Quad/Graphics (QUAD) Investor Day 2024 summary

Strategic transformation and business evolution

• Transitioned from a print-focused manufacturer to an integrated marketing experience (MX) company, offering advisory, creative, media, and production services across channels, leveraging proprietary data and technology to drive client marketing efficiency and personalization.

• Built a unique household-based data stack covering 97% of the U.S. population, enabling omnichannel targeting and resilient to privacy regulation changes, with AI integration for democratized data access and actionable insights, including a partnership with Google.

• Launched innovative solutions such as In-Store Connect, a turnkey in-store retail media network for mid-market grocers, and 3D commerce tools for high-resolution content and virtual try-ons, with national expansion planned and proof-of-concept launches in 2024.

• Embedded deeply with clients, often providing end-to-end solutions and even staffing client marketing departments, resulting in high client stickiness and expanded relationships beyond traditional print.

• Attracted top industry talent from leading agencies and consultancies, reinforcing the shift to a consultative, integrated service model and building industry credibility.

Financial performance and long-term outlook

• Despite a 9% revenue decline in 2024, maintained profitability through automation, cost controls, and margin expansion, with adjusted EBITDA margin improving to 8.4% and print EBITDA margins up 350 basis points from 2022 to 2024.

• Reduced net debt by $700 million since 2019, targeting a leverage range of 1.5–2x, and refinanced debt to extend maturities to 2029, providing financial flexibility.

• Projecting a shift in revenue mix over five years: integrated solutions (agency/logistics) to grow from 22% to 32%, targeted print and Latin America to expand, while large-scale print (retail inserts, magazines) declines.

• Targeting at least 100 basis points of EBITDA margin improvement in three years, aiming for low double-digit margins long-term, and expecting a return to net sales growth by 2028 as services and targeted print offset legacy declines.

• Strong cash generation supports ongoing investment in innovation, talent, and shareholder returns, including dividends and potential share buybacks.

Innovation, client solutions, and operational excellence

• Developed proprietary technology and automation, including ERP systems and fulfillment robotics, to streamline operations, reduce costs, and enhance scalability.

• Created innovation centers for clients to test in-store marketing and signage, supporting rapid prototyping and data-driven decision-making, and invested in transforming facilities for In-Store offerings.

• Expanded international operations, especially in Mexico, to capture nearshoring trends and supply chain shifts, with significant growth in educational publishing exports.

• Focused on cross-selling and deepening client relationships, with 84% of clients purchasing multiple products or services, and a consultative sales approach to address complex marketing needs.

• Maintained a flexible cost structure, reducing full-time headcount by 37% in two years and leveraging variable labor to adapt to volume changes.