Transcontinental Reports Strong Q3 Earnings Amid Growth in Retail Services and ISM Segment
Transcontinental Inc. (TCL.A.TO) reported solid fiscal third-quarter results, with revenue up 3.8%, adjusted EBITDA rising to C$60.9 million (+4.1%), and adjusted EPS increasing by 18.5% year-over-year to C$0.32. The growth was driven primarily by acquisitions in the In-Store Marketing (ISM) segment, cost-reduction initiatives, and a national rollout of its retail-media platform raddar. The company's Retail Services and Printing division saw revenue rise 7.1% year-over-year to C$233.3 million, with ISM and specialty products contributing significantly at 38%, reaching C$99.7 million in sales. Management noted that the ISM segment is on track for margin improvements due to integration synergies from acquisitions. Transcontinental also reduced its net leverage ratio to 2.06 times adjusted EBITDA, with expectations of further reduction to around 1.75 by year-end. CEO Sam Bendavid expressed confidence in meeting full-year guidance as the company continues to focus on strategic growth and operational efficiency.
Topics: acquisitions ebitda_performance retail_media_platform revenue_growth