Ennis (EBF) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2024 were $99.0 million, down 7.3% year-over-year due to weaker demand and increased price competition; recent acquisitions partially offset the decline.

• Net earnings for the quarter were $10.3 million, or $0.40 per diluted share, compared to $10.9 million, or $0.42 per diluted share, last year.

• Gross profit margin for the quarter was 30.1%, slightly lower than 31.0% in the prior year, but stable sequentially.

• EBITDA margin improved to 18.6% of sales from 18.5% in the prior year.

• The company declared a regular quarterly dividend of $0.25 per share and a one-time special dividend of $2.50 per share, totaling an expected payout of $72.4 million.

Financial highlights

• Six-month net sales were $202.1 million, down 7.3% year-over-year; acquisitions contributed $7.1 million in revenue.

• Six-month net earnings were $21.0 million, or $0.80 per diluted share, down from $22.5 million, or $0.87 per diluted share, last year.

• Cash at end of period was $99.98 million, up from $81.60 million at the start of the period.

• Cash flow from operations for the six months was $35.0 million, flat year-over-year.

• Working capital increased to $178.5 million, with a current ratio of 6.3:1.

Outlook and guidance

• Management expects cash flows and capital requirements to remain consistent with historical levels, with capital expenditures projected between $3.0 million and $6.0 million.

• Anticipates sufficient liquidity to fund operations, capital needs, and future acquisitions.

• Continued focus on cost control and profitability amid softened demand and increased price competition.

• Plans to pursue further acquisitions and new sales channels.

• Strong balance sheet with no debt and significant cash reserves supports ongoing operations and acquisitions.