Ennis posts Q2 revenue of $102.0 million and lifts quarterly dividend 5%

Ennis reported higher quarterly revenue and raised its cash dividend by 5%, even as diluted earnings per share fell from the year-earlier quarter on disclosed litigation items. The Midlothian, Texas, private-label print supplier detailed the results and the dividend action in a Form 8-K and press release dated September 21, 2026.

Ennis, Inc. published second-quarter results for the period ended August 31, 2026, and separately disclosed a board-approved increase in its quarterly cash dividend. Revenue rose, cash ended the half higher, and the company said it continues to operate with no debt. Reported diluted EPS and EBITDA declined from the prior-year quarter, a move Ennis tied chiefly to litigation timing differences rather than the top-line trend.

Quarterly results

For the quarter ended August 31, 2026, Ennis reported revenue of $102.0 million, up $3.3 million, or 3.3%, from $98.7 million a year earlier. Gross profit was $30.5 million, or 29.9% of sales, compared with $30.1 million, or 30.5%, in the year-ago quarter. Net earnings were $9.4 million, or $0.37 per diluted share, versus $13.2 million, or $0.51 per diluted share, a year earlier.

The company also reported EBITDA — a non-GAAP measure it defines as net earnings before interest expense, tax expense, depreciation, and amortization — of $17.2 million, or 16.9% of sales, compared with $22.5 million, or 22.8% of sales, in the prior-year quarter. Ennis presents EBITDA as supplemental information and cautions that other companies may calculate non-GAAP measures differently.

What moved EPS, in the company’s own bridge

Ennis said the year-over-year decline in diluted EPS primarily reflected a $5.3 million favorable litigation judgment recognized in the prior-year quarter and an unrelated $700,000 charge in the current quarter tied to a $2.3 million preliminary ruling in the B&D Litho lease litigation. The company said it disagrees with that preliminary ruling and intends to pursue available post-trial and appellate remedies. Excluding those litigation items in each quarter, Ennis said diluted EPS rose by $0.02. That bridge is the company’s characterization of the variance; the Form 8-K does not present a full non-GAAP adjusted EPS table beyond the EBITDA reconciliation.

Six-month scorecard and balance sheet

For the six months ended August 31, 2026, revenue was $200.6 million, up 2.4% from $195.9 million. Gross profit was $61.6 million, or 30.7% of sales, versus $60.3 million, or 30.8%. Net earnings were $19.3 million, or $0.76 per diluted share, compared with $23.0 million, or $0.89. Six-month EBITDA was $35.2 million, or 17.5% of sales, versus $40.2 million, or 20.5%.

Operating cash flow for the first six months rose to $34.1 million from $18.4 million a year earlier. Cash was $54.0 million at August 31, 2026, up from $34.6 million at February 28, 2026. Chairman, CEO and President Keith Walters said the company continues to operate with no debt and has sufficient liquidity for operations, acquisitions, and the quarterly dividend.

Acquisitions and carbonless paper costs

Acquisitions completed during fiscal 2026 contributed about $2.3 million of revenue in the quarter and $0.01 of diluted EPS for ownership periods not included in the prior-year quarter, Ennis said. Year-to-date, those acquisitions contributed about $6.8 million of revenue and $0.03 of diluted EPS on the same basis.

Walters said the gross-margin decline primarily reflected higher carbonless paper costs in cost of sales. He reiterated that Ennis developed alternative supply after the closure of the sole domestic carbonless producer, has received shipments from alternative suppliers, and continues to expect no disruption to customer service, product availability, or product quality, with inventory declining as stock converted to sales.

Dividend increase

On September 18, 2026 — three days before the results press date — Ennis’s board declared an increase in the quarterly cash dividend from 25.0 cents per share to 26.25 cents per share, a 5.0% increase. The Form 8-K Item 8.01 disclosure states the dividend is payable on November 6, 2026, to shareholders of record on October 9, 2026. The declaration date, the September 21 results release, and the November payable date are therefore distinct.

Company framing

Walters said quarterly performance met expectations and pointed to the revenue increase, solid year-to-date gross margin near 30.7%, stronger operating cash flow, and a higher cash balance. Those comments are management framing in Exhibit 99.1; the filing does not include formal forward guidance figures in the excerpts used here.

Ennis, founded in 1909 and headquartered in Midlothian, Texas, describes itself as one of the largest private-label printed business product suppliers in the United States, with production and distribution facilities located to serve a national distributor network.