Executive Summary

Quarter ended November 30, 2024 (fiscal Q3 2025): revenue declined year-over-year while margins held resilient and diluted EPS ticked up YoY; sequential trends were relatively stable with modest margin compression .
No formal forward guidance was issued; capital return remained a focal point with a special dividend of $2.50 per share paid in November and a regular $0.25 dividend declared for February .
Management highlighted cost controls (SG&A down YoY) and acquisition-driven product diversification; the late-June acquisition contributed $3.3M revenue and ~$0.02 diluted EPS in the quarter, partially offsetting demand softness and price pressure .
Wall Street consensus estimates from S&P Global were unavailable at the time of this analysis; as a result, we cannot categorize the quarter as an estimate beat/miss using SPGI consensus.

What Went Well and What Went Wrong

What Went Well

SG&A cost discipline: SG&A down $1.1M versus the same quarter last year, supporting margin resilience despite softer volumes (“we are careful to manage our costs”) .
Margin quality and earnings: gross margin held at 29.3% vs 29.2% YoY; EBITDA margin improved YoY to 18.2%, and diluted EPS increased to $0.39 (“our EBITDA margin increased... and our earnings increased”) .
Balance sheet strength and capital return: no debt, significant cash; returned $72.3M to shareholders during the quarter including the special dividend (“one of the strongest balance sheets... returned $72.3 million”) .

What Went Wrong

Revenue softness: revenue declined 4.6% YoY as demand softened and competition pressured pricing and production volumes (“softening demand... downward pressure on prices and production volumes”) .
Sequential margin compression: EBITDA margin dipped from Q2 to Q3 (18.6% to 18.2%), and gross margin fell sequentially from 30.1% to 29.3%, reflecting mix/price headwinds .
Lack of formal guidance: the company did not provide quantitative forward guidance for revenue/margins, constraining near-term estimate recalibration for investors .

Financial Results

Quarterly Performance vs Prior Periods and Prior Year

Metric	Q1 FY2025 (May 31, 2024)	Q2 FY2025 (Aug 31, 2024)	Q3 FY2025 (Nov 30, 2024)	Q3 FY2024 (Nov 30, 2023)
Revenue ($USD Millions)	$103.108	$99.038	$99.771	$104.621
Gross Profit ($USD Millions)	$30.904	$29.779	$29.249	$30.531
Gross Margin (%)	30.0%	30.1%	29.3%	29.2%
Operating Income ($USD Millions)	$13.730	$13.183	$13.046	$13.120
EBITDA ($USD Millions)	$18.984	$18.404	$18.155	$18.270
EBITDA Margin (%)	18.4%	18.6%	18.2%	17.5%
Net Earnings ($USD Millions)	$10.687	$10.308	$10.204	$9.906
Diluted EPS ($USD)	$0.41	$0.40	$0.39	$0.38
SG&A ($USD Millions)	$17.170	$16.557	$16.341	$17.410
Other Income ($USD Millions)	$1.011	$(1.034)	$(1.029)	$(0.696)
EBT ($USD Millions)	$14.741	$14.217	$14.075	$13.816
Income Tax Expense ($USD Millions)	$4.054	$3.909	$3.871	$3.910

Actuals vs Wall Street Consensus (S&P Global)

Metric	Q3 FY2025 Actual	Q3 FY2025 Consensus (S&P Global)	Delta
Revenue ($USD Millions)	$99.771	N/A	N/A
Diluted EPS ($USD)	$0.39	N/A	N/A

Consensus estimates were unavailable at the time of analysis. Values would be retrieved from S&P Global if accessible.

Segment Breakdown

The company does not provide a segment revenue breakdown in its quarterly releases; operations are discussed collectively with product-line commentary and acquisitions .

KPIs and Capital Returns

KPI	Q1 FY2025	Q2 FY2025	Q3 FY2025	Notes
EBITDA Margin (%)	18.4%	18.6%	18.2%	Resilient despite pricing pressure
Cash from Operations (YTD, $USD Millions)	$23.105	$34.941	$53.097	Strong cash generation YTD
SG&A ($USD Millions)	$17.170	$16.557	$16.341	Down ~$1.1M YoY in Q3
Debt	None	None	None	No debt; access to credit if needed
Special Dividend	—	Declared $2.50/share	Paid $2.50/share Nov 8	Capital return
Regular Dividend	Declared $0.25/share (Aug 5 pay)	Declared $0.25/share (Nov 8 pay)	Declared $0.25/share; payable Feb 6, 2025	Ongoing program
Acquisition Impact	—	PTI closed; strategic capabilities	Q3: +$3.3M revenue, +$0.02 EPS	Diversifies product lines

