Transcontinental Inc. reported third‑quarter fiscal 2026 results that mixed revenue strength with earnings pressure. Adjusted earnings per share came in at CAD 0.32, an 18.5% year‑over‑year rise but 13.9% below the consensus estimate of CAD 0.3717. Revenue reached CAD 306 million, topping the forecast of CAD 294.5 million by 3.9% and bringing year‑to‑date sales to CAD 3.8 billion, up 3.8%.
Segment performance showed divergent trends. In‑store marketing and specialty products generated CAD 99.7 million, up 38% with roughly 7% organic growth. Retail services and printing contributed CAD 233.3 million, a 7.1% increase, and delivered adjusted EBITDA of CAD 49.4 million, 2.3% higher than a year ago. By contrast, books and education revenue slipped 5.7% to CAD 73.1 million, and its adjusted EBITDA fell by CAD 1.1 million to CAD 20.5 million.
Operating cash flow declined to CAD 25 million from CAD 36.5 million a year earlier. The net debt‑to‑EBITDA ratio improved to 2.06× from 2.14× three months prior, with management targeting a 1.75× ratio by fiscal‑year end. Capital expenditures were CAD 19.8 million, in line with the full‑year goal of about CAD 60 million.
Tax and financial expenses rose, with adjusted income tax up CAD 3.7 million to CAD 14.4 million (effective rate 32.3%). Net financial expense increased by CAD 5.3 million, driven by a CAD 12 million foreign‑exchange loss linked to the sale of the packaging business.
Real‑estate monetization continued, delivering CAD 36.5 million in net inflows this quarter. Total proceeds now stand at CAD 60 million against a CAD 100 million target, after sales of the Boucherville warehouse and the Saint‑Hyacinthe plant.
On the strategic side, the company completed the nationwide rollout of its retail media platform raddar® in mid‑June. Distribution, handled by Canada Post, jumped from roughly 5 million to more than 11 million households, reaching about three‑quarters of Canadian homes each week. The first phase of newspaper insourcing is finished, and phase two began in August at the Halifax plant.
The CEO, Sam Bendavid, said the quarter reinforced confidence in meeting the fiscal‑2026 outlook, while CFO Donald LeCavalier highlighted the 4.1% rise in consolidated adjusted EBITDA to CAD 60.9 million, attributing the gain to acquisitions and cost‑reduction initiatives despite lower volume.
The stock traded unchanged at $6.65 in pre‑market activity, with a price‑to‑earnings multiple of 3.6 and a 52‑week range of $5.08 to $27. Fiscal 2026 ends on October 25, 2026.
