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Supremex Announces Q4 and Year-End 2025 Results
This is a paid press release. Contact the press release distributor directly with any inquiries.
Supremex Announces Q4 and Year-End 2025 Results
Supremex Inc
Thu, February 19, 2026 at 9:00 PM GMT+9 25 min read
In this article:
SUMXF
-0.73%
Supremex Inc
Achieves 5.6% revenue growth in Q4 and concludes 2025 essentially debt free
MONTREAL, Feb. 19, 2026 (GLOBE NEWSWIRE) – Supremex Inc. (“Supremex” or the “Company”) (TSX: SXP), a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions, today announced its results for the fourth quarter and fiscal year ended December 31, 2025. The Company will hold a conference call to discuss these results today at 10:00 a.m. (Eastern Time).
Fourth Quarter Financial Highlights and Recent Events
Fiscal Year Highlights
(1) Non-IFRS financial measures or ratios. Non-IFRS financial measures do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other entities. Refer to the non-IFRS financial measures section for definitions and reconciliations.
“While we are not where we expected to be at year-end, we are pleased with sequential revenue and Adjusted EBITDA margin growth for both of our businesses in the fourth quarter of 2025, compared to the third quarter,” said Stewart Emerson, President and CEO of Supremex. “In Envelope, it appears that the significant headwinds created by the Canada post labour disruptions in the first three quarters have ebbed and we continued to penetrate the U.S. market while driving operating efficiency across our network. We also completed another tuck-in acquisition to further enhance our presence in the U.S. Northeast. In Packaging & Specialty Products, continued strong performance from our folding carton activities, along with sustained momentum in e-commerce packaging solutions, generated nearly 20% revenue growth, both sequentially and year-over-year.”
“Heading into 2026, Supremex is strongly positioned with a virtually debt-free balance sheet which offers significant flexibility to execute the business plan and sustain long-term profitable growth. Our strategy is focused on maximizing cash flow generation by actively driving revenue growth, tightly managing our costs and enhancing network efficiency. From a value creation standpoint, we remain committed to optimizing returns to our shareholders,” concluded Mr. Emerson.
Summary of three** and twelve-month periods**** ended December 31, 202****5**
Revenue
Total revenue for the three-month period ended December 31, 2025, reached $72.9 million, representing an increase of $3.8 million, or 5.6%, from the equivalent quarter of 2024.
Total revenue for the twelve-month period ended December 31, 2025, was $274.8 million, representing a decrease of $6.3 million, or 2.2%, from the equivalent period of 2024.
_Envelope Segment _
Revenue for the three-month period ended December 31, 2025, was $48.9 million, up slightly from $48.8 million in the equivalent quarter of 2024. The variation reflects a 5.3% increase in the volume of units sold reflecting the contribution of Enveloppe Laurentide, new customer wins and share of wallet growth in the US, as well as volume from Elite Envelope. Volume gains were partially offset by the Canada Post labour disruptions and market uncertainty related thereto. Average selling price decreased by 4.8%, primarily due to a significant reduction in sales to a large US customer in Q4 2025 compared to last year’s fourth quarter and due to the lower average selling price from the volume acquired from Enveloppe Laurentide. The Envelope segment represented 67.1% of total revenue in the quarter, versus 70.6% during the equivalent period of last year.
Revenue for the twelve-month period ended December 31, 2025, was $186.3 million, down from $199.2 million in 2024. The variation reflects an average selling price decrease of 7.0% from last year primarily due to the same reasons outlined above. The volume of units sold increased 0.5%, reflecting the contribution of business acquisitions, offset by the Canada Post labour disruption and market uncertainty related thereto. The Envelope segment represented 67.8% of the Company’s revenue for 2025, compared with 70.9% in the prior year.
