Donnelley Financial Q2 net sales fall 10% on  lower capital markets volumes

Donnelley Financial Solutions

31/07/2025 12:24

Overview

Donnelley Financial Q2 net sales fall 10.1% yr/yr due to lower print volumes

Adjusted EPS for Q2 beats analyst expectations, per LSEG data

Co announces new $150 mln stock repurchase program

Outlook

DFIN says encouraged by the level of capital markets transactional activity so far in Q3

Company expects Q3 2025 net sales of $165 mln to $175 mln

DFIN anticipates Q3 2025 adjusted EBITDA margin between 23% and 25%

Company forecasts Q3 2025 capital markets transactional net sales of $35 mln to $40 mln

DFIN sees improving market conditions in Q3 2025

Result Drivers

EBITDA HIT - Drop in adjusted EBITDA and adjusted EBITDA margin was mainly due to lower capital markets transactional volumes

SOFTWARE SALES - Record quarterly software solutions net sales driven by compliance products ActiveDisclosure and Arc Suite

MARKET CONDITIONS - Improved market activity helped drive solid overall results despite macroeconomic headwinds

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Beat
$1.49
$1.42 (3 Analysts)
Q2 EPS
$1.28
Q2 Adjusted Net Income
$42.10 mln
Q2 Net Income
$36.10 mln
Q2 Adjusted EBITDA
$76.30 mln
Q2 Adjusted EBITDA Margin
35.0%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the professional information services peer group is "buy"

Wall Street's median 12-month price target for Donnelley Financial Solutions Inc is $72.00, about 11.3% above its July 30 closing price of $63.86

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nPn3HlzXba

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)