Transcontinental Inc. Announces Results for the Fourth Quarter and Fiscal Year 2025
Highlights
- Revenues of $732.4 million for the quarter ended October 26, 2025; operating earnings of $66.9 million; and net earnings attributable to shareholders of the Corporation of $42.9 million ($0.51 per share).
- Adjusted operating earnings before depreciation and amortization(1) of $137.6 million for the quarter ended October 26, 2025; adjusted operating earnings(1) of $100.6 million; and adjusted net earnings attributable to shareholders of the Corporation(1) of $68.6 million ($0.82 per share).
- Revenues of $2,743.9 million for fiscal year 2025; operating earnings of $264.1 million; and net earnings attributable to shareholders of the Corporation of $171.0 million ($2.04 per share).
- Adjusted operating earnings before depreciation and amortization(1) of $466.2 million for fiscal year 2025; adjusted operating earnings(1) of $315.7 million; and adjusted net earnings attributable to shareholders of the Corporation(1) of $217.2 million ($2.59 per share).
- Decline in net earnings attributable to shareholders of the Corporation per share of 10.5% for the fourth quarter of 2025 and growth of 44.7% for fiscal year 2025.
- Growth in adjusted net earnings attributable to shareholders of the Corporation per share(1) of 3.8% for the fourth quarter of 2025 and 10.7% for fiscal year 2025.
- Business acquisitions completed during the fiscal year to accelerate the growth of in-store marketing activities.
- Renewal of the printing contract for The Globe and Mail for a 10-year period.
- Subsequent to the end of fiscal year 2025, announcement of the sale of the Packaging Sector for $2.1 billion(2).
(1) Please refer to the section entitled “Non-IFRS Financial Measures” in this press release for a definition of these measures.
(2) Converted at an exchange rate of 1.38 CAD/USD.
MONTREAL, Dec. 10, 2025 (GLOBE NEWSWIRE) — Transcontinental Inc. (TSX: TCL.A TCL.B) announces its results for the fourth quarter and fiscal year 2025, which ended October 26, 2025.
“For the fourth consecutive quarter, we improved our adjusted net earnings per share, which continues to demonstrate the positive impact of the implementation of our program aimed at improving our profitability and our financial position,” said Thomas Morin, President and Chief Executive Officer of TC Transcontinental. “These strong results, combined with our solid financial position, position us well to begin a new chapter in our history.
“Despite the adverse impact of the economic climate on demand, the Packaging Sector posted a modest increase in volume in the fourth quarter. Thanks to our cost reduction initiatives, we improved the sector’s operating earnings in the fourth quarter. The sale of our Packaging Sector will create significant value for our shareholders, and I wish to thank our colleagues for their commitment and efforts, which enabled us to build this sector over the last 11 years.
“After delivering an excellent performance for the first nine months of the fiscal year, the Retail Services and Printing Sector experienced a challenging fourth quarter, caused in part by the labour conflict at Canada Post. With distribution fully resumed since the beginning of December, the impact of the labour conflict on our earnings should be reduced in fiscal 2026. Lastly, the renewal of the printing contract for The Globe and Mail is excellent news for our newspaper printing activities and will bring further stability to this niche.”
“The decrease in our financial expenses as a result of the significant reduction in net indebtedness, combined with our share repurchase program, allowed us to significantly grow net earnings per share for the fiscal year,” added Donald LeCavalier, Executive Vice President and Chief Financial Officer of TC Transcontinental. “Our balance sheet is solid, and we are well positioned to take advantage of growth opportunities in our retail services and printing activities as well as in our educational publishing activities.”
Financial Highlights
| (in millions of dollars, except per share amounts) | Q4-2025 | Q4-2024 | Variation in % | Fiscal Year 2025 | Fiscal Year 2024 | Variation in % | ||||||
| Revenues | $ | 732.4 | $ | 749.3 | (2.3 | )% | $ | 2,743.9 | $ | 2,812.9 | (2.5 | )% |
| Operating earnings before depreciation and amortization | 118.2 | 131.8 | (10.3 | ) | 473.1 | 424.7 | 11.4 | |||||
| Adjusted operating earnings before depreciation and amortization(1) | 137.6 | 142.2 | (3.2 | ) | 466.2 | 469.4 | (0.7 | ) | ||||
| Operating earnings | 66.9 | 79.3 | (15.6 | ) | 264.1 | 209.5 | 26.1 | |||||
| Adjusted operating earnings(1) | 100.6 | 105.1 | (4.3 | ) | 315.7 | 320.6 | (1.5 | ) | ||||
| Net earnings attributable to shareholders of the Corporation | 42.9 | 47.9 | (10.4 | ) | 171.0 | 121.3 | 41.0 | |||||
| Net earnings attributable to shareholders of the Corporation per share | 0.51 | 0.57 | (10.5 | ) | 2.04 | 1.41 | 44.7 | |||||
| Adjusted net earnings attributable to shareholders of the Corporation(1) | 68.6 | 67.3 | 1.9 | 217.2 | 201.4 | 7.8 | ||||||
| Adjusted net earnings attributable to shareholders of the Corporation per share(1) | 0.82 | 0.79 | 3.8 | 2.59 | 2.34 | 10.7 | ||||||
| (1) Please refer to the section entitled “Reconciliation of Non-IFRS Financial Measures” in this Press release for adjusted data presented above. | ||||||||||||
Results for the Fourth Quarter of Fiscal Year 2025
Revenues decreased by $16.9 million, or 2.3%, from $749.3 million in the fourth quarter of fiscal year 2024 to $732.4 million in the corresponding period of 2025. This decrease is mainly due to lower volume in the Retail Services and Printing Sector and the impact of the sale of the industrial packaging operations, partially offset by the recent acquisition in our in-store marketing activities, higher volume in the Packaging Sector and the favourable exchange rate effect.
