Ennis, Inc. — Quarter Ended August 31, 2026 Earnings Summary

Financial Performance

• Revenue for the quarter ended August 31, 2026, was $102.0 million, an increase of $3.3 million (3.3%) compared to $98.7 million in the prior-year quarter; six-month revenue was $200.6 million, up 2.4% from $195.9 million.
• Gross profit for the quarter was $30.5 million (29.9% margin) compared to $30.1 million (30.5% margin) in the prior-year quarter; six-month gross profit was $61.6 million (30.7% margin) versus $60.3 million (30.8% margin).
• Net earnings for the quarter were $9.4 million ($0.37 per diluted share) compared to $13.2 million ($0.51 per diluted share) in the prior-year quarter; six-month net earnings were $19.3 million ($0.76 per diluted share) versus $23.0 million ($0.89 per diluted share).
• EBITDA for the quarter was $17.2 million compared to $22.5 million in the prior-year quarter; six-month EBITDA was $35.2 million compared to $40.2 million.
• Operating cash flow for the first six months increased to $34.1 million from $18.4 million in the prior-year period.
• Cash balances increased to $54.0 million at August 31, 2026, from $34.6 million at February 28, 2026.
• The company reported no debt and maintained sufficient liquidity.

Business Segments and Product Lines

• Acquisitions completed during fiscal year 2026 contributed approximately $2.3 million in revenue during the quarter and $6.8 million year-to-date.
• Acquisitions positively impacted diluted earnings per share by $0.01 for the quarter and $0.03 year-to-date for ownership periods not included in the comparable prior-year periods.
• The company secured alternative supply sources for carbonless paper following the closure of the sole domestic producer, with inventory decreasing during the quarter as existing stock was converted to sales.

Risks and Challenges

• A $700,000 unrelated litigation charge was recognized in the current quarter related to a $2.3 million preliminary ruling in the B&D Litho lease litigation; the company disagrees with the ruling and intends to pursue post-trial and appellate remedies.
• Earnings per share were impacted by a favorable $5.3 million litigation judgment recognized in the prior-year quarter.
• Higher carbonless paper costs recognized in cost of sales contributed to the decrease in gross profit margin compared to the prior-year quarter.
• Forward-looking statements note risks including erosion of demand for printer business documents due to digital technologies, uncertainties related to acquisition integration, and limited supplier availability with price variability for paper and raw materials.

Management Commentary and Tone

• Chairman, CEO, and President Keith Walters stated performance met expectations, with revenues increasing 3.3% in the quarter and 2.4% for the first six months.
• Management noted that excluding litigation items, diluted earnings per share for the quarter increased by $0.02 year-over-year.
• Management expressed confidence that there would be no disruption to customer service, product availability, or product quality regarding carbonless paper supply.
• The company affirmed a strong financial position with no debt and sufficient liquidity to support operations, pursue acquisitions, and return capital to shareholders.

Other Key Points

• The Board of Directors declared a 5.0% increase in the quarterly dividend from $0.25 to $0.2625 per share.
• The dividend is payable on November 6, 2026, to shareholders of record on October 9, 2026.
• The company operates as one of the largest private-label printed business product suppliers in the United States with facilities strategically located throughout the USA.