Quad Q2 sales decline 10% but beat expectations

Quad/Graphics

29/07/2025 21:42

Overview

Quad Q2 2025 net sales decline 10% yr/yr, but beat analyst expectations

Adjusted EPS meets analyst expectations at $0.14, per LSEG data

Co reaffirms full-year 2025 guidance, continues strategic investments in growth areas

Outlook

Quad reaffirms 2025 guidance with 2%-6% net sales decline

Company expects 2025 adjusted EBITDA of $180 mln to $220 mln

Quad projects 2025 free cash flow of $40 mln to $60 mln

Company anticipates year-end debt leverage ratio of approximately 1.5x

Result Drivers

SALES DECLINE - Quad's net sales fell 10% in Q2 2025, mainly due to the divestiture of European operations and lower paper and logistics sales

INVESTMENTS - Co continues to invest in data and audience intelligence, AI tools, and retail media network to drive future growth

COST REDUCTION - Improved net loss due to lower expenses and increased manufacturing productivity, despite lower sales

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$572 mln
$555 mln (2 Analysts)
Q2 Adjusted EPS
Meet
$0.14
$0.14 (2 Analysts)
Q2 Net Income
-$100,000
Q2 Adjusted EBITDA
$43 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the commercial printing services peer group is "buy."

Wall Street's median 12-month price target for Quad/Graphics Inc is $9.45, about 37.8% above its July 28 closing price of $5.88

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nPn1nShn2a

(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.)