Supremex (TSE:SXP) Releases Quarterly Earnings Results

Supremex (TSE:SXP) issued its quarterly earnings results on Thursday. The company reported C$0.06 EPS for the quarter, FiscalAI reports. Supremex had a negative return on equity of 13.05% and a negative net margin of 5.92%.The company had revenue of C$72.92 million for the quarter.

Here are the key takeaways from Supremex’s conference call:

• Supremex finished 2025 with an almost debt‑free balance sheet (net debt ~ CAD 1 million), strong operating cash flow and CAD 73.2 million of free cash flow for the year, and is returning capital via buybacks and a quarterly dividend.
• Packaging was a standout — Q4 packaging revenue rose 18.3% YoY driven by folding carton, e‑commerce and the Transgrafic acquisition, with packaging adjusted EBITDA margin improving to ~13% (≈16% excluding commercial print).
• The envelope business showed resilience with unit volumes up ~5.3% YoY (U.S. volumes up ~15% excluding a large account) and Q4 envelope adjusted EBITDA margin near 16%, but average selling prices fell ~4.8% and mix shifted toward lower‑margin replacement volumes.
• Management completed three tuck‑in acquisitions (including Elite Envelope and Transgrafic), describes a robust packaging M&A pipeline—preferentially in Canada—and remains able to pursue both small accretive targets and larger packaging opportunities.
• As part of network optimization, Supremex will close its Indianapolis plant and expects a Q1 non‑recurring charge of roughly CAD 1–2 million, though management forecasts material synergies as production is relocated within the network.

Supremex Stock Down 7.9%

SXP stock opened at C$3.51 on Friday. The firm’s 50-day moving average is C$3.71 and its two-hundred day moving average is C$3.83. The company has a market capitalization of C$85.91 million, a price-to-earnings ratio of 5.24, a price-to-earnings-growth ratio of 0.31 and a beta of 0.77. Supremex has a 52 week low of C$3.50 and a 52 week high of C$4.64. The company has a current ratio of 2.20, a quick ratio of 1.01 and a debt-to-equity ratio of 86.35.

Supremex Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, December 19th. Shareholders of record on Friday, December 19th were given a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 5.7%. The ex-dividend date was Thursday, December 4th. Supremex’s payout ratio is 29.85%.

Supremex Company Profile

Supremex Inc is engaged in manufacturer and marketer of a broad range of custom envelopes and packaging products. The company operates in two business segments that are Manufacturing and Sale of Envelopes, and the manufacturing and sale of paper-based packaging solutions and specialty products. The majority of the revenue is generated from the Envelope segment. Its product portfolio consists of translucent envelopes, custom envelopes, stock envelopes, poly mailers, enviro-Logix flat mailers, board mailers, custom labels, affixing, repositionable notes and others.