Supremex Inc.

packaging activities, new business wins from existing customers, and revenue from the acquisition of TransGraphic acquired in July 2025. Moving to slide 15, adjusted EBITDA totaled $9.9 million or 13.2% of revenue, up from $8.8 million or 12.6% of revenue in last year's first quarter, and up sequentially from $9.1 million or 12.5% of revenue in the fourth quarter of 2025. Envelope adjusted EBITDA was $8.4 million or 16.6% of revenue versus $8.3 million or 17.2% of revenue last year. Sequentially, it was up from $7.8 million or 15.9% of revenue in the fourth quarter. The improvement mainly reflects the favorable impact of higher volume on the absorption of fixed costs, which more than offset the effect of lower average selling prices. Packaging and specialty products generated adjusted EBITDA of 3.7 million, or 15.4% of revenue, up from 3.3 million, or 15% of revenue last year, and up sequentially from 3.2 million, or 13.2% of revenue in the fourth quarter. The year-over-year increase is essentially due to the effect of higher volume on the absorption of fixed costs. Finally, corporate unallocated costs totaled 2.3 million compared to 2.8 million last year, mostly due to lower professional fees. Turning to slide 16, adjusted net earnings for the quarter were 1.9 million or 8 cents per share versus 2.2 million or 9 cents per share last year. Please note that this year's tax rate was higher due to the non-recognition of 0.8 million in income tax benefits. Otherwise, adjusted net earnings would have been about half a million above last year's. Moving to cash flow on slide 17. Net cash flows from operating activities were negative 0.8 million as opposed to positive $7 million last year. The variation mainly stems from working capital requirements this year, primarily due to the settlement of income taxes arising from last year's sale leaseback transaction, as opposed to a working capital release last year. As a result of lower operating cash flow, free cash flow was negative $1.8 million in Q1, 2026, versus positive $6.8 million a year ago. Turning to slide 18, net debt stood at $4.1 million as at March 31st, 2026, up slightly from $1 million three months ago, mainly due to the working capital requirements described a moment ago. As a result, our ratio of net debt to adjusted EBITDA was 0.13 times versus 0.03 times at the end of Q4 2025. Our strong financial position leaves us with significant flexibility to finance our operations, our future investments, including acquisitions, as well as to continue returning funds to shareholders. During the quarter, we repurchased more than 57,000 shares for a consideration of $0.2 million. Finally, the Board of Directors declared a quarterly dividend of $0.05 per common share payable on June 18, 2026, to shareholders of record at the close of business on June 4th, 2026. I'll now turn the call back to Stuart for the outlook.

Hey, great. Thanks, Norm. As I said at the beginning, we're pleased with our results and are cautiously optimistic about the outlook. This may not always be linear, but we have planted enough seeds over the past several quarters to believe that we have positioned ourselves to continue to grow earnings. Operationally, our sustained focus on productivity improvement and right-sizing our footprint continues to pay off. Meanwhile, our sales teams are leveraging our capabilities by driving volume growth to expand our reach in key markets and further support absorption. Financially, our near debt-free balance sheet provides exceptional flexibility to advance our business plan and deliver sustainable, long-term, profitable growth. Having completed four tuck-in acquisitions over the last 10 months, our appetite for M&A remains strong. We will continue pursuing tuck-in opportunities that leverage our existing footprint while increasingly evaluating more substantive targets in the packaging space. Finally, we remain committed to reward our shareholders with regular quarterly dividend payments and use excess cash flow to repurchase our shares. This concludes our prepared remarks and we are now ready to answer your questions.

Thank you. We will now begin the question and answer session. To join the question queue, you may press star then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then 2. First question comes from Donangelo Volpe from Beacon Securities. Please go ahead.