Quad/Graphics (QUAD) Q4 2025 earnings summary

Executive summary

• Achieved 2025 financial guidance with strong cash flow, improved profitability, and a 33% dividend increase, supporting growth, debt reduction, and shareholder returns.

• Advanced revenue diversification, shifting mix toward higher-value print, integrated marketing, and agency services, with direct mail and agency solutions outperforming expectations.

• Expanded leadership roles, aligning marketing and sales under unified leadership to drive growth and operational efficiency.

• Recognized for company culture and hybrid work environment, and announced closure of the Thomaston, Georgia plant.

• Completed integration of Enru's co-mail volume, enhancing cost efficiency and client value.

Financial highlights

• Full-year 2025 Net Sales were $2.4 billion, down 4.8% year-over-year excluding European divestiture; Q4 Net Sales were $631 million.

• Adjusted EBITDA for 2025 was $196 million (8.1% margin), down from $224 million in 2024.

• Adjusted Diluted EPS for 2025 was $1.01, up 19% from $0.85 in 2024.

• Free Cash Flow for 2025 was $51 million, compared to $56 million in 2024; over $870 million generated from 2020–2025 including asset sales.

• Net Earnings improved to $27 million in 2025 from a Net Loss of $51 million in 2024.

Outlook and guidance

• 2026 guidance: Adjusted Net Sales decline of 1% to 5%, Adjusted EBITDA of $175–$215 million, Free Cash Flow of $40–$60 million, CapEx of $55–$65 million, Net Debt Leverage Ratio ~1.5x.

• 2028 outlook targets a return to Net Sales growth, 100 bps margin increase to 9.4%, and 35% Free Cash Flow conversion.

• Long-term goals: Net Sales growth, low double-digit Adjusted EBITDA margin, and Net Debt Leverage range of 1.5x–2.0x.