{"success":true,"data":{"pressRelease":{"id":"139344","rtpr_id":"nGNX2FTLyd-20260909","ticker":"TCLA","exchange":"TSX","all_tickers":["TCLA"],"title":"Transcontinental Inc. Announces Results for the Third Quarter of Fiscal Year 2026","author":"Globe Newswire","published_at":"2026-09-09T13:25:00.561Z","article_body":"Highlights\n* Revenues of $306.0 million for the quarter ended July 26, 2026; operating\nearnings of $66.9 million; and net earnings from continuing operations of\n$36.9 million ($0.44 per share).\n* Adjusted operating earnings before depreciation and amortization(()(1)) of\n$60.9 million for the quarter ended July 26, 2026; adjusted operating\nearnings(()(1)) of $43.6 million; and adjusted net earnings from continuing\noperations(()(1)) of $27.1 million (0.32 $ per share).\n* Successful nationwide rollout of raddar(®).\n* Sale of two buildings for a net consideration of $36.5 million.\n((1) Please refer to the \"Non-IFRS Financial Measures\" section of this press\nrelease for a definition of these measures.)\n\nMONTREAL, Sept. 09, 2026 (GLOBE NEWSWIRE) -- Transcontinental Inc. (TSX: TCL.A\nTCL.B) announces its results for the third quarter of fiscal year 2026 ended\nJuly 26, 2026.\n\n\"We had anticipated improved performance for the second half of our fiscal\nyear, and our results for the third quarter live up to expectations with an\nincrease in adjusted operating earnings before depreciation and amortization,\"\nsaid Sam Bendavid, Chief Executive Officer of TC Transcontinental. \"In this\ncontinuity, I am confident that we will end fiscal year 2026 with results that\nmeet our financial outlook.\"\n\n\"In the Retail Services and Printing Sector, our acquisitions in in-store\nmarketing activities enabled us to generate growth despite the slowdown in our\ntraditional activities. In addition, the increase in volume, combined with the\ninitiatives implemented to increase profitability, enhanced the financial\nperformance of our in-store marketing and specialty activities. Furthermore,\nthe successful nationwide rollout of raddar(®), which occurred in mid-June,\nhad a positive impact on revenues for the quarter.\"\n\n\"In the Books and Education Sector, revenues decreased slightly, mainly as a\nresult of last year's solid performance and a shift in orders to the fourth\nquarter of fiscal 2026.\"\n\n\"The significant cash flows we expect to generate in the fourth quarter of\nfiscal year 2026 will enable us to reduce significantly net indebtedness by\nthe end of the fiscal year,\" added Donald LeCavalier, Executive Vice President\nand Chief Financial Officer of TC Transcontinental. \"Our financial position is\nsolid and gives us the flexibility we need to pursue our growth strategy.\"\n\nFinancial Highlights\n\n (for continuing operations, in millions of dollars, except per share amounts) Q3-2026 Q3-2025 Variation in % \n Restated ((1)) \n Revenues $ 306.0 $ 294.9 3.8 % \n Operating earnings before depreciation and amortization 85.7 47.2 81.6 \n Adjusted operating earnings before depreciation and amortization ((2)) 60.9 58.5 4.1 \n Operating earnings 66.9 29.5 126.8 \n Adjusted operating earnings ((2)) 43.6 41.7 4.6 \n Net earnings 36.9 13.0 183.8 \n Net earnings per share 0.44 0.16 175.0 \n Adjusted net earnings ((2)) 27.1 22.2 22.1 \n Adjusted net earnings per share ((2)) 0.32 0.27 18.5 \n\n((1) Please refer to the \"Discontinued Operations and Reclassification of\nComparative Figures\" section and Table #2 in the \"Accounting Restatements\"\nsection of the Management Discussion and Analysis for an explanation of the\nrestated data presented above.)\n((2) Please refer to the \"Reconciliation of Non-IFRS Financial Measures\"\nsection of this Press Release for the adjusted data presented above.)\n\nResults for the Third Quarter of Fiscal Year 2026\n\nRevenues increased by $11.1 million, or 3.8%, from $294.9 million in the third\nquarter of fiscal year 2025 to $306.0 million in the third quarter of fiscal\nyear 2026. This increase is mostly attributable to our recent acquisitions,\npartially offset by lower volume in our two sectors and, to a lesser extent,\nthe unfavourable exchange rate effect.\n\nOperating earnings before depreciation and amortization increased by $38.5\nmillion, or 81.6%, from $47.2 million in the third quarter of fiscal year 2025\nto $85.7 million in the third quarter of fiscal year 2026. This increase is\nmainly attributable to the decrease in restructuring and other costs\n(revenues) related to the net gains on the sale of two buildings, the decline\nin asset impairment charges, our recent acquisitions and our cost reductions\ninitiatives, partially offset by lower volume in our two sectors and, to a\nlesser extent, the unfavourable exchange rate effect.\n\nAdjusted operating earnings before depreciation and amortization increased by\n$2.4 million, or 4.1%, from $58.5 million in the third quarter of fiscal year\n2025 to $60.9 million in the third quarter of fiscal year 2026. This increase\nis mainly attributable to our recent acquisitions and our cost reduction\ninitiatives, partially offset by lower volume in our two sectors and the\nunfavourable exchange rate effect.\n\nNet earnings from continuing operations increased by $23.9 million, or 183.8%,\nfrom $13.0 million in the third quarter of fiscal year 2025 to $36.9 million\nin the third quarter of fiscal year 2026. This increase is mainly attributable\nto the previously explained increase in operating earnings before depreciation\nand amortization, partially offset by higher income taxes and the increase in\nfinancial expenses and, to a lesser extent, the increase in depreciation and\namortization. On a per share basis, net earnings from continuing operations\nincreased by 175.0%, from $0.16 to $0.44, respectively.\n\nAdjusted net earnings from continuing operations increased by $4.9 million, or\n22.1%, from $22.2 million in the third quarter of fiscal year 2025 to $27.1\nmillion in the third quarter of fiscal year 2026. This increase is mainly\nattributable to the decrease in financial expenses excluding foreign exchange\nlosses on non-designated financial instruments and the previously explained\nincrease in adjusted operating earnings before depreciation and amortization,\npartially offset by higher adjusted income taxes. On a per share basis,\nadjusted net earnings from continuing operations increased by 18.5%, from\n$0.27 to $0.32, respectively.\n\nResults for the First Nine Months of Fiscal Year 2026\n\nRevenues increased by $2.8 million, or 0.3%, from $835.9 million in the\nfirst nine months of fiscal year 2025 to $838.7 million in the\ncorresponding period of 2026. This increase is mainly explained by our recent\nacquisitions and the favourable exchange rate effect, mostly offset by lower\nvolume in our two sectors.\n\nOperating earnings before depreciation and amortization increased by $14.1\nmillion, or 10.9%, from $129.1 million in the first nine months of\nfiscal year 2025 to $143.2 million in the corresponding period of 2026.\nThis increase is mainly attributable to the decrease in restructuring and\nother costs (revenues), our recent acquisitions, the favourable exchange rate\neffect, the drop in asset impairment charges, our cost reduction initiatives\nand the decrease in incentive compensation, partially offset by lower volume\nin our two sectors.\n\nAdjusted operating earnings before depreciation and amortization decreased by\n$5.6 million, or 3.9%, from $145.0 million in the first nine months of\nfiscal year 2025 to $139.4 million in the corresponding period of 2026.\nThis decrease is mainly due to lower volume in our two sectors, partially\nmitigated by our recent acquisitions, the favourable exchange rate effect, our\ncost reduction initiatives and the decrease in incentive compensation.\n\nNet earnings from continuing operations increased by $7.8 million, or 23.5%,\nfrom $33.2 million in the first nine months of fiscal year 2025 to\n$41.0 million in the corresponding period of 2026. This increase is mainly\nattributable to the previously explained rise in operating earnings before\ndepreciation and amortization and lower income taxes, partially offset by the\nincrease in financial expenses and, to a lesser extent, higher depreciation\nand amortization. On a per share basis, net earnings attributable to\nshareholders of the Corporation from continuing operations increased by 22.5%,\nfrom $0.40 to $0.49, respectively.\n\nAdjusted net earnings from continuing operations increased by $2.4 million,\nor 5.1%, from $47.4 million in the first nine months of fiscal year 2025 to\n$49.8 million in the corresponding period of 2026. This increase is mainly\nattributable to the decrease in financial expenses excluding foreign exchange\nlosses on non-designated financial instruments and lower adjusted income\ntaxes, partially offset by the previously explained decline in adjusted\noperating earnings before depreciation and amortization. On a per share basis,\nadjusted net earnings from continuing operations increased by 5.3%, from $0.57\nto $0.60, respectively.\n\nFor more detailed financial information, please see the Management’s\nDiscussion and Analysis for the third quarter of fiscal year 2026 ended July\n26, 2026, as well as the financial statements in the “Investors” section\nof our website at www.tc.tc.\n\nOutlook\n\nThe closing of the sale of our Packaging Business represents a key milestone\nfor TC Transcontinental. This transaction allows us to focus our resources on\nour growth strategy, in particular in in-store marketing and educational\npublishing activities.\n\nFor fiscal year 2026, we anticipate lower volume in our traditional\nactivities, including book printing which experienced very high growth in\nfiscal year 2025. This decrease should be partially offset by growth in our\nin-store marketing and specialty activities, including the positive impact of\nacquisitions.\n\nAt the consolidated level, following the positive impact of cost reduction\ninitiatives, we expect adjusted operating earnings before depreciation and\namortization from continuing operations for fiscal year 2026 to remain stable\ncompared to fiscal year 2025.