Supremex (SXP) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue rose 5.6% year-over-year to $72.9 million, driven by growth in Packaging and stable Envelope segment performance, despite labor unrest, negative press, and delivery disruptions.

• Fiscal year 2025 revenue was $274.8 million, down 2.2% year-over-year, with net earnings of $12.0 million versus a net loss last year.

• Adjusted EBITDA for Q4 was $9.1 million (12.5% margin), down from $12.9 million (18.7%) last year; net earnings for Q4 were $1.3 million ($0.05/share), down from $5.8 million ($0.23/share) in Q4 2024.

• Completed three acquisitions in 2025, including Elite Envelope, Trans-Graphique, and Enveloppe Laurentide, expanding U.S. and Canadian presence.

• Ended the year with less than $1 million in net debt, providing strong financial flexibility.

Financial highlights

• Q4 total revenue was $72.9 million, up 5.6% year-over-year; Envelope revenue was $48.9 million, flat year-over-year; Packaging and Specialty Products revenue reached $24.0 million, up 18.3% year-over-year.

• Fiscal year Adjusted EBITDA was $30.0 million (10.9% margin), down from $40.3 million (14.4%).

• Free cash flow for 2025 was $73.2 million, up from $31.7 million, mainly due to a $53.0 million sale-leaseback transaction.

• Net earnings for 2025 were $12.0 million (4.4% margin), compared to a net loss of $11.7 million (-4.2% margin) in 2024, which included a $23.4 million asset impairment.

• Quarterly dividend increased to $0.05/share, with a special dividend of $0.50 paid in September 2025.

Outlook and guidance

• Entering 2026 with a virtually debt-free balance sheet and a stronger operational and financial foundation, expecting continued growth as headwinds from Canada Post and a major U.S. customer subside.

• Focus remains on maximizing cash flow, driving revenue growth, and enhancing network efficiency.

• Plans to pursue further acquisitions, especially in Packaging & Specialty Products, while maintaining shareholder returns.

• Ongoing focus on productivity, footprint optimization, and leveraging brand strength for new business.

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