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Transcontinental (TCL-A) investor relations material
Transcontinental Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Fiscal 2025 revenues were $2,743.9 million, down 2.5% year-over-year, with net earnings attributable to shareholders rising 41.0% to $171.0 million ($2.04 per share), and adjusted net earnings per share up 10.7% for the year.
Adjusted net earnings grew 7.8% to $217.2 million ($2.59 per share), with adjusted operating earnings before depreciation and amortization at $466.2 million.
Cost reduction initiatives and disciplined execution improved profitability and safety, with a 39% reduction in accidents year-over-year.
Strong free cash flow enabled net debt reduction despite acquisitions.
The sale of the Packaging Sector for $2.1 billion was announced, expected to close in Q1 2026, marking a major strategic shift.
Financial highlights
Q4 revenues were $732.4 million, down 2.3% year-over-year, mainly due to lower volumes in Retail Services and Printing and the sale of industrial packaging operations.
Q4 adjusted EBITDA was $137.6 million (down 3.2%), and adjusted EPS improved 3.8% to $0.82.
Full-year adjusted EPS grew 10.7% to $2.59, driven by improved profitability and lower share count.
Operating cash flow in Q4 was $172.5 million, with positive working capital of $64.9 million.
CapEx for the year was close to $100 million, a $22 million reduction from the prior year.
Outlook and guidance
The sale of the Packaging Sector is expected to close in Q1 2026, pending regulatory approvals.
Fiscal 2026 is expected to deliver stable adjusted EBITDA from continuing operations, with lower volumes in traditional activities partially offset by ISM and in-store marketing growth.
ISM activities are projected to grow both organically and through acquisitions; Canada Post labor conflict impact should be limited to the first five weeks of Q1 2026.
CapEx for 2026 is expected to be around $60 million; cash taxes around $30 million.
Continued strong cash flow generation is expected to support further debt reduction and shareholder returns.
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