Ennis, Inc. Q2 Revenue Climbs to $102.01M Despite 28.6% Net Income Decline

Net Income YoY

-28.6%

Key highlights

• Revenue increased to $102.01 million in Q2-2026 compared to $98.68 million in Q2-2025
• Net income dropped 28.6% year-over-year, falling to $9.39 million
• Diluted earnings per share reached $0.37, down from $0.51 in the prior-year period
• Pretax income was $13.04 million, compared to $18.14 million in the same quarter last year
• The 2025 results were elevated by a $5.3 million legal settlement gain that did not recur

How the Period Went

Ennis, Inc. delivered a period of top-line growth that was overshadowed by a decline in bottom-line profitability. For the second quarter of 2026, the company reported revenue of $102.01 million, representing an increase from the $98.68 million achieved in the same period a year ago. Despite the improved sales performance, net income fell to $9.39 million from $13.15 million, a 28.6% year-over-year decrease. This resulted in diluted earnings per share of $0.37, trailing the $0.51 reported in the previous second quarter. The divergence between revenue growth and profit contraction highlights a high-base comparison in the prior year.

Margins and Profitability

The company's gross profit for the quarter reached $30.49 million, up slightly from $30.10 million in the previous year. However, pretax income saw a sharp reduction, falling from $18.14 million to $13.04 million. This decline in margin efficiency was primarily the result of a $5.3 million legal settlement gain recorded in the prior year's second quarter that did not repeat in the current period. Management has focused on maintaining operational consistency, but the absence of this significant non-recurring income stream created a substantial headwind for net earnings comparisons. Operational expenses remained relatively stable despite the broader inflationary environment affecting the industrial sector.

Business Overview

Based in Midlothian, Texas, Ennis, Inc. is a leading manufacturer of business forms and other printed business products. The company primarily services the wholesale market through a network of independent distributors across the United States. Its product portfolio includes custom business forms, commercial printing, envelopes, and pressure-sensitive labels. By operating a decentralized network of manufacturing facilities, Ennis provides regionalized service and quick-turnaround capabilities. This structural model allows the firm to cater to specialized niche requirements in the specialty business services industry, insulating it somewhat from the broader trend of digitization in standardized office documentation.

Financial Context

• Ennis maintains a market capitalization of approximately $571.17 million within the Industrials sector
• The current P/E ratio of 14.7x is in line with peer groups in specialty business services
• Stock price momentum has been positive, with a 5.15% increase over the last quarter
• The Relative Strength Index (RSI) of 70.1 indicates the stock is currently entering an overbought range
• Annual revenue of $392.40 million underscores a consistent scale despite cyclical shifts

Down 1.3% since our story on 5 Oct: $22.56 when we broke it → $22.27 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.

Show the prices

14 Sep	$21.28
15 Sep	$21.29
16 Sep	$21.34
17 Sep	$21.39
18 Sep	$21.32
21 Sep	$21.49
22 Sep	$22.08
23 Sep	$22.11
24 Sep	$22.31
25 Sep	$22.13
28 Sep	$22.41
29 Sep	$22.46
30 Sep	$22.51
1 Oct	$22.55
2 Oct	$22.56
5 Oct	$22.58
6 Oct	$22.56
7 Oct	$22.50
8 Oct	$22.75
9 Oct	$22.12
12 Oct	$22.17
13 Oct	$22.27

Industry Landscape

The specialty business services industry is currently undergoing consolidation as firms like Deluxe Corp and Cimpress navigate the transition toward high-margin specialized printing. Demand for physical business forms is increasingly tied to logistics and industrial labeling rather than traditional administrative use. While organic revenue growth remains modest across the sector, companies with strong distributor relationships, such as Ennis, have managed to maintain volume stability. Market conditions suggest that profitability in this space is heavily influenced by the ability to manage raw material costs and the occasional impact of non-operational items like the legal settlement noted in this period.

ENNIS, INC. · financial snapshot

Share price	$22.56
Market cap	$571M
Revenue (annual)	$392M
P/E (TTM)	14.7×
1-month price change	+6.97%
Sector	IndustrialsSpecialty Business Services

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.