Supremex Announces Results for the Third Quarter of 2025

Core Insights - Supremex Inc. reported third-quarter results for 2025, showing a decrease in revenue but significant improvements in net earnings and cash flow due to strategic actions like a sale and leaseback transaction [1][2][3] Financial Highlights - Total revenue for Q3 2025 was $65.7 million, down 5.3% from $69.4 million in Q3 2024 [3][6] - Operating earnings improved to $1.3 million from a loss of $22.6 million in the same quarter last year [3] - Adjusted EBITDA was $6.2 million, with a margin of 9.4%, compared to $7.9 million and 11.4% in Q3 2024 [3][11] - Net earnings were $9.1 million, or $0.37 per share, compared to a net loss of $23.0 million, or a loss of $0.92 per share, in Q3 2024 [3][18] Segment Performance Envelope Segment - Revenue for the Envelope segment was $45.1 million, down 5.0% from $47.5 million in Q3 2024, primarily due to a 4.2% decrease in average selling prices and a 0.8% decline in volume [7][8] - The Envelope segment accounted for 68.7% of total revenue in Q3 2025 [7] Packaging & Specialty Products Segment - Revenue for this segment was $20.6 million, a decrease of 6.0% from $21.9 million in Q3 2024, mainly due to lower revenue from commercial printing [9][10] - The segment represented 31.3% of total revenue in Q3 2025 [9] Cash Flow and Debt Management - Free cash flow for Q3 2025 was $53.0 million, significantly up from $7.4 million in Q3 2024, largely due to proceeds from the sale and leaseback transaction [22] - Total debt decreased to $11.7 million as of September 30, 2025, from $43.1 million at the end of 2024, reflecting effective debt repayment strategies [23] Dividend and Shareholder Returns - A special dividend of $0.50 was paid to shareholders on September 25, 2025, following the sale and leaseback transaction [4] - The Board declared a quarterly dividend of $0.05 per common share, payable on December 19, 2025 [24] Outlook and Strategic Focus - The company aims to optimize operational efficiency and continue pursuing acquisitions, particularly in the Packaging and Specialty Products segment [25][26] - Supremex is focused on maintaining a strong balance sheet to support long-term growth and shareholder returns [5]