Supremex Stock Earnings Reports

Supremex reported Q1 2026 revenue of $74.8M, up 6.6% year-over-year, with adjusted EBITDA of $9.9M (13.2% of revenue), up versus prior year and sequentially. Envelope revenue was $50.9M (+5% YoY) driven by volume (including two acquisitions) while average selling price eased slightly (-0.9%). Packaging & Specialty revenue was $24.0M (+10% YoY), led by folding carton share gains, e-commerce momentum and the Trans-Graphique acquisition. Packaging delivered a 15.4% adjusted EBITDA margin — the highest quarterly margin in three years. Management is executing footprint rationalizations: the Indianapolis envelope plant closure (expected >$1.5M annualized savings) and consolidation of label assets after acquiring iFlex Labels (~$3M annual revenue) with expected >$0.5M annualized savings. Cash flow from operations was negative in the quarter (-$0.8M) due mainly to a working-capital outflow tied to income tax settlement from a prior sale-leaseback; as a result free cash flow was -$1.8M. Net debt was $4.1M (0.13x net debt / adjusted EBITDA), leaving the company with a near‑debt‑free balance sheet and flexibility to pursue tuck‑in and larger packaging M&A while continuing shareholder returns (quarterly dividend $0.05/share; $0.2M of share repurchases in Q1). Management is cautiously optimistic on gradual operational improvement through 2026, focused on productivity, cross‑selling (labels + folding carton), realizing synergies from recent acquisitions and disciplined cost control. Key near-term risks/notes for investors: working capital sensitivity (temporary tax cash outflow this quarter), modest pressure on average selling prices in some U.S. products, and execution risk around plant consolidations and realizing projected synergies.