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Aug 31
Ennis Q2 2025 Earnings Report
Ennis reported improved profitability despite a slight decline in revenue.
Key Takeaways
Ennis, Inc. delivered stronger earnings in Q2 2025 driven by legal settlement income and contributions from recent acquisitions, while revenue remained flat year-over-year.
Net income increased to $13,155,000 from $10,308,000 a year earlier.
EPS rose to $0.51 from $0.40 in the prior-year quarter.
EBITDA margin improved significantly to 22.8% of sales.
Acquisitions added $5.5M in revenue; legal settlement contributed $5.7M in other income.
Ennis
Ennis
Forward Guidance
Management expects stronger cash flow and improved financial flexibility due to stabilized inventory levels and no debt.
Positive Outlook
- Strong balance sheet with no debt.
- Cash flow expected to strengthen in coming quarters.
- Acquisitions continue to contribute positively to revenue and earnings.
- Inventory built up in advance of supply chain risks now complete.
- Company remains profitable and positioned for future acquisitions.
Challenges Ahead
- Revenue slightly declined year-over-year.
- Gross margin decreased compared to prior quarter (down 60 bps).
- Operating cash flow lower than same period last year.
- Cash and equivalents declined due to inventory and share repurchases.
- Ongoing industry risks from raw material supplier closures.