Ennis, Inc. Reports Results for the Quarter Ended November 30, 2025 and Declares Quarterly Dividend
MIDLOTHIAN, Texas--( BUSINESS WIRE)--Ennis, Inc. (the “Company”), (NYSE: EBF), today reported financial results for the quarter ended November 30, 2025. Highlights include:
Financial Overview
The Company’s revenues for the quarter ended November 30, 2025 were $100.2 million compared to $99.8 million for the same quarter last year, an increase of $0.4 million, or 0.4%. Gross profits totaled $32.0 million for a gross profit margin of 31.9%, as compared to $29.2 million, or 29.3%, for the same quarter last year. Net earnings for the quarter were $10.8 million, or $0.42 per diluted share, as compared to $10.2 million, or $0.39 per diluted share for the same quarter last year.
The Company’s revenues for the nine-month period ended November 30, 2025 were $296.0 million compared to $301.9 million for the same period last year, a decrease of $5.9 million or 2.0%. Gross profit margin was $92.3 million, or 31.2%, as compared to $89.9 million, or 29.8% for the nine-month periods ended November 30, 2025 and 2024, respectively. Net earnings for the nine-month period ended November 30, 2025 were $33.8 million, or $1.31 per diluted share compared to $31.2 million, or $1.19 per diluted share for the same period last year.
Keith Walters, Chairman, Chief Executive Officer and President, commented by stating, “Our performance for the quarter met our expectations. Our sales increased and we achieved a gross margin of 31.9%, up nearly 260 basis points from 29.3% in the same period last year, and up 140 basis points from 30.5% in the prior quarter. We achieved an increase in gross profit margin as a percentage of sales, supported by continued operational efficiencies and the favorable margin profile of our recent acquisitions. EBITDA was $19.2 million, or 19.2% of sales. While this compares to $22.5. million, or 22.8% of sales, in the preceding quarter, those results benefited from a one-time $5.7 million judgment collection. Our EBITDA performance reflects continued year-over-year growth from the $18.2 million, or 18.2% of sales, reported in the same quarter last year.
“We completed the acquisition of CFC Print & Mail (CFC) at the end of the current quarter. CFC, based in Grand Prairie, Texas and founded in 2009, is a wholesale provider of business-document printing, mailing and commercial print solutions. The contribution from acquired businesses, including acquisitions completed in the current and prior year and reflecting partial-period results where applicable, was approximately $5.8 million in revenues for the quarter and $16.4 million in revenues for the nine-month period. Diluted earnings per share were positively impacted by $0.05 per diluted share for the quarter and positively impacted by $0.11 per diluted share for the nine-month period.
“In the previous quarters, we strategically used cash to increase inventory in response to the announced closure of the only domestic producer of carbonless paper. During the third quarter we successfully reduced inventory from $62.1 million to $60.8 million through the conversion of inventory to sales. As we transition to alternative sources of carbonless paper, we do not anticipate any supply disruptions.
“Year to date, we have repurchased approximately 793,000 shares of our company stock at various points during the year when market prices were attractive. On a weighted-average basis, these repurchases resulted in an estimated $0.02 increase in earnings per share. Had all repurchases occurred at the beginning of the year, the estimated impact would have been approximately $0.04 increase in earnings per share. The cumulative effect of year-to-date repurchase activity contributed approximately $0.01 to earnings per share in the current quarter. Any future share repurchases will be evaluated based on market conditions, capital allocation priorities, and other relevant factors.
"We maintain a strong balance sheet, with no debt and ample cash reserves. As noted last quarter, we expect cash flow to improve in the coming periods. With our inventory levels now enhanced, purchasing requirements are expected to decline over the next several quarters, supporting the rebuilding of our cash position. Our profitability and financial strength allows us to operate and pursue acquisitions without reliance on debt, while retaining access to credit for larger initiatives if needed. We remain focused on sustaining profitability and delivering returns to our shareholders."
Reconciliation Non-GAAP Measure
To provide important supplemental information to both management and investors regarding financial and business trends used in assessing its results of operations, from time to time the Company reports the non-GAAP financial measure of EBITDA (EBITDA is calculated as net earnings before interest expense, tax expense, depreciation, and amortization). The Company may also report adjusted gross profit margin, adjusted earnings and adjusted diluted earnings per share, each of which is a non-GAAP financial measure.
Management believes that these non-GAAP financial measures provide useful information to investors as a supplement to reported GAAP financial information. Management reviews these non-GAAP financial measures on a regular basis and uses them to evaluate and manage the performance of the Company’s operations. Other companies may calculate non-GAAP financial measures differently than the Company, which limits the usefulness of the Company’s non-GAAP measures for comparison with these other companies. While management believes the Company’s non-GAAP financial measures are useful in evaluating the Company, when this information is reported it should be considered as supplemental in nature and not as a substitute or an alternative for, or superior to, the related financial information prepared in accordance with GAAP. These measures should be evaluated only in conjunction with the Company’s comparable GAAP financial measures.
