Supremex Q2 Earnings Call Highlights

MarketBeat
Sat, August 1, 2026 at 5:33 PM GMT+5:30
6 min read
- SXP.TO
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Key Points
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Strong second-quarter results: Revenue rose 8.5% year over year to C$71.6 million, while adjusted EBITDA increased nearly 34% to C$7.8 million and margins expanded to 10.9%
Packaging and envelope operations improved: Packaging revenue grew 19%, supported by folding carton demand and recent acquisitions, while envelope EBITDA margins rose to 15.6% amid higher volumes, pricing and cost synergies
Acquisitions boosted debt and outlook risks remain: Goldrich Printpak and iFlex Labels expanded the packaging platform, contributing to net debt of C$40.1 million. Management remains cautiously optimistic but is monitoring potential U.S. tariffs, postal-service changes and other trade uncertainties
Supremex (TSE:SXP) reported higher second-quarter revenue, improved profitability and a return to positive free cash flow, as growth in its packaging operations and improved envelope performance supported results for the period ended June 30, 2026
Consolidated revenue increased 8.5% year over year to C$71.6 million, while adjusted EBITDA rose nearly 34% to C$7.8 million. Adjusted EBITDA margin expanded to 10.9% from 8.8% a year earlier
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President and CEO Stewart Emerson said the company’s revenue growth and margin expansion reflected improved volume and cost discipline, with operating and selling, general and administrative expenses increasing more slowly than revenue
Packaging Growth and Acquisitions
Packaging and specialty products revenue rose 19% to C$26.4 million during the quarter. The segment represented 37% of company revenue, compared with about one-third a year earlier. Excluding Supremex’s smaller non-core commercial print business, the rest of the packaging segment, led by folding carton operations, grew 27.6% in the quarter
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Management attributed folding carton growth to increased business from multinational consumer packaged goods customers in health and beauty and over-the-counter pharmaceuticals, new customer wins, e-commerce packaging expansion and the contribution from the Trans-Graphique acquisition completed in July 2025
Supremex completed the acquisition of Goldrich Printpak on June 5. Goldrich, which generates approximately C$30 million in revenue, provides the company with a folding carton manufacturing base in the Greater Toronto Area. The business was acquired on a cash-free, debt-free basis for approximately C$34 million, financed through a new acquisition term loan and the company’s credit facility

