First full quarter with Goldrich lifts Packaging & Specialty Products to 38.9% of total revenue;
Envelope's performance improves despite tariffs

Montreal, Quebec--(Newsfile Corp. - November 5, 2026) - Supremex Inc. (TSX: SXP) ("Supremex" or the "Company"), a provider of paper-based packaging solutions, a key component of the Company's expansion strategy, and a leading North American manufacturer and marketer of envelopes, today announced its results for the third quarter ended September 30, 2026. The Company will hold a conference call to discuss these results today at 10:00 a.m. (Eastern Time).

Third Quarter Financial Highlights and Recent Events

• Total revenue of $76.2 million, up 16.1% from $65.7 million in the third quarter of 2025, marking a fourth consecutive quarter of year-over-year revenue growth.
• Net earnings of $0.5 million, or $0.02 per share, versus net earnings of $9.1 million, or $0.37 per share, in the third quarter of 2025, which included a $6.1 million gain on sale and leaseback and a $3.1 million income tax recovery.
• Adjusted EBITDA¹ of $8.6 million, or 11.3% of revenue, up 38.5% from $6.2 million, or 9.4% of revenue, last year, despite approximately $1.0 million of tariff costs absorbed in the quarter.
• Packaging & Specialty Products segment revenue of $29.7 million, up 44.4% from $20.6 million last year, including organic growth of 10.5%², representing 38.9% of total revenue compared to 31.3% last year. Segment Adjusted EBITDA¹ of $3.5 million, up 61.4% from $2.2 million, or 11.8% of segment revenue versus 10.5% last year despite a $0.4 million loss for the commercial print activities.
• Envelope segment revenue of $46.5 million, up 3.2% from $45.1 million last year. Segment Adjusted EBITDA¹ of $7.7 million, or 16.5% of segment revenue, up from $5.3 million, or 11.8%, last year, despite absorbing approximately $1.0 million of tariff costs in the quarter.
• Net cash flows related to operating activities of $8.4 million and Adjusted free cash flow¹ of $5.2 million, compared to $(0.6) million and $0.1 million, respectively, in the third quarter of 2025.
• On October 6, 2026, the Company announced a restructuring plan involving the elimination of approximately 60 positions, expected to generate annualized cost savings of approximately $5.7 million, with the full run-rate expected during the first quarter of 2027.
• On November 4, 2026, the Board of Directors declared a quarterly dividend of $0.05 per common share, payable on December 18, 2026, to shareholders of record at the close of business on December 3, 2026.

(1) Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.

"This quarter shows that our transformation into a packaging company is no longer just a strategy - it is showing up in our results," said Stewart Emerson, President and CEO of Supremex. "In the first full quarter including Goldrich and iFlex, our acquisitions made a meaningful contribution, and together with solid organic growth, Packaging & Specialty Products now represents nearly 39% of our revenue, up from 31% a year ago. Our packaging business grew 44.4% in the quarter and delivered an Adjusted EBITDA margin³ of 11.8% up from 10.5% last year, despite the softness in our commercial print business. Just as important, our Envelope business delivered an outstanding quarter, expanding its margin despite absorbing new tariff costs - a clear demonstration of the efficiency gains from our optimization initiatives and the disciplined integration of our tuck-in acquisitions."

"Tariffs are a real headwind for our envelope business, and we responded quickly and decisively with a restructuring plan expected to generate approximately $5.7 million in annualized savings," concluded Mr. Emerson. "At the same time, several tailwinds are building in our favour: new printing, converting and finishing capacity in our packaging business, the consolidation of our label and Montreal-area folding carton production into our Lachine facility, and continued synergies from Goldrich and iFlex. While the timing and outcome of the tariffs remain uncertain, our direction is clear. With a resilient envelope business funding our growth and a packaging platform gaining real scale, we are committed to accelerating our shift to packaging and believe there is significant value yet to be unlocked in the Supremex story."

Summary of three and nine-month periods ended September 30, 2026

Revenue

Total revenue for the three-month period ended September 30, 2026, was $76.2 million, representing an increase of $10.6 million, or 16.1%, from the equivalent quarter of 2025. The increase mainly reflects the contribution of the Goldrich and iFlex acquisitions, completed in the second quarter of 2026.

