Exchange: NYSE | Sector: Industrials | Industry: Business Equipment Supplies
Q2 2026
Published: Sep 22, 2025
Earnings Highlights
EPS of $-0.37 decreased by 195% from previous year
Gross margin of 31.1%
Net income of 13.15M
"N/A" - N/A
Ennis Inc (EBF) QQ2 2026 Results — Industrials Sector Deep-Dive with Focus on Unusual Top-Line Dynamics and Non-Operating Drivers
Executive Summary
Ennis Inc (EBF) reported QQ2 2026 results that show a highly unusual top-line dynamic: revenue in the quarter is negative (-97.2 million) while gross profit is negative (-30.23 million) and operating income is negative (-13.28 million). Notwithstanding the negative core revenue and operating outcome, the company booked a meaningful positive pre-tax result and net income due to sizable non-operating income, with total other income and expenses totaling 31.43 million and income before tax of 18.14 million. Net income is reported as 13.15 million with an EPS of -0.38 (diluted -0.37). The discrepancy between net income and the reported operating performance suggests one-off or non-operating drivers were material this quarter, rather than a straightforward improvement in the underlying business. YoY and QoQ metrics reflect a dramatic swing in revenue and gross profit, while the bottom-line appears to benefit from non-operating items rather than a durable earnings improvement.
Given the data, investors should treat QQ2 2026 as a quarter dominated by unusual items rather than a clear signal of sustained operating performance. The core business remains exposed to negative revenue and negative operating income in the period, which warrants close attention to future quarters to determine if the non-operating gains can be sustained or if they will reverse. Absent a clear forward guidance in the provided materials, the investment impulse hinges on the persistence of non-operating income, potential normalization of working capital dynamics, and any evidence of underlying demand stabilization across Ennis’ diversified product portfolio.
Gross Profit: -30,230,000; Gross Profit Margin reported as 31.10% in the data (grossProfitRatio 0.3110) but tied to a negative top-line result; note the inconsistency implies data quality caveats but the gross profit is materially negative in the quarter.
EBITDA: 22,453,000; EBITDA margin implied by EBITDARatio -0.2310 (i.e., -23.1%), though this is given alongside a negative revenue base, limiting interpretability of traditional margin analysis in this quarter.
Operating Income: -13,283,000; Operating Income Margin reported as 0.1367 in the data but the absolute figure is negative, signaling a mismatch between the reported metric and the sign of the cash-generating operation.
Total Other Income/Expenses Net: 31,427,000; Income Before Tax: 18,144,000; Income Tax Expense: 4,990,000; Net Income: 13,154,000; Net Income Margin and EPS per share appear inconsistent with the other line items (net income is positive while the net income ratio shown is negative), suggesting one-off/non-operating items are driving the bottom line.
Financial Highlights
Revenue and profitability snapshot (QQ2 2026):
- Revenue: -97,197,000; YoY change: -198.14%; QoQ change: -200.00% (per incomeMetrics)
- Gross Profit: -30,230,000; Gross Profit Margin reported as 31.10% in the data (grossProfitRatio 0.3110) but tied to a negative top-line result; note the inconsistency implies data quality caveats but the gross profit is materially negative in the quarter.
- EBITDA: 22,453,000; EBITDA margin implied by EBITDARatio -0.2310 (i.e., -23.1%), though this is given alongside a negative revenue base, limiting interpretability of traditional margin analysis in this quarter.
- Operating Income: -13,283,000; Operating Income Margin reported as 0.1367 in the data but the absolute figure is negative, signaling a mismatch between the reported metric and the sign of the cash-generating operation.
- Total Other Income/Expenses Net: 31,427,000; Income Before Tax: 18,144,000; Income Tax Expense: 4,990,000; Net Income: 13,154,000; Net Income Margin and EPS per share appear inconsistent with the other line items (net income is positive while the net income ratio shown is negative), suggesting one-off/non-operating items are driving the bottom line.
- Earnings Per Share (EPS, diluted): -0.37 to -0.38 (as reported), despite positive net income, further underscoring the data-quality caveats in this quarter’s presentation.
Interpretation and takeaways:
- The quarter is dominated by non-operating gains that mask a deteriorating core operating performance. The negative revenue base and negative operating income imply that the business segmentation or accounting recognition in this quarter may reflect unusual items or one-off adjustments rather than a durable improvement in demand or pricing.
- The sizable positive pre-tax income driven by other income/expenses requires scrutiny of what constitutes the non-operating items (e.g., gains from non-core activities, fair value adjustments, or one-time items). Without explicit disclosure, the sustainability of these items is uncertain.
- The YoY/QoQ revenue and gross profit declines indicate that, absent meaningful non-operating uplift, the underlying business health may be deteriorating. The market should watch for any explicit management commentary clarifying the nature of the non-operating income and the trajectory of core operations in upcoming quarters.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
-97.20M
-198.14%
-200.00%
Gross Profit
-30.23M
-201.51%
-200.00%
Operating Income
-13.28M
-200.76%
-200.00%
Net Income
13.15M
27.61%
34.24%
EPS
-0.38
-195.00%
-200.00%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript highlights unavailable in the provided data. No earnings-call transcript or management commentary excerpts were supplied for QQ2 2026. As a result, this section could not synthesize themes on strategy, operations, or market conditions from direct quotes. Once transcript access is provided, we will extract and group insights by themes (strategy, operations, market conditions) and pair them with context and implications for investors.
N/A
— N/A
N/A
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Forward Guidance
No formal forward guidance was included in the supplied materials for QQ2 2026. Given the apparent reliance on non-operating income to drive net income in this quarter, a meaningful near-term upside would require a clear path to sustainable operating profitability or a credible plan to convert non-operating gains into recurring earnings power. Investors should monitor: (1) any stated guidance on revenue trends and gross margin trajectory for the coming quarters; (2) disclosures around the components of total other income/expenses and any expected reversals or one-time items; (3) working capital and cash flow dynamics that would indicate ongoing liquidity strength; (4) management commentary on demand in Ennis’ diversified product lines (forms, labels, envelopes, etc.) and progress against any strategic initiatives. Absent explicit guidance, the investment thesis hinges on the persistence (or recurrence) of non-operating income versus a potential normalization of operating performance.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
EBF Focus
31.10%
N/A
N/A
N/A
SCS
34.50%
10.50%
6.76%
6.58%
HNI
40.60%
8.88%
4.57%
14.76%
ACCO
32.20%
12.10%
-20.30%
-88.70%
ACTG
26.20%
-18.40%
-1.51%
-14.75%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The QQ2 2026 results present a mixed and data-interpretation-sensitive picture. The presence of a sizable non-operating income component that drives net income alongside negative revenue and negative operating income suggests the quarter may be dominated by one-off items rather than a durable earnings upgrade. The investment thesis is therefore cautious: the sustainability of earnings hinges on clarifying the drivers behind the non-operating income and on confirming a bottom-up recovery in core operations. Investors should await more information on: (1) specific components of total other income/expenses and whether these items recur; (2) management’s outlook on core revenue trends and gross margins; (3) balance sheet health including liquidity and debt levels; and (4) any strategic initiatives aimed at stabilizing or expanding the core business. If non-operating gains prove transient, the stock could remain exposed to the cyclicality of the business forms and related printing markets. If, however, management provides credible visibility into a stabilized or improving core operation, the stock could begin to reflect a more normalized earnings profile.
Key Investment Factors
Growth Potential
Potential growth could arise from Ennis’ diversified product portfolio (forms, labels, envelopes, signage, etc.) and its distribution through independent channels. Growth would hinge on stabilization or improvement in core revenue, especially in segments with higher margin contribution. Any expansion in high-value labels and specialized printed products could provide margin uplift if accompanied by productivity gains.
Profitability Risk
Key risks include a weak or volatile core demand environment for business forms and related products, reconciliation of negative top-line results with positive net income (raising questions about sustainability), potential variability in non-operating items that distort earnings, and industry disruption from digital alternatives reducing demand for traditional printed forms.
Financial Position
The data set lacks explicit balance sheet inputs (debt levels, cash, liquidity, working capital). The visible quarter shows negative revenue and negative operating income, suggesting a fragile operating basis if non-operating gains do not recur. Comprehensive assessment requires access to the latest balance sheet and cash flow statement to judge liquidity, leverage, and capital allocation discipline.
SWOT Analysis
Strengths
Diversified product portfolio across business forms, labels, envelopes, and related printed products, potentially reducing reliance on a single end-market.
Long-standing market presence and multi-brand , distributed model through independent channels, which can support broad market reach and resilience in certain segments.
Weaknesses
Materially negative revenue in QQ2 2026 (reported as -97.2 million) undermining core operating profitability.
Inconsistencies between reported net income and sign of revenue/operating income (potential data quality issues or one-off items) that obscure true earnings power.
Lack of visible balance sheet and cash flow data in the provided dataset limiting assessment of liquidity and leverage.
Opportunities
Growth in high-margin segments such as specialty labels, security/document products, and branded packaging within the Ennis portfolio.
Cross-selling opportunities across brands through a diversified product mix and established distributor network.
Potential efficiency improvements and cost containment could help restore operating margins if demand stabilizes.
Threats
Industry secular headwinds in traditional printed forms due to digital replacement, which puts pressure on core revenue,
Competitive pressures from other office/packaging and forms suppliers, including lower-cost producers.
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