Canada · Delayed Price · Currency is CAD Transcontinental Earnings Call Transcripts
Fiscal Year 2026
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Third-quarter revenue and EBITDA grew year-over-year, driven by ISM acquisitions and the raddar rollout, despite lower traditional volumes. Debt reduction continued through real estate sales, and the company remains confident in meeting its fiscal 2026 outlook.
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Q2 revenue and EBITDA declined year-over-year due to lower volumes, but new contracts, cost reductions, and the raddar rollout are expected to drive a stronger second half. Net debt ratio is set to fall below 2x, with a regular dividend reinstated and active M&A plans.
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Q1 revenue rose 2.3% year-over-year, but adjusted EBITDA fell 17.9% due to lower volumes and price concessions. A CAD 20 per share special dividend will be paid March 20, 2026, following the packaging business sale. Management expects EBITDA recovery in the second half.
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The meeting confirmed new leadership, approved a special CAD 20 dividend, and ratified all proposals, including bylaw updates and capital changes. Fiscal 2025 saw strong earnings growth and strategic refocusing after the packaging business sale, with continued investment in AI and operational improvements.
Fiscal Year 2025
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Fiscal 2025 delivered strong EPS growth and improved safety, despite revenue declines in Retail Services and Printing due to Canada Post disruptions. The packaging business sale will enable a major shareholder distribution and debt reduction, with stable EBITDA expected for 2026.
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The sale of the packaging business to ProAmpac at a nine-times EBITDA multiple delivers immediate value to shareholders and enables a strategic focus on Retail Services, Printing, and educational publishing. Proceeds will be distributed as a $20 per share cash payout, with closing expected in Q1 2026.
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Adjusted EPS rose 16.7% year-over-year, with strong organic profit growth in both main sectors despite a 2.2% revenue decline. Recent acquisitions and AI investments are expanding capabilities, while cost discipline and cash flow improvements support a positive outlook.
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Adjusted EPS rose 11.5% year-over-year, with stable revenues and strong RS&P growth offsetting packaging declines. Cost savings, medical recovery, and a robust sales pipeline support a positive H2 outlook, while leverage and cash flow remain healthy.
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Q1 2025 saw a 5.5% revenue decline year-over-year, but adjusted EBITDA rose to $97.5M and EPS increased 14%. Net debt ratio improved to 1.53x, aided by cost reductions and the sale of industrial packaging. A special $1/share dividend was announced.
Fiscal Year 2024
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Solid fiscal 2024 results driven by cost reductions and record Packaging EBITDA, despite revenue declines. Canada Post strike impacts flyer distribution, but 70% coverage maintained; 2025 outlook expects stable or growing EBITDA, with continued M&A and share buybacks.
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Profitability improved for the fourth consecutive quarter, driven by cost reductions and higher value-added products. Packaging and Retail Services both saw double-digit EBITDA growth, though revenue in printing declined due to the Publisac closure. Ongoing cost controls and cautious pricing are expected to offset market pressures into 2025.
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Profitability improved for the third consecutive quarter, driven by cost reductions and product mix optimization, despite lower revenues. Packaging margins reached record levels, and a share buyback is planned as leverage declines. Guidance for 2024 is raised, with EBITDA growth expected.