Transcontinental Inc. Announces Results for the Fourth Quarter and Fiscal Year 2025

Core Insights - Transcontinental Inc. reported improved adjusted net earnings per share for the fourth consecutive quarter, reflecting the positive impact of profitability improvement initiatives [3] - The company anticipates that the sale of its Packaging Sector for $2.1 billion will create significant value for shareholders [4][7] - Despite challenges in the Retail Services and Printing Sector due to a labor conflict at Canada Post, the company expects reduced impacts in fiscal 2026 as distribution resumes [5] Financial Highlights - For Q4 2025, revenues decreased by 2.3% to $732.4 million from $749.3 million in Q4 2024, primarily due to lower volume in the Retail Services and Printing Sector [9] - Operating earnings before depreciation and amortization fell by 10.3% to $118.2 million in Q4 2025, down from $131.8 million in Q4 2024 [10] - Adjusted net earnings attributable to shareholders increased by 1.9% to $68.6 million in Q4 2025, with adjusted net earnings per share rising by 3.8% to $0.82 [13] Annual Performance - For fiscal year 2025, total revenues decreased by 2.5% to $2,743.9 million from $2,812.9 million in fiscal year 2024 [14] - Operating earnings before depreciation and amortization increased by 11.4% to $473.1 million, compared to $424.7 million in fiscal year 2024 [15] - Net earnings attributable to shareholders rose by 41.0% to $171.0 million, with earnings per share increasing by 44.7% to $2.04 [17] Strategic Developments - The company completed business acquisitions during the fiscal year to enhance growth in in-store marketing activities [7] - A 10-year renewal of the printing contract for The Globe and Mail is expected to provide stability to the newspaper printing segment [5] - The company plans to close the sale of its Packaging Sector in the first quarter of calendar year 2026, pending regulatory approvals [20] Outlook - The company expects adjusted operating earnings before depreciation from continuing operations for fiscal year 2026 to remain stable compared to fiscal year 2025 [21] - Anticipated lower volumes in traditional activities, such as book printing, will be partially offset by growth in in-store marketing activities [20]