07:25 AM EDT, 03/18/2024 (MT Newswires) -- ADENTRA Inc. ( HDIUF ) , a North American distributor of architectural building products to the residential, repair and remodel, and commercial construction markets, on Monday reported fourth-quarter adjusted net income of US$10.3 million, or US$0.46 per diluted share, down from US$15 million, or US$0.65 per diluted share, a year earlier.

Analysts polled by Capital IQ expected C$0.27.

Total sales for the quarter ended Dec. 31, 2023, were US$514.9 million, down from US$574.7 million a year earlier. Analysts surveyed by Capital IQ expected C$658.6 million.

Adjusted EBITDA for Q4 was US$44.5 million, up from US$43.6 million a year earlier.

Looking ahead, ADENTRA ( HDIUF ) said it expects first-quarter sales to be lower than in the same period in 2023, with higher volumes being offset by weaker product prices year-over-year. Sales comparisons to 2023 are expected to improve in the latter half of the year.

Also, the company is expecting modest growth in 2024 adjusted EBITDA, driven by continued gross margin strength and disciplined management of operating expenses.

As ADENTRA ( HDIUF ) is not expecting the market to grow meaningfully in 2024, the company has modified its plan with the revised goal of achieving US$3.5 billion in run-rate sales by 2028, or the "Destination 2028" goal. The company previously expected to achieve its goal of US$3.5 billion in run-rate sales by 2026.

The other key metrics underpinning the company's US$3.5 billion sales goal have not changed considerably from what was presented in the original plan, the company said.