\n\nLastly, we expect to continue generating significant cash flows from operating\nactivities. Over the next quarter, this should enable us to reduce net\nindebtedness under two times adjusted operating earnings before depreciation\nand amortization for fiscal year 2026 while investing in our growth.\n\nNon-IFRS Financial Measures\n\nIn this document, unless otherwise indicated, all financial data are prepared\nin accordance with International Financial Reporting Accounting\nStandards (\"IFRS\") and the term \"dollar\", as well as the symbol \"$\" designate\nCanadian dollars.\n\nIn addition, in this press release, we also use certain non-IFRS financial\nmeasures for which a complete definition is presented below and for which a\nreconciliation to financial information in accordance with IFRS is presented\nin the \"Reconciliation of Non-IFRS Financial Measures\" section and in Note 4\n\"Segmented Information\" to the condensed interim consolidated financial\nstatements for the third quarter ended July 26, 2026.\n\n Terms Used Definitions \n Adjusted operating earnings before depreciation and amortization Operating earnings before depreciation and amortization 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. \n Adjusted operating earnings Operating earnings 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. \n 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 and foreign exchange losses on non-designated financial instruments. \n Adjusted net earnings Net earnings (loss) from continuing operations before restructuring and other costs (revenues), amortization of intangible assets arising from business combinations, impairment of assets and foreign exchange losses on non-designated financial instruments, net of related income taxes. This measure is used to assess the financial performance of the Corporation and its sectors on a comparable basis. \n 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. \n 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. \n\nReconciliation of Non-IFRS Financial Measures\n\nThe financial information has been prepared in accordance with IFRS. However,\nfinancial measures used, namely adjusted operating earnings before\ndepreciation and amortization, adjusted operating earnings margin before\ndepreciation and amortization, adjusted operating earnings, adjusted operating\nearnings margin, adjusted income taxes, adjusted net earnings from continuing\noperations, adjusted net earnings per share from continuing operations, net\nindebtedness and net indebtedness ratio, for which a reconciliation is\npresented in the following table, are not defined by IFRS. They may be\ncalculated differently and may not be comparable to similar measures presented\nby other companies. We believe that many of our readers analyze the financial\nperformance of the Corporation’s activities based on these non-IFRS\nfinancial measures as such measures may allow for easier comparisons between\nperiods. These measures should be considered as a complement to financial\nperformance measures in accordance with IFRS. They do not substitute and are\nnot superior to them.\n\nThe Corporation also believes that these measures are useful indicators of the\nperformance of its operations and its ability to meet its financial\nobligations. Furthermore, management also uses some of these non-IFRS\nfinancial measures to assess the performance of its activities and managers.\n\n Reconciliation of operating earnings from continuing operations - Third quarter and cumulative \n Three months ended Nine months ended \n July 26, 2026 July 27, 2025 July 26, 2026 July 27, 2025 \n (in millions of dollars) Restated Restated \n Operating earnings $ 66.9 $29.5 $ 89.2 $75.4 \n Excluding \n Restructuring and other costs (revenues) (24.8 ) 5.6 (7.3 ) 10.2 \n Amortization of intangible assets arising from business combinations ((1)) 1.5 0.9 5.6 3.1 \n Impairment of assets — 5.7 3.5 5.7 \n Adjusted operating earnings $ 43.6 $41.7 $ 91.0 $94.4 \n Depreciation and amortization ((2)) 17.3 16.8 48.4 50.6 \n Adjusted operating earnings before depreciation and amortization $ 60.9 $58.5 $ 139.4 $145.0 \n\n((1) Amortization of intangible assets arising from business combinations\nincludes our customer relationships, educational book titles, non-compete\nagreements, trade names with finite useful lives and rights of first refusal.)\n((2) Depreciation and amortization excludes the amortization of intangible\nassets arising from business combinations.)\n\n Reconciliation of operating earnings - Third quarter and cumulative for the Retail Services and Printing Sector \n Three months ended Nine months ended \n July 26, 2026 July 27, 2025 July 26, 2026 July 27, 2025 \n (in millions of dollars) Restated Restated Restated \n Operating earnings $ 35.8 $35.3 $ 83.7 $102.3 \n Excluding \n Restructuring and other costs 3.5 3.4 12.6 7.5 \n Amortization of intangible assets arising from business combinations ((1)) 1.2 0.5 4.6 1.7 \n Impairment of assets — — 3.5 — \n Adjusted operating earnings $ 40.5 $39.2 $ 104.4 $111.5 \n Depreciation and amortization ((2)) 8.9 9.1 24.8 27.2 \n Adjusted operating earnings before depreciation and amortization $ 49.4 $48.3 $ 129.2 $138.7 \n\n((1) Amortization of intangible assets arising from business combinations\nincludes our customer relationships, non-compete agreements and trade names\nwith finite useful lives.)\n((2) Depreciation and amortization excludes the amortization of intangible\nassets arising from business combinations.)\n\n Reconciliation of operating earnings - Third quarter and cumulative for the Books and Education Sector \n Three months ended Nine months ended \n July 26, 2026 July 27, 2025 July 26, 2026 July 27, 2025 \n (in millions of dollars) Restated Restated Restated \n Operating earnings $ 12.2 $7.3 $ 13.3 $7.6 \n Excluding \n Restructuring and other costs 0.5 1.7 0.6 1.9 \n Amortization of intangible assets arising from business combinations ((1)) 0.3 0.4 1.0 1.4 \n Impairment of assets — 5.7 — 5.7 \n Adjusted operating earnings $ 13.0 $15.1 $ 14.9 $16.6 \n Depreciation and amortization ((2)) 7.5 6.5 20.5 19.6 \n Adjusted operating earnings before depreciation and amortization $ 20.5 $21.6 $ 35.4 $36.2 \n\n((1) Amortization of intangible assets arising from business combinations\nincludes our rights of first refusal and educational book titles.)\n((2) Depreciation and amortization excludes the amortization of intangible\nassets arising from business combinations.)\n\n Reconciliation of operating earnings - Third quarter and cumulative for head office \n Three months ended Nine months ended \n July 26, 2026 July 27, 2025 July 26, 2026 July 27, 2025 \n (in millions of dollars) Restated Restated Restated \n Operating earnings (loss) $ 18.9 $(13.1 ) $ (7.8 ) $(34.5 ) \n Excluding \n Restructuring and other costs (revenues) (28.8 ) 0.5 (20.5 ) 0.8 \n Adjusted operating loss $ (9.9 ) $(12.6 ) $ (28.3 ) $(33.7 ) \n Depreciation and amortization 0.9 1.2 3.1 3.8 \n Adjusted operating loss before depreciation and amortization $ (9.0 ) $(11.4 ) $ (25.2 ) $(29.9 ) \n\n\n\n Reconciliation of net earnings from continuing operations - Third quarter and cumulative \n Three months ended Nine months ended \n July 26, 2026 July 27, 2025 July 26, 2026 July 27, 2025 \n (in millions of dollars, except per share amounts) Restated Restated \n Net earnings $ 36.9 $13.0 $ 41.0 $33.2 \n Excluding \n Restructuring and other costs (revenues) (24.8 ) 5.6 (7.3 ) 10.2 \n Tax on restructuring and other costs (revenues) 3.5 (1.3 ) (1.0 ) (2.5 ) \n Amortization of intangible assets arising from business combinations ((1)) 1.5 0.9 5.6 3.1 \n Tax on amortization of intangible assets arising from business combinations (0.4 ) (0.2 ) (1.5 ) (0.8 ) \n Impairment of assets — 5.7 3.5 5.7 \n Tax on impairment of assets — (1.5 ) (0.9 ) (1.5 ) \n Foreign exchange losses on non-designated financial instruments ((2)) 12.0 — 12.0 — \n Tax on foreign exchange losses on non-designated financial instruments (1.6 ) — (1.6 ) — \n Adjusted net earnings $ 27.1 $22.2 $ 49.8 $47.4 \n Net earnings attributable to shareholders of the Corporation per share $ 0.44 $0.16 $ 0.49 $0.40 \n Adjusted net earnings per share $ 0.32 $0.27 $ 0.60 $0.57 \n Weighted average number of shares outstanding 83.6 83.6 83.6 83.8 \n \n ((1) Amortization of intangible assets arising from business combinations includes our customer relationships, educational book titles, non-compete agreements, trade names with finite useful lives and rights of first refusal.) ((2) On July 13, 2026, concurrently with the repayment of the unsecured notes, the Corporation settled some of its cross-currency fixed interest rate swaps amounting to $100.0 million (US$80.2 million) for a consideration paid of $13.4 million. The Corporation also extended, for a \n period of approximately three months, the remaining contracts that were maturing on July 13, 2026, totaling $150.0 million (US$120.2 million). Following the sale of the Packaging Sector operations, these contracts are no longer designated as hedging instruments in net investment hedging relationships. Consequently, the change in their fair value between March 6, 2026 and July 26, 2026 has been recognized in net earnings from continuing operations. Financial expenses associated with these transactions \n amounted to $12.0 million, including realized foreign exchange losses on the repayment of contracts of $4.3 million and unrealized exchange losses on extended contracts of $7.7 million. These foreign exchange losses are excluded from adjusted net earnings as they arise from specific circumstances, namely the sale of the Packaging Sector operations, the Corporation considers these items to be non-recurring and does not expect them to have any further impact once the underlying transactions have been \n settled.) \n\n\n\n Reconciliation of net indebtedness \n As at July 26, 2026 As at October 26, 2025 \n (for continuing operations, in millions of dollars, except for ratios) Restated \n Long-term debt $ 334.5 $417.6 \n Current portion of long-term debt 10.4 253.2 \n Lease liabilities 76.1 91.1 \n Current portion of lease liabilities 19.5 25.5 \n Cash (14.7 ) (47.0 ) \n Net indebtedness $ 425.8 $740.4 \n Adjusted operating earnings before depreciation and amortization (last 12 months) $ 206.3 $211.9 \n Net indebtedness ratio 2.06 x 3.49 x \n\nDividend\n\nThe Corporation's Board of Directors declared a quarterly dividend of $0.05\nper share on Class A Subordinate Voting Shares and Class B Shares. This\ndividend is payable on October 21, 2026, to shareholders of record at the\nclose of business on October 5, 2026.