Ennis (EBF) investor relations material

Executive summary

• Net sales for the quarter ended November 30, 2025, were $100.2 million, up 0.4% year-over-year, driven by acquisitions offsetting organic volume declines.

• Net earnings for the quarter were $10.8 million, with diluted EPS of $0.42, up from $0.39 last year.

• Gross profit margin improved to 31.9% for the quarter, up from 29.3% year-over-year, reflecting operational efficiencies and acquisition impact.

• EBITDA for the quarter was $19.2 million (19.2% of sales), up from $18.2 million (18.2% of sales) year-over-year.

• Recent acquisitions (CFC Print & Mail, NEC, ESS) contributed to revenue growth and margin improvement.

Financial highlights

• For the nine months ended November 30, 2025, net sales were $296.0 million, down 2.0% year-over-year, but net earnings rose to $33.8 million from $31.2 million.

• Gross profit margin for the nine months rose to 31.2% from 29.8% year-over-year.

• EBITDA for the nine months was $59.4 million (20.1% of sales), up from $55.5 million (18.4% of sales) year-over-year.

• Operating cash flow for the nine months was $34.9 million, down from $53.1 million, mainly due to increased inventory purchases.

• Cash and cash equivalents at period end were $31.3 million, with working capital of $97.6 million.

Outlook and guidance

• Management expects operating cash flows to remain consistent and capital expenditures to range between $4.0 million and $7.0 million over the next twelve months.

• Inventory levels were increased strategically to mitigate supply chain risks, particularly for carbonless paper.

• No anticipated supply disruptions as the company transitions to alternative carbonless paper sources.

• Cash flow expected to improve as inventory purchasing requirements decline in coming quarters.

• Focus remains on sustaining profitability and pursuing acquisitions without reliance on debt.