Full Transcript: Doman Building Materials Q2 2026 Earnings Call

Doman Building Materials (TSX: DBM ) held its second-quarter earnings conference call on Thursday. Below is the complete transcript from the call. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.

Access the full call at Summary Doman Building Materials Group Ltd. reported record second quarter revenues of $904 million, up from $887 million the previous year, driven by higher pricing in construction materials. 7 million in Q2 2025. 14 per share, reflecting confidence in long-term business strength, and emphasized strategic focus on operational efficiency and disciplined execution.

Doman's diversified product mix and geographic footprint position it well amid ongoing macroeconomic uncertainty, with continued expansion in fencing production expected to benefit from recent trade tariffs. S. retail partners. Full Transcript OPERATOR Good day and welcome to the Doman Building Materials Group Ltd.

second quarter 2026 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions.

To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Ali Madhavi.

Please go ahead. Ali Madhavi, Investor Relations Good morning, everyone, and thank you for joining us for Doman Building Materials second quarter 2026 financial results conference call. Joining us on today's call are the Company Chairman and Chief Executive Officer, Amar Doman, and Chief Financial Officer, Darren Gwozd. If you have not seen the news release which was issued after the close of market yesterday, it is available on the Company's website as well as on SEDAR along with our MD&A and financial statements.

I would also like to remind you that a replay of this call will be accessible until midnight on August 20th. Following the presentation of the second quarter results, we will conduct a Q&A session for analysts only; instructions will be provided at that time for you to join the queue for questions. Before we begin, we are required to provide the following statements regarding forward-looking information, which is made on behalf of Doman Building Materials Group Ltd. and all of its representatives on this call.

Remarks and answers to your questions today may contain forward-looking information about future events or the Company's future performance. This information is subject to risks and uncertainties that may cause actual events or results to differ materially. Any information regarding forward-looking statements is based as of the date of this call. The Company does not update any forward-looking statements.

Please read the statements and risk factors in the MD&A, as these outline the material factors which could cause actual results to differ. The Company will not provide guidance regarding future earnings during today's call, and management does not anticipate providing guidance in future quarterly or interim communications with investors. I'll now turn the call over to Amar. Amar Doman, Chairman and Chief Executive Officer Thanks, Ali.

Good morning, everyone. We appreciate you taking the time to be with us as we review Doman's second quarter 2026 financial results and discuss the current market environment. Overall, our second quarter performance demonstrates the resilience of our business model and the strength of our diversified product offering. Despite a market that continues to be influenced by economic uncertainty and uneven demand across construction markets, we delivered another solid quarter highlighted by record second quarter numbers on revenues, stable margins, and improved net earnings.

Revenue for the quarter reached a record 904 million, an increase from 887 million in the second quarter of last year. This performance was primarily driven by higher year-over-year pricing in several construction materials categories. Construction materials continue to represent the largest component of our business, accounting for approximately 84% of sales, with specialty and allied products contributing 13% and other sources making up the balance.

Our ability to deliver record revenues while maintaining disciplined pricing and customer service reflects the effectiveness of our distribution network, the breadth of our product portfolio, and the long-standing relationships we have built with customers across North America. 1%. Maintaining margin in today's environment speaks to the disciplined approach our teams continue to take in managing inventory, procurement, and pricing across a dynamic market. Adjusted EBITDA for the quarter was just under 79 million, broadly consistent with the prior-year quarter despite continued market volatility.

7 million reported in Q2 2025. 67 billion with adjusted EBITDA of 147 million. 2 million in the same period last year. These results demonstrate our ability to generate consistent profitability while navigating a market that remains far from uniform.

As always, our priorities remain unchanged. We continue to focus on disciplined execution, operational efficiency, prudent working capital management, and providing exceptional service to our customers. These fundamentals have enabled us to perform consistently across different market cycles and position the company to capitalize on opportunities as demand improves. Our balance sheet and cash generation continue to support our capital allocation strategy, including returning capital to shareholders.

14 per share, reflecting our confidence in the long-term strength of the business. Looking ahead, while macroeconomic uncertainty remains, we believe Doman is well positioned. Our diversified product mix, broad geographic footprint, experienced management team, and disciplined operating model provide a strong foundation as market conditions continue to evolve. In closing, I'd like to thank our employees for their continued dedication and commitment, our customers and supplier partners for their ongoing trust, and our shareholders for their continued support.

With that, I'm going to turn the call over to Darren, our CFO, to review the financial results in more detail before we open the line up for analyst questions. Thanks, Darren. Darren Gwozd, Chief Financial Officer Thank you, Amar. Good morning, everyone.

8 million or 2%, largely due to increases in year-over-year pricing in certain construction material categories. The Company's sales in the quarter were made up of 84% construction materials, with the remaining balance resulting from specialty and allied products of 13% and other sources of 3%. 2%, mainly driven by the increase in sales. 1% during the period, unchanged from the same period in 2025, despite the volatility experienced in the past year with respect to lumber pricing, further reinforcing the resilience of our business model.

4% and 3 million. 9% in 2025. 7 million in the same period of 2025, primarily due to broad inflationary pressures. 1% in the same quarter in 2025.

3 million for the same period of 2025, mainly due to dispositions of property, plant, and equipment. 7 million, largely as a result of lower overall net debt, including lower utilization of the revolving loan facility during the quarter. 0%. EBITDA during the quarter was generally stable versus prior quarter despite some slightly elevated inflationary pressures from freight and fuel costs.

