Supremex (TSE:SXP) Posts Quarterly Earnings Results

Supremex (TSE:SXP) announced its earnings results on Thursday. The company reported C$0.03 EPS for the quarter, FiscalAI reports. Supremex had a net margin of 4.27% and a return on equity of 11.20%. The company had revenue of C$76.24 million during the quarter.

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

• Supremex reported revenue up 16.1% to CAD 76.2 million and adjusted EBITDA up 38.5% to CAD 8.6 million, with margin expanding to 11.3%. Adjusted free cash flow rose to CAD 5.2 million, while net leverage declined to 1.09x.
• Packaging revenue grew 44.4%, including 10.5% organic growth from customer wins and increased business with existing customers. Management said Goldrich and iFlex are performing within expectations, though integration and growth efforts continue.
• Envelope adjusted EBITDA increased 43.5% and margin improved to 16.5%, supported by pricing, acquisition synergies, and plant consolidation. Volume declined 1.5%, but higher prices and Elite Envelope partly offset the drop.
• Tariffs are estimated to cost CAD 10–12 million annually before tax, even after existing mitigation. A restructuring plan is expected to generate CAD 5.7 million in annual savings—about half the tariff impact—leaving CAD 4–6 million to address, with a CAD 1.8 million restructuring charge expected in Q4.
• Adjusted net earnings were CAD 0.8 million, or CAD 0.03 per share, compared with CAD 0.19 per share a year earlier. Commercial print remains weak and recorded a CAD 400,000 quarterly loss, prompting further footprint reductions.

Supremex Stock Performance

Shares of TSE SXP traded up C$0.16 during midday trading on Friday, reaching C$3.38. The company’s stock had a trading volume of 11,043 shares, compared to its average volume of 15,706. Supremex has a 12-month low of C$2.88 and a 12-month high of C$3.95. The firm has a 50 day moving average price of C$3.33 and a 200-day moving average price of C$3.58. The stock has a market capitalization of C$83.01 million, a P/E ratio of 6.90, a PEG ratio of 0.31 and a beta of 0.11. The company has a debt-to-equity ratio of 137.06, a current ratio of 1.83 and a quick ratio of 1.00.

Supremex Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 11th. Shareholders of record on Friday, September 11th were given a dividend of $0.05 per share. The ex-dividend date of this dividend was Thursday, August 27th. This represents a $0.20 annualized dividend and a dividend yield of 5.9%. Supremex’s dividend payout ratio (DPR) is currently 40.82%.

Supremex Company Profile

Supremex is a growing provider of paper-based packaging solutions and a leading North American manufacturer and marketer of envelopes. Supremex operates nine manufacturing facilities across four provinces in Canada and four manufacturing facilities in three states in the United States employing approximately 1,000 people. Supremex’ extensive network allows it to efficiently manufacture and distribute envelope and packaging solutions designed to the specifications of major national and multinational corporations, direct mailers, resellers, government entities, SMEs and solutions providers.