Canadian packaging firm Transcontinental's Q4 revenue misses analyst estimates

Transcontinental

10/12/2025 22:15

Overview

Canada's largest printer's Q4 revenue missed analyst expectations

Adjusted net income for Q4 missed analyst expectations

Company renewed 10-year printing contract for The Globe and Mail

Outlook

Company expects Packaging Sector sale to close in Q1 2026

Transcontinental anticipates lower volumes in traditional activities, offset by in-store marketing growth

Company expects stable adjusted operating earnings from continuing operations for fiscal 2026

Result Drivers

PACKAGING SECTOR - Modest volume increase in Packaging Sector due to cost reduction initiatives, despite economic challenges

LABOR CONFLICT IMPACT - Retail Services and Printing Sector faced challenges due to Canada Post labor conflict, affecting Q4 results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
C$732.40 mln
C$740.20 mln (6 Analysts)
Q4 Adjusted Net Income
Miss
C$68.60 mln
C$76.70 mln (3 Analysts)
Q4 Net Income
C$42.90 mln
Q4 Operating Earnings
C$66.90 mln
Q4 Operating Earnings Before Depreciation & Amortization
C$118.20 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the non-paper containers & packaging peer group is "buy"

Wall Street's median 12-month price target for Transcontinental Inc is C$26.50, about 12.2% above its December 9 closing price of C$23.61

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX7xM0qP

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