Transcontinental Inc.

Q4 revenue was $732.4 million, down 2.3% year over year. Adjusted EBITDA was $137.6 million, down 3.2%, and adjusted EPS was $0.82 versus $0.78 a year ago. In packaging, Q4 adjusted EBITDA was $67.9 million, up 3.3%, with margin of 16.4%, up 60 basis points. In retail services and printing, revenue was $275.9 million, down 4.3%, and adjusted EBITDA was $54.1 million, down 14.9%. Full-year adjusted EPS increased 10.7%. Operating cash flow in Q4 was $172.5 million, CapEx was $23.3 million, and net debt ratio improved to 1.59x from 1.68x three months earlier. For FY26, management expects the packaging sale to close in Q1 calendar 2026, a distribution of about $20 per share, pro forma net debt of about 1.7x, CapEx around $60 million, cash taxes around $30 million, and stable adjusted EBITDA versus FY25.

Thomas Morin framed 2025 as a year of operational progress, especially on safety, saying accidents were reduced by 39% year over year. He emphasized that packaging growth, ISM acquisitions, and stronger contract wins helped offset a weak demand backdrop and Canada Post disruption, and he said the company is entering a “new chapter” after the packaging sale. His tone was constructive but measured: he highlighted opportunities in ISM, media, and U.S. book printing, while acknowledging some of last year’s strength will not repeat.

Donald LeCavalier led with the hard numbers: Q4 revenue of $732.4 million, adjusted EBITDA of $137.6 million, and adjusted EPS of $0.82, with full-year EPS up 10.7%. He said Q4 operating cash flow was $172.5 million, CapEx was $23.3 million, full-year CapEx was close to $100 million and down $22 million from last year, and net debt ratio improved to 1.59x. He also outlined capital return plans tied to the packaging sale, including an approximately $20 per share distribution, use of most remaining proceeds to reduce debt, FY26 CapEx around $60 million, and cash taxes around $30 million.

Analysts focused on book printing, ISM growth, corporate cost savings, and the revenue outlook after the packaging divestiture. Management said book printing benefited from a strong FY25 and FX, but some larger contracts are rolling off, so volumes are likely to decline; they are actively pursuing U.S. leads, but it is too early to quantify the upside. On ISM, management said organic growth is around 2% on a 12-month basis, the market is highly fragmented, and they have two acquisitions underway with one or two expected to close within the next two quarters. They also said Canada Post disruption likely reduced retail services and printing EBITDA by about $5 million to $6 million, and FY26 top-line organic growth could be slightly negative even as ISM and media grow.