Quad/Graphics, Inc. reported a decline in financial performance for the first quarter of 2025, with total net sales of $629.4 million, down 3.9% from $654.8 million in the same period of 2024. The decrease was primarily driven by a 2.4% drop in product sales, which totaled $494.8 million, and an 8.8% decline in service sales, which amounted to $134.6 million. The company recorded net earnings of $5.8 million, a significant recovery from a net loss of $28.1 million in the prior year, resulting in earnings per share of $0.12 compared to a loss of $0.60 per share in 2024.
The financial results reflect several strategic changes, including the sale of Quad's European operations on February 28, 2025, which contributed to a $10.7 million decrease in paper sales and impacted overall revenue. Additionally, the company experienced unfavorable foreign exchange impacts amounting to $4.5 million. Despite these challenges, Quad reported improved operational efficiency, with a notable reduction in restructuring, impairment, and transaction-related charges, which fell from $32.5 million in 2024 to $6.6 million in 2025.
Operationally, Quad's customer base remains stable, serving approximately 2,100 clients across various sectors, including retail and healthcare. The company employed around 11,000 people as of March 31, 2025. The U.S. Print and Related Services segment accounted for approximately 88% of total net sales, while the International segment contributed 12% before the divestiture of European operations. The company is focusing on enhancing its marketing experience solutions, which integrate creative, production, and media services, to drive future growth.
Looking ahead, Quad anticipates continued challenges in the printing industry, including rising operational costs and shifts in consumer behavior towards digital channels. The company is committed to maintaining a disciplined approach to capital management, with a focus on reducing debt and investing in growth opportunities. As of March 31, 2025, Quad's total liquidity stood at $209.2 million, with a Debt Leverage Ratio of 2.11x, indicating a need for careful monitoring of financial covenants and operational efficiency in the coming quarters.
About Quad/Graphics, Inc.
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