Summary of Quad/Graphics FY Conference Call Company Overview - **Company**: Quad/Graphics (NYSE:QUAD) - **Founded**: 1971 by Harry Quadracci - **Current CEO**: Joel Quadracci - **Transformation**: Evolved from a commercial printing company to a marketing experience (MX) company, generating $2.7 billion in revenue with over 11,000 employees and a client base exceeding 2,100 [2][6][10] Industry Context - **Market Dynamics**: The print industry has faced significant disruption due to digital media, particularly after the introduction of the iPhone in 2007 [3][4] - **Strategic Decisions**: Quad went public in 2010 with a dual-class share structure to maintain control during turbulent times, allowing for key acquisitions and consolidation in the print sector [4][5] Core Business Strategy - **Integrated Solutions**: Quad aims to provide an end-to-end marketing solution, integrating creative design, media development, and placement, leveraging its historical strengths in print [5][10] - **AI Integration**: The company is focusing on incorporating artificial intelligence into its processes, particularly in content development and internal efficiencies [10][11] Customer Base and Services - **Diverse Client Relationships**: Quad serves clients with varying needs, from traditional print services to comprehensive digital marketing solutions [6][7] - **MX Intelligence**: Quad utilizes extensive data from its history in direct mail to enhance targeting and campaign effectiveness, touching 92% of U.S. households [11][12] Recent Initiatives - **In-Store Connect Platform**: Aimed at connecting brick-and-mortar stores with consumer packaged goods (CPGs) through digital display screens, enhancing in-store marketing effectiveness [16][18] - **Sales Lift Studies**: Early results show significant sales increases for brands using the In-Store Connect platform, with notable lifts for products like DiGiorno Pizza and Rockstar Beverage [19][20] Financial Performance - **Revenue Mix**: Transitioning from traditional print to integrated solutions, with a projected revenue decline in large-scale print from 31% in 2024 to 13% by 2028 [22][24] - **Cash Generation**: Quad has generated nearly $800 million in cash since the beginning of the decade, primarily through free cash flow and asset sales [26] - **Debt Reduction**: The company has reduced its debt from over $1 billion to approximately $350 million, achieving a leverage ratio of 1.6 times [27][29] Future Outlook - **Revenue Growth Projection**: Anticipated revenue growth starting in 2028, with a focus on higher-margin integrated solutions and targeted print offerings [32][34] - **EBITDA Margin Improvement**: Expected increase in adjusted EBITDA margin to 9.4% by 2028, driven by a shift towards higher-margin services [33] Valuation Perspective - **Market Valuation**: Quad is currently valued as a core commercial printer, trading at 3-4 times EBITDA, while companies offering integrated marketing solutions command higher multiples (7-8 times) [42] Key Takeaways - **Consumer Preferences**: Recent studies indicate that print experiences remain preferred by consumers, including younger generations, countering the digital trend [20][21] - **Dividend Strategy**: Quad resumed dividends, currently at $0.075 per share, while focusing on growth investments and maintaining low debt leverage [29][42] This summary encapsulates the key points discussed during the conference call, highlighting Quad/Graphics' strategic transformation, financial performance, and future outlook in the evolving marketing landscape.

