earnings
confidence high
sentiment positive
materiality 0.85
Compass Diversified Q1 net loss narrows to $30.8M; divests Sterno food service for $292.5M
Compass Group Diversified Holdings LLC
- Net loss from continuing ops $30.8M vs $49.8M loss in Q1 2025; revenues $426.9M down 5.9%.
- Subsidiary adj. EBITDA $83.9M, up 6.3% YoY ex-Lugano; Branded Consumer +11.6%, Industrial -4.5%.
- Completed sale of Sterno food service for $292.5M enterprise value; net proceeds ~$280M used to repay debt.
- Updated FY2026 guidance: Subsidiary Adj EBITDA $320-$365M; Branded Consumer $225-$260M, Industrial $95-$105M.
- Senior secured leverage reduced below 1.0x, avoiding Q2 milestone fees.