Doman Building Materials Group posts record Q2 revenue as analysts lift price target

Doman Building Materials Group Ltd. reported record second‑quarter revenue of $904.5 million, a 2 % increase from the same period a year earlier. Net earnings rose to $31.2 million and adjusted earnings were $0.36 per share, beating analysts' forecasts despite revenue falling slightly short of the $909.98 million consensus. Adjusted EBITDA slipped to $78.8 million because of higher fuel, freight and other inflation‑driven costs, while DS&A expenses rose 6.9 % and the gross margin held steady at 16.1 %.

CEO Amar Doman said new tariffs on imports from Canada and Brazil are a net benefit and outlined plans to expand U.S. fencing production and increase capacity in Texas and Arkansas. Several brokerages raised their price targets for the stock: Raymond James to C$12.50, National Bank Financial to C$14.00, Desjardins to C$12.50, RBC to C$12.00 and Stifel Nicolaus to C$12.25, giving a consensus target of about C$12.38. The shares fell 4.5 % in trading, closing at C$11.29.