Envelope maker Supremex's Q3 revenue misses on Canada Post labor issues

Supremex

06/11/2025 12:22

Overview

Supremex Q3 revenue declines 5.3% yr/yr, missing analyst expectations

Adjusted EPS for Q3 beats analyst expectations

Company completes sale and leaseback transaction, reducing debt and paying special dividend

Outlook

Company expects economic volatility and postal issues to impact product demand

Supremex plans to focus on acquisitions in Packaging and Specialty Products

Company to maintain regular dividend payments and share repurchases

Result Drivers

ENVELOPE SEGMENT - Revenue decline due to Canada Post labor issues and reduced U.S. direct mail volume, partially offset by Enveloppe Laurentide acquisition

PACKAGING DEMAND - Increased demand for folding cartons and e-commerce packaging solutions, offset by lower commercial print revenue

SALE AND LEASEBACK - Transaction reduced debt and funded special dividend

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
C$65.68 mln
C$67.30 mln (1 Analyst)
Q3 Adjusted EPS
Beat
C$0.19
C$0.08 (1 Analyst)
Q3 Adjusted Net Income
C$4.67 mln
Q3 Adjusted EBITDA
C$6.20 mln
Q3 Adjusted EBITDA Margin
9.40%
Q3 Operating Income
C$1.34 mln


Analyst Coverage

The one available analyst rating on the shares is "buy"

The average consensus recommendation for the paper products peer group is "buy"

Wall Street's median 12-month price target for Supremex Inc is C$5.00, about 28.8% above its November 5 closing price of C$3.56

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nGNX9kk3sP

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)