MIDLOTHIAN, Texas (News release) -- Ennis, Inc. (the "Company"), (NYSE: EBF), reported financial results for the quarter ended November 30, 2025. Highlights include:

• Revenues were $100.2 million for the quarter compared to $99.8 million for the same quarter last year, an increase of $0.4 million or 0.4%.

• Earnings per diluted share for the current quarter were $0.42 compared to $0.39 for the comparative quarter last year.

• Our gross profit margin for the quarter was 31.9% compared to 29.3% for the comparative quarter last year.

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."

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.