Ennis Increases Dividend Amid Quarterly Profit Decline

By Philip Seaworth • Monday, September 21 16:02 • Permanent Link

Ennis increased its quarterly dividend 5% to 26.25 cents per share from 25 cents, even as profit declined in the latest quarter.

For the quarter ended Aug. 31, revenue rose 3.3% to $102.0 million from $98.7 million a year earlier, an increase of $3.3 million. Gross profit edged up to $30.5 million from $30.1 million, but gross margin slipped to 29.9% from 30.5%.

Net earnings fell to $9.4 million, or 37 cents per diluted share, from $13.2 million, or 51 cents per share. EBITDA declined to $17.2 million from $22.5 million, and EBITDA margin fell to 16.9% from 22.8%.

For the first six months of the year, revenue increased 2.4% to $200.6 million from $195.9 million. Gross profit rose to $61.6 million from $60.3 million, while gross margin was 30.7% compared with 30.8%.

Six-month net earnings were $19.3 million, or 76 cents per diluted share, down from $23.0 million, or 89 cents per share. EBITDA for the period was $35.2 million, down from $40.2 million, with EBITDA margin at 17.5% versus 20.5%.

Operating cash flow more than doubled to $34.1 million in the first half from $18.4 million a year earlier. Cash on hand rose to $54.0 million at Aug. 31 from $34.6 million at Feb. 28.

The company said the quarterly earnings decline reflected a $5.3 million favorable litigation judgment in the prior-year quarter and a $700,000 litigation charge in the current quarter. It also said acquisitions completed during fiscal 2026 added about $2.3 million in quarterly revenue and $6.8 million year to date. As a result of these announcements, the company's shares have moved 0.54% on the market, and are now trading at a price of $21.435. Check out the company's full 8-K submission here.

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