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EI

ENNIS, INC. (EBF)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 FY2025 revenue was $99.0M with diluted EPS of $0.40; gross margin was 30.1% as demand softened and pricing competition increased .
  • Management emphasized disciplined cost control and noted EBITDA margin slightly improved to 18.6% vs 18.5% in the prior-year quarter .
  • The Board declared a regular $0.25 dividend and a one-time special $2.50 dividend, supported by no debt and significant cash; payable Nov 8, 2024 (record date Oct 11, 2024) .
  • Strategic M&A continued with the acquisition of Printing Technologies, Inc. (PTI) to diversify offerings and bolster capabilities; integration supports margin resilience amid softer volume .

What Went Well and What Went Wrong

What Went Well

  • EBITDA margin ticked up to 18.6% despite lower sales, reflecting disciplined cost management and pricing practices .
  • Cash generation and balance sheet strength preserved flexibility: no debt, ample cash, and capacity to fund acquisitions without leverage .
  • Strategic expansion via PTI adds innovative media solutions (thermal, ink jet, laser) to broaden product portfolio and customer reach .
  • Quote: “We carefully monitor and manage our costs in order to maintain our strong profit margins… EBITDA margin improved slightly to 18.6% of sales” — Keith Walters .

What Went Wrong

  • Revenue declined 7.3% year over year to $99.0M; diluted EPS fell to $0.40 from $0.42, reflecting softer demand and pricing pressure .
  • Gross margin compressed to 30.1% from 31.0% in the prior-year quarter, indicating mix/price pressure despite cost control .
  • Management highlighted macro headwinds (“softened demand” and “greater competition on price”), signaling persistent volume and price challenges .

Financial Results

Quarterly Comparison (oldest → newest)

MetricQ4 FY2024 (Feb 29, 2024)Q1 FY2025 (May 31, 2024)Q2 FY2025 (Aug 31, 2024)
Revenue ($USD Millions)$97.4 $103.1 $99.0
Diluted EPS ($USD)$0.39 $0.41 $0.40
Gross Profit Margin (%)28.4% 30.0% 30.1%
EBITDA ($USD Millions)$18.081 $18.984 $18.404
EBITDA Margin (%)18.6% 18.4% 18.6%
Operating Income ($USD Millions)$12.935 $13.730 $13.183
Net Income ($USD Millions)$10.146 $10.687 $10.308

Q2 Year-over-Year (Q2 FY2025 vs Q2 FY2024)

MetricQ2 FY2024 (Aug 31, 2023)Q2 FY2025 (Aug 31, 2024)
Revenue ($USD Millions)$106.8 $99.0
Diluted EPS ($USD)$0.42 $0.40
Gross Profit Margin (%)31.0% 30.1%
EBITDA ($USD Millions)$19.780 $18.404
EBITDA Margin (%)18.5% 18.6%

KPIs and Operating Metrics

KPIQ2 FY2025Context
SG&A ($USD Millions)$16.557 Cost discipline to offset price/volume pressure
Other Income ($USD Millions)$(1.034) Includes interest income dynamics highlighted across periods
Cash & Short-Term Investments ($USD Millions)Cash $99.977; ST Inv. $22.655 Reinforces no debt and funding flexibility

Note: Segment breakdown not provided; Ennis reports as a single business in press releases and 8-K exhibits .

Vs. Estimates

Wall Street consensus estimates via S&P Global for Q2 FY2025 were unavailable at the time of retrieval due to data access limits; estimate comparison is omitted (Values intended from S&P Global).

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Regular Dividend per ShareQ2 FY2025$0.25 (Q1 declared) $0.25 (declared Sep 20, 2024) Maintained
Special Dividend per ShareQ2 FY2025None$2.50 (declared Sep 20, 2024; payable Nov 8, 2024; record Oct 11, 2024) Raised (introduced special)
Operational Guidance (Revenue/Margins/Tax)Q2 FY2025Not providedNot providedMaintained (no formal guidance)

Earnings Call Themes & Trends

Earnings call transcript for Q2 FY2025 was not available in the document repository; themes below reflect management commentary from press releases and 8-K.

TopicPrevious Mentions (Q4 FY2024)Previous Mentions (Q1 FY2025)Current Period (Q2 FY2025)Trend
Demand softness & pricing pressure“Print market… soft with competitive pricing” “Softening demand amidst an uncertain economic environment” “Macroeconomic conditions have softened demand and caused greater competition on price” Persistent headwind
Margin resilience via cost controlSequential margin down; focus on ERP integration to improve acquired margins Gross margin improved sequentially; disciplined cost/pricing EBITDA margin improved slightly YoY to 18.6% despite lower sales Resilient
M&A integration & ERPEarly stages; margins of acquired businesses to improve ERP integration at two recent acquisitions, seeing improved performance PTI acquisition to diversify and strengthen capabilities Continued execution
Capital returns & balance sheetStrong cash, inventory reduction, buybacks No debt; repurchased shares; increased T-bills No debt; special dividend $2.50 and regular $0.25; ample cash Shareholder-friendly
Interest income dynamicsHigher rates increased interest income —Other income item persists; cash/investments supportive Normalizing

Management Commentary

  • “Our results for the quarter met our expectations as larger macroeconomic conditions have softened demand and caused greater competition on price… we carefully monitor and manage our costs in order to maintain our strong profit margins… EBITDA margin improved slightly to 18.6% of sales” — Keith Walters .
  • “We completed the acquisition of Printing Technologies, Inc (PTI)… continues to strengthen our production capabilities and diversify our product offerings” — Keith Walters .
  • “We believe we have one of the strongest balance sheets in the industry, with no debt and significant cash… allow us to continue operations and fund acquisitions without incurring debt… timely access to credit should larger acquisition opportunities materialize” — Keith Walters .
  • Special dividend rationale: “allows the shareholders to further share in the Company’s accumulated profits… lack of debt, ample cash reserves, and strong free cash flow… necessary cash resources for operations, capital investments and ongoing acquisitions program” — Keith Walters .

Q&A Highlights

The Q2 FY2025 earnings call transcript was not available; as a result, Q&A highlights and any call-specific guidance clarifications cannot be provided from primary sources.

Estimates Context

  • S&P Global consensus for Q2 FY2025 EPS and revenue was not retrievable due to access limits; estimate comparisons are therefore omitted (Values intended from S&P Global).
  • We will update comparisons to consensus if/when S&P Global data access is restored.

Key Takeaways for Investors

  • Revenue declined year over year (to $99.0M) and EPS slipped to $0.40, but margins remained resilient with EBITDA margin at 18.6% amid price and volume headwinds .
  • Cost discipline and ERP integration continue to underpin margin stability even as demand softens; SG&A control evident in quarterly results .
  • Balance sheet optionality intact: no debt and substantial liquidity enable ongoing M&A and capital returns, including a special $2.50 dividend .
  • PTI acquisition broadens product capabilities and should aid mix and customer penetration in thermal/inkjet applications, supporting longer-term margin durability .
  • Near-term stock catalysts include sustained dividend support and evidence of margin stability despite revenue pressure; watch for further acquisition contributions and integration progress .
  • Monitor demand trajectory and competitive pricing in core print categories; volume recovery is the key swing factor for top-line growth .
  • Without formal operational guidance and absent consensus data, focus on sequential margin trends and cash generation to gauge earnings power through macro normalization .