The following table reconciles EBITDA, a non-GAAP financial measure, for the three and nine-months ended November 30, 2025 and 2024 to the most comparable GAAP measure, net earnings (dollars in thousands).
Three months ended
Nine months ended
November 30,
November 30,
November 30,
November 30,
2025
2024
2025
2024
Net earnings
$
10,827
$
10,204
$
33,779
$
31,199
Income tax expense
4,107
3,871
12,812
11,834
Depreciation and amortization
4,289
4,079
12,782
12,509
EBITDA (non-GAAP)
$
19,223
$
18,154
$
59,373
$
55,542
% of sales
19.2
%
18.2
%
20.1
%
18.4
%
In Other News
On December 18, 2025 the Board of Directors declared a quarterly cash dividend of 25.0 cents per share on the Company’s common stock. The dividend is payable on February 5, 2026 to shareholders of record on January 8, 2026.
About Ennis
Founded in 1909, the Company is one of the largest private-label printed business product suppliers in the United States. Headquartered in Midlothian, Texas, Ennis has production and distribution facilities strategically located throughout the USA to serve the Company’s national network of distributors. Ennis manufactures and sells business forms, other printed business products, printed and electronic media, integrated forms and labels, presentation products, flex-o-graphic printing, advertising specialties, internal bank forms, plastic cards, secure and negotiable documents, specialty packaging, direct mail, envelopes, tags and labels and other custom products. For more information, visit www.ennis.com.
Safe Harbor under the Private Securities Litigation Reform Act of 1995
Certain statements that may be contained in this press release that are not historical facts are forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. The words “anticipate,” “preliminary,” “expect,” “believe,” “intend” and similar expressions identify forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for such forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. These statements are subject to numerous uncertainties, which include, but are not limited to, the erosion of demand for our printer business documents as the result of digital technologies, risk or uncertainties related to the completion and integration of acquisitions, and the limited number of available suppliers and variability in the prices of paper and other raw materials. Other important information regarding factors that may affect the Company’s future performance is included in the public reports that the Company files with the Securities and Exchange Commission, including but not limited to, its Annual Report on Form 10-K for the fiscal year ending February 28, 2025. The Company does not undertake, and hereby disclaims, any duty or obligation to update or otherwise revise any forward-looking statements to reflect events or circumstances occurring after the date of this release, or to reflect the occurrence of unanticipated events, although its situation and circumstances may change in the future. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material.
Ennis, Inc.
Unaudited Condensed Consolidated Financial Information
(In thousands, except share and per share amounts)
Three months ended
Nine months ended
Condensed Consolidated Operating Results
November 30,
November 30,
November 30,
November 30,
2025
2024
2025
2024
Net sales
$
100,167
$
99,771
$
296,039
$
301,917
Cost of goods sold
68,215
70,522
203,757
211,985
Gross profit
31,952
29,249
92,282
89,932
Selling, general and administrative
16,990
16,341
51,656
50,068
(Gain) loss from disposal of assets
(19
)
(138
)
(19
)
(95
)
Income from operations
14,981
13,046
40,645
39,959
Other expense (income)
47
(1,029
)
(5,946
)
(3,074
)
Earnings before income taxes
14,934
14,075
46,591
43,033
Income tax expense
4,107
3,871
12,812
11,834
Net earnings
$
10,827
$
10,204
$
33,779
$
31,199
Weighted average common shares outstanding
Basic
25,439,979
26,013,892
25,708,846
26,028,596
Diluted
25,526,261
26,088,957
25,783,285
26,192,008
Earnings per share
Basic
$
0.43
$
0.39
$
1.31
$
1.20
Diluted
$
0.42
$
0.39
$
1.31
$
1.19
November 30,
February 28,
Condensed Consolidated Balance Sheet Information
2025
2025
Assets
Current assets
Cash
$
31,283
$
67,000
Short-term investments
—
5,475
Accounts receivable, net
35,307
37,037
Other receivables
1,577
1,716
Inventories, net
60,802
38,797
Prepaid expenses
3,611
2,715
Total Current Assets
132,580
152,740
Property, plant & equipment, net
57,424
52,586
Operating lease right-of-use assets, net
10,647
9,833
Goodwill and intangible assets, net
147,490
127,619
Other assets
6,115
6,157
Total Assets
$
354,256
$
348,935
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable
$
12,886
$
13,799
Accrued expenses
17,542
15,339
Current portion of operating lease liabilities
4,599
4,166
Total Current Liabilities
35,027
33,304
Other non-current liabilities
14,435
13,651
Total liabilities
49,462
46,955
Shareholders' equity
304,794
301,980
Total Liabilities and Shareholders' Equity
$
354,256
$
348,935
Nine months ended
November 30,
November 30,
Condensed Consolidated Cash Flow Information
2025
2024
Cash provided by operating activities
$
34,859
$
53,097
Cash provided by (used in) investing activities
(36,653
)
7,919
Cash used in financing activities
(33,923
)
(86,909
)
Change in cash
(35,717
)
(25,893
)
Cash at beginning of period
67,000
81,597
Cash at end of period
$
31,283
$
55,704