Montreal, Quebec--(Newsfile Corp. - July 31, 2026) - Supremex Inc. (TSX: SXP) ("Supremex" or the "Company"), a growing provider of paper-based packaging solutions as well as a leading North American manufacturer and marketer of envelopes, today announced its results for the second quarter ended June 30, 2026. The Company will hold a conference call to discuss these results today at 10:00 a.m. (Eastern Time).

Second Quarter Financial Highlights and Recent Events

• Total revenue of $71.6 million, up 8.5% from $66.0 million in the second quarter of 2025.
• Packaging & Specialty Products segment revenue of $26.4 million, up 19.0% from $22.2 million last year.
• Envelope segment revenue of $45.2 million, up 3.2% from $43.8 million a year ago.
• Net earnings of $1.0 million, or $0.04 per share, versus a net loss of $0.3 million, or $0.01 per share, in the second quarter of 2025.
• Adjusted EBITDA^[1] of $7.8 million, or 10.9% of revenue, up 33.9% from $5.8 million, or 8.8% of revenue, last year.
• On April 20, 2026, the Company concluded the acquisition of all the shares of Fantasia Printing Ltd ("Fantasia"), doing business as iFlex Labels ("iFlex"), a label manufacturing company located in Saint-Laurent, Quebec. Operations are being integrated within the Company's Packaging & Specialty Products segment.
• On June 5, 2026, the Company acquired all of the outstanding shares of Goldrich Printpak Inc. ("Goldrich"), a provider of folding carton packaging solutions located in the Greater Toronto Area, for total consideration of approximately $34.0 million on a cash-free and debt-free basis, financed through the Company's existing credit facility.
• On July 30, 2026, the Board of Directors declared a quarterly dividend of $0.05 per common share, payable on September 11, 2026, to shareholders of record at the close of business on August 27, 2026.
• On July 31, 2026, the Company announced its intention to renew its normal course issuer bid program (the "NCIB"), subject to the approval of the TSX, to purchase for cancellation common shares representing up to 10.0% of its public float as at July 31, 2026, for a period of twelve months expected to begin August 11, 2026, being the day following the expiry of the current NCIB on August 10, 2026.

⁽¹⁾ Non-IFRS financial measures or ratios. Non-IFRS financial measures do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other entities. Refer to the non-IFRS financial measures section for definitions and reconciliations.

"The second quarter marked a pivotal step in Supremex's transformation into a diversified paper-based packaging company, pairing our third consecutive — and accelerating — quarter of revenue growth in the packaging segment with the largest packaging acquisition in our history, late in the quarter," said Stewart Emerson, President and CEO of Supremex. "Total revenue grew 8.5% to $71.6 million and Adjusted EBITDA² rose 33.9% to $7.8 million, with both segments contributing. Packaging & Specialty Products delivered 19% revenue growth, led by folding carton momentum with large multinational consumer packaged goods customers. Our Envelope business returned to growth in both volume and pricing while expanding its margin, a testament to our optimization initiatives and disciplined tuck-in integration. The acquisition of Goldrich Printpak in June establishes our first major folding carton platform in the Greater Toronto Area, Canada's largest packaging market, and materially accelerates the shift of our revenue base toward higher-growth, higher-value end markets."

"Looking ahead, Supremex enters the second half of 2026 with real momentum and a clear path forward," concluded Mr. Emerson. "Packaging & Specialty Products represented 36.9% of our revenue in the second quarter, up from 33.6% a year ago — before a full quarter of contribution from Goldrich. With integration and synergy capture underway at both Goldrich and iFlex, our Envelope business continuing to generate the strong, stable cash flow that funds this transformation, and leverage² at a modest 1.2 times Adjusted EBITDA² even after funding the Goldrich acquisition, we retain ample flexibility to pursue our pipeline of acquisition opportunities while sustaining returns to shareholders through our dividend and the renewal of our share buyback program. We are confident this strategy will deliver sustained profitable growth and long-term value creation for shareholders."