Core Viewpoint - Quad/Graphics (QUAD) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive earnings outlook that could favorably impact its stock price [1][3]. Earnings Estimates and Stock Price Correlation - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to significant stock price movements when estimates are revised [4]. Recent Performance and Outlook - For the fiscal year ending December 2025, Quad/Graphics is expected to earn $0.99 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 2.6% over the past three months [8]. - The upgrade reflects an improvement in Quad/Graphics' underlying business, suggesting that investors may push the stock higher in response to this trend [5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Quad/Graphics to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Core Insights - The research conducted by Quad and The Harris Poll reveals a strong consumer preference for in-person shopping experiences during the holiday season, emphasizing the importance of tactile interactions in gift-giving [1][3][4] Consumer Preferences - 74% of consumers believe in-store shopping enhances their holiday spirit, while 75% feel it fosters connections with family and friends [3][7] - 76% of Americans report deeper connections with brands through in-person retail experiences, indicating that tangible interactions build trust and engagement [4][8] - 78% of Millennials and 71% of all respondents feel more present and less distracted by their phones when engaging in tactile brand interactions [5] Catalogs and Physical Retail - 70% of consumers view physical catalogs as a good starting point for holiday gift purchases, with 51% planning to rely more on catalogs this year to reduce online scrolling [2][16] - 66% of Americans express a desire for personalized catalogs curated specifically for them, highlighting the catalogs' role in sparking gift ideas [16][12] Changing Dynamics of Holiday Shopping - 75% of respondents perceive Black Friday and Cyber Monday as transactional rather than joyful, with 72% finding better deals outside these shopping holidays [9][10][15] - 84% of consumers prefer meaningful deals spread across the holiday season rather than concentrated on just two days [15] Generational Insights - Younger generations, particularly Gen Z and Millennials, show excitement for receiving printed catalogs, with 54% of Gen Z and 51% of Millennials indicating enthusiasm [11][12] - 64% of respondents believe catalogs help them narrow down choices faster than online shopping, further emphasizing the catalogs' effectiveness as a marketing tool [16][12]

Financial Performance - Total net sales decreased by $86.8 million, or 12.9%, from $674.8 million in Q3 2024 to $588.0 million in Q3 2025 [146]. - Product sales decreased by $70.7 million, or 13.3%, primarily due to a $41.9 million decrease in paper sales and a $29.6 million decrease in print product lines [147]. - Service sales decreased by $16.1 million, or 11.1%, mainly due to a $12.4 million decrease in logistics sales [148]. - Total operating expenses decreased by $118.1 million, or 17.4%, from $679.7 million in Q3 2024 to $561.6 million in Q3 2025 [146]. - EBITDA increased by $25.6 million, reaching $45.3 million in Q3 2025, with an EBITDA margin of 7.7% compared to 2.9% in Q3 2024 [156]. - Net earnings improved to $10.2 million in Q3 2025 from a loss of $24.7 million in Q3 2024 [157]. - Net sales decreased by $174.5 million, or 8.9%, from $1,963.8 million in 2024 to $1,789.3 million in 2025, with product sales down 8.6% and service sales down 9.7% [180][181][182]. - Total operating expenses decreased by $234.7 million, or 11.9%, from $1,964.3 million in 2024 to $1,729.6 million in 2025, driven by reductions in cost of sales and selling, general, and administrative expenses [180][187]. - EBITDA increased by $38.8 million, from $79.5 million in 2024 to $118.3 million in 2025, with an EBITDA margin of 6.6% compared to 4.0% in the previous year [189][190]. Debt and Liquidity - Quad's total liquidity as of September 30, 2025, was $230.2 million, consisting of $224.0 million unused capacity under its revolving credit agreement and $6.2 million in cash [122]. - The Company's consolidated debt and finance lease obligations increased by $92.2 million during the nine months ended September 30, 2025, primarily due to $50.0 million in cash used in operating activities and $36.5 million in purchases of property, plant, and equipment [130]. - The Net Debt Leverage Ratio is monitored to determine the appropriate level of debt, which is critical for capital allocation and deployment [129]. - The Net Debt Leverage Ratio increased to 2.28x as of September 30, 2025, from 1.56x as of December 31, 2024, primarily due to a $115.2 million increase in Net Debt and a $20.0 million reduction in trailing twelve months Adjusted EBITDA [221]. - Total debt and finance