Operating earnings before depreciation and amortization decreased by $13.6 million, or 10.3%, from $131.8 million in the fourth quarter of fiscal year 2024 to $118.2 million in the fourth quarter of fiscal year 2025. This decrease is mainly due to lower volume in the Retail Services and Printing Sector, caused in particular by the impact of the labour conflict at Canada Post, the increase in restructuring and other costs as well as the sale of the industrial packaging operations. The decrease was partially offset by higher volume in the Packaging Sector, the favourable impact of cost reduction initiatives, the recent acquisitions and the favourable exchange rate effect.
Adjusted operating earnings before depreciation and amortization decreased by $4.6 million, or 3.2%, from $142.2 million in the fourth quarter of fiscal year 2024 to $137.6 million in the fourth quarter of fiscal year 2025. This decrease is mainly due to lower volume in the Retail Services and Printing Sector, caused in particular by the impact of the labour conflict at Canada Post, and the sale of the industrial packaging operations. The decrease was partially offset by higher volume in the Packaging Sector, the favourable impact of cost reduction initiatives, the recent acquisitions and the favourable exchange rate effect.
Net earnings attributable to shareholders of the Corporation decreased by $5.0 million, or 10.4%, from $47.9 million in the fourth quarter of fiscal year 2024 to $42.9 million in the fourth quarter of fiscal year 2025. This decrease is mainly due to the previously explained decrease in operating earnings before depreciation and amortization, partially offset by lower financial expenses, income taxes and, to a lesser extent, depreciation and amortization. On a per share basis, net earnings attributable to shareholders of the Corporation decreased by 10.5%, from $0.57 to $0.51, respectively.
Adjusted net earnings attributable to shareholders of the Corporation increased by $1.3 million, or 1.9%, from $67.3 million in the fourth quarter of fiscal year 2024 to $68.6 million in the fourth quarter of fiscal year 2025. This increase is mainly attributable to lower financial expenses and adjusted income taxes, partially offset by the decrease in adjusted operating earnings. On a per share basis, adjusted net earnings attributable to shareholders of the Corporation increased by 3.8%, from $0.79 to $0.82, respectively.
Results for Fiscal Year 2025
Revenues decreased by $69.0 million, or 2.5%, from $2,812.9 million in fiscal year 2024 to $2,743.9 million in the corresponding period of 2025. This decrease is mainly due to the impact of the sale of the industrial packaging operations and lower volume, partially offset by the favourable exchange rate effect and the acquisitions in the in-store marketing activities.
Operating earnings before depreciation and amortization increased by $48.4 million, or 11.4%, from $424.7 million in fiscal year 2024 to $473.1 million in the corresponding period of 2025. This increase is mainly attributable to the favourable impact of cost reduction initiatives, the decrease in restructuring and other costs (revenues), the favourable exchange rate effect and the recent acquisitions, partially offset by lower volume and the sale of the industrial packaging operations.
Adjusted operating earnings before depreciation and amortization decreased by $3.2 million, or 0.7%, from $469.4 million in fiscal year 2024 to $466.2 million in the corresponding period of 2025. This decrease is mainly due to lower volume and the sale of the industrial packaging operations, mostly offset by the favourable impact of cost reduction initiatives, the favourable exchange rate effect and the recent acquisitions.
Net earnings attributable to shareholders of the Corporation increased by $49.7 million, or 41.0%, from $121.3 million in fiscal year 2024 to $171.0 million in the corresponding period of 2025. This increase is mainly attributable to the previously explained rise in operating earnings before depreciation and amortization as well as lower financial expenses and depreciation and amortization, partially offset by higher income taxes. On a per share basis, net earnings attributable to shareholders of the Corporation increased by 44.7%, from $1.41 to $2.04, respectively.
Adjusted net earnings attributable to shareholders of the Corporation increased by $15.8 million, or 7.8%, from $201.4 million in fiscal year 2024 to $217.2 million in the corresponding period of 2025. This increase is mainly attributable to lower financial expenses and adjusted income taxes, partially offset by the decrease in adjusted operating earnings. On a per share basis, adjusted net earnings attributable to shareholders of the Corporation increased by 10.7%, from $2.34 to $2.59, respectively.
For more detailed financial information, please see the Management’s Discussion and Analysis for the fiscal year ended October 26, 2025, as well as the financial statements in the “Investors” section of our website at www.tc.tc.
Outlook
The sale of our Packaging Sector should close in the first quarter of calendar year 2026, subject to meeting applicable closing conditions and receiving applicable authorizations by regulatory authorities.
We anticipate lower volumes in our traditional activities, including book printing, which experienced a very high growth in fiscal year 2025. This decrease should be partially offset by growth in our in-store marketing activities, including the positive impact of the acquisitions.
At the consolidated level, we expect adjusted operating earnings before depreciation from continuing operations for fiscal year 2026 to remain stable compared to fiscal year 2025.
Lastly, we expect to continue generating significant cash flows from operating activities, which will enable us to continue to reduce net indebtedness while investing in our growth and returning capital to our shareholders.
Non-IFRS Financial Measures
In this document, unless otherwise indicated, all financial data are prepared in accordance with International Financial Reporting Accounting Standards (“IFRS”) and the term “dollar”, as well as the symbol “$” designate Canadian dollars.