Summary of three and six-month periods ended June 30, 2026

Revenue

Total revenue for the three-month period ended June 30, 2026, was $71.6 million, representing an increase of $5.6 million, or 8.5%, from the equivalent quarter of 2025.

For the six-month period ended June 30, 2026, total revenue was $146.4 million, representing an increase of $10.2 million, or 7.5%, from the equivalent period of 2025.

Packaging & Specialty Products Segment

Revenue was $26.4 million, up $4.2 million, or 19.0%, from $22.2 million in the second quarter of 2025. The increase mainly reflects higher folding carton revenue driven by share of wallet gains with large multi-national consumer packaged goods customers, continued e-commerce secondary packaging market expansion, and revenue from the acquisition of Trans-Graphique, completed in the third quarter of 2025, partially offset by continued softness in the commercial print business, where revenue was down $0.5 million from the second quarter of 2025. Excluding the commercial print decline, the balance of the segment — driven by the folding carton business — grew $4.7 million, or 27.6%. The Packaging & Specialty Products segment represented 36.9% of the Company's revenue in the quarter, versus 33.6% in the equivalent period of last year.

For the six-month period ended June 30, 2026, revenue was $50.4 million, up $6.4 million, or 14.5%, from $44.0 million in the corresponding period of 2025. The increase again mainly reflects higher folding carton revenue driven by share of wallet gains with large multi-national consumer packaged goods customers, continued e-commerce secondary packaging market expansion, and revenue from the Trans-Graphique acquisition, partially offset by continued softness in the commercial print business, where revenue was down $1.0 million. Excluding the commercial print decline, the balance of the segment — driven by the folding carton business — grew $7.4 million, or 22.2%. Packaging & Specialty Products represented 34.4% of the Company's revenue in the first half of 2026, compared with 32.3% during the equivalent period of last year.

Envelope Segment

In the second quarter of 2026, revenue was $45.2 million, representing an increase of $1.4 million, or 3.2%, from $43.8 million in the second quarter of 2025. The variation is attributable to a 2.0% increase in the average selling price and a 1.1% increase in the volume of units sold, mainly on account of the acquisitions completed in 2025, including Envelope Laurentide and Elite Envelope, completed in the third and fourth quarters of 2025, respectively, new customer wins and share of wallet growth in the United States, as well as a modest rebound from the impact of the Canada Post labour issues, which persisted for an extended period in 2025. The Envelope segment represented 63.1% of the Company's revenue in the quarter, versus 66.4% in the equivalent period of last year.

In the first half of 2026, revenue totaled $96.0 million, representing an increase of $3.8 million, or 4.1%, from $92.2 million in the six-month period ended June 30, 2025. The variation is attributable to a 0.5% increase in the average selling price and a 3.6% increase in the volume of units sold, reflecting the same factors mentioned above. Envelope represented 65.6% of the Company's revenue in the period, versus 67.7% during the equivalent period of last year.

EBITDA³ and Adjusted EBITDA³

EBITDA was $7.2 million, or 10.1% of revenue, compared to $5.3 million, or 8.1% of revenue, in the second quarter last year. Adjusted EBITDA was $7.8 million, or 10.9% of revenue, versus $5.8 million, or 8.8% of revenue, in the second quarter of 2025. The variation reflects the factors mentioned above.

For the first half of 2026, EBITDA was $15.7 million, or 10.7% of revenue, up from $13.8 million, or 10.2% of revenue, in the first half of 2025. Adjusted EBITDA was $17.7 million, up from $14.7 million for the same period a year ago. The variation reflects the factors mentioned above. The Adjusted EBITDA margin was 12.1% of revenue, versus 10.8% in the equivalent period of 2025.

