Canada · Delayed Price · Currency is CAD Transcontinental Earnings Call Transcripts
Fiscal Year 2026
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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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A sale of the packaging business to ProAmpac at a premium valuation will deliver a $20 per share cash distribution and reduce debt, while the company refocuses on Retail Services, Printing, and educational publishing, targeting growth through organic initiatives and M&A in Canada. The transaction is expected to close in Q1 2026.
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Adjusted EPS rose 16.7% year-over-year in Q3, driven by cost discipline and strong book printing, despite a 2.2% revenue decline from divestitures. Recent acquisitions expand Canadian reach, and organic profit growth is expected in both main sectors for the year.
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Q2 2025 saw 11.5% adjusted EPS growth and stable revenues, with strong retail services and printing offsetting packaging declines. Outlook remains positive for H2, driven by medical recovery and cost savings, while leverage and cash flow support ongoing M&A and shareholder returns.
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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.
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The meeting confirmed the re-election of all directors, approval of executive compensation, and KPMG's reappointment as auditor. Strong financial results in 2024 enabled debt reduction, shareholder returns, and a special dividend, with ongoing strategic focus on sustainability and operational efficiency.
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, with strong cost reductions and margin gains in both packaging and printing. Packaging saw volume-driven growth, while pricing pressure and a soft medical segment remain challenges. Net debt ratio improved to 1.91x.
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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.