Ennis, Inc. Reports Slight Increase in Q3 Net Sales and Rise in Profitability

Ennis, Inc. reported its financial results for the three and nine months ended November 30, 2025, revealing a slight increase in net sales and a notable rise in profitability compared to the previous fiscal period. For the third quarter, net sales reached $100.2 million, a 0.4% increase from $99.8 million in the same quarter of 2024. However, for the nine-month period, net sales decreased by 2.0% to $296.0 million from $301.9 million, primarily due to a decline in organic sales volume attributed to weaker customer demand. The company offset this decline with $16.4 million in incremental revenues from recent acquisitions.

Gross profit for the third quarter was $32.0 million, representing a gross profit margin of 31.9%, up from 29.3% in the prior year. This improvement was driven by operational efficiencies and favorable contributions from acquisitions. For the nine-month period, gross profit increased to $92.3 million, with a gross profit margin of 31.2%, compared to 29.8% in the previous year. Selling, general, and administrative expenses rose to $17.0 million for the third quarter and $51.7 million for the nine months, reflecting higher incentive compensation and operational costs.

Ennis, Inc. has made significant strategic moves, including the acquisition of CFC Print & Mail for approximately $3.9 million in November 2025, which is expected to enhance its capabilities in business-document printing and mailing services. Earlier in April 2025, the company acquired the Northeastern Envelope Company and Envelope Superstore for about $35 million, further strengthening its production capabilities in the Northeast and Southeast United States. These acquisitions contributed positively to the company's revenue, with CFC generating approximately $7.1 million in sales for its fiscal year ended December 31, 2024.

Operationally, Ennis reported a decrease in cash and cash equivalents to $31.3 million as of November 30, 2025, down from $67.0 million at the end of February 2025. The decline was primarily due to cash used for acquisitions and stock repurchases totaling $14.5 million. The company’s working capital also decreased by 18.3% to $97.6 million, reflecting a reduction in cash and short-term investments. Despite these changes, the company maintains a strong liquidity position, with expectations of sufficient cash flows to meet operational and capital requirements over the next twelve months.

Looking ahead, Ennis, Inc. anticipates continued challenges in the printing industry, including ongoing pricing pressures and supply chain disruptions. The company plans to focus on managing costs and enhancing operational efficiencies while exploring new market opportunities through strategic acquisitions. The outlook remains cautiously optimistic, with management committed to navigating the evolving landscape of the printing industry while leveraging its recent acquisitions to drive growth.