Overview

• U.S. middle-market business owner’s Q1 sales fell 5.9% yr/yr, missing analyst expectations

• Q1 adjusted EBITDA missed analyst expectations

• Company completed sale of Sterno’s food service unit, using proceeds to reduce debt

Outlook

• Company sees 2026 subsidiary adjusted EBITDA between $320 mln and $365 mln

• Branded Consumer 2026 adjusted EBITDA expected between $225 mln and $260 mln

• Industrial 2026 adjusted EBITDA expected between $95 mln and $105 mln

Result Drivers

• INDUSTRIAL WEAKNESS - Co reported Industrial segment revenue fell 3.3% yr/yr

• BRANDED CONSUMER GROWTH - Co said Branded Consumer segment revenue rose 2.3% yr/yr, helping support overall results

• STERNO DIVESTITURE - Co completed sale of Sterno’s food service business, using proceeds to reduce debt

Company press release: ID:nGNX9Wnw2F

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Miss	$426.86 mln	$437.75 mln (4 Analysts)
Q1 Net Loss		$30.67 mln
Q1 Adjusted EBITDA	Miss	$56.52 mln	$69.91 mln (4 Analysts)
Q1 Operating Loss	Miss	$1.93 mln	$26 mln (3 Analysts)
Q1 Gross Profit		$189.36 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment holding companies peer group is "buy"

• Wall Street's median 12-month price target for Compass Diversified Holdings is $15.00, about 29% above its May 5 closing price of $11.63

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