\n\nAdditional information\n\nConference Call\n\nUpon releasing its results for the third quarter of fiscal year 2026, the\nCorporation will hold a conference call for the financial community on\nSeptember 9, 2026, at 4:00 p.m. The dial-in numbers are 1-289-514-5100 or\n1-800-717-1738. Media may hear the call in listen-only mode or tune in to the\nsimultaneous audio broadcast on TC Transcontinental’s website, which will\nthen be archived for 30 days. For media requests or interviews, please contact\nJeanne Routhier, Coordinator, Communications of TC Transcontinental, at\n438-398-4055.\n\nProfile\n\nFounded 50 years ago and 4,200 employees strong, Transcontinental Inc. (TSX:\nTCL.A TCL.B), known under the TC Transcontinental brand, is a Canadian retail\nmarketing services company, Canada's largest printer, and the Canadian leader\nin French-language educational publishing. Driven by the vision of a more\ninformed, educated and prosperous society, TC Transcontinental propels its\nclients' success across the retail, education, book and information\nindustries. With agility, creativity and boldness, we design and deliver\ninnovative, high-value products and services. For more information, please\nvisit www.tc.tc.\n\nForward-looking Statements\n\nOur public communications often contain oral or written forward-looking\nstatements which are based on the expectations of management and inherently\nsubject to a certain number of risks and uncertainties, known and unknown. By\ntheir very nature, forward-looking statements are derived from both general\nand specific assumptions. The Corporation cautions against undue reliance on\nsuch statements since actual results or events may differ materially from the\nexpectations expressed or implied in them. Forward-looking statements may\ninclude observations concerning the Corporation's objectives, strategy,\nanticipated financial results and business outlook. The Corporation's future\nperformance may also be affected by a number of factors, many of which are\nbeyond the Corporation's will or control. These factors include, but are not\nlimited to the impact of digital product development and adoption, the impact\nof changes in the participants in the distribution of newspapers and printed\nadvertising materials and the disruption in their activities resulting mainly\nfrom labour disputes, including at Canada Post, the impact of regulations or\nlegislation regarding door-to-door distribution on the printing of paper\nflyers or printed advertising materials, inflation and recession risks,\neconomic conditions and geopolitical uncertainty, environmental risks as well\nas adoption of new regulations or amendments and changes to consumption\nhabits, risk of an operational disruption that could be harmful to its ability\nto meet deadlines, the worldwide outbreak of a disease, a virus or any other\ncontagious disease could have an adverse impact on the Corporation’s\noperations, the ability to generate organic long-term growth and face\ncompetition, a significant increase in the cost of raw materials, the\navailability of those materials and energy consumption could have an adverse\nimpact on the Corporation’s activities, the ability to complete business\nacquisitions and disposals and properly integrate acquisitions, cybersecurity,\ndata protection, warehousing and usage, the impact of digital product\ndevelopment and adoption on the demand for printed products other than flyers,\nthe failure of patents, trademarks and confidentiality agreements to protect\nintellectual property, a difficulty to attract and retain employees, bad debts\nfrom certain customers, import and export controls, duties, tariffs or taxes,\nexchange rate fluctuations, increase in market interest rates with respect to\nits financial instruments as well as availability of capital at a reasonable\ncost, the legal risks related to its activities and the compliance of its\nactivities with applicable regulations, the impact of major market\nfluctuations on the solvency of defined benefit pension plans, changes in tax\nlegislation and disputes with tax authorities or amendments to statutory tax\nrates in force, the impact of impairment tests on the value of assets and a\nconflict of interest between the controlling shareholder and other\nshareholders. The main risks, uncertainties and factors that could influence\nactual results are described in the Management's Discussion and Analysis for\nthe fiscal year ended October 26, 2025, and in the latest Annual Information\nForm.\n\nUnless otherwise indicated by the Corporation, forward-looking statements do\nnot take into account the potential impact of non-recurring or other unusual\nitems, nor of disposals, business combinations, mergers or acquisitions which\nmay be announced or entered into after the date of September 9, 2026. The\nforward-looking statements in this press release are made pursuant to the\n“safe harbour” provisions of applicable Canadian securities legislation.\nThe forward-looking statements in this release are based on current\nexpectations and information available as at September 9, 2026. Such\nforward-looking information may also be found in other documents filed with\nCanadian securities regulators or in other communications. The Corporation's\nmanagement disclaims any intention or obligation to update or revise these\nstatements unless otherwise required by the securities authorities.\n\nFor information:\n\n Media Jeanne Routhier Coordinator, Communications TC Transcontinental Telephone: 438-398-4055 jeanne.routhier@tc.tc www.tc.tc Financial Community Yan Lapointe Senior Director, Investor Relations and Treasury TC Transcontinental Telephone: 514-954-3574 yan.lapointe@tc.tc www.tc.tc \n\n\n\n CONSOLIDATED STATEMENTS OF EARNINGS \n Unaudited (in millions of Canadian dollars, unless otherwise indicated and per share data) \n \n Three months ended Nine months ended \n July 26, July 27, July 26, July 27, \n 2026 2025 2026 2025 \n Restated Restated \n \n Revenues $ 306.0 $ 294.9 $ 838.7 $ 835.9 \n Operating expenses 245.1 236.4 699.3 690.9 \n Restructuring and other costs (revenues) (24.8 ) 5.6 (7.3 ) 10.2 \n Impairment of assets — 5.7 3.5 5.7 \n \n Operating earnings before depreciation and amortization 85.7 47.2 143.2 129.1 \n Depreciation and amortization 18.8 17.7 54.0 53.7 \n \n Operating earnings 66.9 29.5 89.2 75.4 \n Net financial expenses 15.6 10.3 34.8 27.7 \n \n Earnings before income taxes 51.3 19.2 54.4 47.7 \n Income taxes 14.4 6.2 13.4 14.5 \n \n Net earnings from continuing operations 36.9 13.0 41.0 33.2 \n Net earnings from discontinued operations (0.4 ) 25.8 251.6 97.8 \n \n Net earnings 36.5 38.8 292.6 131.0 \n Non-controlling interests — 0.1 0.3 0.4 \n Net earnings attributable to shareholders of the Corporation $ 36.5 $ 38.7 $ 292.3 $ 130.6 \n \n Net earnings attributable to shareholders of the Corporation per share - basic and diluted \n Continuing operations $ 0.44 $ 0.16 $ 0.49 $ 0.40 \n Discontinued operations — 0.30 3.01 1.16 \n $ 0.44 $ 0.46 $ 3.50 $ 1.56 \n \n Weighted average number of shares outstanding - basic and diluted (in millions) 83.6 83.6 83.6 83.8 \n\n\n\n CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME \n Unaudited (in millions of Canadian dollars) \n \n Three months ended Nine months ended \n July 26, July 27, July 26, July 27, \n 2026 2025 2026 2025 \n Restated Restated \n \n Net earnings $ 36.5 $ 38.8 $ 292.6 $ 131.0 \n \n Other comprehensive loss \n \n Items that may be subsequently reclassified to net earnings \n Net change related to cash flow hedges \n Net change in the fair value of designated derivatives - foreign exchange risk (6.8 ) 1.6 0.9 0.1 \n Net change in the fair value of designated derivatives - interest rate risk 0.1 0.9 0.9 0.4 \n Reclassification of the net change in the fair value of designated derivatives \n recognized in net earnings during the current period — (0.1 ) (0.5 ) 4.5 \n Related (recovery) income taxes (1.9 ) 0.6 0.2 1.3 \n (4.8 ) 1.8 1.1 3.7 \n \n Cumulative translation differences \n Net unrealized exchange losses on the translation of \n the financial statements of foreign operations — (19.3 ) (35.8 ) (20.1 ) \n Net unrealized exchange losses on the translation of the financial statements of foreign \n operations reversed to net earnings during the current period — — (84.8 ) (8.2 ) \n Net gains on hedge of the net investment in foreign operations — 6.0 12.3 0.9 \n Net gains on hedge of the net investment in foreign operation reversed to \n net earnings during the current period — — 20.1 — \n Related (recovery) income taxes — (0.4 ) (0.9 ) 0.1 \n — (12.9 ) (87.3 ) (27.5 ) \n \n Items that will not be reclassified to net earnings \n Changes related to defined benefit plans \n Actuarial gains (losses) on defined benefit plans 5.4 (2.9 ) 4.5 (3.8 ) \n Related income taxes (recovery) 1.5 (0.8 ) 1.2 (1.0 ) \n 3.9 (2.1 ) 3.3 (2.8 ) \n \n Other comprehensive loss (0.9 ) (13.2 ) (82.9 ) (26.6 ) \n Comprehensive income $ 35.6 $ 25.6 $ 209.7 $ 104.4 \n \n Comprehensive income from continuing operations $ 36.0 $ 13.2 $ 45.4 $ 32.1 \n Comprehensive income (loss) from discontinued operations (0.4 ) 12.4 164.3 72.3 \n\n\n\n CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY \n Unaudited (in millions of Canadian dollars) \n \n Accumulated \n other Non- \n Share Contributed Retained comprehensive controlling Total \n capital