Ennis, Inc. reported its financial results for the second quarter of fiscal 2025, revealing a slight decline in net sales but an increase in net earnings compared to the same period last year. For the three months ended August 31, 2025, the company generated net sales of $98.7 million, a decrease of 0.3% from $99.0 million in the prior year. However, net earnings rose to $13.2 million, or $0.51 per diluted share, compared to $10.3 million, or $0.40 per diluted share, in the same quarter of 2024. The increase in earnings was attributed to a $5.7 million settlement received from a legal case, which positively impacted earnings per share by approximately $0.14.
In the first half of fiscal 2025, Ennis reported net sales of $195.9 million, down 3.1% from $202.1 million in the previous year. The decline in sales volume was primarily due to weaker demand, offset by an increase in revenue from recent acquisitions, including the purchase of Northeastern Envelope Company and Envelope Superstore for approximately $34.9 million. The company’s gross profit margin improved slightly to 30.8% from 30.0% in the prior year, reflecting ongoing cost management efforts.
Operationally, Ennis experienced a significant increase in inventory levels, which rose by $23.3 million, as the company prepared for potential supply disruptions following the closure of the only U.S. producer of carbonless paper. This strategic decision was made to ensure continuity of supply amid rising input costs and market volatility. The company’s total assets increased to $361.8 million as of August 31, 2025, up from $348.9 million at the end of the previous fiscal period, driven by the acquisition and increased inventory.
The company’s selling, general, and administrative expenses also rose, totaling $17.7 million for the quarter, an increase of 6.6% year-over-year. This rise was attributed to higher variable compensation tied to profitability and the inclusion of expenses from recent acquisitions. Ennis's current ratio decreased to 3.4 from 4.6, reflecting the impact of the acquisition and increased inventory levels on working capital.
Looking ahead, Ennis remains focused on managing costs and enhancing operational efficiency while navigating a competitive landscape marked by consolidation among distributors and rising input costs. The company anticipates that its cash on hand, along with expected cash flows from operations, will be sufficient to meet its operational and capital requirements over the next twelve months. Ennis plans to continue investing in technology and exploring strategic acquisitions to bolster its market position and product offerings.
About ENNIS, INC.
Ennis, Inc. is a leading trade printer specializing in manufacturing and selling business forms, pressure-seal forms, labels, tags, envelopes, and presentation folders primarily to independent distributors across the U.S. It operates 56 manufacturing plants, offering custom and semi-custom products. The company emphasizes quality, service, and innovation, serving diverse markets with a focus on sustainable sourcing and operational efficiency.
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