Packaging & Specialty Products Segment
Revenue for the three-month period ended December 31, 2025, was $24.0 million, up 18.3% from $20.3 million in the corresponding quarter of 2024. The increase mainly reflects higher folding carton revenue driven by important share of wallet gains with large multi-national consumer packaged goods customers, continued e-commerce secondary packaging market expansion, new business wins from existing customers, and the contribution from Trans‑Graphique, acquired in July 2025. Packaging & Specialty Products represented 32.9% of total revenue in the quarter, compared to 29.4% during the equivalent period of last year.
Revenue for the twelve-month period ended December 31, 2025, was $88.5 million, up 8.1% from $81.9 million in 2024. The increase reflects higher folding carton revenue, as detailed above, and continued penetration of the Company’s e‑commerce packaging solutions, reflecting higher demand from existing customers and new customer wins. These gains were partially offset by lower revenue from secular decline and non-envelope direct mail activities in commercial print. Packaging & Specialty Products represented 32.2% of the Company’s revenue in 2025, compared with 29.1% in 2024.
EBITDA2_ and Adjusted EBITDA_****2
EBITDA was $8.8 million in the three-month period ended December 31, 2025, versus $13.7 million in the same period last year. Adjusted EBITDA stood at $9.1 million, versus $12.9 million in the fourth quarter of 2024. This decrease reflects higher operating expenses and higher selling, general and administrative expenses, partially offset by higher revenue, as detailed above. The Adjusted EBITDA margin was 12.5% of revenue, versus 18.7% in the equivalent quarter of 2024.
EBITDA amounted to $34.8 million in the twelve-month period ended December 31, 2025, including a $6.1 million gain on the sale and leaseback transaction, compared to $15.6 million in 2024, which included $23.4 million in asset impairment charges. Adjusted EBITDA was $30.0 million in the year ended December 31, 2025, compared to $40.3 million a year earlier. The decrease is due to lower revenue, higher operating expenses, and higher selling, general and administrative expenses, as detailed above. The Adjusted EBITDA margin was 10.9% of revenue, compared to 14.4% in 2024.
_Envelope Segment _
Adjusted EBITDA for the fourth quarter of 2025 was $7.8 million, down from $9.2 million in the fourth quarter of 2024. The decrease mainly reflects the impact of the lower selling price achieved with a large US customer and the volume reduction associated therewith, as well as the impact of the Canada Post labour events in the second half of 2025. As a percentage of segmented revenue, Adjusted EBITDA from the Envelope segment was 15.9%, compared to 18.8% in the equivalent period of 2024.
Adjusted EBITDA for the year ended December 31, 2025, was $27.6 million, down from $36.0 million last year. The decrease reflects lower revenue due to a decrease in the average selling price which is mainly driven by the decrease in volume to a large US customer and further compounded by the Canada Post labour events in the second half of 2025. The items were partially offset by the acquisitions of Envelope Laurentide and Elite Envelope along with new business wins and share of wallet growth with customers in the US. As a percentage of segmented revenue, Adjusted EBITDA from the Envelope segment was 14.8%, compared to 18.1% in 2024.
Packaging & Specialty Products Segment
Adjusted EBITDA for the fourth quarter of 2025 was $3.2 million, up from $2.4 million a year ago. This increase is mainly due the effect of higher volume however the growth in volume was offset by challenges experienced in the commercial print business related primarily to the Canada Post labour disruptions and continued secular decline. As a percentage of segmented revenue, Adjusted EBITDA from the Packaging & Specialty Products operations was 13.2%, compared to 11.6% in the equivalent period of 2024.
Adjusted EBITDA for the year ended December 31, 2025, was $11.5 million, up from $8.8 million in 2024. The increase is reflective of the higher volume on a year over year basis and improved operations partially offset by the challenges experienced in the commercial print business in the second half of 2025 s as a result of the Canada Post labour disruptions and ongoing secular decline. As a percentage of segmented revenue, Adjusted EBITDA from the Packaging & Specialty Products segment was 12.9%, compared to 10.7% in the equivalent period of 2024.
Corporate and other non-allocated expenses
Corporate and unallocated costs amounted to $1.9 million in the fourth quarter of 2025, compared to a recovery of $1.4 million in the fourth quarter of 2024. The variation is largely explained by a non-cash foreign exchange loss on intercompany trade accounts this year, compared to a foreign exchange gain last year.