surplus earnings income (loss) Total interests equity \n \n Balance as at October 26, 2025 - As reported $ 611.4 $ 0.9 $ 1,258.3 $ 42.3 $ 1,912.9 $ 5.9 $ 1,918.8 \n Restatement — — (8.7 ) — (8.7 ) — (8.7 ) \n Balance as at October 26, 2025 - Restated 611.4 0.9 1,249.6 42.3 1,904.2 5.9 1,910.1 \n Net earnings — — 292.3 — 292.3 0.3 292.6 \n Other comprehensive loss — — — (82.9 ) (82.9 ) — (82.9 ) \n Disposal of non-controlling interests — — — — — (6.2 ) (6.2 ) \n Reclassification of other comprehensive income — — 9.5 (9.5 ) — — — \n Shareholders' contributions and \n distributions to shareholders \n Reduction of stated capital (518.8 ) — — — (518.8 ) — (518.8 ) \n Dividends — — (1,176.6 ) — (1,176.6 ) — (1,176.6 ) \n Balance as at July 26, 2026 $ 92.6 $ 0.9 $ 374.8 $ (50.1 ) $ 418.2 $ — $ 418.2 \n \n Balance as at October 27, 2024 - As reported $ 619.2 $ 0.9 $ 1,237.5 $ 51.7 $ 1,909.3 $ 5.5 $ 1,914.8 \n Restatement — — (8.3 ) — (8.3 ) — (8.3 ) \n Balance as at October 27, 2024 - Restated 619.2 0.9 1,229.2 51.7 1,901.0 5.5 1,906.5 \n Net earnings - Restated — — 130.6 — 130.6 0.4 131.0 \n Other comprehensive loss — — — (26.6 ) (26.6 ) — (26.6 ) \n Shareholders' contributions and \n distributions to shareholders \n Share repurchases and related income taxes (7.8 ) — 8.8 — 1.0 — 1.0 \n Dividends — — (140.2 ) — (140.2 ) — (140.2 ) \n Balance as at July 27, 2025 - Restated $ 611.4 $ 0.9 $ 1,228.4 $ 25.1 $ 1,865.8 $ 5.9 $ 1,871.7 \n\n\n\n CONSOLIDATED STATEMENTS OF FINANCIAL POSITION \n Unaudited (in millions of Canadian dollars) \n \n As at As at \n July 26, October 26, \n 2026 2025 \n Restated \n \n Current assets \n Cash $ 14.7 $ 47.0 \n Accounts receivable 250.1 468.1 \n Income taxes receivable 18.2 7.2 \n Inventories 117.4 372.7 \n Prepaid expenses and other current assets 20.3 25.0 \n Assets held for sale 5.5 12.0 \n 426.2 932.0 \n \n Property, plant and equipment 141.3 725.5 \n Right-of-use assets 82.1 98.5 \n Intangible assets 123.3 328.0 \n Goodwill 401.6 1,179.5 \n Deferred taxes 43.3 47.3 \n Other assets 18.2 30.0 \n $ 1,236.0 $ 3,340.8 \n \n Current liabilities \n Accounts payable and accrued liabilities $ 225.3 $ 433.9 \n Provisions 18.0 1.3 \n Income taxes payable 3.3 3.5 \n Deferred revenues and deposits 13.2 14.5 \n Current portion of long-term debt 10.4 253.2 \n Current portion of lease liabilities 19.5 25.5 \n 289.7 731.9 \n \n Long-term debt 334.5 417.6 \n Lease liabilities 76.1 91.1 \n Deferred taxes 37.0 69.1 \n Other liabilities 80.5 121.0 \n 817.8 1,430.7 \n \n Equity \n Share capital 92.6 611.4 \n Contributed surplus 0.9 0.9 \n Retained earnings 374.8 1,249.6 \n Accumulated other comprehensive (loss) income (50.1 ) 42.3 \n Attributable to shareholders of the Corporation 418.2 1,904.2 \n Non-controlling interests — 5.9 \n 418.2 1,910.1 \n $ 1,236.0 $ 3,340.8 \n\n\n\n CONSOLIDATED STATEMENTS OF CASH FLOWS \n Unaudited (in millions of Canadian dollars) \n \n Three months ended Nine months ended \n July 26, July 27, July 26, July 27, \n 2026 2025 2026 2025 \n Restated Restated \n \n Operating activities \n Net earnings $ 36.5 $ 38.8 $ 292.6 $ 131.0 \n Less : Net earnings from discontinued operations (0.4 ) 25.8 251.6 97.8 \n Net earnings from continuing operations $ 36.9 $ 13.0 $ 41.0 $ 33.2 \n \n Adjustments to reconcile net earnings and cash flows from operating activities: \n Impairment of assets — 5.7 3.5 5.7 \n Depreciation and amortization 18.8 17.7 54.0 53.7 \n Financial expenses on long-term debt and lease liabilities 4.1 8.8 19.0 28.8 \n Net (gains) losses on disposal of assets (32.0 ) 0.3 (32.3 ) 0.2 \n Income taxes 14.4 6.2 13.4 14.5 \n Net foreign exchange differences and other 11.3 2.9 16.0 2.3 \n Cash flows generated by operating activities before changes in non-cash \n operating items and income taxes paid 53.5 54.6 114.6 138.4 \n Changes in non-cash operating items (11.8 ) (19.0 ) (78.9 ) (44.7 ) \n Income taxes paid (16.7 ) 0.9 (29.3 ) (8.0 ) \n Cash flows from operating activities of continuing operations 25.0 36.5 6.4 85.7 \n \n Investing activities \n Business combinations, net of acquired cash — (4.1 ) (17.5 ) (4.1 ) \n Acquisitions of property, plant and equipment (13.0 ) (5.3 ) (23.3 ) (13.1 ) \n Disposals of property, plant and equipment 36.5 — 37.1 0.1 \n Increase in intangible assets (6.8 ) (7.0 ) (21.3 ) (23.3 ) \n Cash flows from investing activities of continuing operations 16.7 (16.4 ) (25.0 ) (40.4 ) \n \n Financing activities \n Increase in long-term debt 100.0 — 100.0 — \n Reimbursement of long-term debt (250.0 ) (0.6 ) (558.9 ) (201.6 ) \n Net increase (decrease) in credit facilities 139.0 (16.0 ) 145.0 49.0 \n Settlement of cross-currency swaps (12.8 ) — (13.0 ) (25.9 ) \n Financial expenses paid on long-term debt and credit facilities (3.8 ) (8.3 ) (18.8 ) (31.3 ) \n Repayment of principal on lease liabilities (3.5 ) (3.3 ) (10.4 ) (9.9 ) \n Interest paid on lease liabilities (1.0 ) (0.4 ) (1.9 ) (1.3 ) \n Dividends (4.2 ) (18.9 ) (1,176.6 ) (140.2 ) \n Reduction of stated capital — — (518.8 ) — \n Shares repurchased — — — (16.3 ) \n Cash flows from financing activities of continuing operations (36.3 ) (47.5 ) (2,053.4 ) (377.5 ) \n \n Effect of exchange rate changes on cash denominated in foreign currencies 0.9 (0.2 ) (0.8 ) 5.3 \n \n Net change in cash from continuing operations 6.3 (27.6 ) (2,072.8 ) (326.9 ) \n Net change in cash from discontinued operations (0.4 ) 20.3 2,040.5 177.6 \n Cash at beginning of the period 8.8 43.2 47.0 185.2 \n Cash at end of period $ 14.7 $ 35.9 $ 14.7 $ 35.9 \n \n Non-cash investing activities \n Net change in capital asset acquisitions financed by accounts payable $ (0.4 ) $ 1.4 $ (2.0 ) $ (1.9 ) \n\n\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/7877b5ff-d877-4649-ad03-c048f7f3b321)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX2FTLyd-20260909","title":"Transcontinental Inc. Announces Results for the Third Quarter of Fiscal Year 2026","author":"Globe Newswire","ticker":"TCLA","created":"2026-09-09T13:25:00.561Z","tickers":["TCLA"],"exchange":"TSX","article_body":"Highlights\n* Revenues of $306.0 million for the quarter ended July 26, 2026; operating\nearnings of $66.9 million; and net earnings from continuing operations of\n$36.9 million ($0.44 per share).\n* Adjusted operating earnings before depreciation and amortization(()(1)) of\n$60.9 million for the quarter ended July 26, 2026; adjusted operating\nearnings(()(1)) of $43.6 million; and adjusted net earnings from continuing\noperations(()(1)) of $27.1 million (0.32 $ per share).\n* Successful nationwide rollout of raddar(®).\n* Sale of two buildings for a net consideration of $36.5 million.\n((1) Please refer to the \"Non-IFRS Financial Measures\" section of this press\nrelease for a definition of these measures.)\n\nMONTREAL, Sept. 09, 2026 (GLOBE NEWSWIRE) -- Transcontinental Inc. (TSX: TCL.A\nTCL.B) announces its results for the third quarter of fiscal year 2026 ended\nJuly 26, 2026.\n\n\"We had anticipated improved performance for the second half of our fiscal\nyear, and our results for the third quarter live up to expectations with an\nincrease in adjusted operating earnings before depreciation and amortization,\"\nsaid Sam Bendavid, Chief Executive Officer of TC Transcontinental. \"In this\ncontinuity, I am confident that we will end fiscal year 2026 with results that\nmeet our financial outlook.\"\n\n\"In the Retail Services and Printing Sector, our acquisitions in in-store\nmarketing activities enabled us to generate growth despite the slowdown in our\ntraditional activities. In addition, the increase in volume, combined with the\ninitiatives implemented to increase profitability, enhanced the financial\nperformance of our in-store marketing and specialty activities. Furthermore,\nthe successful nationwide rollout of raddar(®), which occurred in mid-June,\nhad a positive impact on revenues for the quarter.\"\n\n\"In the Books and Education Sector, revenues decreased slightly, mainly as a\nresult of last year's solid performance and a shift in orders to the fourth\nquarter of fiscal 2026.\"\n\n\"The significant cash flows we expect to generate in the fourth quarter of\nfiscal year 2026 will enable us to reduce significantly net indebtedness by\nthe end of the fiscal year,\" added Donald LeCavalier, Executive Vice President\nand Chief Financial Officer of TC Transcontinental. \"Our financial position is\nsolid and gives us the flexibility we need to pursue our growth strategy.\"\n\nFinancial Highlights\n\n (for continuing operations, in millions of dollars, except per share amounts) Q3-2026 Q3-2025 Variation in % \n Restated ((1)) \n Revenues $ 306.0 $ 294.9 3.8 % \n Operating earnings before depreciation and amortization 85.7 47.2 81.6 \n Adjusted operating earnings before depreciation and amortization ((2)) 60.9 58.5 4.1 \n Operating earnings 66.9 29.5 126.8 \n Adjusted operating earnings ((2)) 43.6 41.7 4.6 \n Net earnings 36.9 13.0 183.8 \n Net earnings per share 0.44 0.16 175.0 \n Adjusted net earnings ((2)) 27.1 22.2 22.1 \n Adjusted net earnings per share ((2)) 0.32 0.27 18.5 \n\n((1) Please refer to the \"Discontinued Operations and Reclassification of\nComparative Figures\" section and Table #2 in the \"Accounting Restatements\"\nsection of the Management Discussion and Analysis for an explanation of the\nrestated data presented above.)\n((2) Please refer to the \"Reconciliation of Non-IFRS Financial Measures\"\nsection of this Press Release for the adjusted data presented above.)\n\nResults for the Third Quarter of Fiscal Year 2026\n\nRevenues increased by $11.1 million, or 3.8%, from $294.9 million in the third\nquarter of fiscal year 2025 to $306.0 million in the third quarter of fiscal\nyear 2026. This increase is mostly attributable to our recent acquisitions,\npartially offset by lower volume in our two sectors and, to a lesser extent,\nthe unfavourable exchange rate effect.