QUAD · Quad/Graphics, Inc.

Quad/Graphics reported first quarter 2026 results that were in line with expectations, with net sales of $581 million, down 7.7% year-over-year. Excluding the impact of the European divestiture, net sales declined 4.3%. The decline was driven by lower print volumes and agency solutions sales. Despite the revenue headwinds, net earnings remained flat at $6 million, while diluted EPS improved to $0.13 from $0.11, benefiting from share repurchases. Adjusted EBITDA was $45 million, slightly down from $46 million, as cost savings from lower SG&A and improved manufacturing productivity partially offset the sales decline. Adjusted diluted EPS rose 25% to $0.25, reflecting disciplined cost management and a lower share count. Management highlighted strategic investments in marketing solutions and AI-enabled tools to drive long-term growth. The company reaffirmed its full-year 2026 guidance, expecting net sales to decline 1%-5% (adjusted for the divestiture), Adjusted EBITDA between $175 million and $215 million, and free cash flow of $40-$60 million. Net debt increased to $427 million from $308 million at year-end 2025, primarily due to negative free cash flow in the seasonally weak first quarter. The company returned $7 million to shareholders through dividends and buybacks and declared a quarterly dividend of $0.10 per share.