Ennis, Inc.

What they do

Ennis manufactures custom and semi-custom printed products at approximately 50 plants across 20 states, operating as one reportable segment. Its products include snap sets, continuous forms, laser cut sheets, labels, envelopes, integrated products, pressure-seal forms, and tags, sold under a portfolio of brands such as Ennis, Royal Business Forms, Block Graphics, and Trade Envelopes. The company distributes through independent distributors, commercial printers, direct mail and fulfillment companies, and also sells to competitors. Subsidiaries like Northstar Computer Forms and Adams McClure also sell direct to select large banking organizations and via advertising agencies.

Revenue drivers

• Business forms and printed products — Core revenue driver, with revenues of $98.6 million in the quarter ended May 31, 2026; custom and semi-custom products account for approximately 95% of items sold.
• Labels and tags — Sold under brands like Ennis Tag & Label, Allen-Bailey, Atlas, Kay Toledo, and Special Service Partners; contributes to revenue through custom and stock products.
• Envelopes — Offered through Trade Envelopes, Block Graphics, Wisco, National Imprint, and Envelope Superstore; a distinct product line within the trade printer model.
• School photo marketing and forms — School Photo Marketing and National School Forms serve over 1,400 school photographers, reaching over 15 million families and 30,000 schools, primarily K-8.

Recent performance

For the quarter ended May 31, 2026, revenue was $98.6 million, up 1.4% from $97.2 million year-over-year, with diluted EPS of $0.39 versus $0.38. Gross profit margin improved to 31.5% from 31.1% in the prior-year quarter and sequentially from 29.2% in Q4 fiscal 2026. Operating cash flow was $21.2 million, up from $8.0 million in the prior-year quarter. Cash balances increased to $49.1 million from $34.6 million at fiscal year-end. Full-year fiscal 2026 revenue was $392.4 million and net income was $42.6 million.

Strategy

Management is focused on operational efficiencies, disciplined pricing, and pursuing acquisitions. Acquisitions completed during fiscal 2026 contributed about $4.5 million in revenue in the latest quarter and positively impacted diluted EPS by $0.02. The company manages a strong balance sheet with no debt, enabling capital return via quarterly dividends and acquisition funding. It is proactively transitioning to alternative carbonless paper suppliers following the closure of the sole domestic producer, securing inventory to avoid disruption.

Risks

• Declining demand for print — The impact of the internet and electronic media on demand for forms and printed materials is a stated risk.
• Raw material and cost pressures — Rising costs of raw materials, energy, freight, labor, and benefits in a price-competitive market could pressure margins; the carbonless paper supply closure is a current challenge.
• Competition and pricing — The industry is dominated by large manufacturers like R.R. Donnelley and Taylor Corp., and competitors' pricing strategies could affect sales.
• Acquisition integration — The ability to identify, manage, or integrate acquisitions is listed as a risk, along with potential goodwill impairment if business volumes decline.

Outlook

Management expects no disruption to customer service, product availability, or quality from the carbonless paper transition. They are encouraged by first-quarter performance and believe the balance sheet, cost discipline, and acquisition strategy position the company well for the remainder of fiscal 2027. The company continues to pay a quarterly dividend and maintain liquidity for operations and acquisitions.