\n\nOperating earnings before depreciation and amortization increased by $38.5\nmillion, or 81.6%, from $47.2 million in the third quarter of fiscal year 2025\nto $85.7 million in the third quarter of fiscal year 2026. This increase is\nmainly attributable to the decrease in restructuring and other costs\n(revenues) related to the net gains on the sale of two buildings, the decline\nin asset impairment charges, our recent acquisitions and our cost reductions\ninitiatives, partially offset by lower volume in our two sectors and, to a\nlesser extent, the unfavourable exchange rate effect.\n\nAdjusted operating earnings before depreciation and amortization increased by\n$2.4 million, or 4.1%, from $58.5 million in the third quarter of fiscal year\n2025 to $60.9 million in the third quarter of fiscal year 2026. This increase\nis mainly attributable to our recent acquisitions and our cost reduction\ninitiatives, partially offset by lower volume in our two sectors and the\nunfavourable exchange rate effect.\n\nNet earnings from continuing operations increased by $23.9 million, or 183.8%,\nfrom $13.0 million in the third quarter of fiscal year 2025 to $36.9 million\nin the third quarter of fiscal year 2026. This increase is mainly attributable\nto the previously explained increase in operating earnings before depreciation\nand amortization, partially offset by higher income taxes and the increase in\nfinancial expenses and, to a lesser extent, the increase in depreciation and\namortization. On a per share basis, net earnings from continuing operations\nincreased by 175.0%, from $0.16 to $0.44, respectively.\n\nAdjusted net earnings from continuing operations increased by $4.9 million, or\n22.1%, from $22.2 million in the third quarter of fiscal year 2025 to $27.1\nmillion in the third quarter of fiscal year 2026. This increase is mainly\nattributable to the decrease in financial expenses excluding foreign exchange\nlosses on non-designated financial instruments and the previously explained\nincrease in adjusted operating earnings before depreciation and amortization,\npartially offset by higher adjusted income taxes. On a per share basis,\nadjusted net earnings from continuing operations increased by 18.5%, from\n$0.27 to $0.32, respectively.\n\nResults for the First Nine Months of Fiscal Year 2026\n\nRevenues increased by $2.8 million, or 0.3%, from $835.9 million in the\nfirst nine months of fiscal year 2025 to $838.7 million in the\ncorresponding period of 2026. This increase is mainly explained by our recent\nacquisitions and the favourable exchange rate effect, mostly offset by lower\nvolume in our two sectors.\n\nOperating earnings before depreciation and amortization increased by $14.1\nmillion, or 10.9%, from $129.1 million in the first nine months of\nfiscal year 2025 to $143.2 million in the corresponding period of 2026.\nThis increase is mainly attributable to the decrease in restructuring and\nother costs (revenues), our recent acquisitions, the favourable exchange rate\neffect, the drop in asset impairment charges, our cost reduction initiatives\nand the decrease in incentive compensation, partially offset by lower volume\nin our two sectors.\n\nAdjusted operating earnings before depreciation and amortization decreased by\n$5.6 million, or 3.9%, from $145.0 million in the first nine months of\nfiscal year 2025 to $139.4 million in the corresponding period of 2026.\nThis decrease is mainly due to lower volume in our two sectors, partially\nmitigated by our recent acquisitions, the favourable exchange rate effect, our\ncost reduction initiatives and the decrease in incentive compensation.\n\nNet earnings from continuing operations increased by $7.8 million, or 23.5%,\nfrom $33.2 million in the first nine months of fiscal year 2025 to\n$41.0 million in the corresponding period of 2026. This increase is mainly\nattributable to the previously explained rise in operating earnings before\ndepreciation and amortization and lower income taxes, partially offset by the\nincrease in financial expenses and, to a lesser extent, higher depreciation\nand amortization. On a per share basis, net earnings attributable to\nshareholders of the Corporation from continuing operations increased by 22.5%,\nfrom $0.40 to $0.49, respectively.\n\nAdjusted net earnings from continuing operations increased by $2.4 million,\nor 5.1%, from $47.4 million in the first nine months of fiscal year 2025 to\n$49.8 million in the corresponding period of 2026. This increase is mainly\nattributable to the decrease in financial expenses excluding foreign exchange\nlosses on non-designated financial instruments and lower adjusted income\ntaxes, partially offset by the previously explained decline in adjusted\noperating earnings before depreciation and amortization. On a per share basis,\nadjusted net earnings from continuing operations increased by 5.3%, from $0.57\nto $0.60, respectively.\n\nFor more detailed financial information, please see the Management’s\nDiscussion and Analysis for the third quarter of fiscal year 2026 ended July\n26, 2026, as well as the financial statements in the “Investors” section\nof our website at www.tc.tc.\n\nOutlook\n\nThe closing of the sale of our Packaging Business represents a key milestone\nfor TC Transcontinental. This transaction allows us to focus our resources on\nour growth strategy, in particular in in-store marketing and educational\npublishing activities.\n\nFor fiscal year 2026, we anticipate lower volume in our traditional\nactivities, including book printing which experienced very high growth in\nfiscal year 2025. This decrease should be partially offset by growth in our\nin-store marketing and specialty activities, including the positive impact of\nacquisitions.\n\nAt the consolidated level, following the positive impact of cost reduction\ninitiatives, we expect adjusted operating earnings before depreciation and\namortization from continuing operations for fiscal year 2026 to remain stable\ncompared to fiscal year 2025.\n\nLastly, we expect to continue generating significant cash flows from operating\nactivities. Over the next quarter, this should enable us to reduce net\nindebtedness under two times adjusted operating earnings before depreciation\nand amortization for fiscal year 2026 while investing in our growth.\n\nNon-IFRS Financial Measures\n\nIn this document, unless otherwise indicated, all financial data are prepared\nin accordance with International Financial Reporting Accounting\nStandards (\"IFRS\") and the term \"dollar\", as well as the symbol \"$\" designate\nCanadian dollars.\n\nIn addition, in this press release, we also use certain non-IFRS financial\nmeasures for which a complete definition is presented below and for which a\nreconciliation to financial information in accordance with IFRS is presented\nin the \"Reconciliation of Non-IFRS Financial Measures\" section and in Note 4\n\"Segmented Information\" to the condensed interim consolidated financial\nstatements for the third quarter ended July 26, 2026.\n\n Terms Used Definitions \n Adjusted operating earnings before depreciation and amortization Operating earnings before depreciation and amortization 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. \n Adjusted operating earnings Operating earnings 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. \n 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 and foreign exchange losses on non-designated financial instruments. \n Adjusted net earnings Net earnings (loss) from continuing operations before restructuring and other costs (revenues), amortization of intangible assets arising from business combinations, impairment of assets and foreign exchange losses on non-designated financial instruments, net of related income taxes. This measure is used to assess the financial performance of the Corporation and its sectors on a comparable basis. \n 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. \n 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. \n\nReconciliation of Non-IFRS Financial Measures\n\nThe financial information has been prepared in accordance with IFRS. However,\nfinancial measures used, namely adjusted operating earnings before\ndepreciation and amortization, adjusted operating earnings margin before\ndepreciation and amortization, adjusted operating earnings, adjusted operating\nearnings margin, adjusted income taxes, adjusted net earnings from continuing\noperations, adjusted net earnings per share from continuing operations, net\nindebtedness and net indebtedness ratio, for which a reconciliation is\npresented in the following table, are not defined by IFRS. They may be\ncalculated differently and may not be comparable to similar measures presented\nby other companies. We believe that many of our readers analyze the financial\nperformance of the Corporation’s activities based on these non-IFRS\nfinancial measures as such measures may allow for easier comparisons between\nperiods. These measures should be considered as a complement to financial\nperformance measures in accordance with IFRS. They do not substitute and are\nnot superior to them.\n\nThe Corporation also believes that these measures are useful indicators of the\nperformance of its operations and its ability to meet its financial\nobligations. Furthermore, management also uses some of these non-IFRS\nfinancial measures to assess the performance of its activities and managers.\n\n Reconciliation of operating earnings from continuing operations - Third quarter and cumulative \n Three months ended Nine months ended \n July 26, 2026 July 27, 2025 July 26, 2026 July 27, 2025 \n (in millions of dollars) Restated Restated \n Operating earnings $ 66.9 $29.5 $ 89.2 $75.4 \n Excluding \n Restructuring and other costs (revenues) (24.8 ) 5.6 (7.3 ) 10.2 \n Amortization of intangible assets arising from business combinations ((1)) 1.5 0.9 5.6 3.1 \n Impairment of assets — 5.7 3.5 5.7 \n Adjusted operating earnings $ 43.6 $41.7 $ 91.0 $94.4 \n Depreciation and amortization ((2)) 17.3 16.8 48.4 50.6 \n Adjusted operating earnings before depreciation and amortization $ 60.9 $58.5 $ 139.4 $145.0 \n\n((1) Amortization of intangible assets arising from business combinations\nincludes our customer relationships, educational book titles, non-compete\nagreements, trade names with finite useful lives and rights of first refusal.)