Ennis (EBF) Q2 2026 earnings summary

Executive summary

• Net sales for the quarter ended May 31, 2026 were $98.6 million, up 1.4% year-over-year, driven by recent acquisitions offsetting organic volume declines.

• Net earnings were $9.9 million, or $0.39 per diluted share, compared to $9.8 million, or $0.38 per diluted share, in the prior year quarter.

• Gross profit margin improved to 31.5% from 31.1% year-over-year, reflecting pricing discipline, product mix, and integration of acquisitions.

Financial highlights

• Cost of goods sold increased 0.7% to $67.5 million; SG&A expenses rose 3.6% to $17.5 million, mainly due to acquisition-related costs and higher incentive compensation.

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

• Cash provided by operating activities was $21.2 million, up from $8.0 million in the prior year, mainly due to improved working capital management.

• Cash and cash equivalents increased to $49.1 million from $34.6 million at the prior fiscal year-end.

• Working capital rose to $102.8 million, with a current ratio of 3.5:1.

Outlook and guidance

• Management expects operating cash flows to remain consistent and anticipates reduced purchasing needs due to recent inventory stockpiling.

• Capital expenditures for the next twelve months are projected between $4.0 million and $7.0 million, in line with historical levels.

• Sufficient liquidity is expected to meet operating and capital requirements for the next year.