Supremex (TSE:SXP) Issues Quarterly Earnings Results

Supremex (TSE:SXP) released its quarterly earnings data on Thursday. The company reported C$0.06 earnings per share for the quarter, FiscalAI reports. Supremex had a negative net margin of 5.92% and a negative return on equity of 13.05%. The firm had revenue of C$72.92 million for the quarter.

Here are the key takeaways from Supremex’s conference call:

• Supremex finished 2025 with an almost debt‑free balance sheet (net debt ~ CAD 1 million), strong operating cash flow and CAD 73.2 million of free cash flow for the year, and is returning capital via buybacks and a quarterly dividend.
• Packaging was a standout — Q4 packaging revenue rose 18.3% YoY driven by folding carton, e‑commerce and the Transgrafic acquisition, with packaging adjusted EBITDA margin improving to ~13% (≈16% excluding commercial print).
• The envelope business showed resilience with unit volumes up ~5.3% YoY (U.S. volumes up ~15% excluding a large account) and Q4 envelope adjusted EBITDA margin near 16%, but average selling prices fell ~4.8% and mix shifted toward lower‑margin replacement volumes.
• Management completed three tuck‑in acquisitions (including Elite Envelope and Transgrafic), describes a robust packaging M&A pipeline—preferentially in Canada—and remains able to pursue both small accretive targets and larger packaging opportunities.
• As part of network optimization, Supremex will close its Indianapolis plant and expects a Q1 non‑recurring charge of roughly CAD 1–2 million, though management forecasts material synergies as production is relocated within the network.

Supremex Stock Up 5.4%

Shares of TSE SXP opened at C$3.70 on Friday. Supremex has a 52 week low of C$3.50 and a 52 week high of C$4.64. The company has a quick ratio of 1.01, a current ratio of 2.20 and a debt-to-equity ratio of 86.35. The company has a market cap of C$90.56 million, a P/E ratio of 5.52, a P/E/G ratio of 0.31 and a beta of 0.77. The business has a 50-day simple moving average of C$3.71 and a two-hundred day simple moving average of C$3.83.

Supremex Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, December 19th. Stockholders of record on Friday, December 19th were given a $0.05 dividend. The ex-dividend date was Thursday, December 4th. This represents a $0.20 annualized dividend and a dividend yield of 5.4%. Supremex’s payout ratio is 29.85%.

About Supremex

Supremex Inc is engaged in manufacturer and marketer of a broad range of custom envelopes and packaging products. The company operates in two business segments that are Manufacturing and Sale of Envelopes, and the manufacturing and sale of paper-based packaging solutions and specialty products. The majority of the revenue is generated from the Envelope segment. Its product portfolio consists of translucent envelopes, custom envelopes, stock envelopes, poly mailers, enviro-Logix flat mailers, board mailers, custom labels, affixing, repositionable notes and others.