Supremex (SXP) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $66.0M, down from $69.3M year-over-year, with a net loss of $0.3M versus net earnings of $2.0M last year, impacted by a $1.4M–$1.5M non-cash FX loss and a sharp volume drop from a U.S. direct mail client.

• Envelope segment revenue declined 11.5% to $43.8M, while packaging revenue grew 11.6% to $22.2M, driven by e-commerce and folding carton demand.

• Adjusted EBITDA was $5.8M (8.8% margin), down from $9.0M (13.0% margin) last year; adjusted net earnings were $0.1M.

• Completed two tuck-in acquisitions (Trans-Graphique and Enveloppe Laurentide) and a $53M sale-leaseback of two properties, strengthening the balance sheet.

• Declared a special dividend of $0.50/share, a quarterly dividend of $0.05/share, and renewed the share buyback program for up to 10% of the public float.

Financial highlights

• Q2 2025 revenue was $66.0M, down from $69.3M year-over-year; envelope revenue fell to $43.8M, packaging revenue rose to $22.2M.

• Adjusted EBITDA was $5.8M (8.8% margin), down from $9.0M (13.0%) in Q2 2024; net loss was $0.3M ($0.01/share) vs. net earnings of $2.0M ($0.08/share) last year.

• Free cash flow was breakeven to negative $41,000, compared to $10.9M last year, due to working capital and lower profitability.

• Net debt as of June 30, 2025, was $38.4M, with net debt/adjusted EBITDA at 1.1x, within the target of below 2x.

• For the six months ended June 30, 2025, revenue was $136.2M, down from $142.6M year-over-year.

Outlook and guidance

• Management remains focused on long-term growth, network efficiency, and disciplined capital allocation, with a strong balance sheet post-sale-leaseback and ongoing commitment to shareholder returns.

• Short-term concerns include economic volatility, trade uncertainty, postage increases, and labor issues.

• Recent acquisitions are expected to be immediately accretive; priorities include operational efficiency, U.S. market expansion, and strategic acquisitions.