Ennis revenue rises to $102M; dividend up 5%
Ennis delivered higher sales but lower EPS due to litigation items, while boosting its quarterly dividend and strengthening cash flow with no debt.
Rhea-AI Filing Summary
ENNIS, INC. (EBF) reported results for the quarter ended August 31, 2026, showing modest revenue growth but lower earnings, and announced a higher dividend. Quarterly revenue was $102.0 million, up 3.3% from $98.7 million a year earlier. Gross profit was $30.5 million, a 29.9% margin compared with 30.5% in the prior-year quarter, reflecting higher carbonless paper costs. Net earnings were $9.4 million, with diluted EPS of $0.37 versus $0.51 last year, mainly due to a $5.3 million favorable litigation judgment in the prior-year quarter and a $0.7 million litigation charge related to a $2.3 million preliminary ruling in the current quarter; excluding these items, diluted EPS rose by $0.02.
Quarterly EBITDA was $17.2 million, or 16.9% of sales, compared with $22.5 million, or 22.8% of sales, a year earlier. For the six months, revenue grew 2.4% to $200.6 million, net earnings were $19.3 million, and diluted EPS was $0.76 versus $0.89. Operating cash flow for the first six months increased to $34.1 million from $18.4 million, and cash rose to $54.0 million at August 31, 2026, with no debt outstanding. The Board approved a 5.0% increase in the quarterly dividend to $0.2625 per share, payable November 6, 2026 to shareholders of record on October 9, 2026.
Positive
- Revenue grew 3.3% year over year in the quarter to $102.0 million, and 2.4% for the six-month period to $200.6 million, indicating continued top-line expansion.
- Operating cash flow nearly doubled for the first six months to $34.1 million from $18.4 million, and cash increased to $54.0 million with no debt outstanding, strengthening the balance sheet.
- The Board approved a 5.0% increase in the quarterly dividend to $0.2625 per share, signaling an ongoing return of capital to shareholders.
- Acquisitions completed in fiscal 2026 contributed $2.3 million in quarterly revenue and added $0.01 to diluted EPS for the quarter, and $6.8 million in year-to-date revenue with $0.03 EPS contribution.
Negative
- Diluted EPS declined to $0.37 from $0.51 in the prior-year quarter, and six-month diluted EPS fell to $0.76 from $0.89, driven largely by litigation-related items.
- EBITDA decreased to $17.2 million (16.9% of sales) from $22.5 million (22.8% of sales) in the prior-year quarter, reflecting lower reported profitability.
- Quarterly gross margin compressed slightly to 29.9% from 30.5%, with management citing higher carbonless paper costs in cost of sales.
Filing Explained
Alternative supplier shipments have arrived, while the preliminary lease-litigation ruling remains subject to further remedies.
The filing also reports that acquisitions completed during fiscal 2026 contributed approximately
Ennis says it has received shipments from alternative suppliers after the closure of the sole domestic carbonless-paper producer and continues to expect no disruption to customer service, product availability, or quality. The disclosed supply response has therefore advanced from developing alternative sources and increasing inventory to receiving those shipments.
The company says the
8-K Event Classification
Key Figures
Key Terms
EBITDA financial
gross profit margin financial
non-GAAP financial measure financial
operating cash flow financial
preliminary ruling regulatory
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did Ennis, Inc. (EBF) perform financially in the quarter ended August 31, 2026?
What were Ennis, Inc. (EBF)’s results for the six months ended August 31, 2026?
How did litigation items affect Ennis, Inc. (EBF)’s earnings this quarter?
What change did Ennis, Inc. (EBF) make to its quarterly dividend?
What is the current cash and debt position of Ennis, Inc. (EBF)?
How did Ennis, Inc. (EBF)’s acquisitions impact results in 2026?
What happened to Ennis, Inc. (EBF)’s operating cash flow year to date?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
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Registrant’s Telephone Number, Including Area Code: |
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On September 21, 2026, Ennis, Inc. issued a press release announcing its financial results for the three and six months ended August 31, 2026. A copy of the press release is furnished with this Current Report on Form 8-K as Exhibit 99.1 and is incorporated by reference herein.
Item 8.01 Other Events.
