Overview

• Marketing experience firm's Q4 net sales declined 11%, impacted by lower paper and print volumes

• Net earnings improved to $11 mln in Q4, aided by lower expenses and higher productivity

• Company increased quarterly dividend by 33% to $0.10 per share

Outlook

• Quad projects 2026 adjusted annual net sales decline of 1% to 5%

• Company expects 2026 adjusted EBITDA between $175 mln and $215 mln

• Quad anticipates 2026 free cash flow of $40 mln to $60 mln

Result Drivers

• REVENUE MIX SHIFT - Quad is shifting its revenue mix towards higher-value offerings like direct mail and integrated marketing services, driving larger engagements with brands

• EXPENSE REDUCTION - Lower restructuring and administrative expenses contributed to improved net earnings

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "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 $8.20, about 25.4% above its February 13 closing price of $6.54

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nPnpcjlba

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