Ennis, Inc. (NYSE: EBF) reported fiscal third‑quarter 2025 results on December 22, 2025, posting revenue of $100.2 million, a 0.4% year‑over‑year increase of $0.4 million. Net earnings rose to $10.8 million, translating to earnings per diluted share of $0.42, a $0.01 or 2.6% beat over the consensus estimate of $0.41. Gross profit climbed to $32.0 million, giving a gross margin of 31.9%, up 2.6 percentage points from 29.3% in the same quarter a year earlier. The company also declared a quarterly cash dividend of 25.0 cents per share, payable February 5, 2026 to shareholders of record on January 8, 2026.
The revenue figure, while up modestly, fell short of the consensus estimate of $101.5 million (or $100.9 million in some reports). The slight miss reflects a mix shift toward lower‑margin legacy products and a modest decline in demand for certain commercial print services, offset by a 5.8 million‑dollar contribution from the recently completed acquisition of CFC Print & Mail. Management noted that the acquisition added manufacturing capacity in Grand Prairie, Texas, and has begun to integrate its operations, supporting the company’s top‑line growth.
Gross margin expansion to 31.9% was driven by operational efficiencies and a favorable product mix. The acquisition of CFC Print & Mail, which has a higher‑margin profile, helped lift the overall margin. Management highlighted that pricing power in the business‑products segment and disciplined cost control contributed to the 260‑basis‑point improvement over the prior year, while the company maintained a 19.2% EBITDA margin of $19.2 million.
CFC Print & Mail’s $5.8 million quarterly revenue contribution underscores the strategic value of the deal. The acquisition not only added capacity but also broadened Ennis’s distribution network and quick‑turn capabilities, positioning the company to capture market share in the business‑products and commercial‑print sector. The integration has already begun to generate synergies, as evidenced by the incremental revenue and margin gains reported in Q3.
Management reiterated confidence in the company’s cash‑flow trajectory, citing a debt‑free balance sheet and ample cash reserves. The company’s inventory strategy—building inventory in anticipation of a carbonless paper producer’s closure and subsequently reducing it—has improved supply‑chain resilience. No guidance changes were disclosed, but the company’s steady performance and strong balance sheet suggest a stable outlook for the remainder of the fiscal year.
Investors reacted with measured enthusiasm, focusing on the EPS beat and significant margin expansion. The market’s attention to profitability metrics, rather than the modest revenue miss, reflects confidence in Ennis’s operational execution and its strategic positioning within the industry.
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