Supremex Announces Q4 and Year-End 2025 Results

Core Insights - Supremex Inc. achieved a revenue growth of 5.6% in Q4 2025, concluding the year essentially debt-free [1][5][27] - The company reported total revenue of $72.9 million for Q4 2025, compared to $69.1 million in Q4 2024, and a total revenue of $274.8 million for the fiscal year, down from $281.0 million in 2024 [5][7] - The company is focused on maximizing cash flow generation and enhancing operational efficiency while maintaining a virtually debt-free balance sheet [6][29] Financial Highlights - Q4 2025 revenue was $72.9 million, up from $69.1 million in Q4 2024, with envelope segment revenue slightly increasing to $48.9 million and packaging segment revenue rising by 18.3% to $24.0 million [5][10] - For the fiscal year 2025, total revenue was $274.8 million, a decrease of 2.2% from $281.0 million in 2024, with envelope segment revenue declining to $186.3 million and packaging segment revenue increasing to $88.5 million [5][9] - Net earnings for Q4 2025 were $1.3 million, down from $5.8 million in Q4 2024, while net earnings for the fiscal year were $12.0 million, compared to a net loss of $11.7 million in 2024 [5][23] Adjusted EBITDA and Margins - Adjusted EBITDA for Q4 2025 was $9.1 million, representing a margin of 12.5%, down from $12.9 million and 18.7% in Q4 2024 [5][13] - For the fiscal year 2025, adjusted EBITDA was $30.0 million, with a margin of 10.9%, compared to $40.3 million and 14.4% in 2024 [5][14] Segment Performance - The envelope segment's revenue for Q4 2025 was $48.9 million, reflecting a slight increase in volume sold, while the average selling price decreased by 4.8% [8][9] - The packaging and specialty products segment saw revenue growth of 18.3% in Q4 2025, driven by strong performance in folding carton activities and e-commerce packaging solutions [10][12] Cash Flow and Debt Management - Net cash flows from operating activities for Q4 2025 were $14.1 million, an increase from $9.2 million in Q4 2024, while free cash flow for the same period was $13.4 million, up from $8.7 million [24][26] - Total debt decreased significantly to $4.1 million as of December 31, 2025, from $43.1 million a year earlier, reflecting the repayment of long-term debt [27] Dividend Declaration - The Board of Directors declared a quarterly dividend of $0.05 per common share, payable on April 2, 2026, to shareholders of record as of March 19, 2026 [28] Outlook - The company anticipates challenges due to economic volatility, trade uncertainties, and labor issues but remains committed to expanding in the U.S. envelope market while controlling expenses [29][30]