In addition, in this press release, we also use certain non-IFRS financial measures for which a complete definition is presented below and for which a reconciliation to financial information in accordance with IFRS is presented in the section entitled “Reconciliation of Non-IFRS Financial Measures” and in Note 3, “Segmented Information”, to the audited annual consolidated financial statements for the fiscal year ended October 26, 2025.
| Terms Used | Definitions |
| Adjusted operating earnings before depreciation and amortization | Operating earnings before depreciation and amortization including realized gains (losses) on non-designated foreign exchange contracts and excluding restructuring and other costs (revenues) as well as impairment of assets. This measure is used to assess the operating performance of the Corporation and its sectors on a comparable basis. |
| Adjusted operating earnings | Operating earnings including realized gains (losses) on non-designated foreign exchange contracts and excluding restructuring and other costs (revenues), amortization of intangible assets arising from business combinations as well as impairment of assets. This measure is used to better assess the current operating performance of the Corporation and its sectors on a comparable basis. |
| Adjusted income taxes | Income taxes before income taxes on restructuring and other costs (revenues), amortization of intangible assets arising from business combinations, impairment of assets as well as the recognition of previous years tax assets of an acquired company. |
| Adjusted net earnings attributable to shareholders of the Corporation | Net earnings attributable to shareholders of the Corporation before restructuring and other costs (revenues), amortization of intangible assets arising from business combinations and impairment of assets, net of related income taxes as well as the recognition of previous years tax assets of an acquired company. This measure is used to assess the financial performance of the Corporation and its sectors on a comparable basis. |
| Net indebtedness | Total of long-term debt, of current portion of long-term debt, of lease liabilities and of current portion of lease liabilities, less cash. This measure is used to calculate the net indebtedness ratio. |
| Net indebtedness ratio | Net indebtedness divided by the last 12 months’ adjusted operating earnings before depreciation and amortization. This ratio is used by the Corporation to measure its ability to repay its debts and assess its financial leverage. |
Reconciliation of Non-IFRS Financial Measures
The financial information has been prepared in accordance with IFRS. However, financial measures used, namely adjusted operating earnings before depreciation and amortization, adjusted operating earnings, adjusted income taxes, adjusted net earnings attributable to shareholders of the Corporation, adjusted net earnings attributable to shareholders of the Corporation per share, net indebtedness and net indebtedness ratio, for which a reconciliation is presented in the following table, do not have any standardized meaning under IFRS. They may be calculated differently by other companies, and may not be comparable to similar measures presented by other companies. We believe that many of our readers analyze the financial performance of the Corporation’s activities based on these non-IFRS financial measures as such measures may allow for easier comparisons between periods. These measures should be considered as a complement to financial performance measures in accordance with IFRS. They do not substitute and are not superior to them.
The Corporation also believes that these measures are useful indicators of the performance of its operations and its ability to meet its financial obligations. Furthermore, management also uses some of these non-IFRS financial measures to assess the performance of its activities and managers.
| Reconciliation of operating earnings – Fourth quarter and fiscal year | ||||||||||
| Three months ended | Year ended | |||||||||
| (in millions of dollars) | October 26, 2025 | October 27, 2024 | October 26, 2025 | October 27, 2024 | ||||||
| Operating earnings | $ | 66.9 | $ | 79.3 | $ | 264.1 | $ | 209.5 | ||
| Including | ||||||||||
| Realized gains (losses) on non-designated foreign exchange contracts(1) | (0.4 | ) | — | 0.8 | — | |||||
| Excluding | ||||||||||
| Restructuring and other costs (revenues) | 16.0 | 7.1 | (17.2 | ) | 33.9 | |||||
| Amortization of intangible assets arising from business combinations(2) | 14.3 | 15.4 | 58.5 | 66.4 | ||||||
| Impairment of assets | 3.8 | 3.3 | 9.5 | 10.8 | ||||||
| Adjusted operating earnings | $ | 100.6 | $ | 105.1 | $ | 315.7 | $ | 320.6 | ||
| Depreciation and amortization(3) | 37.0 | 37.1 | 150.5 | 148.8 | ||||||
| Adjusted operating earnings before depreciation and amortization | $ | 137.6 | $ | 142.2 | $ | 466.2 | $ | 469.4 | ||
| (1) To mitigate the impact of foreign currency fluctuations when consolidating the Packaging Sector’s earnings, the Corporation sometimes uses foreign exchange contracts. These contracts are not designated as part of a hedge accounting relationship, and resulting exchange gains or losses are added to adjusted operating earnings and adjusted operating earnings before depreciation and amortization. (2) Amortization of intangible assets arising from business combinations include our customer relationships, educational book titles, non-compete agreements, trade names with finite useful lives and rights of first refusal. (3) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations. | ||||||||||
| Reconciliation of operating earnings –Fourth quarter and fiscal yearfor the Packaging Sector | ||||||||||
| Three months ended | Year ended | |||||||||
| (in millions of dollars) | October 26, 2025 | October 27, 2024 | October 26, 2025 | October 27, 2024 | ||||||
| Operating earnings | $ | 32.7 | $ | 30.6 | $ | 159.2 | $ | 114.7 | ||
| Including | ||||||||||
| Realized gains (losses) on non-designated foreign exchange contracts(1) | (0.4 | ) | — | 0.8 | — | |||||
