SUSSEX, Wis. – October 29, 2026 -- Quad/Graphics (NYSE: QUAD) raised the midpoint of its full-year 2026 Adjusted Annual Net Sales Change guidance from -3% to -2%, after third-quarter Net Sales of $587 million held essentially flat against $588 million a year earlier.
Adjusted Diluted Earnings Per Share rose 13% to $0.35 from $0.31. Net Earnings fell to $6 million, or $0.11 per diluted share, from $10 million, or $0.21, on higher restructuring, impairment and transaction-related charges, net.
Quad narrows EBITDA and free cash flow guidance within original ranges
Besides the sales change, the company narrowed Adjusted EBITDA and Free Cash Flow guidance within its original ranges. It maintained its year-end 2026 Net Debt Leverage Ratio target at approximately 1.5x.
Third-quarter Adjusted EBITDA was $51 million versus $53 million in 2025. Quad attributed the decline primarily to Net Sales mix. Higher logistics sales offset lower large-scale print volumes and lower agency solutions sales.
CFO Tony Staniak tied the improved sales range to progress toward Quad's goal of returning to Net Sales growth in 2028. Full-year 2025 Net Sales fell 4.8% when adjusted for the divestiture of European operations effective February 2025.
Nine-month Net Sales fall 2% as free cash flow stays negative at $100 million
Net Sales for the nine months ended September 30 were $1.7 billion, down 2%. Excluding a 1% impact from the European divestiture, the decline was 1%. Lower large-scale print and agency solutions sales were partly offset by higher logistics and paper sales.
Nine-month Net Earnings were $15 million, or $0.31 per diluted share, against $16 million, or $0.32, a year earlier. Adjusted EBITDA slipped to $138 million from $141 million. Adjusted Diluted EPS climbed 29% to $0.84 from $0.65.
Net Cash Used in Operating Activities reached $62 million versus $50 million in 2025. Free Cash Flow was negative $100 million versus negative $87 million. Quad noted that it historically generates most of its Free Cash Flow in the fourth quarter.
Net debt stands at $422 million, down $43 million year over year on a seasonally adjusted basis
Net Debt was $422 million at September 30, versus $308 million at December 31, 2025, and $465 million at September 30, 2025. The increase since year-end reflects the negative $100 million in Free Cash Flow, dividends and share repurchases. Proceeds from the sale of property, plant and equipment in Peru partly offset it. Removing seasonality, Net Debt fell $43 million, or 9%.
Shareholder returns reach $23 million year-to-date, with 8.4 million shares repurchased since 2022
Year-to-date returns comprised $15 million in cash dividends and $8 million in share repurchases. Quad bought back 1.0 million Class A shares in 2026. Cumulative repurchases since 2022 total 8.4 million shares, roughly 15% of the shares outstanding at March 31, 2022. The next quarterly dividend of $0.10 per share is payable December 4, 2026, to holders of record as of November 17. Management expects to remain opportunistic on future buybacks.
Direct agency launch and first national In-Store Connect retailer anchor growth push
Quad introduced Direct, a full-service direct marketing agency that combines audience intelligence, pre-market creative validation, production and measurement. It also signed the first national retailer for its In-Store Connect network, with screens set to launch across 30 Florida stores this winter.
Wakefern and Chedraui USA's Smart & Final banner have expanded their Quad relationships beyond print to In-Store Connect and Rise media services. Chairman and CEO Joel Quadracci said automation, AI-enabled tools and cost discipline are lifting productivity and margins. Staniak said Quad is treating all costs as variable while monitoring macroeconomic uncertainty and rising costs.
Quad will host a webcast and conference call on October 29 at 8:30 a.m. ET.