\n((2) Depreciation and amortization excludes the amortization of intangible\nassets arising from business combinations.)\n\n Reconciliation of operating earnings - Third quarter and cumulative for the Retail Services and Printing Sector \n Three months ended Nine months ended \n July 26, 2026 July 27, 2025 July 26, 2026 July 27, 2025 \n (in millions of dollars) Restated Restated Restated \n Operating earnings $ 35.8 $35.3 $ 83.7 $102.3 \n Excluding \n Restructuring and other costs 3.5 3.4 12.6 7.5 \n Amortization of intangible assets arising from business combinations ((1)) 1.2 0.5 4.6 1.7 \n Impairment of assets — — 3.5 — \n Adjusted operating earnings $ 40.5 $39.2 $ 104.4 $111.5 \n Depreciation and amortization ((2)) 8.9 9.1 24.8 27.2 \n Adjusted operating earnings before depreciation and amortization $ 49.4 $48.3 $ 129.2 $138.7 \n\n((1) Amortization of intangible assets arising from business combinations\nincludes our customer relationships, non-compete agreements and trade names\nwith finite useful lives.)\n((2) Depreciation and amortization excludes the amortization of intangible\nassets arising from business combinations.)\n\n Reconciliation of operating earnings - Third quarter and cumulative for the Books and Education Sector \n Three months ended Nine months ended \n July 26, 2026 July 27, 2025 July 26, 2026 July 27, 2025 \n (in millions of dollars) Restated Restated Restated \n Operating earnings $ 12.2 $7.3 $ 13.3 $7.6 \n Excluding \n Restructuring and other costs 0.5 1.7 0.6 1.9 \n Amortization of intangible assets arising from business combinations ((1)) 0.3 0.4 1.0 1.4 \n Impairment of assets — 5.7 — 5.7 \n Adjusted operating earnings $ 13.0 $15.1 $ 14.9 $16.6 \n Depreciation and amortization ((2)) 7.5 6.5 20.5 19.6 \n Adjusted operating earnings before depreciation and amortization $ 20.5 $21.6 $ 35.4 $36.2 \n\n((1) Amortization of intangible assets arising from business combinations\nincludes our rights of first refusal and educational book titles.)\n((2) Depreciation and amortization excludes the amortization of intangible\nassets arising from business combinations.)\n\n Reconciliation of operating earnings - Third quarter and cumulative for head office \n Three months ended Nine months ended \n July 26, 2026 July 27, 2025 July 26, 2026 July 27, 2025 \n (in millions of dollars) Restated Restated Restated \n Operating earnings (loss) $ 18.9 $(13.1 ) $ (7.8 ) $(34.5 ) \n Excluding \n Restructuring and other costs (revenues) (28.8 ) 0.5 (20.5 ) 0.8 \n Adjusted operating loss $ (9.9 ) $(12.6 ) $ (28.3 ) $(33.7 ) \n Depreciation and amortization 0.9 1.2 3.1 3.8 \n Adjusted operating loss before depreciation and amortization $ (9.0 ) $(11.4 ) $ (25.2 ) $(29.9 ) \n\n\n\n Reconciliation of net earnings from continuing operations - Third quarter and cumulative \n Three months ended Nine months ended \n July 26, 2026 July 27, 2025 July 26, 2026 July 27, 2025 \n (in millions of dollars, except per share amounts) Restated Restated \n Net earnings $ 36.9 $13.0 $ 41.0 $33.2 \n Excluding \n Restructuring and other costs (revenues) (24.8 ) 5.6 (7.3 ) 10.2 \n Tax on restructuring and other costs (revenues) 3.5 (1.3 ) (1.0 ) (2.5 ) \n Amortization of intangible assets arising from business combinations ((1)) 1.5 0.9 5.6 3.1 \n Tax on amortization of intangible assets arising from business combinations (0.4 ) (0.2 ) (1.5 ) (0.8 ) \n Impairment of assets — 5.7 3.5 5.7 \n Tax on impairment of assets — (1.5 ) (0.9 ) (1.5 ) \n Foreign exchange losses on non-designated financial instruments ((2)) 12.0 — 12.0 — \n Tax on foreign exchange losses on non-designated financial instruments (1.6 ) — (1.6 ) — \n Adjusted net earnings $ 27.1 $22.2 $ 49.8 $47.4 \n Net earnings attributable to shareholders of the Corporation per share $ 0.44 $0.16 $ 0.49 $0.40 \n Adjusted net earnings per share $ 0.32 $0.27 $ 0.60 $0.57 \n Weighted average number of shares outstanding 83.6 83.6 83.6 83.8 \n \n ((1) Amortization of intangible assets arising from business combinations includes our customer relationships, educational book titles, non-compete agreements, trade names with finite useful lives and rights of first refusal.) ((2) On July 13, 2026, concurrently with the repayment of the unsecured notes, the Corporation settled some of its cross-currency fixed interest rate swaps amounting to $100.0 million (US$80.2 million) for a consideration paid of $13.4 million. The Corporation also extended, for a \n period of approximately three months, the remaining contracts that were maturing on July 13, 2026, totaling $150.0 million (US$120.2 million). Following the sale of the Packaging Sector operations, these contracts are no longer designated as hedging instruments in net investment hedging relationships. Consequently, the change in their fair value between March 6, 2026 and July 26, 2026 has been recognized in net earnings from continuing operations. Financial expenses associated with these transactions \n amounted to $12.0 million, including realized foreign exchange losses on the repayment of contracts of $4.3 million and unrealized exchange losses on extended contracts of $7.7 million. These foreign exchange losses are excluded from adjusted net earnings as they arise from specific circumstances, namely the sale of the Packaging Sector operations, the Corporation considers these items to be non-recurring and does not expect them to have any further impact once the underlying transactions have been \n settled.) \n\n\n\n Reconciliation of net indebtedness \n As at July 26, 2026 As at October 26, 2025 \n (for continuing operations, in millions of dollars, except for ratios) Restated \n Long-term debt $ 334.5 $417.6 \n Current portion of long-term debt 10.4 253.2 \n Lease liabilities 76.1 91.1 \n Current portion of lease liabilities 19.5 25.5 \n Cash (14.7 ) (47.0 ) \n Net indebtedness $ 425.8 $740.4 \n Adjusted operating earnings before depreciation and amortization (last 12 months) $ 206.3 $211.9 \n Net indebtedness ratio 2.06 x 3.49 x \n\nDividend\n\nThe Corporation's Board of Directors declared a quarterly dividend of $0.05\nper share on Class A Subordinate Voting Shares and Class B Shares. This\ndividend is payable on October 21, 2026, to shareholders of record at the\nclose of business on October 5, 2026.\n\nAdditional information\n\nConference Call\n\nUpon releasing its results for the third quarter of fiscal year 2026, the\nCorporation will hold a conference call for the financial community on\nSeptember 9, 2026, at 4:00 p.m. The dial-in numbers are 1-289-514-5100 or\n1-800-717-1738. Media may hear the call in listen-only mode or tune in to the\nsimultaneous audio broadcast on TC Transcontinental’s website, which will\nthen be archived for 30 days. For media requests or interviews, please contact\nJeanne Routhier, Coordinator, Communications of TC Transcontinental, at\n438-398-4055.\n\nProfile\n\nFounded 50 years ago and 4,200 employees strong, Transcontinental Inc. (TSX:\nTCL.A TCL.B), known under the TC Transcontinental brand, is a Canadian retail\nmarketing services company, Canada's largest printer, and the Canadian leader\nin French-language educational publishing. Driven by the vision of a more\ninformed, educated and prosperous society, TC Transcontinental propels its\nclients' success across the retail, education, book and information\nindustries. With agility, creativity and boldness, we design and deliver\ninnovative, high-value products and services. For more information, please\nvisit www.tc.tc.\n\nForward-looking Statements\n\nOur public communications often contain oral or written forward-looking\nstatements which are based on the expectations of management and inherently\nsubject to a certain number of risks and uncertainties, known and unknown. By\ntheir very nature, forward-looking statements are derived from both general\nand specific assumptions. The Corporation cautions against undue reliance on\nsuch statements since actual results or events may differ materially from the\nexpectations expressed or implied in them. Forward-looking statements may\ninclude observations concerning the Corporation's objectives, strategy,\nanticipated financial results and business outlook. The Corporation's future\nperformance may also be affected by a number of factors, many of which are\nbeyond the Corporation's will or control. These factors include, but are not\nlimited to the impact of digital product development and adoption, the impact\nof changes in the participants in the distribution of newspapers and printed\nadvertising materials and the disruption in their activities resulting mainly\nfrom labour disputes, including at Canada Post, the impact of regulations or\nlegislation regarding door-to-door distribution on the printing of paper\nflyers or printed advertising materials, inflation and recession risks,\neconomic conditions and geopolitical uncertainty, environmental risks as well\nas adoption of new regulations or amendments and changes to consumption\nhabits, risk of an operational disruption that could be harmful to its ability\nto meet deadlines, the worldwide outbreak of a disease, a virus or any other\ncontagious disease could have an adverse impact on the Corporation’s\noperations, the ability to generate organic long-term growth and face\ncompetition, a significant increase in the cost of raw materials, the\navailability of those materials and energy consumption could have an adverse\nimpact on the Corporation’s activities, the ability to complete business\nacquisitions and disposals and properly integrate acquisitions, cybersecurity,\ndata protection, warehousing and usage, the impact of digital product\ndevelopment and adoption on the demand for printed products other than flyers,\nthe failure of patents, trademarks and confidentiality agreements to protect\nintellectual property, a difficulty to attract and retain employees, bad debts\nfrom certain customers, import and export controls, duties, tariffs or taxes,\nexchange rate fluctuations, increase in market interest rates with respect to\nits financial instruments as well as availability of capital at a reasonable\ncost, the legal risks related to its activities and the compliance of its\nactivities with applicable regulations, the impact of major market\nfluctuations on the solvency of defined benefit pension plans, changes in tax\nlegislation and disputes with tax authorities or amendments to statutory tax\nrates in force, the impact of impairment tests on the value of assets and a\nconflict of interest between the controlling shareholder and other\nshareholders. The main risks, uncertainties and factors that could influence\nactual results are described in the Management's Discussion and Analysis for\nthe fiscal year ended October 26, 2025, and in the latest Annual Information\nForm.