| Excluding | ||||||||||
| Restructuring and other costs (revenues) | 2.2 | 1.5 | (38.9 | ) | 11.2 | |||||
| Amortization of intangible assets arising from business combinations(2) | 13.3 | 14.4 | 54.4 | 60.9 | ||||||
| Impairment of assets | — | — | — | 0.6 | ||||||
| Adjusted operating earnings | $ | 47.8 | $ | 46.5 | $ | 175.5 | $ | 187.4 | ||
| Depreciation and amortization(3) | 20.1 | 19.2 | 82.1 | 74.8 | ||||||
| Adjusted operating earnings before depreciation and amortization | $ | 67.9 | $ | 65.7 | $ | 257.6 | $ | 262.2 | ||
| (1) To mitigate the impact of foreign currency fluctuations when consolidating the Packaging Sector’s earnings, the Corporation sometimes uses foreign exchange contracts. These contracts are not designated as part of a hedge accounting relationship, and resulting exchange gains or losses are added to adjusted operating earnings and adjusted operating earnings before depreciation and amortization. (2) Amortization of intangible assets arising from business combinations includes our customer relationships. (3) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations. | ||||||||||
| Reconciliation of operating earnings –Fourth quarter and fiscal yearfor the Retail Services and Printing Sector | ||||||||
| Three months ended | Year ended | |||||||
| (in millions of dollars) | October 26, 2025 | October 27, 2024 | October 26, 2025 | October 27, 2024 | ||||
| Operating earnings | $ | 38.7 | $ | 47.5 | $ | 146.2 | $ | 118.6 |
| Excluding | ||||||||
| Restructuring and other costs | 2.9 | 2.5 | 10.4 | 22.1 | ||||
| Amortization of intangible assets arising from business combinations(1) | 0.6 | 0.4 | 2.3 | 3.4 | ||||
| Impairment of assets | 1.2 | 2.2 | 1.2 | 9.1 | ||||
| Adjusted operating earnings | $ | 43.4 | $ | 52.6 | $ | 160.1 | $ | 153.2 |
| Depreciation and amortization(2) | 10.7 | 11.0 | 42.3 | 47.8 | ||||
| Adjusted operating earnings before depreciation and amortization | $ | 54.1 | $ | 63.6 | $ | 202.4 | $ | 201.0 |
| (1) Amortization of intangible assets arising from business combinations includes our customer relationships, non-compete agreements and trade names with finite useful lives. (2) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations. | ||||||||
| Reconciliation of operating earnings –Fourth quarter and fiscal yearfor the Other Sector | |||||||||||
| Three months ended | Year ended | ||||||||||
| (in millions of dollars) | October 26, 2025 | October 27, 2024 | October 26, 2025 | October 27, 2024 | |||||||
| Operating earnings | $ | (4.5 | ) | $ | 1.2 | $ | (41.3 | ) | $ | (23.8 | ) |
| Excluding | |||||||||||
| Restructuring and other costs (revenues) | 10.9 | 3.1 | 11.3 | 0.6 | |||||||
| Amortization of intangible assets arising from business combinations(1) | 0.4 | 0.6 | 1.8 | 2.1 | |||||||
| Impairment of assets | 2.6 | 1.1 | 8.3 | 1.1 | |||||||
| Adjusted operating earnings | $ | 9.4 | $ | 6.0 | $ | (19.9 | ) | $ | (20.0 | ) | |
| Depreciation and amortization(2) | 6.2 | 6.9 | 26.1 | 26.2 | |||||||
| Adjusted operating earnings before depreciation and amortization | $ | 15.6 | $ | 12.9 | $ | 6.2 | $ | 6.2 | |||
| (1) Amortization of intangible assets arising from business combinations includes our rights of first refusal and educational book titles. (2) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations. | |||||||||||
| Reconciliation of net earnings attributable to shareholders of the Corporation –Fourth quarter and fiscal year | ||||||||||||
| Three months ended | Year ended | |||||||||||
| (in millions of dollars, except per share amounts) | October 26, 2025 | October 27, 2024 | October 26, 2025 | October 27, 2024 | ||||||||
| Net earnings attributable to shareholders of the Corporation | $ | 42.9 | $ | 47.9 | $ | 171.0 | $ | 121.3 | ||||
| Excluding | ||||||||||||
| Restructuring and other costs (revenues) | 16.0 | 7.1 | (17.2 | ) | 33.9 | |||||||
| Tax on restructuring and other costs (revenues) | (3.7 | ) | (1.8 | ) | 12.4 | (8.6 | ) | |||||
| Amortization of intangible assets arising from business combinations(1) | 14.3 | 15.4 | 58.5 | 66.4 | ||||||||
| Tax on amortization of intangible assets arising from business combinations | (3.7 | ) | (3.8 | ) | (14.5 | ) | (16.3 | ) | ||||
| Impairment of assets | 3.8 | 3.3 | 9.5 | 10.8 | ||||||||
| Tax on impairment of assets | (1.0 | ) | (0.8 | ) | (2.5 | ) | (2.7 | ) | ||||
| Recognition of previous years tax assets of an acquired company | — | — | — | (3.4 | ) | |||||||
| Adjusted net earnings attributable to shareholders of the Corporation | $ | 68.6 | $ | 67.3 | $ | 217.2 | $ | 201.4 | ||||
| Net earnings attributable to shareholders of the Corporation per share | $ | 0.51 | $ | 0.57 | $ | 2.04 | $ | 1.41 | ||||
| Adjusted net earnings attributable to shareholders of the Corporation per share | $ | 0.82 | $ | 0.79 | $ | 2.59 | $ | 2.34 | ||||
| Weighted average number of shares outstanding | 83.6 | 84.8 | 83.8 | 86.1 | ||||||||
| (1) Amortization of intangible assets arising from business combinations include our customer relationships, educational book titles, non-compete agreements, trade names with finite useful lives and rights of first refusal. | ||||||||||||
| Reconciliation of net indebtedness | ||||||
| (in millions of dollars, except ratios) | As at October 26, 2025 | As at October 27, 2024 | ||||
| Long-term debt | $ | 417.6 | $ | 668.1 | ||
| Current portion of long-term debt | 253.2 | 201.0 | ||||
| Lease liabilities | 91.1 | 95.8 | ||||
| Current portion of lease liabilities | 25.5 | 24.1 | ||||
| Cash | (47.0 | ) | (185.2 | ) | ||
| Net indebtedness | $ | 740.4 | $ | 803.8 | ||
| Adjusted operating earnings before depreciation and amortization (last 12 months) | $ | 466.2 | $ | 469.4 | ||
| Net indebtedness ratio | 1.59 | x | 1.71 | x | ||
Dividend
The Corporation’s Board of Directors declared a quarterly dividend of $0.225 per share on Class A Subordinate Voting Shares and Class B Shares. This dividend is payable on January 20, 2026, to shareholders of record at the close of business on January 6, 2026.