5 million. 2 million in the comparative prior year. The following activities during the period accounted for the change. 7 million in the same period in 2025.

Operating cash flows during the period were impacted by the timing of income tax payments. 9 million in 2025. 8 million in 2025. The Company's lease obligations generally require monthly installments and these payments are all current.

8 million in 2025. 8 million in 2025. 6 million to shareholders through dividends paid during the six-month period, largely in line with 2025. The Company was not in breach of any lending covenants during the six months ended June 30, 2026.

6 million in 2025. 4 million. 1 million spent in the six months in 2025. This concludes our formal commentary.

We would now be happy to respond to any questions that you may have. Thank you, operator. OPERATOR Thank you. We will now begin with the question-and-answer session.

To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster.

The first question comes from Matthew McKellar with RBC Capital Markets. Please go ahead. Matthew McKellar, Analyst at RBC Capital Markets Hi. Thanks for taking my questions.

First, I know you don't provide quarterly guidance, but just at a high level, what is your sense of how Q3 is shaping up relative to Q2? Really kind of slowed quite a bit sequentially with what was going on in the market. , and with that, how are you thinking about the sequential progression in the results? Amar Doman, Chairman and Chief Executive Officer Yes, good question.

We've got July in the books now and I can tell you it's fairly similar to what we're seeing. So the economy hasn't changed much. I think the consumer hasn't changed much. The Middle East is still going on and these kind of things that are just not that bullish for the market.

So kind of steady as she goes again—nothing crazy on the way up, nothing crazy on the way down. Just hitting a lot of singles and getting it done. Matthew McKellar, Analyst at RBC Capital Markets Okay, thanks. And could you talk about any impacts, even if indirect, that you might be expecting from recently announced tariffs on Brazil and Canada, maybe particularly as it might relate to fencing?

Thank you. Amar Doman, Chairman and Chief Executive Officer Yeah, sure. That's a net benefit to Doman. So when we look at—of course, we don't really cross the border a lot of materials.

So the import, sort of, you know, severe tariffs that have been put on South America are benefiting. S. and pretty much stop all imports coming in. So that's certainly going to help demand as the quarters go on.

Matthew McKellar, Analyst at RBC Capital Markets Great. Thanks for the color. I'll turn it back. OPERATOR Thanks.

Thank you. Our next question is from Amir Patel with CIBC Capital Markets. Please go ahead. Amar Doman, Chairman and Chief Executive Officer Hi, good morning, Amir.

Amir Patel, Analyst at CIBC Capital Markets I just wanted to follow up on the fencing side. I know you've got various growth initiatives underway there. Maybe if you could just give us an update on how that's progressing. Amar Doman, Chairman and Chief Executive Officer Yes, we've got our Gilmer sawmill operating.

It's not quite at 100% capacity yet with the upgrades we did down in Texas, but it's coming along now, which is excellent, and reduced our labor costs significantly there and in our automation. And then we've got our sawmill that is going to start production kind of any day now. It's kind of as promised. So we'll start to get into that later in the third quarter and fourth quarter to see sales of 1-inch fence products, picket products, and some 1-inch that we're going to take back to Texas as well out of Sdill.

So pretty excited about that. Everything's on track as far as our capex goes. Amir Patel, Analyst at CIBC Capital Markets Great. And just on the wood decking side, it feels like you're gaining share within your product categories.

But give a sense as to how wood is faring versus composites this year. Amar Doman, Chairman and Chief Executive Officer Yeah, you know, I think the price gap, you know, is still a barrier. So composites, you know, obviously are doing well. We distribute a lot of composites as well.

Treated lumber is still around your substructure, so it really depends on your price point. Lumber is still, you know, the number one by, you know, massive amounts and we're happy to distribute either and produce, obviously, on the lumber side. But we just like more decking happening. So we're just good people are focusing on the backyard—that those will all fulfillment.

Amir Patel, Analyst at CIBC Capital Markets Great. S.? Amar Doman, Chairman and Chief Executive Officer Yeah, we're always working to hold onto that business, number one, and make sure we service it properly. So we tend to try and bring in different product lines when there's opportunities in the aisles to make new products available.

But there aren't a lot of new products in our portfolio. But certainly we try to get more market share in the aisle with accessories and other things that we produce. We'd like to scale coming west out of the east on things like stair risers, stringers, ball tops and balusters. Those are items that we're producing on the East Coast that we want to replicate, as mentioned, kind of in the Texas, Arkansas markets and then push north on freight.

Amir Patel, Analyst at CIBC Capital Markets Great, thanks. That's all I had. I'll turn it over. OPERATOR Thanks, Amir.

The next question comes from Zachary Evershed with National Bank. Please go ahead. Prashant, Analyst at National Bank Hi, it's Prashant subbing in for Zach this morning. Congrats on the quarter.

Just a few quick questions here. I saw that revenue growth was driven primarily by pricing this quarter. Can you quantify the contribution from price versus volume and maybe explain which product categories or regions saw the greatest volume pressure? Amar Doman, Chairman and Chief Executive Officer Yeah, I wouldn't say there was any volume pressure.

In fact, our volumes are now ticking almost in line with 2020 and also in some areas they're up. So we really don't have a volume issue, if you will. I can't really quantify exactly how much of those dollars were inflation on the lumber side.