Ennis (EBF) Q3 2025 earnings summary

Executive summary

• Q3 FY2024 net sales were $99.8M, down 4.6% year-over-year, while net earnings rose to $10.2M and diluted EPS increased to $0.39.

• For the nine months ended November 30, 2024, net sales were $301.9M, down 6.4% year-over-year, and net earnings were $31.2M.

• A special dividend of $2.50 per share ($65M) was paid, and a quarterly dividend of $0.25 per share was declared for February 2025.

• Recent acquisitions, including one in June, contributed to revenue and EPS growth, expanding capabilities.

• The company continues to focus on cost management amid softening demand and competitive pricing.

Financial highlights

• Q3 gross profit margin was 29.3%, nearly flat year-over-year, with gross profit of $29.2M.

• SG&A expenses decreased 6.1% year-over-year, with a $1.1M reduction compared to Q3 last year.

• Q3 EBITDA margin increased to 18.2% from 17.5% year-over-year.

• Cash at period end was $55.7M, down from $81.6M at prior fiscal year-end.

• Returned $72.3M to shareholders in dividends during the quarter.

Outlook and guidance

• Management expects cash flows and liquidity to be sufficient for operating and capital needs over the next twelve months.

• Capital requirements for the next year are projected between $3M and $6M, consistent with historical levels.

• The company will continue to pursue acquisitions and invest in technology to transform its product portfolio.

• Expects to fund operations and acquisitions without incurring debt due to strong cash reserves.

• Anticipates timely access to credit for larger acquisition opportunities.