1847 Holdings Reports $15.7 Million Revenue for Fiscal Year 2024, Faces Increased Net Loss

1847 Holdings LLC reported a total revenue of $15.7 million for the fiscal year ending December 31, 2024, marking an increase of 10.7% from $14.2 million in the previous year. The construction segment, which includes services such as finish carpentry and cabinetry, generated $12 million, a 24.1% increase from $9.6 million in 2023. In contrast, the automotive supplies segment saw a decline in revenue, dropping 17.6% to $3.7 million, attributed to working capital constraints affecting inventory levels. The company incurred a net loss from continuing operations of $106.8 million, a significant increase from a loss of $24 million in 2023, largely due to increased operating expenses and losses on financial instruments.

The company underwent significant operational changes during the year, including the acquisition of CMD Inc. and the divestiture of High Mountain and ICU Eyewear, which are now classified as discontinued operations. The acquisition of CMD, completed on December 16, 2024, is expected to enhance the company's construction segment, while the sales of High Mountain and ICU Eyewear have streamlined operations. As of December 31, 2024, 1847 Holdings employed 177 full-time staff across its subsidiaries, reflecting a focus on expanding its workforce to support growth initiatives.

Financially, 1847 Holdings faced challenges, including a working capital deficit of $111.9 million and a total debt of approximately $32.3 million. The company reported cash and cash equivalents of $2.5 million, alongside restricted cash of $1.4 million. Management indicated that additional financing would be necessary to support future acquisitions and operational needs. The company plans to pursue growth through strategic acquisitions while managing its debt levels to avoid stringent lender controls that could hinder operational flexibility.

Looking ahead, 1847 Holdings aims to continue its acquisition strategy, focusing on small businesses with stable earnings and growth potential. The company has amended its operating agreement to increase the number of authorized shares, which may facilitate future capital raises. However, management acknowledged the need for additional funds to execute its business plan effectively. The outlook remains cautious, with the company emphasizing the importance of generating sufficient cash flow from operations to support ongoing obligations and shareholder distributions.