ebitda
320–365 $million
FY 2026
official guidance
COMPASS DIVERSIFIED
Last · NYSE$10.67-0.37 (-3.35%)close · yahoo · 10h ago
Market cap$802.77M75.2M sh
P/E · TTM-5.0fwd 16.6 · eps -2.12 · loss
Beta1.30vs S&P 500
Div yield0.00%annual · TTM
52w range
$4.58$13.25
Volume497.4Ksession
| Revenue | $1.8B |
|---|---|
| Operating income | $72.3M |
| Net income | $50.3M |
| Free cash flow | $79.6M |
| Operating margin | 4.0% |
| Net margin | 2.8% |
| Return on equity | 10.7% |
| Period | TTM 2026-06-30 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Compass Diversified delivered a strong underlying quarter, with subsidiary adjusted EBITDA up 12.6% to $91.5 million and Branded Consumer EBITDA up 24.2%, while operating cash flow recovered to $30 million. Deleveraging is meaningful—debt fell nearly $300 million to $1.6 billion and covenant leverage improved to 4.8x—but this is not yet a clean buy: Industrial EBITDA fell 12.8%, Altor EBITDA was cut roughly in half, and reported EPS benefited heavily from a $182 million Sterno gain.
Themes
- Branded Consumer Growth
- Industrial Weakness
- Altor Turnaround
- Deleveraging
- Asset Divestiture
- Lugano Recovery
Near term
Branded Consumer guidance was raised to $235 million-$270 million of FY2026 adjusted EBITDA, but BOA and PrimaLoft benefited from modest order pull-forward into Q2; management says this is reflected in the second-half outlook.
Industrial guidance was lowered to $85 million-$95 million, with Rimports facing lower expected volume from a large customer and Altor expected to improve only gradually.
Altor's recovery is expected to take four to five quarters, limiting the probability of a rapid Industrial rebound.
A roughly $20 million Lugano recovery expected by early fall is earmarked for debt reduction, but additional recoveries remain uncertain in timing and amount.
Management expects approximately $50 million of full-year free cash flow after payments, excluding the impact of any divestiture.
Tariff refunds were a mid-single-digit-million-dollar benefit in Q2 and are expected to be modestly higher in the back half, meaning some current earnings support is nonrecurring.
Longer term
The amended management services agreement should reduce 2027 fees by approximately $20 million, although total corporate costs are still expected to be slightly above $50 million, including roughly $30 million-$35 million of management fees.
Management remains highly committed to another asset divestiture to accelerate deleveraging; the valuation gap likely remains difficult to close through organic growth alone.
The incoming CEO, Zachary Sawtelle, is an internal successor with 17 years at the company, reducing transition risk but increasing the likelihood of continued execution against the existing playbook rather than a strategic reset.
Management frames long-term profitability growth opportunities as high-single-digit to double-digit for Consumer and mid-single-digit to high-single-digit for Industrial, but these are broad aspirations rather than quantified segment plans.
Red flags
Altor's weakness is not solely cyclical: management cited higher input costs and competition while acknowledging that commercial execution has not met internal standards. Recovery is expected to stretch over several quarters.
Industrial net sales declined 11.5%, and the Rimports business will face lower volume from a large customer in the second half; the customer concentration and revenue impact were not quantified.
BOA and PrimaLoft strength partly reflected orders accelerated by geopolitical concerns, creating a risk of weaker subsequent demand despite management's confidence in the second half.
The deleveraging plan remains dependent on an additional divestiture, but management provided no timing, asset, valuation, or probability details. Covenant leverage at 4.8x remains elevated relative to the 3.0x-3.5x desired operating range.
GAAP earnings quality was weak despite the $0.86 EPS headline: results included a $182 million gain on the Sterno sale, while Lugano-related professional fees remained elevated and insurance recoveries have been limited.
Forward outlook
ebitda
235–270 $million
FY 2026
official guidance
ebitda
85–95 $million
FY 2026
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-02-27
- Operating Cf Burn
- Net Margin Sharply Negative
- Cash Conversion Weak
- Accumulated Deficit High
Red flags
- Operating Cf Burn — Negative operating cash flow
- Net Margin Sharply Negative — Net margin -12.1%
- Cash Conversion Weak — Cash conversion (CFO/Rev) -0.4%
- Accumulated Deficit High — Accumulated deficit / equity 296%
Upcoming earnings
9:00 PM UTC+1
Period
Sep 2026
Est. EPS
$0.07
Est. revenue
410.5M
Earnings transcripts
Press & signals
- GlobeNewswire
Compass Diversified Declares Third Quarter 2026 Distributions on Series A, B and C Preferred Shares
- GlobeNewswire
Compass Diversified Reports Second Quarter 2026 Financial Results
- GlobeNewswire
Compass Diversified Announces Settlement Advancing Lugano Plan of Liquidation