On September 18, 2026, the Board of Directors declared an increase in quarterly cash dividend from 25.0 cents per share to 26.25 cents per share on the Company’s common stock. The dividend is payable on November 6, 2026 to shareholders of record on October 9, 2026.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
Exhibit No. |
Description |
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99.1 |
Ennis, Inc. press release dated September 21, 2026 announcing its financial results for the three and six months ended August 31, 2026 (furnished pursuant to Item 2.02 of Form 8-K). |
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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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Ennis, Inc. |
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Date: |
September 21, 2026 |
By: |
/s/ Vera Burnett |
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Vera Burnett |
Exhibit 99.1
FOR IMMEDIATE RELEASE
ENNIS, INC. REPORTS RESULTS FOR THE
QUARTER ENDED AUGUST 31, 2026 AND ANNOUNCES A FIVE PERCENT INCREASE IN THE QUARTERLY DIVIDEND AFTER A STRONG OPERATING QUARTER
Midlothian, TX. September 21, 2026 -- Ennis, Inc. (the “Company”), (NYSE: EBF), today reported financial results for the quarter ended August 31, 2026. Highlights include:
Financial Overview
The Company’s revenues for the quarter ended August 31, 2026 were $102.0 million compared to $98.7 million for the same quarter last year, an increase of $3.3 million, or 3.3%. Gross profit totaled $30.5 million, or 29.9%, as compared to $30.1 million, or 30.5% for the same quarter last year. Net earnings for the quarter were $9.4 million, or $0.37 per diluted share as compared to $13.2 million, or $0.51 per diluted share for the same quarter last year.
The Company’s revenues for the six-month period ended August 31, 2026 were $200.6 million compared to $195.9 million for the same period last year, an increase of $4.7 million or 2.4%. Gross profit totaled $61.6 million or 30.7%, as compared to $60.3 million or 30.8% for the six months ended August 31, 2026 and 2025, respectively. Net earnings for the six-month period ended August 31, 2026 were $19.3 million, or $0.76 per diluted share compared to $23.0 million, or $0.89 per diluted share for the same period last year.
Keith Walters, Chairman, Chief Executive Officer and President, commented, “Our performance for the quarter met our expectations. Revenues increased 3.3% over the prior-year quarter and 2.4% for the first six months of the year compared to the same period last year. Gross profit margin was 29.9% compared to 30.5% for the same quarter last year. The decrease in gross profit margin primarily reflected higher carbonless paper costs recognized in cost of sales compared with the prior-year quarter. Our year-to-date gross profit margin remained solid at 30.7% compared to 30.8% for the same six-month period last year.
“The decrease in earnings per share from the same quarter last year primarily reflected a favorable litigation judgment recognized in the prior-year quarter and a litigation charge recognized in the current quarter. The prior-year quarter included a $5.3 million favorable litigation judgment, while the current-quarter results include an unrelated $700,000 charge related to a $2.3 million preliminary ruling in the B&D Litho lease litigation. The Company disagrees with the preliminary ruling and intends to pursue all available post-trial and appellate remedies. Excluding the effects of these litigation items in each quarter, diluted earnings per share for the quarter increased by $0.02. These litigation items also primarily accounted for the decrease in reported EBITDA, which was $17.2 million for the current quarter compared to $22.5 million for the prior-year quarter.
“Our acquisitions completed during fiscal year 2026 contributed approximately $2.3 million in revenue during the quarter and positively impacted diluted earnings per share by $0.01 for the ownership periods not included in the comparable prior-year quarter. Year-to-date, these acquisitions contributed approximately $6.8 million in revenue and positively impacted diluted earnings per share by $0.03 for the ownership periods not included in the comparable prior-year period.
“As previously reported, we developed alternative supply sources and increased inventory in response to the closure of the sole domestic producer of carbonless paper. We have now received shipments from our alternative suppliers and continue to expect no disruption to customer service, product availability or product quality. Inventory decreased during the quarter as we continued to convert our existing inventory to sales.
“Our financial position remains strong. Operating cash flow increased to $34.1 million for the first six months of the year compared to $18.4 million for the same prior-year period, and cash increased to $54.0 million at August 31, 2026 from $34.6 million at February 28, 2026. We continue to operate with no debt and have sufficient liquidity to support operations, pursue acquisition opportunities and return capital to shareholders through our quarterly dividend.”
Non-GAAP Reconciliations
To provide important supplemental information to both management and investors regarding financial and business trends used in assessing its results of operations, from time to time the Company reports the non-GAAP financial measure of EBITDA (EBITDA is calculated as net earnings before interest expense, tax expense, depreciation, and amortization). The Company may also report adjusted gross profit margin, adjusted earnings and adjusted diluted earnings per share, each of which is a non-GAAP financial measure.