\n\nUnless otherwise indicated by the Corporation, forward-looking statements do\nnot take into account the potential impact of non-recurring or other unusual\nitems, nor of disposals, business combinations, mergers or acquisitions which\nmay be announced or entered into after the date of September 9, 2026. The\nforward-looking statements in this press release are made pursuant to the\n“safe harbour” provisions of applicable Canadian securities legislation.\nThe forward-looking statements in this release are based on current\nexpectations and information available as at September 9, 2026. Such\nforward-looking information may also be found in other documents filed with\nCanadian securities regulators or in other communications. The Corporation's\nmanagement disclaims any intention or obligation to update or revise these\nstatements unless otherwise required by the securities authorities.\n\nFor information:\n\n Media Jeanne Routhier Coordinator, Communications TC Transcontinental Telephone: 438-398-4055 jeanne.routhier@tc.tc www.tc.tc Financial Community Yan Lapointe Senior Director, Investor Relations and Treasury TC Transcontinental Telephone: 514-954-3574 yan.lapointe@tc.tc www.tc.tc \n\n\n\n CONSOLIDATED STATEMENTS OF EARNINGS \n Unaudited (in millions of Canadian dollars, unless otherwise indicated and per share data) \n \n Three months ended Nine months ended \n July 26, July 27, July 26, July 27, \n 2026 2025 2026 2025 \n Restated Restated \n \n Revenues $ 306.0 $ 294.9 $ 838.7 $ 835.9 \n Operating expenses 245.1 236.4 699.3 690.9 \n Restructuring and other costs (revenues) (24.8 ) 5.6 (7.3 ) 10.2 \n Impairment of assets — 5.7 3.5 5.7 \n \n Operating earnings before depreciation and amortization 85.7 47.2 143.2 129.1 \n Depreciation and amortization 18.8 17.7 54.0 53.7 \n \n Operating earnings 66.9 29.5 89.2 75.4 \n Net financial expenses 15.6 10.3 34.8 27.7 \n \n Earnings before income taxes 51.3 19.2 54.4 47.7 \n Income taxes 14.4 6.2 13.4 14.5 \n \n Net earnings from continuing operations 36.9 13.0 41.0 33.2 \n Net earnings from discontinued operations (0.4 ) 25.8 251.6 97.8 \n \n Net earnings 36.5 38.8 292.6 131.0 \n Non-controlling interests — 0.1 0.3 0.4 \n Net earnings attributable to shareholders of the Corporation $ 36.5 $ 38.7 $ 292.3 $ 130.6 \n \n Net earnings attributable to shareholders of the Corporation per share - basic and diluted \n Continuing operations $ 0.44 $ 0.16 $ 0.49 $ 0.40 \n Discontinued operations — 0.30 3.01 1.16 \n $ 0.44 $ 0.46 $ 3.50 $ 1.56 \n \n Weighted average number of shares outstanding - basic and diluted (in millions) 83.6 83.6 83.6 83.8 \n\n\n\n CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME \n Unaudited (in millions of Canadian dollars) \n \n Three months ended Nine months ended \n July 26, July 27, July 26, July 27, \n 2026 2025 2026 2025 \n Restated Restated \n \n Net earnings $ 36.5 $ 38.8 $ 292.6 $ 131.0 \n \n Other comprehensive loss \n \n Items that may be subsequently reclassified to net earnings \n Net change related to cash flow hedges \n Net change in the fair value of designated derivatives - foreign exchange risk (6.8 ) 1.6 0.9 0.1 \n Net change in the fair value of designated derivatives - interest rate risk 0.1 0.9 0.9 0.4 \n Reclassification of the net change in the fair value of designated derivatives \n recognized in net earnings during the current period — (0.1 ) (0.5 ) 4.5 \n Related (recovery) income taxes (1.9 ) 0.6 0.2 1.3 \n (4.8 ) 1.8 1.1 3.7 \n \n Cumulative translation differences \n Net unrealized exchange losses on the translation of \n the financial statements of foreign operations — (19.3 ) (35.8 ) (20.1 ) \n Net unrealized exchange losses on the translation of the financial statements of foreign \n operations reversed to net earnings during the current period — — (84.8 ) (8.2 ) \n Net gains on hedge of the net investment in foreign operations — 6.0 12.3 0.9 \n Net gains on hedge of the net investment in foreign operation reversed to \n net earnings during the current period — — 20.1 — \n Related (recovery) income taxes — (0.4 ) (0.9 ) 0.1 \n — (12.9 ) (87.3 ) (27.5 ) \n \n Items that will not be reclassified to net earnings \n Changes related to defined benefit plans \n Actuarial gains (losses) on defined benefit plans 5.4 (2.9 ) 4.5 (3.8 ) \n Related income taxes (recovery) 1.5 (0.8 ) 1.2 (1.0 ) \n 3.9 (2.1 ) 3.3 (2.8 ) \n \n Other comprehensive loss (0.9 ) (13.2 ) (82.9 ) (26.6 ) \n Comprehensive income $ 35.6 $ 25.6 $ 209.7 $ 104.4 \n \n Comprehensive income from continuing operations $ 36.0 $ 13.2 $ 45.4 $ 32.1 \n Comprehensive income (loss) from discontinued operations (0.4 ) 12.4 164.3 72.3 \n\n\n\n CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY \n Unaudited (in millions of Canadian dollars) \n \n Accumulated \n other Non- \n Share Contributed Retained comprehensive controlling Total \n capital surplus earnings income (loss) Total interests equity \n \n Balance as at October 26, 2025 - As reported $ 611.4 $ 0.9 $ 1,258.3 $ 42.3 $ 1,912.9 $ 5.9 $ 1,918.8 \n Restatement — — (8.7 ) — (8.7 ) — (8.7 ) \n Balance as at October 26, 2025 - Restated 611.4 0.9 1,249.6 42.3 1,904.2 5.9 1,910.1 \n Net earnings — — 292.3 — 292.3 0.3 292.6 \n Other comprehensive loss — — — (82.9 ) (82.9 ) — (82.9 ) \n Disposal of non-controlling interests — — — — — (6.2 ) (6.2 ) \n Reclassification of other comprehensive income — — 9.5 (9.5 ) — — — \n Shareholders' contributions and \n distributions to shareholders \n Reduction of stated capital (518.8 ) — — — (518.8 ) — (518.8 ) \n Dividends — — (1,176.6 ) — (1,176.6 ) — (1,176.6 ) \n Balance as at July 26, 2026 $ 92.6 $ 0.9 $ 374.8 $ (50.1 ) $ 418.2 $ — $ 418.2 \n \n Balance as at October 27, 2024 - As reported $ 619.2 $ 0.9 $ 1,237.5 $ 51.7 $ 1,909.3 $ 5.5 $ 1,914.8 \n Restatement — — (8.3 ) — (8.3 ) — (8.3 ) \n Balance as at October 27, 2024 - Restated 619.2 0.9 1,229.2 51.7 1,901.0 5.5 1,906.5 \n Net earnings - Restated — — 130.6 — 130.6 0.4 131.0 \n Other comprehensive loss — — — (26.6 ) (26.6 ) — (26.6 ) \n Shareholders' contributions and \n distributions to shareholders \n Share repurchases and related income taxes (7.8 ) — 8.8 — 1.0 — 1.0 \n Dividends — — (140.2 ) — (140.2 ) — (140.2 ) \n Balance as at July 27, 2025 - Restated $ 611.4 $ 0.9 $ 1,228.4 $ 25.1 $ 1,865.8 $ 5.9 $ 1,871.7 \n\n\n\n CONSOLIDATED STATEMENTS OF FINANCIAL POSITION \n Unaudited (in millions of Canadian dollars) \n \n As at As at \n July 26, October 26, \n 2026 2025 \n Restated \n \n Current assets \n Cash $ 14.7 $ 47.0 \n Accounts receivable 250.1 468.1 \n Income taxes receivable 18.2 7.2 \n Inventories 117.4 372.7 \n Prepaid expenses and other current assets 20.3 25.0 \n Assets held for sale 5.5 12.0 \n 426.2 932.0 \n \n Property, plant and equipment 141.3 725.5 \n Right-of-use assets 82.1 98.5 \n Intangible assets 123.3 328.0 \n Goodwill 401.6 1,179.5 \n Deferred taxes 43.3 47.3 \n Other assets 18.2 30.0 \n $ 1,236.0 $ 3,340.8 \n \n Current liabilities \n Accounts payable and accrued liabilities $ 225.3 $ 433.9 \n Provisions 18.0 1.3 \n Income taxes payable 3.3 3.5 \n Deferred revenues and deposits 13.2 14.5 \n Current portion of long-term debt 10.4 253.2 \n Current portion of lease liabilities 19.5 25.5 \n 289.7 731.9 \n \n Long-term debt 334.5 417.6 \n Lease liabilities 76.1 91.1 \n Deferred taxes 37.0 69.1 \n Other liabilities 80.5 121.0 \n 817.8 1,430.7 \n \n Equity \n Share capital 92.6 611.4 \n Contributed surplus 0.9 0.9 \n Retained earnings 374.8 1,249.6 \n Accumulated other comprehensive (loss) income (50.1 ) 42.3 \n Attributable to shareholders of the Corporation 418.2 1,904.2 \n Non-controlling interests — 5.9 \n 418.2 1,910.1 \n $ 1,236.0 $ 3,340.8 \n\n\n\n CONSOLIDATED STATEMENTS OF CASH FLOWS \n Unaudited (in millions of Canadian dollars) \n \n Three months ended Nine months ended \n July 26, July 27, July 26, July 27, \n 2026 2025 2026 2025 \n Restated Restated \n \n Operating activities \n Net earnings $ 36.5 $ 38.8 $ 292.6 $ 131.0 \n Less : Net earnings from discontinued operations (0.4 ) 25.8 251.6 97.8 \n Net earnings from continuing operations $ 36.9 $ 13.0 $ 41.0 $ 33.2 \n \n Adjustments to reconcile net earnings and cash flows from operating activities: \n Impairment of assets — 5.7 3.5 5.7 \n Depreciation and amortization 18.8 17.7 54.0 53.7 \n Financial expenses on long-term debt and lease liabilities 4.1 8.8 19.0 28.8 \n Net (gains) losses on disposal of assets (32.0 ) 0.3 (32.3 ) 0.2 \n Income taxes 14.4 6.2 13.4 14.5 \n Net foreign exchange differences and other 11.3 2.9 16.0 2.3 \n Cash flows generated by operating activities before changes in non-cash \n operating items and income taxes paid 53.5 54.6 114.6 138.4 \n Changes in non-cash operating items (11.8 ) (19.0 ) (78.9 ) (44.7 ) \n Income taxes paid (16.7 ) 0.9 (29.3 ) (8.0 ) \n Cash flows from operating activities of continuing operations 25.0 36.5 6.4 85.7 \n \n Investing activities \n Business combinations, net of acquired cash — (4.1 ) (17.5 ) (4.1 ) \n Acquisitions of property, plant and equipment (13.0 ) (5.3 ) (23.3 ) (13.1 ) \n Disposals of property, plant and equipment 36.5 — 37.1 0.1 \n Increase in intangible assets (6.8 ) (7.0 ) (21.3 ) (23.3 ) \n Cash flows from investing