Name: ENNIS, INC. Q3 2025 Earnings Call
Start: 2024-12-23T00:00:00.000Z

Executive Summary

Ennis delivered Q3 2025 (quarter ended November 30, 2024) results in line with expectations: revenue $99.8M (-4.6% YoY), diluted EPS $0.39 (+$0.01 YoY), and gross margin 29.3% (+10 bps YoY) .
Consensus EPS matched at $0.39; S&P Global estimates were unavailable at time of retrieval. Alternative public sources show EPS consensus at $0.39; revenue consensus not available (S&P Global estimates unavailable).
Margin resilience reflected cost discipline: SG&A down $1.1M YoY and EBITDA margin improved to 18.2% (from 17.5% YoY) despite softer demand and pricing pressure .
Capital returns remained a focus: $72.3M dividends in the quarter including a special $2.50/share paid Nov 8, 2024, plus a regular $0.25/share dividend declared Dec 19, 2024; management emphasized strong cash and no debt supporting M&A and shareholder returns .

What Went Well and What Went Wrong

EBITDA margin expanded to 18.2% vs 17.5% YoY on cost control despite lower revenue; SG&A reduced by $1.1M YoY, supporting stable earnings per share at $0.39 .
Acquisitions contributed positively: a late-June acquisition added $3.3M in revenue and $0.02 to diluted EPS in Q3, partially offsetting demand attrition and price pressure .
Balance sheet strength: management highlighted no debt and significant cash, enabling operations and acquisitions without leverage and positioning for timely access to credit for larger opportunities .

Topline contraction continued: revenue declined 4.6% YoY to $99.8M, reflecting softening demand and increased price competition across certain product lines .
Gross margin mixed vs prior quarter: 29.3% in Q3 vs 30.1% in Q2, reflecting some sequential pressure even as YoY expanded modestly
Non-GAAP EBITDA decreased modestly YoY ($18.155M vs $18.270M), indicating profitability resilience but no growth amid industry headwinds .

Metric	Q1 2025 (May 31, 2024)	Q2 2025 (Aug 31, 2024)	Q3 2025 (Nov 30, 2024)
Revenue ($USD Millions)	$103.1	$99.0	$99.8
Diluted EPS ($USD)	$0.41	$0.40	$0.39
Gross Margin (%)	30.0%	30.1%	29.3%
Net Income ($USD Millions)	$10.7	$10.3	$10.2
EBITDA ($USD Millions, non-GAAP)	$19.0 (Q1 commentary)	N/A	$18.155
EBITDA Margin (%)	18.4%	N/A	18.2%

S&P Global Wall Street consensus data was unavailable at time of retrieval. Alternative public sources show EPS consensus at $0.39 (actual $0.39, met); revenue consensus not reported by these sources (S&P Global estimates unavailable).

Metric	Q3 2025 Consensus	Q3 2025 Actual
EPS ($USD)	$0.39	$0.39
Revenue ($USD Millions)	N/A	$99.8

Ennis reports a consolidated printing products business; no segment breakdown was disclosed in the Q3 press release/8-K .

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Dividend per Share	Payable Feb 6, 2025	$0.25 regular quarterly dividend	$0.25 declared Dec 19, 2024	Maintained
Special Dividend	Paid Nov 8, 2024	N/A	$2.50 per share paid	One-time payout (completed)

No formal revenue/margin/OpEx/tax guidance was provided; management emphasized cost control, M&A, and capital returns (dividends) .

An earnings call transcript for Q3 2025 was not available via our document tools or public sources accessed, so themes are derived from press releases across quarters.

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Demand/macro and price competition	Softening demand and heightened price competition; cost management to preserve margins	Continued headwinds from competition and demand softness; margins held	Stable challenge, margins resilient
Cost discipline/ERP integration	Emphasis on cost monitoring; EBITDA % steady; SG&A discipline noted	SG&A down $1.1M YoY; ERP enables cost visibility and integration of acquisitions	Improving efficiency
Acquisitions	Active M&A strategy; acquisitions contributing revenue	June acquisition added $3.3M revenue and $0.02 EPS in Q3	Positive contribution
Capital returns	Regular dividends maintained; disciplined returns	$2.50 special dividend paid; $0.25 quarterly dividend declared	Elevated returns
Balance sheet strength	Strong cash; low leverage posture	No debt; ample cash; optionality for larger acquisitions	Stable strength

“Overall we are pleased with our performance for the quarter. We face increased competition… exerting downward pressure on prices and production volumes… we continue to either acquire or launch new product lines to offset that natural attrition.” — Keith Walters, Chairman, CEO & President .
“We are careful to manage our costs, reducing our selling, general and administrative costs by $1.1 million compared to the same quarter last year… our EBITDA margin increased from 17.5% to 18.2%…” .
“We believe we have one of the strongest balance sheets in the industry, with no debt and significant cash… returned $72.3 million to shareholders in dividends which included a special dividend of $2.50 per share.” .

No Q3 2025 earnings call transcript was available; no Q&A themes or clarifications could be sourced from transcripts (searched Yahoo Finance transcripts page; not available) .

S&P Global consensus estimates were unavailable at time of retrieval; thus, comparisons to SPGI could not be performed (S&P Global estimates unavailable).
Alternative public sources indicate Q3 2025 EPS consensus of $0.39, which was met by reported EPS of $0.39; revenue consensus not available from these sources .
Given margin resilience and acquisitions’ contribution, sell-side models may modestly adjust margin assumptions upward while keeping conservative revenue growth given demand/pricing commentary .

Operational resilience: Ennis defended margins (29.3% gross; 18.2% EBITDA) through disciplined SG&A and ERP-enabled cost management, mitigating demand and pricing headwinds .
Accretive M&A: Recent acquisition contributions ($3.3M revenue; $0.02 EPS) support EPS stability despite lower sales, validating ongoing consolidation strategy in specialty printing .
Shareholder-friendly capital allocation: $72.3M returned via dividends including a $2.50 special dividend; regular $0.25 quarterly dividend maintained, underscoring confidence in cash generation and balance sheet strength .
Near-term trading lens: Expect stock to be sensitive to quarterly order trends and pricing dynamics; stable EPS vs consensus and visible returns may limit downside absent further demand deterioration .
Medium-term thesis: Margin quality, cash-rich/no-debt balance sheet, and disciplined bolt-ons position Ennis to compound EPS via operational leverage and tuck-ins while navigating secular pressures (digital substitution and competitive pricing) .
Watch list: Sequential gross margin trajectory (Q2 30.1% to Q3 29.3%), order intake, and pricing environment; any incremental acquisition disclosures are potential positive catalysts .
Non-GAAP transparency: Management provides detailed EBITDA reconciliation; investors should monitor consistency of non-GAAP trends alongside GAAP to validate margin durability .