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 is well-positioned for future growth following the sale of its Packaging Sector for $2.1 billion, which is expected to create significant value for shareholders [4][7] Financial Performance - Revenues for Q4 2025 were $732.4 million, a decrease of 2.3% from $749.3 million in Q4 2024, primarily due to lower volume in the Retail Services and Printing Sector [6][9] - Operating earnings before depreciation and amortization decreased by 10.3% to $118.2 million in Q4 2025, impacted by lower volumes and increased restructuring costs [10][11] - Net earnings attributable to shareholders decreased by 10.4% to $42.9 million in Q4 2025, with earnings per share dropping from $0.57 to $0.51 [12] - For fiscal year 2025, total revenues were $2,743.9 million, down 2.5% from $2,812.9 million in fiscal year 2024 [14] - Operating earnings before depreciation and amortization increased by 11.4% to $473.1 million for fiscal year 2025, driven by cost reduction initiatives [16] - Net earnings attributable to shareholders rose by 41.0% to $171.0 million for fiscal year 2025, with earnings per share increasing from $1.41 to $2.04 [18] Sector Performance - The Packaging Sector experienced a modest increase in volume in Q4 2025, benefiting from cost reduction initiatives [4] - The Retail Services and Printing Sector faced challenges in Q4 2025 due to a labor conflict at Canada Post, but distribution has resumed, which is expected to improve earnings in fiscal 2026 [5] Strategic Developments - The company completed business acquisitions during fiscal year 2025 to enhance growth in in-store marketing activities [7] - The renewal of the printing contract for The Globe and Mail for a 10-year period is expected to provide stability to the newspaper printing segment [5] Outlook - The sale of the Packaging Sector is anticipated to close in Q1 2026, subject to regulatory approvals [21] - The company expects lower volumes in traditional activities but anticipates growth in in-store marketing activities, partially offsetting declines [21][22] - Adjusted operating earnings before depreciation from continuing operations for fiscal year 2026 are expected to remain stable compared to fiscal year 2025 [22]