For the nine-month period ended September 30, 2026, total revenue was $222.6 million, representing an increase of $20.8 million, or 10.3%, from the equivalent period of 2025.

Packaging & Specialty Products Segment

In the third quarter of 2026, revenue was $29.7 million, up $9.1 million, or 44.4%, from $20.6 million in the third quarter of 2025. The increase mainly reflects the contribution of the Goldrich and iFlex acquisitions, completed in the second quarter of 2026 as well as higher folding carton revenue driven by share of wallet gains with large multi-national consumer packaged goods customers and continued e-commerce secondary packaging market expansion. These factors were partially offset by continued softness in the commercial print business, where revenue was down $0.5 million. The Packaging & Specialty Products segment represented 38.9% of the Company's revenue in the quarter, versus 31.3% in the equivalent period of last year.

For the nine-month period ended September 30, 2026, revenue was $80.1 million, up $15.5 million, or 24.1%, from $64.5 million in the corresponding period of 2025. The increase reflects the contribution of the Goldrich and iFlex acquisitions, completed in the second quarter of 2026 and revenue from the Trans Graphique acquisition, completed in the third quarter of 2025. It also reflects higher folding carton revenue driven by share of wallet gains with large multi-national consumer packaged goods customers and continued e-commerce secondary packaging market expansion. These factors were partially offset by continued softness in the commercial print business, where revenue was down $1.5 million. Packaging & Specialty Products represented 36.0% of the Company's revenue in the first nine months of 2026, compared with 32.0% during the equivalent period of last year.

Envelope Segment

In the third quarter of 2026, revenue was $46.5 million, representing an increase of $1.4 million, or 3.2%, from $45.1 million in the third quarter of 2025. The variation is attributable to a 4.7% increase in the average selling price, mainly due to a more favourable customer and product mix. Meanwhile, the volume of units sold decreased by 1.5% reflecting lower industry demand, partially offset by the contribution from Elite Envelope, acquired in the fourth quarter of 2025. The Envelope segment represented 61.1% of the Company's revenue in the quarter, versus 68.7% in the equivalent period of last year.

In the first nine months of 2026, revenue totaled $142.6 million, representing an increase of $5.2 million, or 3.8%, from $137.3 million in the nine-month period ended September 30, 2025. The variation is attributable to a 1.8% increase in the average selling price and a 2.0% increase in the volume of units sold, reflecting the full period contribution of Enveloppe Laurentide and Elite Envelope as well as new customer wins and share of wallet growth in the United States, as well as a modest rebound from the impact of the Canada Post labour issues, which persisted for an extended period in 2025. Envelope represented 64.0% of the Company's revenue in the period, versus 68.0% during the equivalent period of last year.

EBITDA⁴ and Adjusted EBITDA⁴

In the third quarter of 2026, EBITDA was $8.2 million, or 10.8% of revenue, compared to $12.2 million, or 18.6% of revenue, in the third quarter last year, which included the $6.1 million gain on sale and leaseback. Adjusted EBITDA was $8.6 million, or 11.3% of revenue, versus $6.2 million, or 9.4% of revenue, in the third quarter of 2025, an increase of $2.4 million, or 38.5%. The variation mainly reflects the higher revenue, including the contribution of acquisitions, and the improved operating expense ratio, partially offset by new tariff costs and higher selling, general and administrative expenses, as discussed above. Adjusted EBITDA included $1.0 million of tariff costs and a $0.4 million loss related to the commercial print activities.

For the first nine months of 2026, EBITDA was $23.9 million, or 10.7% of revenue, compared to $26.0 million, or 12.9% of revenue, for the same period a year ago. Adjusted EBITDA was $26.3 million, or 11.8% of revenue, versus $20.9 million, or 10.3% of revenue for the same period a year ago. This increase of $5.4 million, or 26.0%, reflects the factors mentioned above. Adjusted EBITDA included $1.0 million of tariff costs and a $1.1 million loss related to the commercial print activities.

