Ennis reports higher Q3 earnings as margin expansion offsets revenue volatility

Ennis (NYSE:EBF), a major manufacturer of printed business products, reported an increase in third-quarter profitability on Monday, as significant margin expansion helped the company overcome a softer nine-month revenue trend.

The Texas-based firm saw its net earnings for the period ended November 30, 2025, rise to $10.8 million, or $0.42 per diluted share, up from $10.2 million, or $0.39 per share, in the same period last year.

The quarterly performance was characterized by a notable improvement in operational efficiency.

While revenues saw a modest uptick of 0.4% to $100.2 million, the company’s gross profit jumped to $32.0 million.

This pushed the gross profit margin to 31.9%, a substantial increase from the 29.3% reported in the previous year's third quarter.

For the first nine months of the fiscal year, the company’s trajectory showed a similar emphasis on bottom-line growth over volume.

Total revenues for the nine-month period were $296 million, representing a 2% decrease compared to the $301.9 million reported in 2024.

Despite this top-line dip, net earnings for the nine months increased to $33.8 million, or $1.31 per diluted share, compared to $31.2 million, or $1.19 per share, a year earlier.

The nine-month gross margin also showed improvement, rising to 31.2% as the company continues to navigate a changing landscape for business forms and commercial printing.

Reflecting its stable cash position and commitment to shareholder returns, Ennis also confirmed that its Board of Directors has declared a quarterly cash dividend of 25 cents per share.

The dividend is scheduled for payment on February 5, 2026, to shareholders of record as of January 8, 2026.