Quad/Graphics (QUAD) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales were $629.4 million, down 4% year-over-year, with an organic decline of 2% excluding the European divestiture; product sales decreased 2.4% and service sales fell 8.8%.

• Adjusted EBITDA was $46 million (7.2% margin), down from $51 million (7.7% margin) in Q1 2024; adjusted diluted EPS doubled to $0.20 from $0.10 year-over-year.

• Net earnings were $6 million ($0.11 diluted EPS), reversing a net loss of $28 million ($0.60 loss per share) in Q1 2024, driven by lower restructuring and impairment charges.

• Free cash flow was negative $100 million, compared to negative $70 million in Q1 2024, mainly due to working capital timing and proactive inventory purchases.

• Completed the divestiture of European operations in February 2025 and acquired Enru's co-mail assets in April 2025.

Financial highlights

• Q1 2025 net sales: $629 million (4% decline year-over-year; 2% organic decline), primarily due to the European divestiture.

• Adjusted EBITDA: $46 million in Q1 2025 vs. $51 million in Q1 2024; margin declined to 7.2% from 7.7%.

• Net earnings: $6 million in Q1 2025 vs. net loss of $28 million in Q1 2024, driven by lower restructuring, impairment, and transaction charges.

• Free cash flow: negative $100 million in Q1 2025 vs. negative $70 million in Q1 2024.

• Net debt: $463 million at March 31, 2025, up from $350 million at December 31, 2024; blended interest rate on debt was 7.1%.

Outlook and guidance

• 2025 organic net sales expected to decline 2%–6% versus 2024, excluding divested European operations.

• Full-year 2025 adjusted EBITDA guidance is $180–$220 million, with sequential improvement expected in the second half due to seasonality.

• Free cash flow for 2025 projected at $40–$60 million; capital expenditures: $65–$75 million; net debt leverage ratio targeted to decrease to 1.5x by year-end.

• Dividend increased by 50% year-over-year; quarterly dividend of $0.075 per share declared; continued share repurchases planned.