Ennis (EBF) investor relations material

Executive summary

• Q2 2027 net sales were $102.0 million, up 3.3% year-over-year, with six-month sales at $200.6 million, up 2.4%.

• Net earnings for the quarter were $9.9 million, a slight increase from $9.8 million in the prior year, though another source reports $9.4 million, down from $13.2 million due to litigation.

• Gross profit margin improved to 31.5% from 31.1% year-over-year in one report, while another notes a margin of 29.9% for the quarter.

• Diluted EPS was $0.39, up from $0.38, with acquisitions contributing $0.02 per share, though another source reports $0.37 per share.

• EBITDA for the quarter was $17.2 million (16.9% of sales), down from $22.5 million (22.8% of sales) year-over-year.

Financial highlights

• Cost of goods sold rose 0.7% to $67.5 million; SG&A expenses increased 3.6% to $17.5 million.

• Operating income was $13.6 million (13.8% of sales), up from $13.3 million (13.7%).

• Cash provided by operating activities surged to $21.2 million from $8.0 million year-over-year; six-month operating cash flow was $34.1 million.

• Cash and cash equivalents at quarter-end were $54.0 million, up from $34.6 million at the start of the period.

• No debt on the balance sheet; shareholders’ equity stood at $314.2 million.

Outlook and guidance

• Management expects operating cash flows and capital expenditures to remain consistent with historical levels.

• No significant changes in contractual obligations or off-balance sheet arrangements are anticipated.

• Inventory levels are expected to support customer demand despite industry supply volatility, with successful alternative sourcing after a key supplier closure.

• Sufficient liquidity is available to support operations, acquisitions, and dividend payments.