Corporate and unallocated costs for the year ended December 31, 2025, were $9.6 million, versus $4.5 million in 2024, essentially reflecting the foreign exchange impact mentioned above.
**Net Earnings (Loss), Adjusted Net Earnings, Net Earnings (Loss) per share and Adjusted Net Earnings per share**3
Net earnings were $1.3 million, or net earnings of $0.05 per share, for the three-month period ended December 31, 2025, compared to $5.8 million, or net earnings of $0.23 per share, for the equivalent period last year. Adjusted net earnings were $1.5 million, or adjusted net earnings of $0.06 per share, for the three-month period ended December 31, 2025, compared to $5.2 million, or adjusted net earnings of $0.20 per share, for the equivalent period in 2024.
Net earnings were $12.0 million, or net earnings of $0.49 per share, for the twelve-month period ended December 31, 2025, compared to a net loss of $11.7 million, or a net loss of $0.47 per share, for the equivalent period in 2024. Adjusted net earnings were $8.4 million, or adjusted net earnings of $0.34 per share, for the twelve-month period ended December 31, 2025, compared to $11.9 million, or adjusted net earnings of $0.48 per share, for the equivalent period in 2024.
Liquidity and Capital Resources
Cash Flow
Net cash flows from operating activities were $14.1 million during the three-month period ended December 31, 2025, compared to $9.2 million in the equivalent period of 2024. The increase is mainly attributable to a working capital release this year, as opposed to working capital requirements last year, partially offset by lower profitability.
Net cash flows from operating activities were $20.7 million during the twelve-month period ended December 31, 2025, compared to $32.1 million in 2024. The variation essentially reflects lower profitability, excluding non-cash elements such as this year’s gain on sale and leaseback and last year’s asset impairment charges, partially offset by a higher working capital release this year compared to last.
Free cash flow amounted to $13.4 million in the fourth quarter of 2025, up from $8.7 million for the same period last year, essentially reflecting higher cash flows related to operating activities.
Free cash flow totaled $73.2 million in the year ended December 31, 2025, up from $31.7 million in 2024, mainly attributable to proceeds of $53.0 million from the sale and leaseback transaction, partially offset by lower cash flow from operations.
Debt and Leverage
Total debt decreased to $4.1 million as at December 31, 2025, compared to $43.1 million as at December 31, 2024. The decrease reflects the repayment of $39.0 million in long-term debt during the twelve-month period ended December 31, 2025, stemming from proceeds from the sale and leaseback transaction and the Company’s solid free cash flow generation. As at December 31, 2025, the ratio of Net debt to Adjusted EBITDA4 was 0.03x, down from 1.02x as at December 31, 2024. Subsequent to year-end, the Company extended the maturity of the secured revolving credit facility to July 2028.
Dividend Declaration
On February 18, 2026, the Board of Directors declared a quarterly dividend of $0.05 per common share, payable on April 2, 2026, to the shareholders of record at the close of business on March 19, 2026. This dividend is designated as an “eligible” dividend for the purpose of the Income Tax Act (Canada) and any similar provincial legislation.
Outlook
Demand for the Company’s products is affected by the current economic volatility, ongoing trade uncertainty, postage increases and reduced services standards at the United States Postal Service and labour issues at Canada Post which creates a degree of variability in the operating environment. As it continues to expand in the vast and fragmented U.S. envelope market, Supremex will be increasingly subject to competitive pressures, but the Company will rely on its solid reputation and geographic reach to stimulate sales while continuing to proactively control expenses.
The Company continues to focus on optimizing operating efficiency, productivity and capacity utilization throughout its network, as well as on capturing all sales and cost synergies from recent business acquisitions.
With respect to capital deployment, the Company will continue to look for acquisitions, mainly in the Packaging and Specialty Products segment, while maintaining capital returns to shareholders.