lease obligations were $471.4 million as of September 30, 2025, compared to $379.2 million as of December 31, 2024 [221]. - The Company was in compliance with all financial covenants in its debt agreements as of September 30, 2025 [223]. Operational Changes - The acquisition of Enru co-mail assets on April 1, 2025, and the divestiture of European operations on February 28, 2025, impacted the comparability of results [106]. - The Company expects to incur additional restructuring and integration costs in future reporting periods related to eliminating excess manufacturing capacity and aligning its cost structure [143][177]. - The Company continues to face challenges from increased postage costs and reduced service standards from the USPS, which may lead clients to explore alternative delivery methods [135][136]. - The Company has invested significantly in mail preparation and optimization capabilities to mitigate the impact of postage cost increases [139]. Shareholder Returns - The company aims to maintain low net debt leverage while increasing return of capital to shareholders through dividends and share buybacks [121]. - The Company repurchased 1,439,535 shares of Class A common stock for a total of $7.8 million during the nine months ended September 30, 2025 [228]. - As of September 30, 2025, there were $69.7 million of authorized repurchases remaining under the share repurchase program [228]. Market Position and Strategy - The company serves approximately 2,100 clients across various industries, employing around 11,000 people in 11 countries [112]. - Quad's MX Solutions Suite integrates creative, production, and media solutions, enhancing marketing effectiveness and driving cost efficiencies [113]. - The company leverages a proprietary data stack representing over 250 million consumers to optimize audience targeting and marketing strategies [114]. - Quad's media services are supported by over $3.0 billion in marketplace leverage, providing cost-efficient options across all channels [119]. - The company focuses on increasing growth investments as a marketing experience company to fuel net sales growth [121]. - Quad's comprehensive testing services enable clients to gauge media effectiveness and optimize marketing strategies at a lower cost [114]. Cost Management - The Company's operating income for the three months ended September 30, 2025, was $26.4 million, with an operating margin of 4.5% [142]. - Restructuring, impairment, and transaction-related charges decreased by $32.0 million, or 81.4%, from $39.3 million in Q3 2024 to $7.3 million in Q3 2025 [153]. - Interest expense decreased by $4.2 million, or 24.7%, from $17.0 million in Q3 2024 to $12.8 million in Q3 2025 [156]. - Selling, general, and administrative expenses decreased by $7.5 million, or 8.5%, from $88.4 million in Q3 2024 to $80.9 million in Q3 2025 [151]. - Depreciation and amortization decreased by $5.1 million, or 20.9%, from $24.4 million in Q3 2024 to $19.3 million in Q3 2025 [152].

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $588 million, a decrease of 7% compared to Q3 2024, excluding a 6% impact from the divestiture of European operations [21] - Adjusted EBITDA was $53 million in Q3 2025, down from $59 million in Q3 2024, with an adjusted EBITDA margin improving from 8.7% to 8.9% year-to-date [22] - Adjusted diluted earnings per share increased by 19% to $0.31 in Q3 2025 from $0.26 in Q3 2024 [23] - Free cash flow improved by $5 million to -$87 million for the nine months ended September 30, 2025 [24] Business Line Data and Key Metrics Changes - Targeted print offerings increased by 2% as a percentage of total net sales, driven by growth in direct marketing, packaging, and in-store solutions [21] - Direct mail revenue increased by over 6%, packaging by over 9%, and in-store solutions by 11% year-to-date [38] Market Data and Key Metrics Changes - The company continues to monitor macroeconomic pressures such as inflation and high postage costs, which may impact clients' marketing plans [5][6] - The USPS announced no price increase for market-dominant mail in January, which is seen as favorable for marketers [7][39] Company Strategy and Development Direction - The company is investing in AI-powered tools and systems, data and audience intelligence services, and its In-Store Connect retail media network to diversify revenue and return to net sales growth by 2028 [4] - The strategic focus is on maximizing savings for clients while increasing marketing effectiveness through innovative solutions [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future growth of In-Store Connect, citing strong sales lift results from campaigns [16][17] - The company anticipates a similar seasonal pattern for free cash flow and net debt, expecting significant positive cash flow in Q4 2025 [24][29] Other Important Information - The company returned $19 million of capital to shareholders year-to-date through dividends and share repurchases [26] - The adjusted EBITDA guidance for 2025 has been narrowed to between $190 million and $200 million [29] Q&A Session Summary Question: Trends in targeted print categories - Management noted that catalog sales are muted due to postal increases, while direct mail, packaging, and in-store solutions are seeing growth [38] Question: Impact of USPS postponing price increase - Management indicated that the postponement is positive, but concerns remain about future postal rate increases [39][60] Question: Updated guidance ranges - Management discussed variability in direct mail and reaffirmed the midpoint of the sales outlook for Q4 [43][46] Question: In-Store Connect deployment updates - Management reported increased interest from clients and a strong pipeline for In-Store Connect, with positive feedback from recent industry events [49][50]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $588 million, a decrease of 7% compared to Q3 2024, excluding a 6% impact from the divestiture of European operations [20] - Adjusted EBITDA for Q3 2025 was $53 million, down from $59 million in Q3 2024, while the adjusted EBITDA margin improved from 8.7% to 8.9% year-to-date [21] - Adjusted diluted earnings per share increased by 19% to $0.31 in Q3 2025 from $0.26 in Q3 2024, and year-to-date adjusted diluted earnings per share rose by 33% to $0.65 in 2025 from $0.49 in 2024 [22] Business Line Data and Key Metrics Changes - Targeted print offerings increased by 2% as a percentage of total net sales, driven by growth in direct marketing, packaging, and in-store solutions [21] - Direct mail revenue increased by over 6% year-to-date, packaging grew over 9%, and in-store solutions rose by 11% year-to-date [36] Market Data and Key Metrics Changes - The company continues to monitor macroeconomic pressures such as inflation and high postage costs, which may impact clients' marketing plans [5] - The USPS announced it would not issue a January price increase for market-dominant mail, which is seen as positive news for marketers [7] Company Strategy and Development Direction - The company is investing in AI-powered tools and systems, data and audience intelligence services, and its In-Store Connect retail media network to diversify revenue and return to net sales growth by 2028 [4] - The strategic focus is on maximizing savings for clients while increasing marketing effectiveness through innovative solutions [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future growth of In-Store Connect, citing strong results from CPG campaigns and a growing pipeline of clients [17] - The company anticipates a seasonal pattern for free cash flow, expecting a significant positive cash flow in Q4 2025 [23] Other Important Information - The company returned $19 million of capital to shareholders year-to-date through dividends and share repurchases [25] - The adjusted EBITDA guidance for 2025 has been narrowed to between $190 million and $200 million, with free cash flow expected to be at the higher end of the original guidance range [29] Q&A Session Summary Question: Trends in targeted print categories - Management noted that catalog sales are muted due to postal increases, while direct mail, packaging, and in-store solutions are seeing growth [36] Question: Impact of USPS postponing price increase - Management indicated that the postponement is favorable and could positively influence client spending for 2026 [38] Question: Updated guidance for net sales - Management explained that direct mail could see variability in the fourth quarter based on client budget adjustments [42] Question: Adjusted EBITDA and CapEx guidance - Management confirmed a slight decrease in the adjusted EBITDA midpoint and discussed a shift in CapEx focus towards technology and automation [46][47] Question: In-Store Connect deployment updates - Management reported increased interest from clients and a strong pipeline for In-Store Connect, with positive feedback from recent deployments [48]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $588 million, a decrease of 7% compared to Q3 2024, excluding a 6% impact from the divestiture of European operations [20] - Adjusted EBITDA was $53 million in Q3 2025, down from $59 million in Q3 2024, with an adjusted EBITDA margin improving from 8.7% to 8.9% year-to-date [21] - Adjusted diluted earnings per share increased by 19% to $0.31 in Q3 2025 from $0.26 in Q3 2024, and year-to-date adjusted diluted earnings per share rose by 33% to $0.65 in 2025 from $0.49 in 2024 [22] Business Line Data and Key Metrics Changes - Revenue mix as a percentage of total net sales increased by 2% in targeted print offerings, driven by growth in direct marketing, packaging, and in-store solutions [20] - Direct mail revenue increased by over 6% year-to-date, packaging