The earnings call reflected a mixed outlook. While the company demonstrated strong financial management through EBITDA growth, reduced debt, and successful cost-cutting measures, there were significant challenges with declining revenues in key sectors and potential impacts from tariffs. The special dividend indicates confidence in financial resilience despite current headwinds.
Company Guidance
During the TC Transcontinental First Quarter Fiscal Year 2025 Results Conference Call, the company reported a 5.5% decrease in revenues from the same quarter last year, mainly due to lower volume and the sale of industrial packaging activities. Despite these challenges, adjusted EBITDA increased by $1.4 million to $97.5 million, and adjusted earnings per share improved by 14% to $0.49. The Packaging sector saw a revenue decline of 2.2%, with adjusted EBITDA decreasing by 2.3% to $59 million, maintaining a 15.2% EBITDA margin due to cost reduction efforts. The Retail Services and Printing sector experienced a 9.2% revenue decline but achieved a 6.1% increase in adjusted EBITDA to $41.9 million, marking the third consecutive quarter of profitability improvement. Net debt ratio improved to 1.53 times, and the company announced a special dividend of $1 per share, underscoring its strong financial position. The company remains focused on mitigating potential tariff impacts and expects volume and profit growth in the second half of the year, particularly in Latin America and the medical market.
Adjusted EBITDA Growth
Despite challenges, the company delivered a strong quarter with consolidated adjusted EBITDA of $97.5 million, which grew by $1.4 million from the previous year.
Reduction in Net Debt Ratio
The net debt ratio was reduced to 1.53 times, the lowest since the acquisition of Coveris Americas in 2018, following the sale of the industrial packaging business.
Cost Reduction Success
The company maintained a 15.2% EBITDA margin in the Packaging sector due to continued cost reduction efforts, despite a decrease in revenue.
Special Dividend Announcement
A special dividend of $1 per share was announced, reflecting confidence in the company's strong financial position.
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Transcontinental (TSE:TCL.A) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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TSE:TCL.A Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Mar 11, 2025
C$15.46
C$16.09
+4.08%
Dec 11, 2024
C$16.19
C$16.62
+2.66%
Sep 11, 2024
C$15.22
C$15.36
+0.92%
Jun 05, 2024
C$11.99
C$13.05
+8.84%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Transcontinental Inc. (TSE:TCL.A) report earnings?
Transcontinental Inc. (TSE:TCL.A) is schdueled to report earning on Jun 04, 2025, TBA Not Confirmed.
What is Transcontinental Inc. (TSE:TCL.A) earnings time?
Transcontinental Inc. (TSE:TCL.A) earnings time is at Jun 04, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.