Ennis (EBF) Q2 2026 earnings summary

Executive summary

• Net sales for the quarter ended August 31, 2025, were $98.7 million, down 0.3% year-over-year, with acquisition-driven revenue offsetting weaker volume demand.

• Net earnings for the quarter rose to $13.2 million, or $0.51 per diluted share, up from $10.3 million, or $0.40 per share, aided by a $5.7 million legal settlement and recent acquisitions.

• For the six months ended August 31, 2025, net sales were $195.9 million, down 3.1% year-over-year, while net earnings increased to $23.0 million from $21.0 million.

• EBITDA for the quarter was $22.5 million, or 22.8% of sales, up from $18.4 million, or 18.6% of sales, year-over-year.

• Recent acquisitions contributed $5.5 million in quarterly revenue and $0.03 to diluted EPS.

Financial highlights

• Gross profit margin for the quarter was 30.5%, up from 30.1% a year ago; for the six months, margin improved to 30.8% from 30.0%.

• SG&A expenses increased 6.6% for the quarter, mainly due to higher incentive compensation and acquisition-related costs.

• Other income for the quarter included $5.7 million from a legal settlement, significantly boosting net earnings.

• EBITDA for the six months was $40.2 million, or 20.5% of sales, up from $37.4 million, or 18.5% of sales, year-over-year.

• Cash provided by operating activities was $18.4 million for the six months, down from $34.9 million in the prior year, mainly due to increased inventory and receivables.

Outlook and guidance

• Management expects operating cash flows and capital expenditures to remain consistent with historical levels, with sufficient liquidity to meet operational and capital needs over the next twelve months.

• Anticipates reduced purchasing needs in coming quarters and expects capital expenditures between $4.0 million and $7.0 million for the fiscal year.

• Management expects cash flow to strengthen in coming quarters as inventory purchasing needs decrease.

• Focus remains on sustaining profitability, delivering shareholder returns, and pursuing acquisitions without debt.