Packaging & Specialty Products Segment

Adjusted EBITDA was $3.4 million, versus $2.9 million in the second quarter of 2025, as the higher revenue more than offset the lower margin. On a percentage of segmented revenue, Adjusted EBITDA from the Packaging & Specialty Products segment was 12.9%, compared to 12.9% in the equivalent period of 2025. Excluding the commercial print activities, Adjusted EBITDA for the segment would have amounted to approximately $3.7 million, or 16.8% of segment revenue.

For the first half of 2026, Adjusted EBITDA was $7.1 million, compared to $6.1 million in the first half of 2025, as the higher revenue more than offset the lower margin. On a percentage of segmented revenue, Adjusted EBITDA from the Packaging & Specialty Products segment was 14.1%, compared to 13.9% in the equivalent period of 2025. Excluding the commercial print activities, Adjusted EBITDA for the segment would have amounted to approximately $7.4 million, or 18.0% of segment revenue.

Envelope Segment

Adjusted EBITDA was $7.0 million, versus $6.2 million in the second quarter of 2025, an increase driven by the higher revenue and an improved operating expense ratio. On a percentage of segmented revenue, Adjusted EBITDA from the Envelope segment was 15.6%, compared with 14.1% in the equivalent period of 2025.

For the first half of 2026, Adjusted EBITDA was $15.5 million, up from $14.5 million in the first half of 2025, reflecting the higher revenue described above. On a percentage of segmented revenue, Adjusted EBITDA from the Envelope segment was 16.1%, compared to 15.7% in the equivalent period of 2025.

Corporate and other non-allocated expenses

Corporate and other non-allocated expenses were $2.6 million compared to $3.2 million in the second quarter of 2025. The decrease is mainly attributable to the non-recurrence of a $1.4 million foreign exchange loss, recorded in the prior period that did not occur, partially offset by higher salaries and benefits.

For the first half of 2026, corporate and other non-allocated expenses were $4.9 million compared to $6.0 million in the first half of 2025. The decrease mainly reflects the non-recurrence of a $1.5 million foreign exchange loss, recorded in the prior period that did not occur, and lower professional fees, partially offset by higher salaries and benefits.

Net Earnings (Loss), Adjusted Net Earnings⁴, Net Earnings (Loss) Per Share and Adjusted Net Earnings Per Share⁴

Net earnings were $1.0 million or $0.04 per share for the three-month period ended June 30, 2026, compared to a net loss of $0.3 million or $0.01 per share for the equivalent period last year. Adjusted net earnings were $1.4 million or $0.06 per share for the three-month period ended June 30, 2026, compared to $0.1 million or $0.00 per share for the equivalent period in 2025.

For the six-month period ended June 30, 2026, net earnings were $1.8 million or $0.07 per share, compared to $1.6 million or $0.07 per share for the equivalent period last year. Adjusted net earnings amounted to $3.2 million or $0.13 per share, compared to $2.2 million or $0.09 per share for the equivalent period in 2025.

Liquidity and Capital Resources

Cash Flow

Net cash flows from operating activities were $4.3 million during the three-month period ended June 30, 2026, compared to $0.3 million in the equivalent period of 2025. The increase is attributable to lower working capital requirements this year compared to last, and to higher net earnings.

For the six-month period ended June 30, 2026, net cash flows from operating activities were $3.5 million, compared to $7.3 million in the equivalent period of 2025, with the decrease mainly reflecting a greater investment in working capital, notably inventories and income taxes recoverable.

Free cash flow⁴ was $3.6 million in the second quarter of 2026, compared to negative $41 thousand for the same period last year, the increase reflecting the higher operating cash flow described above.

For the six-month period ended June 30, 2026, free cash flow was $1.7 million, compared to $6.8 million for the same period in 2025, the decrease reflecting the lower operating cash flow described above.

Debt and Leverage⁴

The Company's total debt increased to $43.9 million as at June 30, 2026, compared to $4.1 million as at December 31, 2025. The increase is essentially attributable to the financing of the acquisitions of Goldrich and Fantasia, for which the Company disbursed approximately $34.4 million and $1.7 million, respectively, funded through the $25.0 million acquisition term loan and drawings on the revolving credit facility. As at June 30, 2026, the ratio of Net debt to Adjusted EBITDA⁴ was 1.22x compared to 0.03x as at December 31, 2025.

