Transcontinental Inc.

Q4 2025 revenue was $732.4 million, down 2.3% year over year. Q4 adjusted EBITDA was $137.6 million, down 3.2%, and adjusted EPS was $0.82, up 3.8% from $0.78. Full-year adjusted EPS increased 10.7%. In Packaging, Q4 adjusted EBITDA rose 3.3% to $67.9 million and margin improved 60 bps to 16.4%, with organic revenue up 2.8%. In Retail Services & Printing, revenue fell 4.3% to $275.9 million and adjusted EBITDA fell 14.9% to $54.1 million. Operating activities generated $172.5 million in Q4, CapEx was $23.3 million, and net debt ratio improved to 1.59x from 1.68x three months earlier. For fiscal 2026, management expects stable adjusted EBITDA versus 2025, CapEx of about $60 million, and cash taxes of about $30 million; they also expect a roughly $20 per share distribution after the packaging transaction closes in Q1 2026.

Thomas Morin framed fiscal 2025 as a year of operational progress, especially on safety, saying accident frequency fell 39% year over year. He emphasized fourth-straight-quarter improvement in adjusted EPS, steady packaging growth, a strong renewal of the Globe and Mail printing agreement, and new retailer contracts expanding into more services. His tone was constructive but realistic, noting a new chapter for the company after the packaging sale and acknowledging tougher conditions in some legacy businesses.

Donald LeCavalier highlighted the quarter’s hard numbers and the mix behind them: revenue of $732.4 million, adjusted EBITDA of $137.6 million, and adjusted EPS of $0.82. He said the quarter benefited from lower financial expense, stronger cash flow, and lower debt, while Canada Post disruption weighed on Retail Services & Printing by about $5 million to $6 million. On cash and capital allocation, he cited $172.5 million from operating activities, $23.3 million of CapEx, full-year CapEx close to $100 million, and an improved net debt ratio of 1.59x; after the packaging sale, the company expects about $20 per share to be returned and most remaining proceeds used to reduce debt.

Analysts focused on book printing, ISM growth, and how much corporate cost reduction will show up in 2026. Management said book printing benefited from a one-time U.S. contract gain in 2025 that is now rolling off, while the team is actively building a pipeline of U.S. business leads for 2026. On ISM, Thomas Morin said organic growth is around 2% and the market remains fragmented, with two acquisitions underway; on corporate costs, Donald LeCavalier said some reduction in fiscal 2026 is certain, though the full impact will be more visible in fiscal 2027.