Transcontinental Inc. (TSX: TCL.A, TCL.B) Q2 2025 Earnings Call | 6/5/2025

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Transcontinental Inc. (TSX: TCL.A, TCL.B) reported Q2 2025 results on June 5, 2025, with revenue of $684.1 million, essentially flat year-over-year, as strength in the Retail Services and Printing sector offset lower Packaging volumes and the impact of the industrial packaging divestiture. Operating earnings rose sharply to $51.1 million, up 54% from Q2 2024, while net earnings attributable to shareholders more than doubled to $33.8 million ($0.40 per share), from $15.9 million ($0.18 per share) a year ago. Adjusted net earnings attributable to shareholders climbed 6.4% to $48.2 million ($0.58 per share), with adjusted net earnings per share up 11.5%. Adjusted operating earnings before depreciation and amortization held steady at $108.5 million, as cost-cutting and higher book printing and in-store marketing volumes in Retail Services and Printing helped offset softness in Packaging. The Retail Services and Printing sector posted a standout quarter, with revenue up 5.1% and adjusted operating earnings before depreciation and amortization up 15.5% to $54.4 million, marking a fourth consecutive quarter of profitability growth. The Packaging sector saw a slight year-over-year decline, but maintained a healthy margin of 16.2% thanks to ongoing cost reduction initiatives. During the quarter, Transcontinental repaid $200 million in unsecured notes at maturity and paid a special dividend of $1.00 per share on April 23, 2025, further strengthening its balance sheet and rewarding shareholders. Outlook: Management remains confident in organic growth for the second half of fiscal 2025, particularly in Packaging, as cost initiatives and volume recovery take hold. Continued focus on operational efficiency, profitability, and prudent capital allocation. President and CEO Thomas Morin highlighted the company’s resilience and the positive impact of its profitability improvement program, noting strong momentum in Retail Services and Printing and ongoing efforts to drive growth and margin expansion across all sectors. About Inside Ticker: For more expert analysis and real-time updates on Transcontinental Inc. (TSX: TCL.A, TCL.B) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #Transcontinental #TCL #EarningsCall #Q22025 #Printing #Packaging #SpecialDividend #StockMarket #Investing #InsideTicker