grew by over 9%, and in-store solutions rose by 11% year-to-date [36] Market Data and Key Metrics Changes - The USPS announced it would not issue a January price increase for market-dominant mail, which is expected to positively impact marketers as they finalize their 2026 media plans [6][39] - High postage rates continue to significantly impact the industry, but the lack of a January increase is seen as favorable for clients [39] Company Strategy and Development Direction - The company is making targeted investments in AI-powered tools, data intelligence services, and retail media networks to diversify revenue and return to net sales growth by 2028 [4] - The strategic focus includes maximizing savings for clients while increasing marketing effectiveness through innovative solutions like co-mailing and audience intelligence [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future growth of In-Store Connect, citing strong sales lift results from campaigns with major clients [16] - The company is closely monitoring macroeconomic pressures, including inflation and tariffs, which could affect client marketing spend [31] Other Important Information - The company returned $19 million of capital to shareholders year-to-date through dividends and share repurchases, with a 50% increase in the quarterly dividend [25] - The company expects free cash flow in Q4 2025 to be between $137 million and $147 million, following a seasonal pattern of negative cash flow in the first nine months of the year [23] Q&A Session Summary Question: Trends in targeted print categories - Management noted that catalog sales are muted due to postal increases, while direct mail, packaging, and in-store solutions are seeing growth [36][37] Question: Impact of USPS postponing price increase - Management indicated that the postponement is favorable and could positively influence client spending for 2026 [39][40] Question: Updated guidance for net sales - Management discussed variability in direct mail as a transactional area that could impact sales outlook for Q4 [42][44] Question: Adjusted EBITDA and CapEx guidance - The midpoint for adjusted EBITDA was slightly decreased, while capital expenditures are expected to shift towards technology and automation [46][48] Question: Updates on In-Store Connect deployment - Management reported increased interest from clients and a strong pipeline for In-Store Connect, with positive feedback on new digital signage solutions [49][50]

Financial Performance - Net sales for the third quarter of 2025 were $588 million, compared to $674.8 million in the same period of 2024[34] - Adjusted EBITDA for the third quarter of 2025 was $52.6 million, with an Adjusted EBITDA Margin of 8.9%[34, 54] - Adjusted diluted earnings per share for the third quarter of 2025 was $0.31[34, 59] - Free cash flow year-to-date was negative $86.5 million[34, 56] - The company narrowed ranges for sales, Adjusted EBITDA and cash flow, representing continued progress in support of long-term financial goals[5] Strategic Initiatives - The company is investing in AI-powered tools and systems, data and audience intelligence services, and its In-Store Connect retail media network[5] - The company executed $8 million of share repurchases as part of its balanced capital allocation strategy[5, 34] - Quad's MX Suite of products and services is flexibly tailored for the unique needs of the marketer[7] - Quad's proprietary core dataset features 250 million consumers, mapped to a resilient identifier ⎯ their physical home address ⎯ coupled with additional data and contextual insights that can be activated across any media channel[9] Updated Guidance - Adjusted Annual Net Sales are expected to decline by 3% to 5%[44, 46] - Full-Year Adjusted EBITDA is projected to be between $190 million and $200 million[44, 46] - Free Cash Flow is expected to be between $50 million and $60 million[44, 46] - Year-End Net Debt Leverage Ratio is anticipated to be approximately 1.6x[44, 46]

Core Insights - Quad/Graphics reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.27 per share, and showing an increase from $0.26 per share a year ago, resulting in an earnings surprise of +14.81% [1] - The company posted revenues of $588 million for the quarter ended September 2025, which fell short of the Zacks Consensus Estimate by 2.89% and decreased from $674.8 million year-over-year [2] Earnings Performance - Over the last four quarters, Quad/Graphics has surpassed consensus EPS estimates three times [2] - The company had a previous quarter earnings surprise of +16.67%, with actual earnings of $0.14 per share against an expected $0.12 [1] Stock Performance - Quad/Graphics shares have declined approximately 14.8% since the beginning of the year, contrasting with the S&P 500's gain of 16.9% [3] - The current Zacks Rank for Quad/Graphics is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $639.4 million, and for the current fiscal year, it is $0.96 on revenues of $2.44 billion [7] - The outlook for the Advertising and Marketing industry, where Quad/Graphics operates, is currently in the bottom 29% of Zacks industries, which may impact stock performance [8]