Dividend Declaration

On July 30, 2026, the Board of Directors declared a quarterly dividend of $0.05 per common share, payable on September 11, 2026, to the shareholders of record at the close of business on August 27, 2026. This dividend is designated as an "eligible" dividend for the purpose of the Income Tax Act (Canada) and any similar provincial legislation.

Outlook

Demand for the Company's products is influenced by current economic volatility, ongoing trade uncertainty, postage increases and reduced service standards at the United States Postal Service, as well as reputational challenges at Canada Post arising from labour issues. These factors contribute to variability in the Company's operating environment. As it continues to expand in the vast and fragmented U.S. envelope market, the Company will rely on its solid reputation and geographic reach to stimulate revenue growth while continuing to proactively control expenses.

At the same time, the Company sees a significant and growing opportunity in its Packaging & Specialty Products segment, and particularly in folding carton — the printed paperboard cartons that package everyday consumer products. It is renewable, recyclable, and increasingly favoured as brand owners and regulators move away from single-use plastics. Together with continued e-commerce growth, this shift supports one of the largest and fastest-growing categories in North American packaging — and brand owners increasingly treat premium, well-designed packaging as part of the product itself, a tangible point of differentiation that keeps expanding both the size and the value of the opportunity. Supremex intends to leverage the capacity, expertise, and cash flow of its Envelope business to continue building scale in folding carton and adjacent packaging niches, consistent with its strategy of progressing, over time, toward a more balanced revenue split between its two business segments. The June 2026 acquisition of Goldrich, which establishes the Company's first major folding carton platform in the Greater Toronto Area — Canada's largest packaging market — advances this strategy and provides a base from which to pursue further tuck-in acquisitions.

Beyond top-line growth, the Company has meaningful levers within its own control: driving further gains in efficiency, productivity, and capacity utilization across the network, and realizing the full revenue and cost synergies from its recent acquisitions. The optimization initiatives launched in January 2026 within the U.S. Envelope operations and the reorganization of the label business, consolidating operations into the Lachine, Quebec facility, remain ongoing and are progressing largely on track and on budget.

With respect to capital deployment, the Company will continue to look for strategic acquisitions, mainly in the Packaging & Specialty Products segment, while sustaining capital returns to shareholders.

United States' Announcement of New Tariffs

Subsequent to the end of the quarter, on July 20, 2026, the United States announced the imposition of additional 50% tariffs on certain goods of Canadian origin imported into the United States which are scheduled to take effect on August 19, 2026. In addition, on July 23, 2026, the United States announced the imposition of a new tariff regime that is expected to impose a 10% tariff on certain imports from Canada, effective July 24, 2026, following the expiry of the temporary Section 122 tariff measures that had been in effect since February 2026. A portion of the Company's revenue is derived from products manufactured in Canada and sold into the United States, and certain of these products fall within the categories of goods subject to the announced measures.

As at the date of this Press Release, the scope, effective date, potential exemptions (including whether products qualifying under the Canada-United States-Mexico Agreement will be excluded from, or receive preferential treatment under, the measures) and expected duration remain uncertain. As a result and given the limited time between the announcement and the date of this MD&A, the Company is not in a position to reliably quantify the impact of these measures on its financial condition or results of operations. Potential impacts could include reduced demand for affected products, pressure on selling prices and margins, and changes in customer ordering patterns.

The Company is assessing the situation and evaluating potential mitigating actions. The Company will provide further information as the situation develops and as the financial effects can be more reliably assessed. This section should be read together with "Forward-Looking Information".

