Ennis, Inc. reported its financial results for the first quarter ended May 31, 2025, with revenues of $97.2 million. This represents a decrease of $5.9 million, or 5.7%, compared to $103.1 million in the same quarter last year. Net earnings for the quarter were $9.8 million, or $0.38 per diluted share, down from $10.7 million, or $0.41 per diluted share, in the prior year's first quarter.
Despite the year-over-year sales decline, the company's gross profit margin increased to 31.1% for the quarter, up from 30.0% in the same quarter last year and 29.5% in the preceding fourth quarter. Acquisitions contributed approximately $5.5 million in revenues during the quarter and positively impacted diluted earnings per share by $0.035. Northeastern Envelope was acquired midway through the quarter, further expanding the company's capabilities.
Ennis initiated a strategic inventory build of carbonless paper in anticipation of the planned closure of the sole US mill producing this product, aiming to secure supply and pivot to other sources. This investment, along with the NEC acquisition and share repurchases, reduced cash balances to $32.0 million. The company repurchased 260,560 shares of its common stock for $4.95 million between March 1, 2025, and May 31, 2025, completing the repurchase of 2,697,700 shares for $45.36 million under a long-standing buyback plan.
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