Financial Performance - Net Sales for Q3 2025 were $588 million, a 13% decline from $675 million in Q3 2024, with a 7% decline when excluding the 6% impact from the divestiture of European operations[5]. - Net Earnings improved to $10 million or $0.21 Diluted Earnings Per Share in Q3 2025, compared to a Net Loss of $25 million or $0.52 Diluted Loss Per Share in Q3 2024[5]. - Adjusted EBITDA for Q3 2025 was $53 million, down from $59 million in Q3 2024, primarily due to lower Net Sales and increased investments in innovative offerings[10]. - Year-to-date, Net Sales reached $1.8 billion, a 9% decrease compared to the same period in 2024, with a 4% decline when excluding the impact of the divestiture[10]. - Adjusted Diluted Earnings Per Share for Q3 2025 increased by 19% to $0.31 from $0.26 in Q3 2024[10]. - Operating income for Q3 2025 was $26.4 million, compared to an operating loss of $4.9 million in Q3 2024[29]. - Net earnings for Q3 2025 were $10.2 million, a significant improvement from a net loss of $24.7 million in Q3 2024[29]. - For the nine months ended September 30, 2025, net sales were $1,789.3 million, down 8.8% from $1,963.8 million in the same period of 2024[31]. - Net earnings for the nine months ended September 30, 2025, were $15.9 million, a significant improvement from a loss of $55.6 million in the same period of 2024[35]. - EBITDA for the nine months ended September 30, 2025, was $118.3 million, compared to $79.5 million in 2024, reflecting an increase of 48.8%[43]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $141.4 million, down from $161.4 million in 2024, indicating a decrease of 12.8%[43]. - The EBITDA margin for the nine months ended September 30, 2025, improved to 6.6%, up from 4.0% in 2024[43]. - The company reported a basic earnings per share of $0.21 for Q3 2025, compared to a loss per share of $0.52 in Q3 2024[29]. - Earnings (loss) before income taxes for the nine months ended September 30, 2025, was $20.2 million, a significant recovery from $(49.3) million in 2024[53]. Cash Flow and Shareholder Returns - The company returned $19 million to shareholders year-to-date, consisting of $11 million in cash dividends and $8 million in share repurchases[5]. - The quarterly dividend of $0.075 per share is payable on December 5, 2025, to shareholders of record as of November 17, 2025[12]. - The company expects fourth quarter 2025 Free Cash Flow to be between $137 million and $147 million, following a negative Free Cash Flow of $87 million year-to-date[16]. - Total net cash used in operating activities for the nine months ended September 30, 2025, was $(50.0) million, compared to $(45.9) million in 2024[35]. - The company reported a net cash decrease in cash and cash equivalents of $(23.0) million for the nine months ended September 30, 2025, compared to $(40.4) million in 2024[35]. - Free Cash Flow (non-GAAP) for the nine months ended September 30, 2025, was $(86.5) million, an improvement from $(91.6) million in 2024[46]. Debt and Financial Position - Net Debt was $465 million as of September 30, 2025, an increase from $350 million at the end of 2024[16]. - As of September 30, 2025, total debt and finance lease obligations were $471.4 million, up from $379.2 million as of December 31, 2024[48]. - Net Debt (non-GAAP) increased to $465.2 million as of September 30, 2025, compared to $350.0 million at the end of 2024[48]. - The Net Debt Leverage Ratio (non-GAAP) rose to 2.28x as of September 30, 2025, from 1.56x at the end of 2024[48]. - Cash and cash equivalents at the end of the period were $6.2 million as of September 30, 2025, down from $12.5 million in 2024[35]. Operational Challenges and Strategic Initiatives - The company faced significant challenges including increased operating costs and decreased demand for printing services, impacting overall performance[22]. - The company is undergoing a transformation to adapt to new markets and technologies, including artificial intelligence, which may affect future performance[22]. - The company incurred restructuring, impairment, and transaction-related charges of $23.1 million for the nine months ended September 30, 2025, compared to $81.9 million in 2024[43]. Segment Performance - The United States Print and Related Services segment generated net sales of $1,623.1 million for the nine months ended September 30, 2025, compared to $1,702.3 million in 2024, a decrease of 4.7%[37]. - The International segment reported net sales of $166.2 million for the nine months ended September 30, 2025, down from $261.5 million in 2024, a decline of 36.5%[37].