Atlantic Hardware gears up for post-Melissa rebuild
Published:Friday | November 21, 2025 | 12:09 AM
Atlantic Hardware & Plumbing Company Limited (AHPC) delivered third-quarter profit of $46.5 million, or more than 180 per cent higher year-on-year, powered by lower finance costs as its Initial Public Offering (IPO) slashed debt.
Atlantic is in “wait and see” mode in relation to the short term impact of Hurricane Melissa.
“We know that there will be significant construction and reconstruction efforts in the parishes affected but we are not yet clear when this will commence,” said CEO Deanall Barnes in a Financial Gleaner interview. “We are not entirely sure when the national effort will start, [but] we will be ready.”
The rise in September quarterly earnings came despite a dip in revenue to $426.4 million from $437.4 million.
“Our listing was not just about raising capital; it was about positioning Atlantic for sustainable growth. We’ve reduced leverage significantly, improved financial flexibility, and unlocked tax efficiencies that will benefit shareholders over the long term,” stated Chairman Paul ‘PB’ Scott in the preface to the results released days earlier.
The company raised some $500 million in capital in its IPO. It became the first IPO of the year as other raises were bond or additional public offerings. The company utilized a portion of the proceeds to pay down on debt. Consequently, its long term liabilities were slashed to $479 million in September from $932 million a year ago. Also, the company sold an underutilised property at 7A Ashenheim Road, which generated $237 million.
Speaking to the Financial Gleaner, CEO Barnes attributed the stronger margins to disciplined pricing, improved purchasing practices, and tighter inventory management.
“We are investing in technology. We recently added the final piece of our enterprise resource planning, system. Along with this, we are strengthening our supplier network, and broadening our product portfolio. These initiatives will ensure we remain competitive in a challenging environment,” Barnes said.
AHPC’s balance sheet reflects this transformation. Total assets stood at $1.43 billion, while equity climbed to $445 million, buoyed by the IPO proceeds.
The company, which distributes, wholesale, more than 2,400 hardware and building products to over 1,000 customers islandwide, continues to leverage global brands such as Stanley, Dewalt, Bosch, and Generac. Barnes said demand remains steady across key segments, supported by an expanded sales team and improved product availability.
AHPC’s stock journey since its April listing has been eventful. The shares debuted at $1.00 but closed the first day at $0.92 amid heavy selling pressure. However, investor sentiment improved over the following months. The stock hit an intraday high of J$1.70 in early November, driven by strong trading volumes – 15.6 million shares on a single day – before settling back to its current range of $1.10 to $1.20. Its market capitalization hovers at $2.8 billion.
“We’ve built a solid platform for growth,” Scott emphasized. “Our goal is to sustain this trajectory by deepening relationships with contractors and developers, while exploring new product lines aligned with Jamaica’s construction boom,” he said.