Quad Reports Fourth Quarter and Full-Year 2025 Results

Core Insights - Quad/Graphics, Inc. reported its fourth quarter and full-year 2025 results, highlighting significant operational progress and solid financial outcomes despite a planned decline in sales [1][2] Financial Performance - For the full year 2025, Quad achieved Net Sales of $2.4 billion, a decrease of 9.4% compared to 2024, or a 4.8% decline when excluding the impact of the divestiture of European operations [1][2] - Adjusted Diluted Earnings Per Share increased by 19% to $1.01 in 2025, compared to $0.85 in 2024 [1][2] - Net Earnings improved to $27 million, or $0.54 Diluted Earnings Per Share, in 2025, compared to a Net Loss of $51 million, or $1.07 Diluted Loss Per Share, in 2024 [1][2] - Adjusted EBITDA for 2025 was reported at $196 million, down from $224 million in 2024, primarily due to lower Net Sales and increased investments in innovative offerings [1][2] Cash Flow and Debt Management - The company generated $96 million of Net Cash provided by Operating Activities and $51 million of Free Cash Flow in 2025 [1][2] - Net Debt was reduced by $42 million during 2025 to $308 million, achieving a Net Debt Leverage of 1.57x at year-end [1][2] - The company returned $22 million to shareholders in 2025 through $14 million in cash dividends and $8 million in share repurchases [1][2] Dividend and Future Guidance - Quad announced a 33% increase in its quarterly dividend to $0.10 per share, payable on March 13, 2026 [1][2] - The company provided 2026 financial guidance, anticipating a further improvement in Net Sales decline to approximately 3% at the midpoint of the guidance range [1][2] Operational Highlights - Quad completed the integration of Enru's co-mail volume and high-density co-mailing capabilities, enhancing mail pool sizes and improving sortation levels [1][2] - The company continued to secure integrated creative and media work with notable brands, indicating a shift towards higher-value offerings [1][2]