Management believes that these non-GAAP financial measures provide useful information to investors as a supplement to reported GAAP financial information. Management reviews these non-GAAP financial measures on a regular basis and uses them to evaluate and manage the performance of the Company’s operations. Other companies may calculate non-GAAP financial measures differently than the Company, which limits the usefulness of the Company’s non-GAAP measures for comparison with these other companies. While management believes the Company’s non-GAAP financial measures are useful in evaluating the Company, when this information is reported it should be considered as supplemental in nature and not as a substitute or an alternative for, or superior to, the related financial information prepared in accordance with GAAP. These measures should be evaluated only in conjunction with the Company’s comparable GAAP financial measures.
The following table reconciles EBITDA, a non-GAAP financial measure, for the three- and six-month periods ended August 31, 2026 and 2025 to the most comparable GAAP measure, net earnings (dollars in thousands).
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Three months ended |
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Six months ended |
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August 31, |
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August 31, |
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August 31, |
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August 31, |
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2026 |
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2025 |
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2026 |
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2025 |
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Net earnings |
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$ |
9,392 |
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$ |
13,155 |
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$ |
19,272 |
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$ |
22,953 |
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Income tax expense |
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3,652 |
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4,989 |
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7,495 |
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8,706 |
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Depreciation and amortization |
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4,198 |
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4,309 |
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8,437 |
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8,492 |
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EBITDA (non-GAAP) |
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$ |
17,242 |
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$ |
22,453 |
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$ |
35,204 |
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$ |
40,151 |
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% of sales |
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16.9 |
% |
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22.8 |
% |
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17.5 |
% |
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20.5 |
% |
In Other News
On September 18, 2026 the Board of Directors declared an increase in quarterly cash dividend from 25.0 cents per share to 26.25 cents per share on the Company’s common stock. The dividend is payable on November 6, 2026 to shareholders of record on October 9, 2026.
About Ennis
Founded in 1909, the Company is one of the largest private-label printed business product suppliers in the United States. Headquartered in Midlothian, Texas, Ennis has production and distribution facilities strategically located throughout the USA to serve the Company’s national network of distributors. Ennis manufactures and sells business forms, other printed business products, printed and electronic media, integrated forms and labels, presentation products, flex-o-graphic printing, advertising specialties, internal bank forms, plastic cards, secure and negotiable documents, specialty packaging, direct mail, envelopes, tags and labels and other custom products. For more information, visit www.ennis.com.
Safe Harbor under the Private Securities Litigation Reform Act of 1995
Certain statements that may be contained in this press release that are not historical facts are forward-looking statements that involve a number of known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. The words “anticipate,” “preliminary,” “expect,” “believe,” “intend” and similar expressions identify forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for such forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. These statements are subject to numerous uncertainties, which include, but are not limited to, the erosion of demand for our printer business documents as the result of digital technologies, risk or uncertainties related to the completion and integration of acquisitions, and the limited number of available suppliers and variability in the prices of paper and other raw materials. Other important information regarding factors that may affect the Company’s future performance is included in the public reports that the Company files with the Securities and Exchange Commission, including but not limited to, its Annual Report on Form 10-K for the fiscal year ending February 28, 2026. The Company does not undertake, and hereby disclaims, any duty or obligation to update or otherwise revise any forward-looking statements to reflect events or circumstances occurring after the date of this release, or to reflect the occurrence of unanticipated events, although its situation and circumstances may change in the future. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The inclusion of any statement in this release does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material.
For Further Information Contact:
Mr. Keith S. Walters, Chairman, Chief Executive Officer and President
Ms. Vera Burnett, Chief Financial Officer
Mr. Dan Gus, General Counsel and Secretary
Ennis, Inc.