February 19, 2026 – Fourth Quarter and Year-End 2025 Results Conference Call:
A conference call to discuss the Company’s results for the fourth quarter ended December 31, 2025, will be held Thursday, February 19, 2026, at 10:00 a.m. (Eastern Time). A live broadcast of the Conference Call will be available on the Company’s website, in the Investors section under Webcast. To participate (professional investment community only) or to listen to the live conference call, please dial the following numbers. We suggest that participants call-in at least 5 minutes prior to the scheduled start time:
A replay of the conference call will be available on the Company’s website in the Investors section under Webcast. To listen to a recording of the conference call, please call toll-free 1-855-669-9658 or 412-317-0088 and enter the code 7908289. The recording will be available until Thursday, February 26, 2026.
Non-IFRS Financial Measures
Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies and should not be viewed as alternatives to measures of financial performance prepared in accordance with IFRS. Management considers these metrics to be information which may assist investors in evaluating the Company’s profitability and enable better comparability of the results from one period to another.
These Non-IFRS Financial Measures are defined as follows:
The following tables provide the reconciliation of Non-IFRS Financial Measures:
(1) Refer to the ‘’Selected Quarterly Operating Results’’ section for more information on the results of each of the last eight quarters.
Forward-Looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws, including (but not limited to) statements about the EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net earnings, Adjusted net earnings per share, Free cash flow, Net debt, Net debt to Adjusted EBITDA ratio5, split of revenue between its Envelope and Packaging segments, capital expenditures, dividend payments, and future performance of Supremex and similar statements or information concerning anticipated future results, circumstances, performance or expectations. Forward-looking information may include words such as anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target and will. Such information relates to future events or future performance and reflects current assumptions, expectations and estimates of management regarding growth, results of operations, performance, business prospects and opportunities, Canadian economic environment and ability to attract and retain customers. Such forward-looking information reflects current assumptions, expectations and estimates of management and is based on information currently available to Supremex as at the date of this press release. Such assumptions, expectations and estimates are discussed throughout the MD&A for the year ended December 31, 2025. Supremex cautions that such assumptions may not materialize and that economic conditions such as economic uncertainty, downturns or recessions, or the imposition of tariffs or trade restrictions, may render such assumptions, although believed reasonable at the time they were made, subject to greater uncertainty.
Forward-looking information is subject to certain risks and uncertainties and should not be read as a guarantee of future performance or results and actual results may differ materially from the conclusion, forecast or projection stated in such forward-looking information. These risks and uncertainties include but are not limited to the following: decline in envelope consumption, growth and diversification strategy, key personnel, labour shortage, contributions to employee benefits plans, raw material price increases, cyber security and data protection, operational disruption, dependence on and loss of customer relationships, increase of competition, economic conditions and uncertainty, risk related to the international trade and tax environment (including tariffs, quotas and custom and other restrictions), exchange rate fluctuation, interest rate fluctuation, credit risks with respect to trade receivables, availability of capital, concerns about protection of the environment, potential risk of litigation and no guarantee to pay dividends. Such risks and uncertainties are discussed throughout the MD&A for the year ended December 31, 2025, particularly in “Risk Factors”. Consequently, the Company cannot guarantee that any forward‑looking information will materialize. Readers should not place any undue reliance on such forward-looking information unless otherwise required by applicable securities legislation. The Company expressly disclaims any intention and assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
The Management Discussion and Analysis and Financial Statements can be found on www.sedarplus.ca and on Supremex’ website.
About Supremex
Supremex is a leading North American manufacturer and marketer of envelopes and a growing provider of paper-based packaging solutions. Supremex operates nine manufacturing facilities across four provinces in Canada and four manufacturing facilities in three states in the United States employing approximately 900 people. Supremex’ extensive network allows it to efficiently manufacture and distribute envelope and packaging solutions designed to the specifications of major national and multinational corporations, direct mailers, resellers, government entities, SMEs and solutions providers.
For more information, please visit www.supremex.com.
1 Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
2 Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
3 Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
4 Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
5 Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
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