Normal Course Issuer Bid
On June 12, 2024, the Corporation was authorized to repurchase for cancellation, on the open market or subject to the approval of any securities authority by private agreements, between June 17, 2024 and June 16, 2025, or at an earlier date if the Corporation concludes or cancels the offer, up to 3,662,967 of its Class A Subordinate Voting Shares and up to 668,241 of its Class B Shares. The repurchases are made in the normal course of business at market prices through the Toronto Stock Exchange.
During fiscal year 2025, the Corporation repurchased and cancelled 934,434 Class A Subordinate Voting Shares at a weighted average price of $17.38 and 3,600 Class B Shares at a weighted average price of $17.27, for a total cash consideration of $16.3 million. As at October 26, 2025, the Corporation had no share repurchase program in effect.
Additional information
Conference Call
Upon releasing its results for the fourth quarter and fiscal year 2025, the Corporation will hold a conference call for the financial community on December 11, 2025, at 8:00 a.m. The dial-in numbers are 1-289-514-5100 or 1-800-717-1738. Media may hear the call in listen-only mode or tune in to the simultaneous audio broadcast on TC Transcontinental’s website, which will then be archived for 30 days. For media requests or interviews, please contact Laurence Boucicault, Senior Advisor, Corporate Communications of TC Transcontinental, at 438-226-0469.
Profile
TC Transcontinental is a North American leader in flexible packaging, a Canadian retail marketing services provider, Canada’s largest printer and the Canadian leader in French-language educational publishing. Since 1976, TC Transcontinental’s mission has been to create quality products and services that allow businesses to attract, reach and retain their target customers.
Respect, teamwork, performance and innovation are the strong values held by the Corporation and its employees. TC Transcontinental’s commitment to its stakeholders is to pursue its business activities in a responsible manner.
Transcontinental Inc. (TSX: TCL.A TCL.B), known as TC Transcontinental, has approximately 7,600 employees, the majority of which are based in Canada, the United States and Latin America. TC Transcontinental generated revenues of $2.7 billion during the fiscal year ended October 26, 2025. For more information, visit TC Transcontinental’s website at www.tc.tc.
Forward-looking Statements
Our public communications often contain oral or written forward-looking statements which are based on the expectations of management and inherently subject to a certain number of risks and uncertainties, known and unknown. By their very nature, forward-looking statements are derived from both general and specific assumptions. The Corporation cautions against undue reliance on such statements since actual results or events may differ materially from the expectations expressed or implied in them. Forward-looking statements may include observations concerning the Corporation’s objectives, strategy, anticipated financial results and business outlook. The Corporation’s future performance may also be affected by a number of factors, many of which are beyond the Corporation’s will or control. These factors include, but are not limited to the impact of digital product development and adoption, the impact of changes in the participants in the distribution of newspapers and printed advertising materials and the disruption in their activities resulting mainly from labour disputes, including at Canada Post, the impact of regulations or legislation regarding door-to-door distribution on the printing of paper flyers or printed advertising materials, inflation and recession risks, economic conditions and geopolitical uncertainty, environmental risks as well as adoption of new regulations or amendments and changes to consumption habits, risk of an operational disruption that could be harmful to its ability to meet deadlines, the worldwide outbreak of a disease, a virus or any other contagious disease could have an adverse impact on the Corporation’s operations, the ability to generate organic long-term growth and face competition, a significant increase in the cost of raw materials, the availability of those materials and energy consumption could have an adverse impact on the Corporation’s activities, the ability to complete business acquisitions and disposals and properly integrate acquisitions, cybersecurity, data protection, warehousing and usage, the impact of digital product development and adoption on the demand for printed products other than flyers, the failure of patents, trademarks and confidentiality agreements to protect intellectual property, a difficulty to attract and retain employees in the main operating sectors, the safety and quality of packaging products used in the food industry, bad debts from certain customers, import and export controls, duties, tariffs or taxes, exchange rate fluctuations, increase in market interest rates with respect to our financial instruments as well as availability of capital at a reasonable cost, the legal risks related to its activities and the compliance of its activities with applicable regulations, the impact of major market fluctuations on the solvency of defined benefit pension plans, changes in tax legislation and disputes with tax authorities or amendments to statutory tax rates in force, the impact of impairment tests on the value of assets and a conflict of interest between the controlling shareholder and other shareholders. The main risks, uncertainties and factors that could influence actual results are described in the Management’s Discussion and Analysis for the fiscal year ended October 26, 2025 and in the latest Annual Information Form.