2441 Presidential Parkway
Midlothian, Texas 76065
Phone: (972) 775-9801
Fax: (972) 775-9820
www.ennis.com
Ennis, Inc. |
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Unaudited Condensed Consolidated Financial Information |
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(In thousands, except share and per share amounts) |
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Three months ended |
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Six months ended |
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Condensed Consolidated Operating Results |
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August 31, |
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August 31, |
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August 31, |
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August 31, |
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2026 |
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2025 |
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2026 |
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2025 |
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Net sales |
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$ |
102,006 |
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$ |
98,676 |
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$ |
200,619 |
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$ |
195,872 |
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Cost of goods sold |
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71,514 |
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68,574 |
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139,045 |
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135,541 |
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Gross profit |
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30,492 |
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30,102 |
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61,574 |
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60,331 |
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Selling, general and administrative |
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16,913 |
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17,719 |
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34,419 |
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|
34,665 |
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(Gain) loss from disposal of assets |
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— |
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— |
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(10 |
) |
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— |
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Income from operations |
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13,579 |
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|
12,383 |
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|
|
27,165 |
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|
|
25,666 |
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Other expense (income) |
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|
535 |
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(5,761 |
) |
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398 |
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(5,993 |
) |
Earnings before income taxes |
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|
13,044 |
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|
18,144 |
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26,767 |
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31,659 |
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Income tax expense |
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3,652 |
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4,989 |
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7,495 |
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8,706 |
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Net earnings |
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$ |
9,392 |
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$ |
13,155 |
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$ |
19,272 |
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$ |
22,953 |
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Weighted average common shares outstanding |
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Basic |
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25,274,203 |
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25,718,068 |
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25,273,008 |
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25,836,670 |
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Diluted |
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25,327,517 |
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25,791,647 |
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25,299,308 |
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25,905,625 |
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Earnings per share |
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||||
Basic |
|
$ |
0.37 |
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$ |
0.51 |
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|
$ |
0.76 |
|
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$ |
0.89 |
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Diluted |
|
$ |
0.37 |
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$ |
0.51 |
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$ |
0.76 |
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$ |
0.89 |
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||||
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August 31, |
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February 28, |
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||||
Condensed Consolidated Balance Sheet Information |
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2026 |
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2026 |
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Assets |
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|
||||
Current assets |
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|
||||
Cash |
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|
|
$ |
54,011 |
|
|
$ |
34,570 |
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||
Accounts receivable, net |
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|
|
|
|
|
|
|
35,557 |
|
|
|
37,983 |
|
||
Other receivables |
|
|
|
|
|
|
|
|
1,987 |
|
|
|
1,623 |
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||
Inventories, net |
|
|
|
|
|
|
|
|
54,305 |
|
|
|
54,895 |
|
||
Prepaid expenses |
|
|
|
|
|
|
|
|
3,018 |
|
|
|
2,699 |
|
||
Total Current Assets |
|
|
|
|
|
|
|
|
148,878 |
|
|
|
131,770 |
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Property, plant & equipment, net |
|
|
|
|
|
|
|
|
61,009 |
|
|
|
63,341 |
|
||
Operating lease right-of-use assets, net |
|
|
|
|
|
|
|
|
7,144 |
|
|
|
9,503 |
|
||
Goodwill and intangible assets, net |
|
|
|
|
|
|
|
|
141,257 |
|
|
|
145,418 |
|
||
Other assets |
|
|
|
|
|
|
|
|
6,846 |
|
|
|
6,879 |
|
||
Total Assets |
|
|
|
|
|
|
|
$ |
365,134 |
|
|
$ |
356,911 |
|
||
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
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|
||||
Current liabilities |
|
|
|
|
|
|
|
|
|
|
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|
||||
Accounts payable |
|
|
|
|
|
|
|
$ |
16,027 |
|
|
$ |
14,291 |
|
||
Accrued expenses |
|
|
|
|
|
|
|
|
20,030 |
|
|
|
16,846 |
|
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Current portion of operating lease liabilities |
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|
|
|
|
|
|
|
3,262 |
|
|
|
4,244 |
|
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Total Current Liabilities |
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|
|
|
|
|
|
|
39,319 |
|
|
|
35,381 |
|
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Other non-current liabilities |
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|
|
|
|
|
|
11,600 |
|
|
|
12,798 |
|
||
Total liabilities |
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|
|
|
|
|
|
|
50,919 |
|
|
|
48,179 |
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Shareholders' equity |
|
|
|
|
|
|
|
|
314,215 |
|
|
|
308,732 |
|
||
Total Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
$ |
365,134 |
|
|
$ |
356,911 |
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||
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|
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|
||||
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|
Six months ended |
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|
August 31, |
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August 31, |
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Condensed Consolidated Cash Flow Information |
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|
2026 |
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|
2025 |
|
||||
Cash provided by operating activities |
|
|
|
|
|
|
|
$ |
34,126 |
|
|
$ |
18,425 |
|
||
Cash used in investing activities |
|
|
|
|
|
|
|
|
(1,935 |
) |
|
|
(31,954 |
) |
||
Cash used in financing activities |
|
|
|
|
|
|
|
|
(12,750 |
) |
|
|
(21,585 |
) |
||
Change in cash |
|
|
|
|
|
|
|
|
19,441 |
|
|
|
(35,114 |
) |
||
Cash at beginning of period |
|
|
|
|
|
|
|
|
34,570 |
|
|
|
67,000 |
|
||
Cash at end of period |
|
|
|
|
|
|
|
$ |
54,011 |
|
|
$ |
31,886 |
|
||