activities of continuing operations 16.7 (16.4 ) (25.0 ) (40.4 ) \n \n Financing activities \n Increase in long-term debt 100.0 — 100.0 — \n Reimbursement of long-term debt (250.0 ) (0.6 ) (558.9 ) (201.6 ) \n Net increase (decrease) in credit facilities 139.0 (16.0 ) 145.0 49.0 \n Settlement of cross-currency swaps (12.8 ) — (13.0 ) (25.9 ) \n Financial expenses paid on long-term debt and credit facilities (3.8 ) (8.3 ) (18.8 ) (31.3 ) \n Repayment of principal on lease liabilities (3.5 ) (3.3 ) (10.4 ) (9.9 ) \n Interest paid on lease liabilities (1.0 ) (0.4 ) (1.9 ) (1.3 ) \n Dividends (4.2 ) (18.9 ) (1,176.6 ) (140.2 ) \n Reduction of stated capital — — (518.8 ) — \n Shares repurchased — — — (16.3 ) \n Cash flows from financing activities of continuing operations (36.3 ) (47.5 ) (2,053.4 ) (377.5 ) \n \n Effect of exchange rate changes on cash denominated in foreign currencies 0.9 (0.2 ) (0.8 ) 5.3 \n \n Net change in cash from continuing operations 6.3 (27.6 ) (2,072.8 ) (326.9 ) \n Net change in cash from discontinued operations (0.4 ) 20.3 2,040.5 177.6 \n Cash at beginning of the period 8.8 43.2 47.0 185.2 \n Cash at end of period $ 14.7 $ 35.9 $ 14.7 $ 35.9 \n \n Non-cash investing activities \n Net change in capital asset acquisitions financed by accounts payable $ (0.4 ) $ 1.4 $ (2.0 ) $ (1.9 ) \n\n\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/7877b5ff-d877-4649-ad03-c048f7f3b321)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-09-09T13:25:00.65767508Z","server_sent_at_ms":1788960300657},"received_at":"2026-09-09T13:25:00.931Z","source_url":null},"analysis":{"id":"128181","press_release_id":"139344","analysis_json":{"industry":{"label":"Publishing","sector":"Communication Services"},"redFlags":["Revenue growth is mostly acquisition-driven; volumes declined in both operating sectors","183.8% net earnings jump flattered by one-time gains on the sale of two buildings (~$32.0M net disposal gains) and lower restructuring/impairment charges","Nine-month adjusted operating earnings before D&A actually declined 3.9% year-over-year","$12.0 million of FX losses on cross-currency swap settlements excluded from adjusted earnings as non-recurring","Outlook flags continued lower volume in traditional activities, including book printing comps from a very strong FY2025"],"eventType":"earnings","narrative":"TC Transcontinental posted Q3 FY2026 revenues of $306.0 million, up 3.8% year-over-year, with net earnings from continuing operations of $36.9 million ($0.44 per share), up 183.8%. Adjusted net earnings rose 22.1% to $27.1 million ($0.32 per share, up 18.5%).\n\nAdjusted operating earnings before depreciation and amortization grew 4.1% to $60.9 million, helped by recent acquisitions, cost reductions and the nationwide rollout of raddar, though volumes declined in both the Retail Services and Printing and Books and Education sectors.\n\nThe balance sheet improved markedly: two buildings were sold for $36.5 million net, cutting net indebtedness to $425.8 million, or 2.06x adjusted EBITDA, from 3.49x at the start of the fiscal year, and a quarterly dividend of $0.05 per share was declared.\n\nManagement expects FY2026 adjusted operating earnings before D&A from continuing operations to remain stable versus FY2025 and to push net indebtedness below 2x, with the closing of the Packaging Business sale a key milestone for the pivot toward in-store marketing and educational publishing.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Deleveraging milestone quarter: net debt cut to 2.06x EBITDA with the Packaging sale closing, and raddar rollout driving growth despite ongoing print volume declines."},"keyFigures":{"eps":0.44,"revenue":306000000,"guidance":"FY2026 adjusted operating earnings before D&A from continuing operations expected to remain stable vs FY2025; net indebtedness expected below 2x adjusted operating earnings before D&A by fiscal year-end","revenueYoy":"3.8%","customDimensions":{"currency":"CAD","adjusted_eps_q3":0.32,"adjusted_eps_yoy":"18.5%","net_earnings_yoy":"183.8%","net_indebtedness":425800000,"adjusted_ebitda_q3":60900000,"nine_month_revenue":838700000,"adjusted_ebitda_yoy":"4.1%","operating_earnings_q3":66900000,"net_indebtedness_ratio":2.06,"nine_month_revenue_yoy":"0.3%","adjusted_net_earnings_q3":27100000,"building_sale_net_proceeds":36500000,"fx_loss_on_swap_settlements":12000000,"net_indebtedness_ratio_prior":3.49,"quarterly_dividend_per_share":0.05}},"quotedText":"our results for the third quarter live up to expectations with an\nincrease in adjusted operating earnings before depreciation and amortization","namedEntities":{"people":[{"name":"Sam Bendavid","role":"Chief Executive Officer of TC Transcontinental"},{"name":"Donald LeCavalier","role":"Executive Vice President and Chief Financial Officer"}],"products":["raddar"],"companies":[{"name":"Transcontinental Inc.","ticker":"TCL.A","relationship":"filer"}],"dollarAmounts":[{"amount":"$306.0 million","context":"Q3 FY2026 revenues from continuing operations"},{"amount":"$36.9 million","context":"Q3 net earnings from continuing operations"},{"amount":"$60.9 million","context":"Q3 adjusted operating earnings before depreciation and amortization"},{"amount":"$36.5 million","context":"net consideration from sale of two buildings"},{"amount":"$425.8","context":"net indebtedness as at July 26, 2026 (millions, continuing operations)"},{"amount":"$12.0 million","context":"financial expenses incl. FX losses on cross-currency swap settlements, excluded from adjusted earnings"},{"amount":"$0.05","context":"quarterly dividend declared per Class A Subordinate Voting Share and Class B Share"}]},"materialImpact":{"score":3,"reasoning":"Solid Q3 print with adjusted net earnings up 22.1% and GAAP net earnings from continuing operations up 183.8% (flattered by one-time building-sale gains), plus major deleveraging (net debt ratio 2.06x vs 3.49x a year earlier). No consensus figures are cited, so the >10%-surprise bar for a score of 5 cannot be verified; underlying volumes are still declining."},"tickerRelevance":{"others":[{"ticker":"TCL.B","relevance":"same issuer - Class B Shares listed on TSX alongside TCL.A"}],"primary":"TCLA"},"globalImportance":25,"audienceRelevance":12,"eventTypeSecondary":["dividend"],"importanceComponents":{"tickerTier":"mid-cap TSX issuer","eventGravity":"quarterly earnings with deleveraging and divestiture context","sectorWeight":"printing/publishing - structurally declining end markets","issuerAuthored":true,"householdBrandBoost":0,"retailFavoriteBoost":0}},"event_type":"earnings","event_type_secondary":["dividend"],"sentiment":"bullish","material_impact_score":3,"narrative":"TC Transcontinental posted Q3 FY2026 revenues of $306.0 million, up 3.8% year-over-year, with net earnings from continuing operations of $36.9 million ($0.44 per share), up 183.8%. Adjusted net earnings rose 22.1% to $27.1 million ($0.32 per share, up 18.5%).\n\nAdjusted operating earnings before depreciation and amortization grew 4.1% to $60.9 million, helped by recent acquisitions, cost reductions and the nationwide rollout of raddar, though volumes declined in both the Retail Services and Printing and Books and Education sectors.\n\nThe balance sheet improved markedly: two buildings were sold for $36.5 million net, cutting net indebtedness to $425.8 million, or 2.06x adjusted EBITDA, from 3.49x at the start of the fiscal year, and a quarterly dividend of $0.05 per share was declared.\n\nManagement expects FY2026 adjusted operating earnings before D&A from continuing operations to remain stable versus FY2025 and to push net indebtedness below 2x, with the closing of the Packaging Business sale a key milestone for the pivot toward in-store marketing and educational publishing.","key_figures":{"eps":0.44,"revenue":306000000,"guidance":"FY2026 adjusted operating earnings before D&A from continuing operations expected to remain stable vs FY2025; net indebtedness expected below 2x adjusted operating earnings before D&A by fiscal year-end","revenueYoy":"3.8%","customDimensions":{"currency":"CAD","adjusted_eps_q3":0.32,"adjusted_eps_yoy":"18.5%","net_earnings_yoy":"183.8%","net_indebtedness":425800000,"adjusted_ebitda_q3":60900000,"nine_month_revenue":838700000,"adjusted_ebitda_yoy":"4.1%","operating_earnings_q3":66900000,"net_indebtedness_ratio":2.06,"nine_month_revenue_yoy":"0.3%","adjusted_net_earnings_q3":27100000,"building_sale_net_proceeds":36500000,"fx_loss_on_swap_settlements":12000000,"net_indebtedness_ratio_prior":3.49,"quarterly_dividend_per_share":0.05}},"named_entities":{"people":[{"name":"Sam Bendavid","role":"Chief Executive Officer of TC Transcontinental"},{"name":"Donald LeCavalier","role":"Executive Vice President and Chief Financial Officer"}],"products":["raddar"],"companies":[{"name":"Transcontinental Inc.","ticker":"TCL.A","relationship":"filer"}],"dollarAmounts":[{"amount":"$306.0 million","context":"Q3 FY2026 revenues from continuing operations"},{"amount":"$36.9 million","context":"Q3 net earnings from continuing operations"},{"amount":"$60.9 million","context":"Q3 adjusted operating earnings before depreciation and amortization"},{"amount":"$36.5 million","context":"net consideration from sale of two buildings"},{"amount":"$425.8","context":"net indebtedness as at July 26, 2026 (millions, continuing operations)"},{"amount":"$12.0 million","context":"financial expenses incl. FX losses on cross-currency swap settlements, excluded from adjusted earnings"},{"amount":"$0.05","context":"quarterly dividend declared per Class A Subordinate Voting Share and Class B Share"}]},"model_name":"glm-5.3-flash","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-09T13:26:49.153Z","global_importance":25,"audience_relevance":12,"importance_components":{"tickerTier":"mid-cap TSX issuer","eventGravity":"quarterly earnings with deleveraging and divestiture context","sectorWeight":"printing/publishing - structurally declining end markets","issuerAuthored":true,"householdBrandBoost":0,"retailFavoriteBoost":0}},"durationMs":108212,"modelName":"glm-5.3-flash"}}