Unless otherwise indicated by the Corporation, forward-looking statements do not take into account the potential impact of non-recurring or other unusual items, nor of disposals, business combinations, mergers or acquisitions which may be announced or entered into after the date of December 10, 2025. The forward-looking statements in this press release are made pursuant to the “safe harbour” provisions of applicable Canadian securities legislation. The forward-looking statements in this release are based on current expectations and information available as at December 10, 2025. Such forward-looking information may also be found in other documents filed with Canadian securities regulators or in other communications. The Corporation’s management disclaims any intention or obligation to update or revise these statements unless otherwise required by the securities authorities.
For information:
| Media Laurence Boucicault Senior Advisor, Corporate Communications TC Transcontinental Telephone: 438-226-0469 laurence.boucicault@tc.tc www.tc.tc | Financial Community Yan Lapointe |
| CONSOLIDATED STATEMENTS OF EARNINGS |
| Years ended October 26, 2025 and October 27, 2024 |
| (in millions of Canadian dollars, unless otherwise indicated and per share data) |
| October 26, | October 27, | |||||
| 2025 | 2024 | |||||
| Revenues | $ | 2,743.9 | $ | 2,812.9 | ||
| Operating expenses | 2,278.5 | 2,343.5 | ||||
| Restructuring and other costs (revenues) | (17.2 | ) | 33.9 | |||
| Impairment of assets | 9.5 | 10.8 | ||||
| Operating earnings before depreciation and amortization | 473.1 | 424.7 | ||||
| Depreciation and amortization | 209.0 | 215.2 | ||||
| Operating earnings | 264.1 | 209.5 | ||||
| Net financial expenses | 42.3 | 60.0 | ||||
| Earnings before income taxes | 221.8 | 149.5 | ||||
| Income taxes | 50.4 | 27.6 | ||||
| Net earnings | 171.4 | 121.9 | ||||
| Non-controlling interests | 0.4 | 0.6 | ||||
| Net earnings attributable to shareholders of the Corporation | $ | 171.0 | $ | 121.3 | ||
| Net earnings attributable to shareholders of the Corporation per share – basic and diluted | $ | 2.04 | $ | 1.41 | ||
| Weighted average number of shares outstanding – basic and diluted (in millions) | 83.8 | 86.1 | ||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
| Years ended October 26, 2025 and October 27, 2024 |
| (in millions of Canadian dollars) |
| October 26, | October 27, | ||||||
| 2025 | 2024 | ||||||
| Net earnings | $ | 171.4 | $ | 121.9 | |||
| Other comprehensive (loss) income | |||||||
| Items that may be subsequently reclassified to net earnings | |||||||
| Net change related to cash flow hedges | |||||||
| Net change in the fair value of designated derivatives – foreign exchange risk | (7.0 | ) | 0.7 | ||||
| Net change in the fair value of designated derivatives – interest rate risk | (0.4 | ) | (1.4 | ) | |||
| Reclassification of the net change in the fair value of designated derivatives | |||||||
| recognized in net earnings during the year | 4.4 | 1.5 | |||||
| Related income taxes (recovery) | (0.8 | ) | 0.2 | ||||
| (2.2 | ) | 0.6 | |||||
| Cumulative translation differences | |||||||
| Net unrealized exchange gains on the translation of | |||||||
| the financial statements of foreign operations | 13.1 | 15.4 | |||||
| Reclassification to net earnings of net exchange gains on the translation of | |||||||
| the financial statements of foreign operations during the year | (8.2 | ) | — | ||||
| Net losses on hedge of the net investment in foreign operations | (10.8 | ) | (3.5 | ) | |||
| Related income tax recovery | (2.2 | ) | (4.2 | ) | |||
| (3.7 | ) | 16.1 | |||||
| Items that will not be reclassified to net earnings | |||||||
| Changes related to defined benefit plans | |||||||
| Actuarial losses on defined benefit plans | (4.8 | ) | (2.8 | ) | |||
| Related income tax recovery | (1.3 | ) | (0.8 | ) | |||
| (3.5 | ) | (2.0 | ) | ||||
| Other comprehensive (loss) income | (9.4 | ) | 14.7 | ||||
| Comprehensive income | $ | 162.0 | $ | 136.6 | |||
| CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |
| Years ended October 26, 2025 and October 27, 2024 |
| (in millions of Canadian dollars) |
| Accumulated | |||||||||||||||||||
| other | Non- | ||||||||||||||||||
| Share | Contributed | Retained | comprehensive | controlling | Total | ||||||||||||||
| capital | surplus | earnings | income | Total | interests | equity | |||||||||||||
| Balance as at October 27, 2024 | $ | 619.2 | $ | 0.9 | $ | 1,237.5 | $ | 51.7 | $ | 1,909.3 | $ | 5.5 | $ | 1,914.8 | |||||
