Supremex (SXP) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $65.7 million, down 5.3% year-over-year, with both Envelope and Packaging & Specialty Products segments experiencing declines due to external headwinds.

• Net earnings reached $9.1 million ($0.37 per share), reversing a net loss of $23.0 million last year, which included a $23 million impairment charge.

• Adjusted EBITDA was $6.2 million (9.4% margin), down from $7.9 million (11.4%) last year, but up from Q2.

• Major events included two accretive acquisitions and a $53 million sale-leaseback, enabling debt repayment, a special dividend, and increased financial flexibility.

• Special dividend of $0.50/share was paid, and a regular quarterly dividend of $0.05/share was declared.

Financial highlights

• Q3 total revenue was $65.7 million, down from $69.4 million year-over-year; Envelope revenue was $45.1 million, Packaging revenue $20.6 million.

• Adjusted EBITDA margin: Envelope 11.8% (down from 16.7%), Packaging 10.5% (down from 11.3%).

• Adjusted net earnings for Q3: $4.7 million ($0.19/share), up from $1.0 million ($0.05/share) last year.

• Free cash flow for Q3 was $53.0 million, mainly from the sale-leaseback transaction.

• Net debt at quarter-end was $8.9 million, down from $38.4 million three months prior; total debt reduced to $11.7 million as of September 30, 2025.

Outlook and guidance

• Focus remains on operational efficiency, productivity, and cost synergies from acquisitions, with continued pursuit of accretive acquisitions and U.S. market expansion.

• Strong balance sheet supports future investments and shareholder returns.

• Management expects continued economic volatility, trade uncertainty, and postal service disruptions to impact demand.

• No specific quantitative guidance provided, but optimism expressed for 2026, especially with key U.S. customer.

• Plans to continue regular dividends and share repurchases, with ongoing acquisition strategy.