Quad Q2 swings to profit on lower interest expense

Quad/Graphics

28/07/2026 21:43

Overview
US marketing and print services firm's Q2 net sales rose 1% yr/yr, beating analyst expectations
Company's net earnings turned positive, driven by lower interest and operating expenses
Quad reaffirmed full-year 2026 financial guidance and expanded packaging business with new facility

Outlook
Quad reaffirms full-year 2026 guidance for adjusted net sales to decline 1% to 5%
Company expects 2026 adjusted EBITDA of $175 mln to $215 mln
Quad sees 2026 free cash flow of $40 mln to $60 mln

Result Drivers
HIGHER PAPER AND LOGISTICS SALES - Co said Q2 net sales rose mainly due to increased paper and logistics sales
LOWER INTEREST AND OPERATING EXPENSES - Co attributed improved net earnings to lower interest expense, depreciation and amortization, and selling, general and administrative expenses
PRODUCTIVITY AND COST MANAGEMENT - Co said ongoing automation, AI-enabled tools and disciplined cost management supported productivity in print business lines

Company press release: ID:nPnGpPnla

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$578 mln
$545.23 mln (3 Analysts)
Q2 Adjusted EPS
Beat
$0.24
$0.20 (2 Analysts)
Q2 Net Income
 
$3.7 mln
 
Q2 Adjusted EBITDA
 
$42 mln
 

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 commercial printing services peer group is "buy"
Wall Street's median 12-month price target for Quad/Graphics Inc is $10.00, about 17.6% above its July 27 closing price of $8.50
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads
July 28 - Omnicom Q2 revenue and adjusted EPS beat estimates on constant currency revenue growth
July 28 - Landstar Q2 revenue beats estimates as freight transportation market "rapidly" improves
July 28 - Clearwater Paper Q2 net loss widens as facility outage weighed on results

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)