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025/Q4	N/A	No quantitative guidance provided	Maintained (no guidance)
Gross Margin	FY2025/Q4	N/A	No quantitative guidance provided	Maintained (no guidance)
EBITDA	FY2025/Q4	N/A	No quantitative guidance provided	Maintained (no guidance)
Dividend (Regular)	Feb 2025	Prior quarterly cadence	$0.25/share payable Feb 6, 2025; record Jan 9, 2025	Maintained
Dividend (Special)	Nov 2024	Announced Sept 2024	$2.50/share paid Nov 8, 2024	Executed
Debt/Leverage	Ongoing	No debt	Maintain operations and acquisitions without incurring debt	Maintained

Earnings Call Themes & Trends

No public earnings call transcript was available in our document set for the quarter; themes are derived from the company’s press releases and 8-K filings for Q1–Q3 FY2025.

Topic	Previous Mentions (Q1 & Q2 FY2025)	Current Period (Q3 FY2025)	Trend
Demand & Pricing	“Softening demand” with increased price competition; cost management to protect margins	Continued “softening demand” and “downward pressure on prices and production volumes”	Deteriorating demand; persistent price pressure
Cost Control & ERP	ERP integrations and disciplined cost/pricing drove sequential margin improvement in Q1; ongoing monitoring in Q2	SG&A reduced ~$1.1M YoY; ERP integration across acquisitions to manage costs and margins	Improving execution
M&A & Product Diversification	PTI acquisition adds capabilities (media solutions across print tech)	Late-June acquisition added $3.3M revenue and ~$0.02 EPS in Q3; new product lines/new markets	Positive contribution
Margins	Q1 GM 30.0%; Q2 GM 30.1%; Q1/Q2 EBITDA margin 18.4–18.6%	GM 29.3%; EBITDA margin 18.2%; EPS up YoY	Mixed sequential; resilient YoY
Capital Returns	Regular dividend continued; share repurchase in Q1	Special dividend paid; regular dividend declared; $72.3M returned in Q3	Accelerated returns
Balance Sheet & Liquidity	No debt; significant cash; ability to fund ops/acquisitions	No debt; ample cash; anticipate timely access to credit for larger deals	Stable/strong

Management Commentary

“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. In late June, we acquired a business... adding $3.3 million in revenues and $0.02 in diluted earnings per share for the third quarter.” — 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%, and our earnings increased from $0.38 per share to $0.39 per share.” — Keith Walters .
“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... profitability, strong financial condition and ample cash reserves will allow us to continue operations and fund acquisitions without incurring debt... anticipate timely access to credit should larger acquisition opportunities materialize.” — Keith Walters .

Q&A Highlights

No earnings call transcript was available in our document catalog for the quarter; management commentary reflects the press release and 8-K disclosures .

Estimates Context

S&P Global consensus for revenue and EPS was unavailable at the time of analysis; therefore, we cannot determine beat/miss vs SPGI consensus for Q3 FY2025. If consensus becomes accessible, compare $99.771M revenue and $0.39 diluted EPS to SPGI estimates to assess surprises .

Key Takeaways for Investors

Cost discipline offset some revenue headwinds; SG&A reduced YoY and margins remained resilient, supporting steady EPS growth YoY despite demand softness .
Acquisition strategy is contributing: late-June deal added $3.3M revenue and ~$0.02 EPS in Q3, expanding product lines and market reach .
Capital return is robust: special dividend executed and regular dividend maintained; ~$72.3M returned in Q3 underscores balance sheet strength and shareholder-friendly posture .
Sequential margin compression suggests ongoing pricing/mix pressure; monitor gross margin and EBITDA margin trajectory as macro demand and competitive dynamics evolve .
No quantitative guidance provided; near-term estimate revisions hinge on external demand normalization and incremental contribution from acquisitions/new products .
Balance sheet optionality: no debt and ample cash provide flexibility for further M&A and continued capital returns without leverage .
Trading lens: dividend/capital return and resilient margins are supportive; watch volumes/pricing commentary and any M&A announcements as potential stock catalysts .

Appendix: Source Documents Read

8-K (Item 2.02) with press release for quarter ended November 30, 2024 and dividend declaration .
Press release for quarter ended November 30, 2024 .
Prior quarter press release and 8-K for quarter ended August 31, 2024 .
Prior quarter press release and 8-K for quarter ended May 31, 2024 .

ENNIS, INC. (EBF)·Q4 2024 Earnings Summary