Companies /Industrials

Ennis Inc

NYSE: EBF Specialty Business Services
$21.30
▲ $0.13 (+0.61%) today
Markets closed · 6:48pm ET

Q2 2026 Earnings

Reported Sep 22, 2025, 11:14am ET · SEC source
$0.51
Beat +34.21%
EPS · est. $0.38
$98.7M
Miss −0.33%
Revenue · est. $99.0M
−8.5%
Trailing market
EBF vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−1.6%−0.8%0+0.8%Sep 22Sep 23report 11:14am ETearnings−0.2%−1.3%
−1.6%−0.8%0+0.8%Sep 22Sep 23earnings−0.2%−1.3%
EBF −1.3%S&P 500 −0.2%
−1.6%−0.8%0+0.8%Sep 22Sep 23report 11:14am ETearnings−0.3%−1.3%
−1.6%−0.8%0+0.8%Sep 22Sep 23earnings−0.3%−1.3%
EBF −1.3%NASDAQ −0.3%
−2%0+2%Sep 22Sep 30report 11:14am ETearnings−0.3%−1.0%
−2%0+2%Sep 22Sep 30earnings−0.3%−1.0%
EBF −1.0%S&P 500 −0.3%
−2%0+2%Sep 22Sep 30report 11:14am ETearnings−0.4%−1.0%
−2%0+2%Sep 22Sep 30earnings−0.4%−1.0%
EBF −1.0%NASDAQ −0.4%
+2.48%
Day of report
−1.88%
Next session
−2.58%
One week
−8.34%
30 days

S&P 500 over the same 30 days: +0.14%.

Did EBF Beat Earnings? Q2 2026 Results

Ennis delivered a standout earnings beat in fiscal Q2 2026, posting adjusted EPS of $0.51 against a consensus estimate of $0.38, a 34.21% positive surprise, even as revenue of $98.68 million came in just fractionally below the $99.00 million estimate and slipped 0.4% year over year. The headline earnings story was substantially shaped by a $5.70 million legal settlement collection, stemming from an appellate court ruling affirming a judgment against defendants for willful theft of trade secrets tied to the company's Folders Express unit, which flowed through other income and helped lift net income to $13.15 million from $10.31 million a year ago. Non-GAAP EBITDA expanded to $22.45 million, representing 22.8% of sales versus 18.6% in the prior-year quarter. Recent acquisitions contributed roughly $5.50 million in revenue and $0.03 per diluted share. Looking ahead, management anticipates cash flow strengthening as the company's strategic carbonless paper inventory build, which nearly doubled inventories to $62.08 million, is now complete, reducing near-term purchasing needs. The balance sheet remains debt-free, with a $0.25 quarterly dividend declared.

Key Takeaways
  • Gross profit margin improved to 30.5% from 30.1% year-over-year
  • $5.7 million collected from legal judgment related to Folders Express trade secret theft case
  • Recent acquisitions added approximately $5.5 million in quarterly revenues
  • EBITDA rose to $22.5 million or 22.8% of sales vs $18.4 million or 18.6% a year ago

“Our performance for the quarter met our expectations. While sales volume declined, we achieved a gross margin of 30.5%, up nearly 40 basis points from 30.1% in the same period last year, though down 60 basis points from 31.1% in the prior quarter.”

Ennis CEO, on the earnings call

Forward Guidance & Outlook

Management expects cash flow to strengthen in the coming quarters as the strategic inventory build of carbonless paper is now complete, leading to lower purchasing needs and potential enhancement of cash levels. The company intends to continue pursuing acquisitions without debt while maintaining access to credit for larger opportunities. Management remains focused on sustaining profitability and delivering returns to shareholders.

EBF YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$30.0M$60.0M$90.0M$99.0M$98.7MRevenue$29.8M$30.1MGross Profit$13.2M$12.4MOperating Income$10.3M$13.2MNet Income
$0$30.0M$60.0M$90.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.