Quad Improves 2026 Sales Guidance as Q3 Adjusted EPS Rises 13%

Quad/Graphics, Inc. reported net sales of $587 million for the third quarter ended September 30, 2026, consistent with $588 million in the same period of 2025, and updated its full-year 2026 guidance to narrow its projected net sales decline, the Sussex, Wisconsin-based marketing experience company said in its earnings release published October 28, 2026.

Third-quarter net earnings were $6 million, or $0.11 per diluted share, compared with net earnings of $10 million, or $0.21 per diluted share, in the third quarter of 2025. Quad attributed the decrease primarily to increased restructuring, impairment and transaction-related charges, net, partially offset by lower income tax expense, lower selling, general and administrative expenses, lower interest expense and lower depreciation and amortization. Non-GAAP adjusted EBITDA was $51 million, compared with $53 million a year earlier, a decrease the company attributed primarily to the mix of net sales. Adjusted diluted earnings per share were $0.35, versus $0.31 in the prior-year quarter, an increase of 13%.

Year-To-Date Results, Cash Flow and Net Debt

Net sales were $1.7 billion in the nine months ended September 30, 2026, a decrease of 2% from the same period in 2025. Excluding the 1% impact of the divestiture of Quad’s European operations, net sales declined 1%, primarily due to lower large-scale print volumes and lower agency solutions sales, partially offset by higher logistics sales and higher paper sales, the company said. Net earnings were $15 million, or $0.31 per diluted share, versus $16 million, or $0.32 per diluted share, in the prior-year period, with the decrease again attributed primarily to increased restructuring, impairment and transaction-related charges, net. Adjusted EBITDA was $138 million, compared with $141 million a year earlier, and adjusted diluted earnings per share were $0.84, versus $0.65, an increase of 29%.

Net cash used in operating activities was $62 million in the nine-month period, compared with $50 million in the same period of 2025, and free cash flow was negative $100 million, versus negative $87 million. The company noted that it has historically generated most of its free cash flow in the fourth quarter of the year. Net debt was $422 million at September 30, 2026, compared with $308 million at December 31, 2025, and $465 million at September 30, 2025. Quad attributed the increase since year-end primarily to the negative free cash flow and the payment of cash dividends and share repurchases, partially offset by proceeds from the sale of property, plant and equipment in Peru, and said net debt decreased $43 million, or 9%, when removing seasonality.

Updated 2026 Guidance and Capital Returns

Under the updated guidance, the adjusted annual net sales change is set at a decline of 1% to 3%, narrowed from the original range of a 1% to 5% decline, which the company said improves the midpoint from a 3% decline to a 2% decline. Full-year adjusted EBITDA guidance narrowed to $185 million to $195 million, from $175 million to $215 million, while free cash flow guidance narrowed to $45 million to $55 million, from $40 million to $60 million. Capital expenditures guidance moved to approximately $55 million, from a range of $55 million to $65 million, and the year-end net debt leverage ratio guidance was maintained at approximately 1.5x. A footnote to the guidance table states that the adjusted annual net sales change excludes 2025 net sales of $23 million from the European operations divested on February 28, 2025, and that the net debt leverage ratio is calculated at the midpoint of the adjusted EBITDA guidance.

Quad’s next quarterly dividend of $0.10 per share is payable on December 4, 2026, to shareholders of record as of November 17, 2026. Chief Financial Officer and Treasurer Tony Staniak said the company has returned $23 million of capital to shareholders year-to-date through $15 million of cash dividends and $8 million of share repurchases, and that Quad expects to remain opportunistic on future share repurchases. The company repurchased 1.0 million shares of its Class A common stock in 2026, bringing total repurchases to 8.4 million shares since buybacks commenced in 2022, representing approximately 15% of shares outstanding at March 31, 2022.

Staniak said the improved sales guidance demonstrates continued advancement from the previous 2026 guidance and from the 4.8% net sales decline reported for full-year 2025 when adjusting for the European divestiture, calling it “another meaningful measure of progress” toward Quad’s goal of an inflection to net sales growth in 2028. He said the company expects a net debt leverage ratio of 1.5x at year-end 2026, is closely monitoring macroeconomic uncertainties and is managing the business by treating all costs as variable, optimizing capacity utilization and maintaining strong labor management, initiatives he said drive productivity gains that help offset secular declines in large-scale print.

Chairman and Chief Executive Officer Joel Quadracci said: “Clients are increasingly engaging multiple Quad solutions, supporting new-business growth and advancing our position as an integrated marketing experience company.” He said retailers including Wakefern and Chedraui USA’s Smart & Final banner recently expanded their relationships with Quad beyond print to the company’s In-Store Connect and Rise media services, and that Quad continues to strengthen its platform operating model through automation, AI-enabled tools and disciplined cost management.

Quad also announced Direct, its newly branded full-service direct marketing agency, which provides integrated audience intelligence, pre-market creative validation, production and measurement solutions. During the quarter, the company’s In-Store Connect retail network signed its first national retailer, with screens to launch across 30 Florida stores this winter.

Quad will hold a live webcast and conference call to discuss the results on Thursday, October 29, 2026, at 8:30 a.m. Eastern Time, accessible through the investor relations section of the company’s website, with a replay available afterward.