPS was ($8.65), far below the $0.46 consensus estimate. Revenue rose about 9% year over year to $1.31 billion, but adjusted EBITDA fell 13% to $66 million, and the company recorded a $660 million non-cash goodwill impairment.
• The company cut its 2026 outlook to revenue of $4.91 billion–$4.93 billion and adjusted EBITDA of $230 million–$240 million, citing continued pressure in residential markets.
• Management is pursuing $80 million in annualized cost savings, with $60 million already actioned, while prioritizing debt reduction. Shares fell 48.4% on the earnings news.

ADI Global Distribution Inc. Common Stock (NYSE:ADIG - Get Free Report) issued its earnings results on Thursday. The company reported ($8.65) earnings per share for the quarter, missing the consensus estimate of $0.46 by ($9.11), Briefing.com reports. ADI Global Distribution Inc. Common Stock's revenue was up 8.3% compared to the same quarter last year.

Here are the key takeaways from ADI Global Distribution Inc. Common Stock's conference call:

• Third-quarter revenue rose 9% year over year to $1.31 billion, but average daily sales increased only 5% and standalone adjusted EBITDA fell 13% to $66 million. Gross margin was pressured by weaker residential demand, unfavorable product and customer mix, freight costs, and inventory charges; ADI also recorded a $660 million non-cash goodwill impairment.
• ADI lowered its 2026 outlook to revenue of $4.91 billion–$4.93 billion and adjusted EBITDA of $230 million–$240 million. It expects fourth-quarter Exclusive Brands sales to decline mid-single digits and gross margins to remain broadly in line with Q3, while its initial 2027 planning assumes continued residential weakness.
• Management is targeting $80 million in annualized gross cost savings, with $60 million already actioned and the full program expected by 2028; it is also assessing additional reductions. One ADI initiatives include consolidating systems, stores, and distribution facilities, though management said meaningful near-term gross-margin improvement is not expected.
• ADI generated $64 million in operating cash flow and ended the quarter with $208 million in cash and $708 million in total liquidity; net leverage was 2.9 times trailing standalone adjusted EBITDA. Deleveraging remains management’s top capital-allocation priority.

ADI Global Distribution Inc. Common Stock Stock Down 48.4%

ADIG traded down $9.48 on Thursday, hitting $10.10. The company had a trading volume of 4,641,121 shares, compared to its average volume of 866,665. ADI Global Distribution Inc. Common Stock has a 1-year low of $9.81 and a 1-year high of $30.99. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.62 and a current ratio of 2.80. The stock's fifty day simple moving average is $18.59.

Analyst Ratings Changes

ADIG has been the subject of several recent research reports. Weiss Ratings began coverage on ADI Global Distribution Inc. Common Stock in a research note on Monday, October 26th. They issued a "sell (d)" rating for the company. Wall Street Zen raised shares of ADI Global Distribution Inc. Common Stock to a "hold" rating in a research report on Saturday, August 29th. Oppenheimer began coverage on shares of ADI Global Distribution Inc. Common Stock in a research report on Tuesday, August 4th. They set an "outperform" rating and a $30.00 price objective on the stock. Evercore started coverage on shares of ADI Global Distribution Inc. Common Stock in a research note on Monday, September 28th. They issued a "hold" rating and a $23.00 target price for the company. Finally, Zacks Research raised shares of ADI Global Distribution Inc. Common Stock from a "strong sell" rating to a "hold" rating in a research report on Tuesday, November 3rd. One research analyst has rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $24.25.

Key ADI Global Distribution Inc. Common Stock News

Here's some of the latest news about ADIG:

• Neutral Sentiment: Trading in ADIG was temporarily paused for a LULD volatility halt, reflecting unusually sharp price movement rather than a separate company announcement.
• Negative Sentiment: ADIG reported a third-quarter loss of $8.65 per share, far below analysts’ expected $0.46 per share. The earnings shortfall likely weighed heavily on investor sentiment. ADI announces third-quarter results and updates outlook
• Negative Sentiment: The company cut its full-year outlook and updated fourth-quarter guidance, signaling weaker anticipated performance and adding pressure to the shares. ADI Global Distribution misses guidance and cuts outlook

About ADI Global Distribution Inc. Common Stock

ADI Global Distribution Inc. is a wholesale distributor of products and solutions for security, life safety, audiovisual, and other low-voltage applications. It serves professional installers, systems integrators, and businesses with products including video surveillance, access control, intrusion and fire detection, networking, smart-home equipment, and related wiring and accessories. The company also provides services such as technical support, training, and digital tools to help customers select and deploy systems.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.