| Net earnings | — | — | 171.0 | — | 171.0 | 0.4 | 171.4 | ||||||||||||
| Other comprehensive loss | — | — | — | (9.4 | ) | (9.4 | ) | — | (9.4 | ) | |||||||||
| Shareholders’ contributions and | |||||||||||||||||||
| distributions to shareholders | |||||||||||||||||||
| Share repurchases and related income taxes | (7.8 | ) | — | 8.8 | — | 1.0 | — | 1.0 | |||||||||||
| Dividends | — | — | (159.0 | ) | — | (159.0 | ) | — | (159.0 | ) | |||||||||
| Balance as at October 26, 2025 | $ | 611.4 | $ | 0.9 | $ | 1,258.3 | $ | 42.3 | $ | 1,912.9 | $ | 5.9 | $ | 1,918.8 | |||||
| Balance as at October 29, 2023 | $ | 636.6 | $ | 0.9 | $ | 1,226.8 | $ | 37.0 | $ | 1,901.3 | $ | 4.9 | $ | 1,906.2 | |||||
| Net earnings | — | — | 121.3 | — | 121.3 | 0.6 | 121.9 | ||||||||||||
| Other comprehensive income | — | — | — | 14.7 | 14.7 | — | 14.7 | ||||||||||||
| Shareholders’ contributions and | |||||||||||||||||||
| distributions to shareholders | |||||||||||||||||||
| Share repurchases and related income taxes | (17.4 | ) | — | (33.2 | ) | — | (50.6 | ) | — | (50.6 | ) | ||||||||
| Dividends | — | — | (77.4 | ) | — | (77.4 | ) | — | (77.4 | ) | |||||||||
| Balance as at October 27, 2024 | $ | 619.2 | $ | 0.9 | $ | 1,237.5 | $ | 51.7 | $ | 1,909.3 | $ | 5.5 | $ | 1,914.8 | |||||
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
| Years ended October 26, 2025 and October 27, 2024 |
| (in millions of Canadian dollars) |
| As at | As at | ||||
| October 26, | October 27, | ||||
| 2025 | 2024 | ||||
| Current assets | |||||
| Cash | $ | 47.0 | $ | 185.2 | |
| Accounts receivable | 468.1 | 504.4 | |||
| Income taxes receivable | 7.2 | 28.7 | |||
| Inventories | 378.4 | 365.7 | |||
| Prepaid expenses and other current assets | 25.0 | 21.7 | |||
| Assets held for sale | 12.0 | 108.9 | |||
| 937.7 | 1,214.6 | ||||
| Property, plant and equipment | 725.5 | 751.4 | |||
| Right-of-use assets | 98.5 | 99.6 | |||
| Intangible assets | 328.0 | 354.5 | |||
| Goodwill | 1,179.5 | 1,154.0 | |||
| Deferred taxes | 47.3 | 35.9 | |||
| Other assets | 30.0 | 31.3 | |||
| $ | 3,346.5 | $ | 3,641.3 | ||
| Current liabilities | |||||
| Accounts payable and accrued liabilities | $ | 435.2 | $ | 495.1 | |
| Income taxes payable | 3.5 | 21.1 | |||
| Deferred revenues and deposits | 8.5 | 10.9 | |||
| Current portion of long-term debt | 253.2 | 201.0 | |||
| Current portion of lease liabilities | 25.5 | 24.1 | |||
| Liabilities held for sale | — | 13.1 | |||
| 725.9 | 765.3 | ||||
| Long-term debt | 417.6 | 668.1 | |||
| Lease liabilities | 91.1 | 95.8 | |||
| Deferred taxes | 72.1 | 70.3 | |||
| Other liabilities | 121.0 | 127.0 | |||
| 1,427.7 | 1,726.5 | ||||
| Equity | |||||
| Share capital | 611.4 | 619.2 | |||
| Contributed surplus | 0.9 | 0.9 | |||
| Retained earnings | 1,258.3 | 1,237.5 | |||
| Accumulated other comprehensive income | 42.3 | 51.7 | |||
| Attributable to shareholders of the Corporation | 1,912.9 | 1,909.3 | |||
| Non-controlling interests | 5.9 | 5.5 | |||
| 1,918.8 | 1,914.8 | ||||
| $ | 3,346.5 | $ | 3,641.3 | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| Years ended October 26, 2025 and October 27, 2024 |
| (in millions of Canadian dollars) |
| October 26, | October 27, | ||||||
| 2025 | 2024 | ||||||
| Operating activities | |||||||
| Net earnings | $ | 171.4 | $ | 121.9 | |||
| Adjustments to reconcile net earnings and cash flows from operating activities: | |||||||
| Impairment of assets | 9.5 | 10.8 | |||||
| Depreciation and amortization | 209.0 | 215.2 | |||||
| Financial expenses on long-term debt and lease liabilities | 40.0 | 47.7 | |||||
| Net losses (gains) on disposal of assets | 0.4 | (5.1 | ) | ||||
| Gain on business disposal | (46.0 | ) | — | ||||
| Income taxes | 50.4 | 27.6 | |||||
| Net foreign exchange differences and other | (2.0 | ) | (0.9 | ) | |||
| Cash flows generated by operating activities before changes in non-cash | |||||||
| operating items and income taxes paid | 432.7 | 417.2 | |||||
| Changes in non-cash operating items | (26.7 | ) | 33.7 | ||||
| Income taxes paid | (51.8 | ) | (37.2 | ) | |||
| Cash flows from operating activities | 354.2 | 413.7 | |||||
| Investing activities | |||||||
| Business combinations, net of acquired cash | (21.7 | ) | — | ||||
| Business disposal | 132.0 | — | |||||
| Acquisitions of property, plant and equipment | (69.3 | ) | (95.1 | ) | |||
| Disposals of property, plant and equipment and other | 0.2 | 8.9 | |||||
| Increase in intangible assets | (30.2 | ) | (26.4 | ) | |||
| Cash flows from investing activities | 11.0 | (112.6 | ) | ||||
