Ennis Raises Quarterly Dividend After Revenue Growth Reaccelerates
Revenue reached $102.0 million in the August quarter, up 3.3% from a year earlier, and the board lifted the quarterly dividend to $0.2625 a share.
Ennis, Inc. (EBF), a private-label printed business product supplier, reported revenue of $102.0 million for the quarter ended August 31, 2026, up 3.3% from a year earlier after 1.4% growth in the prior quarter.
The Midlothian, Texas, company said the acceleration in sales growth was the quarter’s defining operating turn. Chairman, Chief Executive Officer and President Keith Walters said performance met expectations.
Gross profit was $30.5 million, or 29.9% of sales, compared with $30.1 million, or 30.5%, a year earlier. The margin compressed from 31.5% in the May quarter, after that period had expanded from 29.2% in the fourth quarter of fiscal 2026. Walters said the latest decline primarily reflected higher carbonless paper costs recognized in cost of sales.
Net earnings were $9.4 million, or $0.37 a share, versus $13.2 million, or $0.51 a share, a year earlier. The company said the year-over-year earnings decline primarily reflected a $5.3 million favorable litigation judgment in the year-ago quarter and a $700,000 charge related to a $2.3 million preliminary ruling in the B&D Litho lease litigation. Excluding those items, Walters said diluted earnings per share increased $0.02. The company said it disagrees with the preliminary ruling and intends to pursue post-trial and appellate remedies.
EBITDA was $17.2 million, or 16.9% of sales, compared with $22.5 million, or 22.8% of sales, a year earlier. Walters said the litigation items primarily accounted for the decrease in reported EBITDA versus the prior-year quarter.
Acquisitions completed during fiscal year 2026 contributed about $2.3 million of revenue and $0.01 of diluted earnings per share in the August quarter, down from about $4.5 million of revenue and $0.02 of EPS in the May quarter, for ownership periods not included in the comparable prior-year quarter. Year-to-date, those acquisitions contributed about $6.8 million of revenue and $0.03 of diluted EPS.
The company said it developed alternative supply sources and increased inventory after the closure of the sole domestic producer of carbonless paper. It said it has received shipments from those suppliers and continues to expect no disruption to customer service, product availability or product quality. Inventory decreased during the quarter as the company converted existing stock to sales. Inventories were $54.3 million at August 31, 2026.
Cash increased to $54.0 million at August 31, 2026, from $49.1 million at May 31, 2026. For the six months ended August 31, 2026, operating cash flow was $34.1 million compared with $18.4 million a year earlier. The company said it continues to operate with no debt and has sufficient liquidity to support operations, pursue acquisition opportunities and return capital through the quarterly dividend.
On September 18, 2026, the board declared an increase in the quarterly cash dividend from $0.25 a share to $0.2625 a share, a 5.0% rise. The dividend is payable on November 6, 2026, to shareholders of record on October 9, 2026.
For the six months ended August 31, 2026, revenue was $200.6 million, up 2.4% from a year earlier. Gross profit was $61.6 million, or 30.7% of sales. Net earnings were $19.3 million, or $0.76 a share, compared with $23.0 million, or $0.89 a share, a year earlier.