Monitor the outcome of the B&D Litho lease litigation appeal — a final adverse judgment of $2.3M would be material relative to net earnings of $9.4M. The dividend increase signals board confidence, but the margin compression from carbonless paper costs and litigation overhang warrant close attention in the next quarter.
Price Chart
Executive Summary
Ennis, Inc. reported Q2 FY2027 revenue of $102.0M (+3.3% YoY), but GAAP EPS fell to $0.37 from $0.51 YoY due to a $5.3M favorable litigation judgment in the prior-year quarter and a $700K charge from a preliminary ruling in the B&D Litho lease litigation this quarter. Excluding litigation items, adjusted EPS increased by $0.02. The Board raised the quarterly dividend by 5% to $0.2625/share. Revenue growth was solid, but the EPS decline and a preliminary adverse litigation ruling temper the outlook.
Key Financial Metrics
Key Facts
- Revenue of $102.0M for Q2 ended Aug 31, 2026, up 3.3% YoY from $98.7M.
- GAAP diluted EPS of $0.37, down from $0.51 YoY; prior-year quarter included a $5.3M favorable litigation judgment, current quarter includes a $700K charge related to a $2.3M preliminary ruling in B&D Litho lease litigation.
- Excluding litigation items, adjusted diluted EPS increased by $0.02 YoY.
- Gross profit margin declined to 29.9% from 30.5% YoY, driven by higher carbonless paper costs.
- Operating cash flow for H1 FY2027 was $34.1M, up from $18.4M in H1 FY2026.
- Cash balance grew to $54.0M at Aug 31, 2026 from $34.6M at Feb 28, 2026; company remains debt-free.
- Board declared a 5% dividend increase to $0.2625 per share, payable Nov 6, 2026.
- Acquisitions completed in FY2026 contributed ~$2.3M in revenue and $0.01 to diluted EPS in the quarter.
Financial Impact
Revenue growth of 3.3% YoY to $102.0M; GAAP EPS decline of 27.5% YoY to $0.37; operating cash flow improvement of $15.7M in H1; dividend increase of 5%.
Risk Factors
- Preliminary adverse ruling in B&D Litho lease litigation with $2.3M exposure; company intends to appeal.
- Gross margin compression to 29.9% from 30.5% due to higher carbonless paper costs.
- EPS decline of 27.5% YoY on a GAAP basis, though largely driven by non-recurring litigation items.
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-396197 |
| Document: ebf-20260921.htm | 0001193125-26-396197 |
| Document: 0001193125-26-396197-index-headers.html | 0001193125-26-396197 |
| Document: 0001193125-26-396197-index.html | 0001193125-26-396197 |
| Document: 0001193125-26-396197.txt | 0001193125-26-396197 |
| 8-K Data (Synthetic) | 0001193125-26-396197 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 21, 2026 5w ago | 8-K | $21.24 $22.30 | ▲ +4.98% | ▲ +5.89% | $22.56 (+6.21%) |
Jul 17, 2026 14w ago | 8-K | $21.38 $22.10 | ▲ +3.37% | ▼ −1.08% | $22.56 (+5.52%) |
Apr 20, 2026 27w ago | 8-K | $19.76 $20.39 | ▲ +3.19% | ▼ −1.01% | $22.56 (+14.17%) |
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