Packaging & Specialty Products Segment

In the third quarter of 2026, Adjusted EBITDA was $3.5 million, versus $2.2 million in the same period of 2025. On a percentage of segmented revenue, Adjusted EBITDA from the Packaging & Specialty Products segment was 11.8%, compared to 10.5% in the equivalent period of 2025. Adjusted EBITDA included a $0.4 million loss related to the commercial print activities.

For the first nine months of 2026, Adjusted EBITDA was $10.6 million, compared to $8.3 million in the first nine months of 2025. On a percentage of segmented revenue, Adjusted EBITDA from the Packaging & Specialty Products segment was 13.2%, compared to 12.9% in the equivalent period of 2025. Adjusted EBITDA included a $1.1 million loss related to the commercial print activities.

Envelope Segment

In the third quarter of 2026, Adjusted EBITDA was $7.7 million, versus $5.3 million in the same period of 2025. On a percentage of segmented revenue, Adjusted EBITDA from the Envelope segment was 16.5%, compared with 11.8% in the equivalent period of 2025. Adjusted EBITDA included $1.0 million of tariff costs.

For the first nine months of 2026, Adjusted EBITDA was $23.2 million, compared to $19.8 million in the first nine months of 2025. On a percentage of segmented revenue, Adjusted EBITDA from the Envelope segment was 16.2%, compared to 14.5% in the equivalent period of 2025. Adjusted EBITDA included $1.0 million of tariff costs.

Corporate and other non-allocated expenses

In the third quarter of 2026, corporate and other non-allocated expenses were $2.6 million compared to $1.3 million in 2025. This $1.3 million increase was mainly attributable to a $0.7 million foreign exchange gain recorded in 2025 as well as higher salaries and benefits partially offset by lower DSU and PSU expense reflecting share price fluctuations.

For the first nine months of 2026, corporate and other non-allocated expenses were $7.5 million compared to $7.3 million in the equivalent period of 2025. The $0.2 million increase mainly reflects higher salaries and benefits, mostly offset by the non-recurrence of the $0.8 million foreign exchange loss in 2025 and lower DSU expense, both mentioned above.

Net Earnings, Adjusted Net Earnings⁵, Net Earnings per Share and Adjusted Net Earnings per Share⁵

Net earnings were $0.5 million or $0.02 per share for the three-month period ended September 30, 2026, compared to $9.1 million or $0.37 per share for the equivalent period last year, which included the after-tax gain on sale and leaseback of $4.5 million and an income tax recovery of $3.1 million. Adjusted net earnings were $0.8 million or $0.03 per share for the three-month period ended September 30, 2026, compared to $4.7 million or $0.19 per share for the equivalent period in 2025, reflecting the same factors mentioned above.

For the nine-month period ended September 30, 2026, net earnings were $2.3 million or $0.09 per share, compared to $10.7 million or $0.44 per share for the equivalent period last year. Adjusted net earnings amounted to $4.0 million or $0.17 per share, compared to $6.9 million or $0.28 per share for the equivalent period in 2025, reflecting the same factors mentioned above.

Liquidity and Capital Resources

Cash Flow

Net cash flows from operating activities were $8.4 million during the three-month period ended September 30, 2026, compared to cash flows used in operating activities of $0.6 million in the equivalent period of 2025. This improvement is mainly attributable to higher net earnings excluding non-cash items.

For the nine-month period ended September 30, 2026, net cash flows from operating activities were $11.8 million, compared to $6.7 million in the equivalent period of 2025. This improvement is mainly attributable to higher net earnings excluding non-cash items partially offset by higher working capital investments this year compared to last year, notably income taxes receivable and inventories partially compensated by more favorable timing of disbursements to suppliers.

Free cash flow⁶ was $4.8 million in the third quarter of 2026, compared to $53.0 million for the same period last year, which included $53.0 million of proceeds from the sale and leaseback transaction. Excluding these proceeds, free cash flow improved by $4.8 million, reflecting higher cash flows related to operating activities, partially offset by higher investments in property, plant and equipment. Adjusted free cash flow⁶ was $5.2 million for the three-month period ended September 30, 2026, compared to $0.1 million in the same period last year.

