Transcontinental (TCL-A) investor relations material

Executive summary

• Completed the sale of the Packaging business for $2.1B, enabling a strategic focus on Retail Services, Printing, Books & Education, and in-store marketing (ISM); new reporting structure implemented.

• Nationwide rollout of raddarⓇ, a mass media platform, planned for June 2026 to drive digital transformation and efficiency.

• Integration of recent acquisitions, including Mirazed and PDI Group (acquired for $21.0M), is progressing well, expanding offerings and customer base.

• Multi-year agreements signed with Postmedia and Glacier Media to strengthen ISM and printing segments.

• Positive momentum and cost initiatives expected to improve financial performance in the second half of FY2026.

Financial highlights

• Q2 2026 revenues were $269.2M, down 5% year-over-year, mainly due to lower volumes in both sectors, partially offset by acquisitions and favorable exchange rates.

• Adjusted operating earnings before depreciation and amortization for Q2 2026 were $45.4M, down 1.7% year-over-year; adjusted EBITDA margin was 16.9%.

• Net earnings from continuing operations were $4.3M ($0.05/share), down 72.1% year-over-year; adjusted net earnings were $16.0M ($0.19/share), down 5.9%.

• Net financial expenses increased by $2.2M to $9.9M, mainly due to exchange rates.

• Net earnings from discontinued operations surged to $221.9M in Q2 2026 due to the Packaging Sector sale.

Outlook and guidance

• Expect stronger results in the second half of FY2026, driven by new contracts, cost reduction initiatives, and seasonality.

• Adjusted operating earnings before depreciation and amortization for FY2026 expected to remain stable versus FY2025, supported by cost initiatives and acquisitions.

• Significant cash flows expected in Q4 2026 to further reduce net indebtedness below 2x adjusted operating earnings.