McGraw Hill, Inc. (NYSE:MH) is among the 11 Newly-Listed NYSE Stocks to Buy Now. JPMorgan Raises its Price Target on McGraw Hill, Inc. (MH) to $22 and Maintains an Overweight Rating On February 12, 2026, JPMorgan raised its price target on McGraw Hill, Inc. (NYSE:MH) to $22 from $21 and maintained an Overweight rating. That same day, Baird lowered its price target to $19 from $21 while keeping an Outperform rating, updating its model after strong results and a guidance increase. UBS also lifted its price ...

Higher Education outperformance was driven by record 30% market share and the success of the Evergreen platform, which now accounts for 70% of segment revenue. The Evergreen model enhances sales productivity by automating content updates, allowing representatives to focus on new market share takeaways rather than managing legacy editions. Digital revenue reached 84% of the total mix, reflecting a structural shift toward high-margin, recurring subscription models that provide multi-year visibility. M ...

Core Insights - McGraw-Hill reported better-than-expected quarterly results, leading to a significant pre-market rally in its stock price [1] - The company raised its full-year guidance, highlighting strong performance driven by recurring revenue and digital growth [2][3] Financial Performance - The company achieved a top-line growth of 4.2%, with recurring revenue growing by 14.8% and digital revenue by 11% [3] - Higher education segment saw a remarkable growth of 24% year-over-year, contributing significantly to overall performance [4] Revenue Composition - Recurring revenue now accounts for over 80% of McGraw-Hill's business, providing predictability and stability [5][6] - The growth in higher education is primarily attributed to share gains and a slight enrollment increase of 3-4% [7][8] Strategic Initiatives - The company is implementing an "evergreen" delivery model, which eliminates the traditional edition cycle, enhancing customer retention and share gains [9][10] - AI-powered tools are being integrated into existing product lines, contributing to revenue growth and operational efficiency [11][12] Guidance and Outlook - Confidence in raising guidance stems from ongoing share gains and visibility into performance obligations [14][15] - The company is committed to reducing net leverage to 2 to 2.5 times, having paid down nearly $600 million in debt year-to-date [16][17] Leadership Transition - Simon will transition to chair of the board while Philip Moyer takes over as CEO, ensuring continuity in leadership [20][21] - Moyer's background in AI and experience in leading initiatives at major tech companies is expected to drive future growth [22][23]

Financial Data and Key Metrics Changes - In the third quarter, net revenues decreased to $7 million from $11.1 million year-over-year, while year-to-date revenues fell to $18.7 million from $27.6 million [5][6] - Average active brand partners dropped to 5,100 in Q3 from 12,400, and year-to-date average active brand partners decreased to 6,200 from 13,300 [5][6] - Earnings before income taxes improved to $10.6 million from a loss of $1.1 million in Q3 last year, while year-to-date earnings before income taxes were $7.4 million compared to a loss of $5.3 million [5][6] - Net earnings for the quarter were $7.8 million compared to an $800,000 loss last year, and year-to-date net earnings were $5.4 million compared to a $3.9 million loss [5][6] - Earnings per share rose to $0.91 from a loss of $0.10 in Q3 last year, and year-to-date earnings per share increased to $0.63 from a loss of $0.47 [5][6] Business Line Data and Key Metrics Changes - The company launched the Gathered Goods fundraising program, which allows for custom products and better margin control, marking a strategic shift from the previous Cards for a Cause program [8][10] - The Book Friday promotion was highlighted as a significant marketing strategy, driving customer engagement despite a decline in brand partner count [9][10] Market Data and Key Metrics Changes - The company reported a decrease in inventory levels from $44.7 million at the beginning of fiscal year 2026 to $39.1 million at the end of November, generating $5.6 million in cash flow from inventory reductions [6][7] - The company maintained a cash position of $3.4 million and had no bank debt following the sale of the Hilti Complex [6][7] Company Strategy and Development Direction - The company aims to return to growth and profitability in fiscal 2027, focusing on increasing brand partner counts and launching new products to energize sales [3][12] - A refreshed marketing strategy targeting Gen Z is being developed to attract new brand partners [13][14] - The company is exploring AI applications to automate tasks and enhance operational efficiency [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a committed leader base and more productive brand partners as key factors for growth [11][12] - The management acknowledged the challenges faced in recent years due to bank restrictions but is now positioned for growth following the sale of the Hilti Complex [12][16] Other Important Information - The company has a 17-acre tract of excess land beside the Hilti Complex, which is being held for potential future development or sale [32] Q&A Session Summary Question: Has the sale of the building reinvigorated the salesforce? - Management noted increased activity in leader promotions and excitement among brand partners following the sale, indicating a positive shift [18][19] Question: Is there a new credit line in place? - Management is in discussions with banks for a new banking relationship but currently maintains a sufficient cash position [20][22] Question: Is the inventory fully insured? - The inventory is insured at replacement cost, ensuring that the value on the books matches the insurance coverage [23][24] Question: What percentage of inventory could be out of date? - Management stated that historically, they have not written down inventory and do not typically offload titles, indicating confidence in inventory value [25][26] Question: What is the status of the relationship with Usborne Publishing? - There has been no negative change in the relationship, and Usborne is eager for the company to resume ordering titles [30][31] Question: What are the plans for the excess land beside the Hilti Complex? - The land is currently being held with potential for development or sale, and there has been interest from external parties [32]

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]

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]

Divestiture of the Packaging Sector December 8, 2025 In this presentation, unless otherwise indicated, all financial data are prepared in accordance with International Financial Reporting Standards (IFRS) and the term ''dollars'' as well as the symbol ''$'' designate Canadian dollars. In this document, we also use non-IFRS financial measures for which a complete definition is presented below and for which a reconciliation to financial information in accordance with IFRS is presented in slide 16 "Reconciliat ...

Summary of McGraw Hill Conference Call Company Overview - **Company**: McGraw Hill - **Industry**: Educational Publishing - **Evolution**: Transitioned to a digital-oriented business over the last 20 years, with nearly two-thirds of business delivered digitally today, compared to half a decade ago [3][4] Key Highlights - **AI Integration**: McGraw Hill is leveraging AI to enhance personalized learning experiences, reduce administrative burdens on teachers, and drive efficiency in content creation [4][5] - **New Product Launches**: Recently launched an educator assistant and a writing assistant to support K-12 educators, aimed at reducing their administrative workload [6][7] - **Brand Strength**: The trusted brand and intellectual property (IP) of McGraw Hill serve as significant differentiators in a competitive landscape filled with emerging AI-driven educational startups [11][12] Market Share and Growth - **Higher Education Market Share**: Increased from 21% to 30% over the past decade, with a 14% year-over-year growth in the latest quarter [14][15] - **Inclusive Access Model**: This model has grown 30% year-over-year and now accounts for roughly half of the revenue in higher education, allowing students to access materials on day one and increasing sell-through rates to over 98% [19][20] Strategic Initiatives - **Evergreen Product**: A new offering that allows continuous updates to educational content, eliminating the traditional edition cycle and enhancing customer retention [16][18] - **State Adoption Opportunities**: Positioned to capture significant market opportunities in California and Florida for upcoming math and ELA cycles in 2027 and 2028 [30][34] Financial Performance - **Predictable Revenue**: The K-12 business benefits from multi-year contracts, providing visibility and predictability in revenue recognition [50][51] - **Capital Allocation**: Focus on organic growth, debt repayment, and small tuck-in acquisitions to accelerate product development [40][41] Industry Dynamics - **Consolidation Trends**: Scale and data are critical in the educational publishing industry, with expectations of consolidation among smaller edtech startups lacking the necessary scale [44][45] - **Digital Adoption**: While K-5 education remains largely print, there is a significant shift towards digital in higher education, with expectations of reaching 98% digital delivery in the near future [53][54] Conclusion - **Future Outlook**: McGraw Hill is well-positioned for continued growth across all business segments, with a strong focus on innovation and market share expansion [52]

Group 1 - McGraw Hill's IPO in July faced challenges due to concerns over AI and market positioning, leading to a soft public offering and pricing process [1] - Following the IPO, McGraw Hill's shares have rapidly declined, losing approximately 25% of their value [1] Group 2 - The investing group "Value In Corporate Events" focuses on identifying opportunities in IPOs, mergers & acquisitions, earnings reports, and corporate capital allocation changes [1] - The group provides coverage of around 10 major events each month, aiming to find the best investment opportunities [1]

Group 1 - Shares of Scholastic fell 13.6% after reporting weaker-than-expected first-quarter results [1] - The company's performance did not meet market expectations, leading to a significant drop in stock price [1] - The decline in shares reflects investor concerns regarding the company's financial health and future prospects [1]