Compass Diversified Holdings

NYSE:CODI

EBITDA growth: CODI said second-quarter subsidiary adjusted EBITDA grew 12.6% on a continuing basis, with every branded consumer business posting growth.

Outlook kept: Management maintained full-year 2026 subsidiary adjusted EBITDA guidance at $320 million to $365 million, while shifting the mix toward stronger consumer and softer industrial results.

Balance sheet: The company used more than $280 million from the Sterno Food Service sale to pay down debt, cutting total debt to about $1.6 billion and lowering covenant leverage to 4.8x.

MSA reset: CODI amended its management services agreement to cut fees starting in 2027, and said the change should reduce fees by about $20 million versus the prior formula.

Turnaround focus: Altor remains the weak spot, with EBITDA down roughly 50% in the quarter; management expects a gradual recovery over the next 4 to 5 quarters.

Capital return: Management reiterated that divestitures and deleveraging are the main near-term levers, and said capital returns could become a consideration once leverage falls below 4x.