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EarningsQ2 2026 Earnings Report
CODI Q2 2026 EPS Results
Actual EPS-$0.09
Consensus EPS$0.09
Beat/MissMissed by -$0.18
One Year Ago EPS-$0.27
CODI Q2 2026 Revenue Results
Actual Revenue$424.04M
Expected Revenue$425.35M
Beat/MissMissed by -$1.31M
YoY Revenue Growth―
Earnings Announcement Details
QuarterQ2 2026
Date08/10/2026
TimeAfter Close
Conference CallMonday, August 10, 2026
CODI Upcoming Earnings
Compass Diversified Holdings's next earnings date is estimated for March 3, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
CODI Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call disclosed meaningful operational progress and several material positives — double-digit subsidiary adjusted EBITDA growth, strong brand-level performance (BOA, The Honey Pot, PrimaLoft, 5.11), a major $280M+ Sterno's sale applied to debt, a management fee amendment expected to reduce fees by ~ $20M in 2027, improved cash generation and reduced leverage versus year-end. Offsetting these positives are concentrated near-term challenges in the Industrial portfolio — most notably Altor's roughly 50% EBITDA decline — elevated Lugano-related costs and litigation expenses, comparability impacts from disposals, and leverage that remains above management's 3.0x–3.5x target absent a divestiture. Overall, the positives appear to outweigh the negatives but the company faces significant remediation work and execution risk in the Industrial segment and ongoing uncertainty related to Lugano recoveries.Company Guidance
Double-digit Subsidiary EBITDA Growth and Improved Cash Flow
Subsidiary adjusted EBITDA was approximately $92 million, up 12.6% year-over-year (continuing subsidiaries basis). CODI generated ~ $30 million of operating cash in Q2 and more than $50 million of operating cash year-to-date versus an operating cash outflow of ~ $65 million in the first half of 2025. Management reiterated free cash flow expectations in the ~$50 million range for the year (absent material divestitures).
Branded Consumer Businesses Performed Strongly
Branded Consumer net sales increased 7.2% and branded consumer adjusted EBITDA rose 24.2%. Notable brand-level results: BOA adj. EBITDA +27%, The Honey Pot +32%, PrimaLoft +28%, and 5.11 +14% with margin expansion of more than 200 basis points. Company maintained branded consumer full-year outlook of $235 million to $270 million.
Industrial Standouts — Arnold Performance
Within Industrial, Arnold delivered a standout quarter with adjusted EBITDA up nearly 50%, supported by strong backlog and demand for rare earth magnets sourced outside China and progress at the Thailand facility.
Sterno's Food Service Sale and Debt Reduction
Completed the sale of Sterno's Food Service in May at an attractive valuation, recording a $182 million gain and applying more than $280 million of proceeds to debt reduction, contributing to ~ $300 million reduction in total debt from year-end.
Management Services Agreement Amendment Reduces Future Fees
Amendment effective Jan 1, 2027 reduces base management fee from 2% to 1.25% on the first $3 billion of average adjusted net assets, caps the 2027 base fee at $30 million and introduces two awards (each 12.5 bps). Even assuming full payout, CODI expects approximately $20 million lower management fees in 2027 versus the prior formula.
Balance Sheet and Liquidity Improvements
Cash balance at quarter-end was $87 million with near full revolver availability. Total debt was approximately $1.6 billion (down nearly $300 million from year-end). Covenant leverage ratio improved to 4.8x from 5.3x in the prior quarter and senior secured net leverage was 0.66x. CODI amended its senior credit facility to extend term loan and key revolver commitments to January 12, 2028.
Maintained FY2026 Adjusted EBITDA Outlook
Management maintained its fiscal 2026 total subsidiary adjusted EBITDA outlook of $320 million to $365 million (this full-year outlook includes roughly $9 million of adjusted EBITDA from the divested Sterno's Food Service business prior to sale). Industrial outlook set at $85 million to $95 million.
CODI Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed