Executive Summary
Ennis Inc reported a solid Q3 2025 with revenue of $99.8 million, down 4.6% year over year and up 0.7% sequentially. Despite the revenue decline, the company delivered a robust net income of $10.2 million and EPS of $0.39, reflecting a 3.0% year-over-year improvement in bottom-line performance and a stable net profit margin around 10.2%. Gross profit was $29.25 million, yielding a gross margin of 29.3%, while operating income reached $13.05 million for an operating margin of 13.1%. EBITDA stood at $16.99 million (EBITDA margin 17.0%), underscoring strong operating efficiency and cost discipline.
Cash flow remained healthy: net cash provided by operating activities was $18.16 million, capital expenditures were modest at $0.63 million, resulting in free cash flow of $17.52 million. The balance sheet remains solid with cash and equivalents of $55.7 million and a net cash position of approximately $44.9 million (net debt negative). Total assets were $346.1 million and stockholders’ equity $297.7 million, supporting favorable liquidity metrics (current ratio 4.72, quick ratio 3.50). The company paid out $72.3 million in dividends during the period, contributing to a cash outflow that more than offset operating cash flow on a financing basis within the quarter.
Valuation remains reasonable relative to peers, with a reported P/E of about 13.6x and a price-to-book around 1.86x, reflecting investors’ continued confidence in Ennis’ diversified product portfolio and cash-generative profile. Looking ahead, Ennis’ growth potential lies in expanding higher-margin offerings (labels, kitting, and premium printing solutions) and leveraging its brand ecosystem to cross-sell the portfolio, while challenges include secular pressure on traditional business forms and distributor-channel dynamics. Overall, the stock presents a balanced risk–reward in a steady industrials segment, supported by a strong balance sheet and resilient cash flow generation.
Key Performance Indicators
Key Insights
Revenue: $99.771 million; YoY -4.64%; QoQ +0.74% | Gross Profit: $29.249 million; Gross Margin 29.3%; YoY -4.20%; QoQ -1.78% | Operating Income: $13.046 million; Operating Margin 13.08%; YoY -0.56%; QoQ -1.04% | Net Income: $10.204 million; Net Margin 10.23%; YoY +3.01%; QoQ -1.01% | EBITDA: $16.988 million; EBITDA Margin 17.03% | EPS: $0.39; Diluted EPS $0.39; YoY +2.63%; QoQ -2.50%
Liquidity and cash flow: CFO $18.156 million; Free Cash Flow $17.524 million; Net Change in Cash -$44.273 millio...
Financial Highlights
Revenue: $99.771 million; YoY -4.64%; QoQ +0.74% | Gross Profit: $29.249 million; Gross Margin 29.3%; YoY -4.20%; QoQ -1.78% | Operating Income: $13.046 million; Operating Margin 13.08%; YoY -0.56%; QoQ -1.04% | Net Income: $10.204 million; Net Margin 10.23%; YoY +3.01%; QoQ -1.01% | EBITDA: $16.988 million; EBITDA Margin 17.03% | EPS: $0.39; Diluted EPS $0.39; YoY +2.63%; QoQ -2.50%
Liquidity and cash flow: CFO $18.156 million; Free Cash Flow $17.524 million; Net Change in Cash -$44.273 million; Cash at End of Period $55.704 million; Operating Cash Flow per Share $0.698; Free Cash Flow per Share $0.674; Dividend Paid $72.299 million; Total Debt $10.825 million; Net Debt negative $44.879 million.
Balance sheet: Total Assets $346.055 million; Total Current Assets $152.415 million; Total Liabilities $48.359 million; Total Current Liabilities $32.319 million; Stockholders’ Equity $297.696 million; Current Ratio 4.72; Quick Ratio 3.50; Cash & Equivalents $55.704 million; Cash Conversion Cycle ~71 days. Key leverage metrics are favorable, with low long-term debt (Long-Term Debt $6.161 million) and a conservative capital structure.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
99.77M |
-4.64% |
0.74% |
| Gross Profit |
29.25M |
-4.20% |
-1.78% |
| Operating Income |
13.05M |
-0.56% |
-1.04% |
| Net Income |
10.20M |
3.01% |
-1.01% |
| EPS |
0.39 |
2.63% |
-2.50% |
Key Financial Ratios
operatingProfitMargin
13.1%
operatingCashFlowPerShare
$0.7
freeCashFlowPerShare
$0.67
Management Commentary
No earnings call transcript data provided in the dataset. Highlights below are synthesized from reported results and typical investor concerns:
- Operating efficiency and margin resilience: The company maintains a solid operating margin (~13.1%) and EBITDA margin (~17.0%), indicating effective cost control amid modest revenue headwinds.
- Cash flow strength and capital allocation: Positive operating cash flow (CFO $18.16m) supports a strong liquidity position, though financing outflows (dividends of $72.3m) absorbed cash in the period, resulting in a negative net change in cash for the quarter.
- Balance sheet durability: A robust current ratio (4.72) and a net cash position (~$44.9m) provide a cushion against near-term volatility and the ability to fund strategic initiatives without relying on external funding.
Forward Guidance
No explicit forward guidance was provided in the data. Given the current revenue softness in the core business forms segment, Ennis may focus on accelerating growth through higher-margin lines (labels, kitting, premium printing, and custom labels) and improving product mix. Industry indicators for industrials suggest stable demand with selective pockets of growth in packaging, labeling, and customized print solutions. Key factors to monitor include: (1) trend in demand for business forms versus transition to higher-margin digital and packaging products; (2) ability to realize price/volume gains in premium segments; (3) discipline in capital allocation and dividend policy to maintain a balanced free cash flow profile; (4) working capital management and distributor channel dynamics; (5) any potential M&A activity to augment the product portfolio.