Ennis, Inc. has recently released its 10-Q report for the period ended August 31, 2025. The company is a leading provider of business forms, pressure-seal forms, labels, tags, envelopes, and presentation folders to independent distributors in the United States. It operates 55 manufacturing plants throughout the United States and sells its products primarily through independent distributors, commercial printers, direct mail, software companies, and advertising agencies.
In the 10-Q report, Ennis, Inc. highlighted its recent acquisition of NEC and ESS, which generated approximately $26.0 million in sales for its fiscal year ended December 31, 2024, strengthening its production capabilities to serve customers in the Northeast United States.
The report also outlined the business challenges faced by Ennis, Inc., including industry consolidation, product obsolescence, paper supplier capacity adjustments, increased pricing, and potential supply allocations due to demand/supply curve imbalance. The company also discussed the impact of technology advances on the industry, such as electronic distribution of documents, internet hosting, and print-on-demand alternatives.
Ennis, Inc. emphasized the transformation of its product portfolio to adapt to changing market demands, including investments in new and existing technology and strategic business relationships. It also highlighted the challenges related to production capacity, price competition, and the continued consolidation of its customers, which could potentially impact margins and sales.
The 10-Q report also addressed critical accounting estimates, including those related to the pension plan, impairment assessments on goodwill and other intangible assets, allowance for credit losses and accounts receivable, and allowance for excess and obsolete inventories. It noted that there were no material changes to the critical accounting estimates described in the company's Annual Report on Form 10-K for the year ended February 28, 2025.
As a result of these announcements, the company's shares have moved -1.04% on the market, and are now trading at a price of $18.09. For the full picture, make sure to review ENNIS, INC.'s 10-Q report.
