Ennis, Inc. Reports $394.6 Million in Net Sales for Fiscal Year Ending February 28, 2025

Ennis, Inc. reported a net sales figure of $394.6 million for the fiscal year ending February 28, 2025, reflecting a decrease of 6.1% from the previous year's sales of $420.1 million. This decline was primarily attributed to a $38.7 million drop in volume demand, which was partially offset by an increase of approximately $13.2 million in revenues from recent acquisitions. The company's gross profit margin remained relatively stable at 29.7%, compared to 29.8% in the prior year, despite a decrease in manufacturing costs, which fell by 5.9% to $277.3 million.

In terms of profitability, Ennis reported net earnings of $40.2 million, or $1.54 per diluted share, down from $42.6 million, or $1.64 per diluted share, in the previous fiscal year. The decrease in net earnings was largely driven by reduced revenues. Selling, general, and administrative expenses also saw a decline, decreasing by 5.0% to $65.4 million, primarily due to reduced executive incentive compensation and operational efficiencies.

Strategically, Ennis has been active in expanding its capabilities through acquisitions. In the past fiscal year, the company completed several acquisitions, including Printing Technologies, Inc. for approximately $5.5 million, and Eagle Graphics, Inc. and Diamond Graphics, Inc. for about $7.9 million. These acquisitions are expected to enhance production capabilities and diversify product offerings, particularly in the Northeast and Midwest regions of the United States. Additionally, the company acquired UMC Print for $7.5 million and Stylecraft Printing Company for $5.0 million, further strengthening its market position.

Operationally, Ennis reported a decrease in its backlog of firm orders, which fell to approximately $25.7 million from $33.7 million in the previous year. This reduction was attributed to a change in product mix requiring shorter lead times and a decrease in sales volume. The company maintained a workforce of 1,856 employees as of February 28, 2025, with 157 employees represented by labor unions. The company continues to focus on managing costs and improving operational efficiencies in a competitive market.

Looking ahead, Ennis anticipates ongoing challenges due to market conditions, including pricing pressures and the impact of digital technologies on demand for printed products. The company remains committed to transforming its product offerings and exploring new market opportunities through strategic acquisitions. Ennis has also indicated that it expects to generate sufficient cash flows from operations to meet its future capital requirements, with capital expenditures projected to remain within historical levels.