Supremex Inc.

Q1 total revenue was $74.8 million, up from $70.2 million last year. Envelope revenue was $50.9 million, up 5% from $48.4 million, and Packaging and Specialty Products revenue was $24.0 million, up 10% from $21.8 million. Adjusted EBITDA totaled $9.9 million, or 13.2% of revenue, versus $8.8 million, or 12.6%, last year; Envelope adjusted EBITDA was $8.4 million versus $8.3 million, and Packaging adjusted EBITDA was $3.7 million versus $3.3 million. Adjusted net earnings were $1.9 million, or $0.08 per share, versus $2.2 million, or $0.09 per share, last year. Net cash from operating activities was negative $0.8 million, free cash flow was negative $1.8 million, and net debt was $4.1 million at March 31, 2026. Management did not give formal next-quarter or full-year financial guidance, but said operating conditions should improve gradually through 2026, with more than $1.5 million of annualized savings from Indianapolis and over $500,000 from label consolidation expected to support margin expansion.

Stewart Emerson said the company started 2026 with strong momentum, driven by improved volume and disciplined cost control, and that both businesses continued to build on momentum from the second half of 2025. He emphasized that the company is “cautiously optimistic,” believes it has planted enough “seeds” to keep growing earnings, and thinks operating conditions should improve gradually through 2026. He also stressed strategic portfolio moves: closing inefficient facilities, scaling labels, and leveraging the packaging platform to create cross-selling opportunities over time.

Normand Macaulay walked through the quarter’s financials, highlighting revenue of $74.8 million, adjusted EBITDA of $9.9 million, and adjusted net earnings of $1.9 million, or $0.08 per share. He noted the decline in operating cash flow and free cash flow was mainly due to working capital requirements tied to the settlement of taxes from the prior year’s sale-leaseback transaction, not a structural change in the business. He also said net debt was $4.1 million, leverage was 0.13x net debt to adjusted EBITDA, the company repurchased more than 57,000 shares for $0.2 million, and the board declared a quarterly dividend of $0.05 per share.

Analysts focused on the phasing and margin impact of the Indianapolis shutdown, the potential for broader share-of-wallet gains across packaging, the economics of the iFlex label acquisition, and the negative operating cash flow. Management said Indianapolis production stopped at the end of January and the facility should be exited by the end of June, with the $1.5 million of annualized savings becoming relatively linear after that point. On cross-selling, management said most share gains have so far been within folding carton, with labels expected to help open broader CPG conversations over time rather than immediately. On cash flow, management said working capital intensity should stay about the same or decline slightly as revenue grows.