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 FX, partially offset by lower volumes and price concessions.

• Adjusted EBITDA declined 17.9% to $33.1 million, mainly due to lower volumes and price concessions in Retail Services & Printing, and higher incentive compensation.

• Adjusted EPS 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 Braley 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 FX.

• Adjusted EBITDA declined to $33.1 million from $40.3 million year-over-year.

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

• Net financial expenses decreased by $0.4 million to $9.3 million due to 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 be below last year in Q2, with recovery anticipated in the second half as cost reductions and profit improvement initiatives take effect.

• Stable consolidated Adjusted EBITDA expected for FY2026 compared to FY2025.

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

• Corporate cost savings of roughly $30 million targeted over two years, with some impact in H2 2026 and full run rate next year.

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