| Financing activities | |||||||
| Reimbursement of long-term debt | (225.8 | ) | (3.1 | ) | |||
| Net decrease in credit facilities | (14.6 | ) | (75.4 | ) | |||
| Settlement of cross-currency fixed-to-floating interest rate swaps | (25.9 | ) | — | ||||
| Financial expenses paid and financing expenses paid on long-term debt and credit facilities | (39.3 | ) | (43.3 | ) | |||
| Repayment of principal on lease liabilities | (24.7 | ) | (23.0 | ) | |||
| Interest paid on lease liabilities | (4.1 | ) | (3.5 | ) | |||
| Dividends | (159.0 | ) | (77.4 | ) | |||
| Shares repurchased | (16.3 | ) | (32.3 | ) | |||
| Cash flows from financing activities | (509.7 | ) | (258.0 | ) | |||
| Effect of exchange rate changes on cash denominated in foreign currencies | 6.3 | 5.1 | |||||
| Net change in cash | (138.2 | ) | 48.2 | ||||
| Cash at beginning of year | 185.2 | 137.0 | |||||
| Cash at end of year | $ | 47.0 | $ | 185.2 | |||
| Non-cash investing activities | |||||||
| Net change in capital asset acquisitions financed by accounts payable | $ | (2.2 | ) | $ | (9.4 | ) | |
| CONSOLIDATED STATEMENTS OF EARNINGS |
| Unaudited |
| (in millions of Canadian dollars, unless otherwise indicated and per share data) |
| Three months ended | |||||
| October 26, | October 27, | ||||
| 2025 | 2024 | ||||
| Revenues | $ | 732.4 | $ | 749.3 | |
| Operating expenses | 594.4 | 607.1 | |||
| Restructuring and other costs | 16.0 | 7.1 | |||
| Impairment of assets | 3.8 | 3.3 | |||
| Operating earnings before depreciation and amortization | 118.2 | 131.8 | |||
| Depreciation and amortization | 51.3 | 52.5 | |||
| Operating earnings | 66.9 | 79.3 | |||
| Net financial expenses | 13.0 | 16.1 | |||
| Earnings before income taxes | 53.9 | 63.2 | |||
| Income taxes | 11.0 | 15.2 | |||
| Net earnings | 42.9 | 48.0 | |||
| Non-controlling interests | — | 0.1 | |||
| Net earnings attributable to shareholders of the Corporation | $ | 42.9 | $ | 47.9 | |
| Net earnings attributable to shareholders of the Corporation per share – basic and diluted | $ | 0.51 | $ | 0.57 | |
| Weighted average number of shares outstanding – basic and diluted (in millions) | 83.6 | 84.8 | |||
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| Unaudited |
| (in millions of Canadian dollars) |
| Three months ended | |||||||
| October 26, | October 27, | ||||||
| 2025 | 2024 | ||||||
| Operating activities | |||||||
| Net earnings | $ | 42.9 | $ | 48.0 | |||
| Adjustments to reconcile net earnings and cash flows from operating activities: | |||||||
| Impairment of assets | 3.8 | 3.3 | |||||
| Depreciation and amortization | 51.3 | 52.5 | |||||
| Financial expenses on long-term debt and lease liabilities | 9.3 | 12.5 | |||||
| Net losses on disposal of assets | 0.1 | 0.5 | |||||
| Income taxes | 11.0 | 15.2 | |||||
| Net foreign exchange differences and other | 1.3 | 0.5 | |||||
| Cash flows generated by operating activities before changes in non-cash | |||||||
| operating items and income taxes paid | 119.7 | 132.5 | |||||
| Changes in non-cash operating items | 64.9 | 61.9 | |||||
| Income taxes paid | (12.1 | ) | (9.4 | ) | |||
| Cash flows from operating activities | 172.5 | 185.0 | |||||
| Investing activities | |||||||
| Business combinations, net of acquired cash | (17.6 | ) | — | ||||
| Acquisitions of property, plant and equipment | (17.0 | ) | (19.2 | ) | |||
| Disposals of property, plant and equipment and other | — | 0.1 | |||||
| Increase in intangible assets | (6.3 | ) | (5.0 | ) | |||
| Cash flows from investing activities | (40.9 | ) | (24.1 | ) | |||
| Financing activities | |||||||
| Reimbursement of long-term debt | (23.9 | ) | (0.9 | ) | |||
| Net decrease in credit facilities | (63.6 | ) | — | ||||
| Financial expenses paid and financing expenses paid on long-term debt and credit facilities | (8.0 | ) | (15.6 | ) | |||
| Repayment of principal on lease liabilities | (6.2 | ) | (5.8 | ) | |||
| Interest paid on lease liabilities | (1.0 | ) | (1.0 | ) | |||
| Dividends | (18.8 | ) | (19.0 | ) | |||
| Shares repurchased | — | (14.6 | ) | ||||
| Cash flows from financing activities | (121.5 | ) | (56.9 | ) | |||
| Effect of exchange rate changes on cash denominated in foreign currencies | 1.0 | 1.3 | |||||
| Net change in cash | 11.1 | 105.3 | |||||
| Cash at beginning of period | 35.9 | 79.9 | |||||
| Cash at end of period | $ | 47.0 | $ | 185.2 | |||
| Non-cash investing activities | |||||||
| Net change in capital asset acquisitions financed by accounts payable | $ | (0.3 | ) | $ | 2.2 | ||
