Transcontinental (TCL-A) Q1 2026 earnings summary

Executive summary

• Revenues increased 2.3% year-over-year to $263.5 million, driven by acquisitions and favorable exchange rates, partially offset by lower volumes and price concessions.

• Adjusted EBITDA declined by $7.2 million (17.9%) to $33.1 million, mainly due to lower volumes, price concessions, and higher incentive compensation.

• Adjusted earnings per share from continuing operations was $0.08, down from $0.10 in Q1 last year; EPS was $0.00, down from $0.06.

• Sale of the Packaging business completed March 6, 2026, for $2.1 billion, enabling a strategic focus on retail services, printing, and educational publishing.

• Announced senior management changes: Sam Bendavid as CEO and Pat Brayley as COO, both promoted internally.

Financial highlights

• Revenues from continuing operations increased 2.3% year-over-year to $263.5 million, mainly due to acquisitions and favorable FX.

• Adjusted EBITDA declined to $33.1 million (down from $40.3 million), mainly due to lower volumes and price concessions.

• Adjusted net earnings from continuing operations were $6.7 million ($0.08 per share), down from $8.2 million ($0.10 per share) year-over-year.

• Net financial expenses decreased to $9.3 million, reflecting lower debt levels.

• Working capital usage improved to $10.8 million from $36.4 million in Q1 last year, mainly due to lower inventory.

Outlook and guidance

• Adjusted EBITDA expected to remain below last year in Q2, with recovery anticipated in the second half as cost reductions and profit improvement initiatives take effect.

• Adjusted net indebtedness ratio expected to increase in the next two quarters before improving in Q4 2026.

• CapEx guidance for the year remains at $55-60 million.

• Corporate cost savings of roughly $30 million targeted over the next two years, with some impact in the second half and full run rate expected next year.

• Significant cash flows from operations expected to reduce net indebtedness and support growth investments.