ADI Global Distribution Shares Plunge Following $659 Million Goodwill Write-Down
ADI Global Distribution (ADIG) experienced a massive sell-off this week, with shares falling 46.4% in five trading sessions. The decline was triggered by the company reporting a third-quarter net loss of $655 million, primarily driven by a $659 million non-cash goodwill write-down resulting from persistent weakness in the residential construction market. While top-line revenue grew 9% year-over-year to $1.31 billion, exceeding analyst expectations, profitability was severely impacted by a shift toward lower-margin national accounts and rising freight costs. Management also lowered its full-year 2026 guidance for both revenue and adjusted EBITDA, reflecting the challenges of operating as a standalone entity following its spin-off from Resideo Technologies.
Topics: earnings report goodwill write-down profit outlook residential construction market revenue growth