Supremex (SXP) Q2 2026 earnings summary

Executive summary

• Revenue grew 8.5% year-over-year to $71.6 million, with both packaging and envelope segments contributing to growth.

• Adjusted EBITDA increased nearly 34% to $7.8 million (10.9% margin), with margin expanding 210 basis points.

• Net earnings reached $1.0 million ($0.04 per share), reversing a net loss of $0.3 million last year.

• Free cash flow turned strongly positive at $3.6 million, after a seasonally soft first quarter.

• Completed acquisitions of Goldrich Printpak and iFlex Labels, expanding folding carton capabilities and presence in Ontario and the Greater Toronto Area.

Financial highlights

• Packaging revenue rose 19% year-over-year to $26.4 million, driven by folding carton and e-commerce growth.

• Envelope revenue increased 3.2% to $45.2 million, with both price and volume contributing.

• Adjusted net earnings were $1.4 million ($0.06 per share), up from $0.1 million last year.

• Net cash flows from operating activities were $4.3 million, up from $0.3 million a year ago.

• Net debt stood at $40.1 million, with net debt to adjusted EBITDA at 1.22x, reflecting acquisition financing.

Outlook and guidance

• Cautiously optimistic outlook, with ongoing economic and trade uncertainty, postage increases, and postal service challenges.

• Continued focus on U.S. envelope market, cost management, and leveraging recent acquisitions for growth.

• Ongoing optimization initiatives in U.S. operations and label business reorganization progressing on track.

• Will pursue further acquisitions in packaging while maintaining shareholder returns via dividends and share repurchases.

• Expects continued growth in packaging, especially folding cartons, driven by sustainability trends and e-commerce.