Supremex Announces Results for the Third Quarter of 2025

Executive Summary

• Supremex reported Q3 2025 revenue of $65.7 M (‑5.3% YoY) and a swing to net earnings of $9.1 M ($0.37 per share) versus a loss of $23.0 M a year earlier.
• Adjusted EBITDA fell to $6.2 M (9.4% of revenue) from $7.9 M, while free cash flow surged to $53.0 M driven largely by a $53.0 M sale‑and‑leaseback of two properties.
• Total debt was reduced to $11.7 M from $43.1 M, improving the net‑debt/Adjusted‑EBITDA leverage ratio to 0.3×; the board also declared a quarterly dividend of $0.05 per share.

Key Details

• Revenue: $65.7 M (Q3) vs $69.4 M (Q3 2024); nine‑month revenue $201.9 M vs $212.0 M prior year.
• Segment Performance:
• Envelope: $45.1 M (‑5.0% YoY); volume down 0.8%, price down 4.2%.
• Packaging & Specialty Products: $20.6 M (‑6.0% YoY); offset by higher folding‑carton and e‑commerce packaging sales.
• Earnings: Net earnings $9.1 M ($0.37 EPS) vs loss of $23.0 M a year ago; Adjusted net earnings $4.7 M ($0.19 EPS).
• EBITDA / Adjusted EBITDA: EBITDA $12.2 M (vs ‑$17.5 M YoY); Adjusted EBITDA $6.2 M (9.4% margin).
• Cash Flow & Liquidity:
• Net cash used by operations: –$0.6 M vs +$7.6 M YoY.
• Free cash flow: $53.0 M (Q3) vs $7.4 M prior year, primarily from the $53.0 M sale‑and‑leaseback.
• Debt Reduction: Total debt $11.7 M (down from $43.1 M); Net‑debt/Adj‑EBITDA 0.3× vs 1.0×.
• Acquisitions: Assets of Trans‑Graphique (folding cartons) and Enveloppe Laurentide acquired in July 2025.
• Dividends: Special dividend $0.50 paid 9/25/2025; quarterly dividend $0.05 declared 11/5/2025, payable 12/19/2025.
• Management Change: Normand Macaulay appointed CFO effective 9/15/2025.
• Outlook: Management expects continued focus on acquisitions in Packaging & Specialty Products, ongoing capital returns to shareholders, and monitoring of economic volatility, trade uncertainty, and postal labor disruptions.

Notable Quotes

“Supremex reinforced its track record for value creation… proceeds from a sale‑and‑leaseback transaction were used to substantially reduce debt and return significant funds to shareholders through a special dividend.” – Stewart Emerson, President & CEO

“Looking ahead, our strong balance sheet provides us with significant flexibility to execute our business strategy and sustain long‑term profitable growth.” – Stewart Emerson, President & CEO