For the nine-month period ended September 30, 2026, free cash flow was $6.6 million, compared to $59.8 million for the same period in 2025, which included $53.0 million of proceeds from the sale and leaseback transaction. Excluding these proceeds, free cash flow decreased by $0.2 million, as higher investments in property, plant and equipment more than offset higher cash flows related to operating activities in 2026. Adjusted free cash flow was $7.5 million for the nine-month period ended September 30, 2026, compared to $7.2 million in the same period last year.

Debt and Leverage

The Company's total debt increased to $41.8 million as at September 30, 2026, compared to $4.1 million as at December 31, 2025. The increase is essentially attributable to the financing of the acquisitions of Goldrich and iFlex, for which the Company disbursed approximately $34.4 million and $1.7 million, respectively funded through the $25.0 million acquisition term loan and drawings on the revolving credit facility. Total debt decreased by $2.1 million from $43.9 million as at June 30, 2026, reflecting the first acquisition term loan instalment and net repayments on the revolving credit facility. As at September 30, 2026, the ratio of Net debt to Adjusted EBITDA⁶ was 1.09x compared to 1.22x as at June 30, 2026, and 0.03x as at December 31, 2025.

Dividend declaration

On November 4, 2026, the Board of Directors declared a quarterly dividend of $0.05 per common share, payable on December 18, 2026, to shareholders of record at the close of business on December 3, 2026. This dividend is designated as an "eligible" dividend for the purpose of the Income Tax Act (Canada) and any similar provincial legislation.

Outlook

Demand for the Company's envelope products is influenced by current economic volatility, ongoing trade uncertainty, postage increases and reduced service standards at the United States Postal Service, as well as reputational challenges at Canada Post arising from labour issues. These factors contribute to variability in the Company's operating environment. As it continues to expand in the vast and fragmented U.S. envelope market, the Company will rely on its solid reputation and geographic reach to stimulate revenue growth while continuing to proactively control expenses.

Based on tariff measures currently in effect, since August 22, 2026, and management's current assessment of trade flows, the Company estimates that tariffs will have an impact on its operating earnings, before taxes, of between $10.0 million and $12.0 million on an annualized basis, including mitigation measures implemented to date, such as commercial pricing actions, supply chain adjustments and the rebalancing of production across its North American manufacturing network, but excluding the restructuring plan previously announced on October 6, 2026. In the third quarter of 2026, the impact of the tariffs, enacted on August 22, 2026, on the Company was approximately $1.0 million. The Company continues to actively pursue additional mitigation alternatives with the objective of further reducing this impact. While the timing and outcome of the tariffs remain uncertain, the Company is managing its operations - and has prepared these estimates - on the assumption that tariff measures remain in effect as currently enacted.

At the same time, the Company sees a significant and growing opportunity in its Packaging & Specialty Products segment, and particularly in folding carton - the printed paperboard cartons that package everyday consumer products. It is renewable, recyclable, and increasingly favoured as brand owners and regulators move away from single-use plastics. Together with continued e-commerce growth, this shift supports one of the largest and fastest-growing categories in North American packaging - and brand owners increasingly treat premium, well-designed packaging as part of the product itself, a tangible point of differentiation that keeps expanding both the size and the value of the opportunity. Supremex intends to leverage the capacity, expertise, and cash flow of its Envelope business to continue building scale in folding carton and adjacent packaging niches, consistent with its strategy of progressing, over time, toward a more balanced revenue split between its two business segments. The June 2026 acquisition of Goldrich, which establishes the Company's first major folding carton platform in the Greater Toronto Area - Canada's largest packaging market - advances this strategy and provides a base from which to pursue further tuck-in acquisitions.

Beyond top-line growth, the Company has meaningful levers within its own control: driving further gains in efficiency, productivity, and capacity utilization across the network, and realizing the full revenue and cost synergies from its recent acquisitions. The optimization initiatives launched in January 2026 within the U.S. Envelope operations and the reorganization of the label business, consolidating operations into the Lachine, Quebec facility, remain ongoing and are progressing largely on track and on budget. As part of its focus on packaging, the Company continues to optimize its commercial print activities, including the reduction of the footprint of its Saint-Laurent, Quebec commercial print facility announced in October 2026.

