Quad Reports Q1 $581M Sales Decline, 25% EPS Growth and $0.10 Dividend
Quad reported Q1 sales of $581M, down 7.7% year-over-year (4.3% ex-Europe), with net earnings of $6M ($0.13 EPS) matching last year and adjusted EBITDA of $45M. Adjusted EPS rose 25% to $0.25, the company reaffirmed full-year guidance, declared a $0.10 quarterly dividend and repurchased 0.2M shares.
1. Q1 Financial Results
Net sales were $581 million in Q1 2026, down 7.7% from $629 million a year earlier and down 4.3% after excluding the divested European operations. The sales decline was driven by lower print volumes and reduced agency solutions demand.
2. Earnings and EBITDA Trends
Net earnings totaled $6 million, or $0.13 diluted EPS, versus $6 million, or $0.11 EPS, in Q1 2025. Adjusted EBITDA was $45 million, slightly below last year’s $46 million, while adjusted diluted EPS rose 25% to $0.25 from $0.20, aided by lower SG&A and productivity gains.
3. Cash Flow and Leverage
Operating activities used $94 million of cash versus $89 million a year ago, leading to negative free cash flow of $107 million compared to negative $100 million, driven by higher inventories and increased capital expenditures. Net debt increased to $427 million at March 31 from $308 million at year-end.
4. Capital Returns and Guidance
The company repurchased 0.2 million shares in Q1, totaling 7.6 million shares since 2022, and returned $7 million to shareholders through $6 million in dividends and $1 million in repurchases. Quad declared a $0.10 quarterly dividend payable June 5 and reaffirmed its full-year 2026 financial guidance.