Transcontinental Q2 revenue falls, misses estimates on lower volume

Transcontinental

03/06/2026 22:14

Overview
Canada retail marketing and printing firm's Q2 revenue fell 5% and missed analyst expectations
Q2 adjusted EPS and adjusted net income both beat analyst estimates
Company closed packaging business sale and acquired PDI Group to grow marketing activities

Outlook
Transcontinental expects fiscal 2026 adjusted operating earnings before depreciation and amortization to remain stable vs 2025
Company anticipates lower volume in traditional activities, partially offset by growth in in-store marketing
Transcontinental expects to reduce net indebtedness below two times adjusted operating earnings before depreciation and amortization in 2026

Result Drivers
LOWER VOLUME - Co said revenue and earnings declines were mainly due to lower volume in both main sectors
RESTRUCTURING COSTS - Higher restructuring costs contributed to lower operating earnings
ACQUISITIONS AND COST CUTS - Recent acquisitions and cost reduction initiatives partially offset declines

Company press release: ID:nGNX7NX1Gs

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$269.2 mln
C$286.23 mln (6 Analysts)
Q2 Adjusted EPS
Beat
C$0.19
C$0.16 (5 Analysts)
Q2 EPS
 
C$0.05
 
Q2 Adjusted Net Income
Beat
C$16 mln
C$13.97 mln (3 Analysts)
Q2 Net Income
 
C$4.3 mln
 
Q2 Operating Earnings
 
C$14.1 mln
 
Q2 Operating Earnings Before Depreciation & Amortization
 
C$31.4 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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$8.00, about 50.9% above its June 2 closing price of C$5.30
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 3 three months ago

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.)