Transcontinental (TCL-A) Q2 2026 earnings summary

Executive summary

• Completed the sale of the Packaging business for $2.1B, leading to a new reporting structure and a $20/share special distribution in March 2026.

• Refocused on growth in in-store marketing (ISM) and educational publishing, with integration of recent acquisitions like PDI Group and Mirazed progressing well.

• Signed multi-year agreements with Postmedia and Glacier Media to drive ISM growth and boost H2 performance.

• Nationwide rollout of raddarⓇ, a mass media platform, planned for mid-June 2026.

• Strong organizational momentum, with AI and technology driving efficiency and new product launches.

Financial highlights

• Q2 2026 revenues were $269.2M, down 5% year-over-year, mainly due to lower volumes in both sectors, partially offset by acquisitions and favorable FX.

• Adjusted operating earnings before depreciation and amortization for Q2 2026 were $45.4M, down 1.7% year-over-year; adjusted net earnings from continuing operations were $16.0M ($0.19/share), down 5.9%.

• Net earnings from continuing operations were $4.3M ($0.05/share), down 72.1% year-over-year; net earnings from discontinued operations surged to $221.9M due to the Packaging Sector sale.

• Net financial expenses rose by $2.2M to $9.9M, mainly due to FX impacts despite lower debt.

• Net indebtedness reduced to $436.1M as of April 26, 2026, from $740.4M at October 26, 2025; net indebtedness ratio improved to 2.14x from 3.49x.

Outlook and guidance

• Expect stronger results in H2 FY2026, driven by new contracts, cost reductions, and seasonality.

• Adjusted operating earnings before depreciation and amortization for FY2026 expected to remain stable versus FY2025, supported by cost reduction initiatives.

• Significant cash flows anticipated in H2 FY2026, enabling net debt ratio to fall below 2x by year-end.

• CapEx guidance for the year is $55–$60M.