| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 581.00 | 7.7% |
| Total Income | 581.00 | 7.7% |
| Expenditure | 563.30 | 7.6% |
| PBT | 7.90 | 16.2% |
| Net Profit | 6.20 | 6.9% |
| OPM | 3.05% | 0.07pp |
| NPM | 1.07% | 0.14pp |
| EPS | 0.13 | 8.3% |
Quad/Graphics Reports Q1 2026 Net Sales of $581 Million, Reaffirms Full-Year Guidance
29 Apr 2026 · 29 Apr, 2:23 am
Summary
Quad/Graphics, Inc. reported first quarter 2026 Net Sales of $581 million, a 7.7% decrease year-over-year, or a 4.3% decline excluding the divestiture of its European operations. Net Earnings remained stable at $6 million, while Adjusted EBITDA saw a minor dip to $45 million from $46 million in the prior year. Despite these declines, Adjusted Diluted Earnings Per Share increased by 25% to $0.25. Management reaffirmed its full-year 2026 financial guidance, noting that results were in-line with expectations and the company remains focused on strategic investments in marketing solutions and disciplined cost management amidst macroeconomic challenges.
Key Highlights
- 1
Net Sales for the first quarter of 2026 were $581 million, marking a 7.7% decline compared to $629 million in the first quarter of 2025, or a 4.3% decline excluding the European operations divestiture.
- 2
Net Earnings remained flat at $6 million for the first quarter of 2026, while Diluted Earnings Per Share increased to $0.13 from $0.11 in the prior year.
- 3
Adjusted EBITDA for the first quarter of 2026 was $45 million, a slight decrease from $46 million reported in the same period of 2025.
- 4
Adjusted Diluted Earnings Per Share rose by 25% to $0.25 in the first quarter of 2026, up from $0.20 per share in the first quarter of 2025.
- 5
Quad/Graphics repurchased 0.2 million shares of its Class A common stock in the first quarter of 2026, contributing to a total of 7.6 million shares repurchased since the program's inception in 2022.
- 6
The company returned $7 million to shareholders in the quarter, comprising $6 million in regular cash dividends and $1 million in share repurchases.
- 7
Quad/Graphics reaffirmed its full-year 2026 financial guidance, anticipating an Adjusted Annual Net Sales Change of 1% to 5% decline and Adjusted EBITDA between $175 million and $215 million.
Management Comments
Joel Quadracci
Our first quarter results were in-line with our expectations, and we remain on track to achieve our full-year 2026 guidance. We remain focused on achieving our long-term growth and margin objectives while maintaining disciplined cost management despite macroeconomic challenges, including continued postage rate increases and cost pressures in our supply chain stemming from the ongoing conflict in the Middle East. We are making strategic investments in innovative marketing solutions and high-caliber talent to expand our offering and strengthen client relationships. We are seeing strong momentum in Quad’s audience strategy services, powered by our proprietary, household-based data stack. Our formalized Direct Marketing Agency combines audience services with pre-market testing and analysis to drive more effective mail prospecting. Similarly, our Rise media agency brings together data-driven intelligence with AI-powered insights to deliver customized omnichannel media strategies that help clients achieve measurable business outcomes. Operationally, we are providing clients with multiple optimization solutions, including advanced co-mailing capabilities, to generate significant savings that help reduce the impact of rising postage costs. We are further strengthening our cost structure by investing in automation and adopting AI-enabled tools, which are improving productivity, speed and agility across our platform. These efforts further differentiate Quad in a competitive marketplace.
Tony Staniak
We are reaffirming our 2026 full-year financial guidance with an improved sales decline rate and essentially flat Adjusted EBITDA and Free Cash Flow compared to 2025, representing a key step on our path to long-term growth. We are closely monitoring the current business climate which continues to present uncertainty, driven by factors including persistent inflationary pressures, evolving global trade dynamics, geopolitical tensions and cautious business spending. As we have demonstrated in prior periods of disruption, we remain agile and ready to adapt to shifting demand. While allocating capital to fuel long-term growth, we are also returning capital to shareholders through our quarterly dividend of $0.10 per share and we have repurchased $1 million of Quad shares year-to-date. We expect to remain opportunistic in terms of future share repurchases.
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