10-K: Ennis, Inc. Reports Fiscal 2026 Annual Results

Ennis, Inc. reports fiscal 2026 net earnings of $42.6 million, driven by strategic acquisitions and pricing discipline despite lower organic volumes.

Summary

• Net sales for fiscal 2026 were $392.4 million, a 0.6% decrease from $394.6 million in fiscal 2025.
• Net earnings increased to $42.6 million ($1.66 per diluted share) from $40.2 million ($1.54 per diluted share) in the prior year.
• Gross profit margin improved to 30.7% in 2026 from 29.7% in 2025.
• The company completed three acquisitions during the fiscal year: CFC Print & Mail, Northeastern Envelope Company, and Envelope Superstore.
• The company maintains a strong liquidity position with $34.6 million in cash and cash equivalents as of February 28, 2026.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a stable performance; the company is successfully managing a declining industry through disciplined acquisitions and cost management, though organic growth remains elusive.

Positives

• Net earnings grew by approximately 6% year-over-year.
• Gross profit margin expanded by 100 basis points to 30.7%.
• Successful integration of recent acquisitions contributed $22.8 million in revenue, offsetting organic volume declines.
• The company maintains a strong balance sheet with no outstanding debt as of February 28, 2026.
• Pension plan remains well-funded at 104% on a PBO basis.

Negatives

• Organic sales volumes declined by approximately $25.0 million.
• Backlog of firm orders decreased to $24.6 million from $25.7 million in the prior year.
• Selling, general, and administrative expenses increased by 3.5% to $67.7 million.
• The company faces ongoing industry-wide challenges related to the long-term shift toward digital alternatives.

Risks

• Continued erosion of demand for traditional printed business documents due to digital technology.
• Supply chain volatility and potential price increases following the closure of the sole U.S. carbonless paper mill.
• Intense price competition and potential for competitors to sell products at or below cost.
• Exposure to cybersecurity threats and potential ransomware attacks.
• Risks associated with integrating future acquisitions and retaining key personnel.

Future Outlook

The company expects to continue its strategy of pursuing acquisitions to offset print attrition and intends to maintain its pricing discipline. Capital expenditures for fiscal 2027 are expected to be between $4.0 million and $7.0 million.

Management Comments

• Management believes the company is the largest provider of business forms, pressure-seal forms, labels, tags, envelopes, and presentation folders to independent distributors in the United States.
• The company views the dividend as an important aspect of owning Ennis stock and continues to rank it a high priority in allocating earnings.

Industry Context

StockSavvy.ai notes that Ennis, Inc. continues to navigate a mature, consolidating printing industry by leveraging its scale and geographic diversity to maintain margins despite secular declines in traditional business forms.

Comparison to Industry Standards

• Ennis maintains a unique position as a trade printer serving independent distributors, distinguishing it from large-scale direct-to-end-user competitors like R.R. Donnelley and Taylor Corporation.
• The company's focus on a single reportable segment (Print) contrasts with more diversified printing conglomerates.

Corporate Governance

Legal Proceedings

• The company is defending a lawsuit in Arizona regarding the lease of a former facility; a non-jury trial occurred in March 2026, and a final decision is expected in late 2026.

Related Party Transactions

• The company leases a facility and sells products to an entity controlled by a board member, with total lease payments and sales of approximately $0.5 million and $3.5 million respectively in fiscal 2026.

Stakeholder Impact

• Shareholders benefit from continued dividend payments and share repurchases.
• Employees are subject to collective bargaining agreements for a portion of the workforce.

Next Steps

• Continue integration of recent acquisitions (CFC, NEC, ESS).
• Monitor supply chain for carbonless paper following mill closures.
• Evaluate potential future acquisitions to offset print attrition.

Key Dates

Recommendation

The company is a steady, cash-generative business in a declining industry. While it is well-managed and debt-free, the lack of organic growth and the secular headwinds in the printing industry suggest a hold position for conservative investors.

Keywords

Ennis Inc, EBF, commercial printing, business forms, trade printer, 10-K, financial results