Ennis (EBF) Q1 2026 earnings summary

Executive summary

• Net sales for the quarter ended May 31, 2025, were $97.2 million, down 5.7% year-over-year, mainly due to weaker legacy plant demand, partially offset by recent acquisitions.

• Net earnings were $9.8 million, or $0.38 per diluted share, compared to $10.7 million, or $0.41 per diluted share, for the same quarter last year.

• Gross profit margin improved to 31.1% from 30.0% year-over-year, reflecting effective cost management despite lower sales.

• Recent acquisitions (NEC, ESS, PTI) contributed $5.5 million in revenue and are expected to strengthen production capabilities and enhance product offerings.

• EBITDA was $17.7 million (18.2% of sales), up sequentially but down year-over-year.

Financial highlights

• Cost of goods sold decreased by $5.2 million (-7.2%) to $67.0 million, in line with lower sales volume.

• Cash provided by operating activities was $8.0 million, down from $23.1 million in the prior year quarter.

• Cash at quarter-end was $32.0 million, with no debt.

• SG&A expenses declined by $0.3 million to $16.9 million, representing 17.4% of net sales.

• Cash used in investing activities increased to $30.8 million from $5.1 million year-over-year.

Outlook and guidance

• Management expects cash flows from operations and current cash balance to be sufficient for operating and capital needs over the next twelve months.

• Capital expenditures for the fiscal year are projected between $4.0 million and $7.0 million, consistent with historical levels.

• Focus remains on cost control, margin preservation, and strategic acquisitions to offset industry headwinds.

• Anticipates timely access to credit for larger acquisition opportunities.