July 31, 2026 - Second Quarter Results Conference Call:

A conference call to discuss the Company's results for the second quarter ended June 30, 2026, will be held Friday, July 31, 2026, at 10:00 a.m. (Eastern Time). A live broadcast of the Conference Call will be available on the Company's website, in the Investors section under Webcast. To participate (professional investment community only) or to listen to the live conference call, please dial the following numbers. We suggest that participants call in at least 5 minutes prior to the scheduled start time:

• Local (Toronto) and international participants, dial: 647-846-8776
• North American participants, dial toll-free: 1-833-752-3804

A replay of the conference call will be available on the Company's website in the Investors section under Webcast. To listen to a recording of the conference call, please call toll-free 1-855-669-9658 or 412-317-0088 and enter the code 6721336. The recording will be available until Friday, August 7, 2026.

Non-IFRS Financial Measures

Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies and should not be viewed as alternatives to measures of financial performance prepared in accordance with IFRS. Management considers these metrics to be information which may assist investors in evaluating the Company's profitability and enable better comparability of the results from one period to another.

These Non-IFRS Financial Measures are defined as follows:

The following tables provide the reconciliation of Non-IFRS Financial Measures:

Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws, including (but not limited to) statements about the EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net earnings, Adjusted net earnings per share, free cash flow, Net debt, Net debt to Adjusted EBITDA ratio[5], capital expenditures, dividend payments, the normal course issuer bid, the automatic share purchase plan and the intended purchase for cancellation of common shares of the Company thereunder, and future performance of Supremex and similar statements or information concerning anticipated future results, circumstances, performance or expectations. Forward-looking information may include words such as anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target and will. Such information relates to future events or future performance and reflects current assumptions, expectations and estimates of management regarding growth, results of operations, performance, business prospects and opportunities, Canadian economic environment and ability to attract and retain customers. Such forward-looking information reflects current assumptions, expectations and estimates of management and is based on information currently available to Supremex as at the date of this press release. Such assumptions, expectations and estimates are discussed throughout the MD&A for the year ended December 31, 2025, and in the Company's Annual Information Form dated March 27, 2026. Supremex cautions that such assumptions may not materialize and that economic conditions such as economic uncertainty, downturns or recessions, or the imposition of tariffs or trade restrictions, may render such assumptions, although believed reasonable at the time they were made, subject to greater uncertainty.

Forward-looking information is subject to certain risks and uncertainties and should not be read as a guarantee of future performance or results and actual results may differ materially from the conclusion, forecast or projection stated in such forward-looking information. These risks and uncertainties include but are not limited to the following: decline in envelope consumption, growth and diversification strategy, key personnel, labour shortage, contributions to employee benefits plans, raw material price increases, operational disruption, cyber security and data protection, dependence on and loss of customer relationships, increase of competition, economic conditions and uncertainty, risk related to the international trade and tax environment (including tariffs, quotas and custom and other restrictions), exchange rate fluctuation, interest rate fluctuation, credit risks with respect to trade receivables, availability of capital, concerns about protection of the environment, potential risk of litigation and, no guarantee to pay dividends. Such risks and uncertainties are discussed throughout the MD&A for the year ended December 31, 2025, and in the Company's Annual Information Form dated March 27, 2026, particularly in "Risk Factors". Consequently, the Company cannot guarantee that any forward-looking information will materialize. Readers should not place any undue reliance on such forward-looking information unless otherwise required by applicable securities legislation. The Company expressly disclaims any intention and assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

The Management Discussion and Analysis and Financial Statements can be found on www.sedarplus.ca and on Supremex' website.

About Supremex

Supremex is a growing provider of paper-based packaging solutions as well as a leading North American manufacturer and marketer of envelopes. Supremex operates nine manufacturing facilities across four provinces in Canada and four manufacturing facilities in three states in the United States employing approximately 1,000 people. Supremex' extensive network allows it to efficiently manufacture and distribute envelope and packaging solutions designed to the specifications of major national and multinational corporations, direct mailers, resellers, government entities, SMEs, and solutions providers.

For more information, please visit www.supremex.com.

¹ Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
² Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
³ Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
⁴ Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
⁵ Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/307409