Quad Narrows 2026 Sales-Decline Outlook After Flat Quarter

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter net sales were $587 million as the company lifted its full-year adjusted sales-change midpoint to a 2% decline and narrowed EBITDA and cash-flow ranges.

Quad/Graphics, Inc. (QUAD), a marketing experience company, reported third-quarter net sales of $587 million, essentially matching $588 million a year earlier after a 1% year-over-year increase in the second quarter.

The company said higher logistics sales were offset by lower large-scale print volumes and lower agency solutions sales. United States Print and Related Services net sales were $540.0 million, versus $544.8 million a year earlier. International net sales were $46.7 million.

Net earnings fell to $6 million, or $0.11 a share, from $10 million, or $0.21 a share, in the year-ago quarter. The company said the decrease was primarily due to increased restructuring, impairment and transaction-related charges, net, partially offset by lower income tax expense, lower selling, general and administrative expenses, lower interest expense and lower depreciation and amortization.

Those charges were $19.2 million in the third quarter of 2026, versus $7.3 million in 2025. The items included a $10.8 million credit-loss expense on a note receivable and a $13.6 million gain on the sale of Lima, Peru property, plant and equipment.

Adjusted EBITDA was $51 million, compared with $53 million in the third quarter of 2025. The company attributed the decline primarily to the mix of net sales. Adjusted diluted earnings per share rose 13% to $0.35 from $0.31.

Chairman and Chief Executive Officer Joel Quadracci said clients are increasingly engaging multiple Quad solutions, including Wakefern and Chedraui USA’s Smart & Final banner, which he said have expanded relationships beyond print to In-Store Connect and Rise media services. The company announced Direct, a newly branded full-service direct marketing agency, and said In-Store Connect signed the network’s first national retailer, with screens to launch across 30 Florida stores this winter.

Chief Financial Officer Tony Staniak said the company is improving the range of full-year 2026 Adjusted Annual Net Sales Change guidance, which now calls for a 1% to 3% decline, from an original 1% to 5% decline. The midpoint moved from -3% to -2%. The metric excludes $23 million of 2025 net sales from European operations divested on February 28, 2025. Staniak said the company is also narrowing full-year Adjusted EBITDA to $185 million to $195 million from $175 million to $215 million, and Free Cash Flow to $45 million to $55 million from $40 million to $60 million.

Capital expenditures guidance was set at approximately $55 million, versus an original range of $55 million to $65 million. Year-end Net Debt Leverage Ratio guidance remained approximately 1.5x.

Net debt was $422 million at September 30, 2026, compared with $308 million at December 31, 2025. The company said the increase versus year-end 2025 was primarily due to negative $100 million in Free Cash Flow and the payment of cash dividends and share repurchases, partially offset by proceeds from the sale of property, plant and equipment in Peru. Removing seasonality, net debt decreased $43 million, or 9%, versus September 30, 2025.

The company returned $23 million to shareholders year-to-date through $15 million of cash dividends and $8 million of share repurchases. It repurchased 1.0 million shares of Class A common stock in 2026, bringing total repurchases since 2022 to 8.4 million shares, or about 15% of March 31, 2022, outstanding shares. A quarterly dividend of $0.10 a share is payable December 4, 2026.