$DBM.TO

Doman Building Materials Group Declares Quarterly Dividend of $0.14 Per Share

Doman Building Materials Group's (DBM.TO) board declared a quarterly dividend of C$0.14 per share, unchanged from the previous quarter, the company said Friday.This marks the 65th consecutive quarter that the company declared a dividend.The dividend will be paid July 15 to shareholders of record on June 30.Doman is a distributor in the building materials and related products sector. It also operates treating plants, planing and specialty facilities, and distribution centers in Canada and the U.S.

Doman Building Materials Group Price Target Modestly Raised to $12.25 at Stifel Canada

Stifel Canada modestly raised its price target on the shares of Doman Building Materials Group (DBM.TO) by $0.25 to $12.25 and maintained its buy rating following the company's first-quarter results.Doman Building delivered EBITDA of $68 million which beat consensus by 14.6% driven by strong gross margins of 17.0%, notes analyst Ian Gillies.While Gillies does not believe this level of gross margins is sustainable, a strong first quarter should position the company to meet the high end of its gross margin guidance of 16.0%, supported by SYP pricing inching higher, by an estimated +6.1% in the second quarter, he writes.Price: $10.33, Change: $-0.06, Percent Change: -0.58%

CIBC Confirms Neutral Rating on Doman Building Materials and Raises Target to $12.00 on Q1 Results

CIBC Capital Markets maintained its neutral rating on the shares of Doman Building Materials Group (DBM.TO) while raising its price target to $12.00 from $11.50 after the company reported its first quarter financial results on Friday.The bank said that while it remains cautious on the near-term industry outlook given that elevated mortgage rates continue constraining R&R activity, the company continues to navigate the tough conditions well, with disciplined pricing, procurement and cost management. CIBC believes Doman is set to capitalize on "robust medium- to long-term demand" for treated lumber in North America, supported by high home equity levels and an aging housing stock.It also noted that the current wood-products market challenges may unlock additional M&A opportunities for Doman."We are maintaining our Neutral rating on Doman and raising our price target to $12 (from $11.50), reflecting a slightly higher 2027 EV/EBITDA valuation multiple (increased by 0.25x to 7.5x) on rising upside risks to our long-term margin assumptions given growing fencing mix," said analyst Hamir Patel.The bank reduced its Q2 2026 EBITDA forecast by about 2% to $70 million reflecting some impact from fuel costs on margins, it said. It raised its 2026 EBITDA forecast by about 3% to $253 million, entirely due to stronger-than-expected Q1 results, it added.CIBC's 2027 EBITDA forecast decreased slightly by 1% to $264 million.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $10.29, Change: $-0.10, Percent Change: -0.96%

Doman Building Materials Group Target to C$13.50 From $12.50, Keeps Outperform at National Bk As Q1 Results Show "A Strong Defence"

Doman Building Materials Group With Modest Lift In Q1 Earnings, Even On Lower Than Seen Revs

Doman Building Materials Group (DBM.TO) after the close Friday reported a modest lift in first-quarter net earnings even on lower than expected revenues.Net earnings rose to C$23.924 million, from $23.56 million in the prior year period. The company did not provide any per share amounts.For the three-month period ended March 31, 2026, consolidated revenue fell to $762 million from $793.2 million in the prior-year period, "largely due to the impact of decreases in pricing on a year-over-year basis across certain construction materials categories". It missed the consensus analyst forecast of $784.2 million, according the FactSet.The company's EBITDA amounted to $68.1 million in the first quarter, compared to $70.0 million in the same period last year. Its sales by product group in the period were made up of 83% construction materials, with the remaining balance resulting from specialty and allied products of 14%, and other sources of 3%.The company also declared a $0.14 per share dividend, which was paid on April 15, 2026, to shareholders of record at the close of business on March 31, 2026."Despite year-over-year lower pricing for SPF, OSB and plywood product categories, I am pleased with our top-line performance, while our focus on cost management allowed us to deliver strong gross margin and ultimately a good start to the year at the EBITDA and net earnings lines," said Amar S. Doman, chairman of the board."While we saw some stability in pricing in the US in the first quarter, the overall picture driven by macro trends remains volatile, and uncertainty exists moving forward into 2026," he added.Doman shares closed up $0.02 to $10.27 on the Toronto Stock Exchange on Friday.

CIBC Provides its Q1/26 Forestry, Building Products & Packaging Preview

CIBC Capital Markets on Tuesday provided its "Q1/26 Forestry, Building Products & Packaging Preview" and said that heading into first quarter earnings season, it remains cautious on wood/building product equities as elevated mortgage rates are "likely to continue weighing on demand".It further said that while there was a level of optimism from some industry participants going into the key spring selling season, which kicked off in early February, there has been "little indication of a material pickup in demand"."Moreover, the onset of the conflict in the Middle East has further eroded consumer confidence, which was accompanied by a spike in mortgage rates (currently sitting ~30 bps higher than pre-war levels at 6.3%), further adding to homebuyer affordability challenges," said CIBCCIBC also said that it sees added inflationary pressures, including freight, diesel and resins, for several companies under its coverage, posing downside risk to Q2 consensus estimates."That being said, Canadian lumber companies should see moderating duties in the back half of the year, with the preliminary AR7 combined AD/CV "All Others" rate of 24.83% announced (vs. the current rate of 35.16%)," added CIBC.CIBC also said that CCL Industries (CCL-B.TO) remains its top pick across its Forestry, Building Products & Packaging coverage universe, given the difficult housing backdrop weighing on wood/building product equities.CIBC believes CCL's diversified global platform and end-market exposure should support "steady top-line growth over the cycle," supported by continued RFID growth and benefits from recent business wins and capital projects."With leverage of only 0.8x, CCL is well positioned to be opportunistic with M&A, buybacks and organic investments," added CIBC.It further said that, among its Paper & Packaging names, it also rates Transcontinental (TCL-A.TO) outperformer given the company's "strong FCF generation, margin improvement initiatives and further M&A prospects".Across its broader housing-related coverage, CIBC said it has an outperformer rating on ADENTRA (ADEN.TO) and Weyerhaeuser (WY)."While wood product prices have moved higher, our channel checks indicate that consensus estimates for wood products companies may be overly optimistic for the first quarter," said CIBC. "Further out, consensus still looks overly aggressive on most wood names for 2026/2027 given elevated mortgage rates, weak consumer confidence and potentially higher cost inflation."CIBC added that its largest adjustments are for Canfor (CFP.TO), West Fraser Timber (WFG.TO) and WY, where for the next two years, CIBC is reducing estimates by an average of 20%/12%, leaving its revised estimates for 2026/2027 approximately 26%/10% lower than consensus.CIBC lowered its price targets on Canfor from C$16 to C$15, Mercer International (MERC) from US$2.00 to US$1.75, Stella-Jones (SJ.TO) from C$102 to C$96, and West Fraser from C$108 to C$102, "largely reflecting weaker commodity price estimates.""While our expected total return for Mercer is notably higher, given limited share price liquidity and greater volatility in MERC's share price, we believe a much higher return is necessary on the micro-cap pulp equity to warrant a more constructive rating," added CIBC.CIBC increased its price targets on ADENTRA from C$42 to C$44 and Doman Building Materials Group (DBM.TO) from C$11.00 to C$11.50, "reflecting higher valuation multiples given continued M&A activity in the distributor space."CIBC said that it is also raising its price target on CCL from C$102 to C$103, on "improved confidence in the company's ability to quickly pass through rising input costs."Price: $86.25, Change: $-0.35, Percent Change: -0.40%