With respect to capital deployment, the Company will prioritize the execution of its restructuring plan, while continuing to evaluate strategic acquisitions, mainly in the Packaging & Specialty Products segment.

November 5, 2026 — Third Quarter Results Conference Call:

A conference call to discuss the Company's results for the third quarter ended September 30, 2026, will be held Thursday, November 5, 2026, at 10:00 a.m. (Eastern Time). A live broadcast of the conference call will be available on the Company's website, in the Investors section under Webcast. To participate (professional investment community only) or to listen to the live conference call, please dial the following numbers. We suggest that participants call in at least 5 minutes prior to the scheduled start time:

• Local (Toronto) and international participants, dial: 647-846-8776
• North American participants, dial toll-free: 1-833-752-3804

A replay of the conference call will be available on the Company's website in the Investors section under Webcast. To listen to a recording of the conference call, please call toll-free 1-855-669-9658 or 412-317-0088 and enter the code 3820182. The recording will be available until Thursday, November 12, 2026.

Non-IFRS Financial Measures

Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies and should not be viewed as alternatives to measures of financial performance prepared in accordance with IFRS. Management considers these metrics to be information which may assist investors in evaluating the Company's profitability and enable better comparability of the results from one period to another.

These Non-IFRS Financial Measures are defined as follows:

The following tables provide the reconciliation of Non-IFRS Financial Measures to the most directly comparable IFRS measures:

⁽¹⁾ Refer to the "Selected Quarterly Operating Results" section of the Company's MD&A for the three and nine-month periods ended September 30, 2026, for more information on the results of each of the last eight quarters.

Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws, including (but not limited to) statements about the estimated net impact of tariffs, the Company's tariff mitigation measures and their expected effect, including the expected annualized cost savings resulting from the restructuring plan, the expected restructuring charge, the timing of the implementation of the plan and realization of its benefits, capital expenditures, dividends payments, anticipated benefits and synergies from recently completed acquisitions, including the Goldrich and iFlex acquisitions, and future performance of Supremex and similar statements or information concerning anticipated future results, circumstances, performance or expectations. Forward-looking information may include words such as anticipate, assumption, believe, could, expect, goal, guidance, intend, may, objective, outlook, plan, seek, should, strive, target and will. Such information relates to future events or future performance and reflects current assumptions, expectations and estimates of management regarding growth, results of operations, performance, business prospects and opportunities, Canadian economic environment, and ability to attract and retain customers. Such forward-looking information reflects current assumptions, expectations and estimates of management and is based on information currently available to Supremex as at the date of this press release. Such assumptions, expectations and estimates are discussed throughout the MD&A for the year ended December 31, 2025, and in the Company's Annual Information Form dated March 27, 2026. Supremex cautions that such assumptions may not materialize and that economic conditions such as economic uncertainty, downturns or recessions, or the imposition of tariffs or trade restrictions, may render such assumptions, although believed reasonable at the time they were made, subject to greater uncertainty.

The estimated net impact of tariffs and the expected annualized savings and restructuring charges constitute financial outlooks within the meaning of applicable Canadian securities laws and are provided for the purpose of assisting readers in understanding the expected effect of tariffs and of the restructuring plan on the Company's results. Readers are cautioned that such information may not be appropriate for other purposes.

Forward-looking information is subject to certain risks and uncertainties and should not be read as a guarantee of future performance or results and actual results may differ materially from the conclusion, forecast or projection stated in such forward-looking information. These risks and uncertainties include but are not limited to the following: risk of partial or non-realization of the anticipated benefits from the restructuring plan and mitigation measures, decline in envelope consumption, growth and diversification strategy, key personnel, labour shortage, contributions to employee benefits plans, raw material price increases, operational disruption, cyber security and data protection, dependence on and loss of customer relationships, increase of competition, economic conditions and uncertainty, risk related to the international trade and tax environment (including tariffs, quotas and custom and other restrictions), exchange rate fluctuation, interest rate fluctuation, credit risks with respect to trade receivables, availability of capital, concerns about protection of the environment, potential risk of litigation and no guarantee to pay dividends. Such risks and uncertainties are discussed throughout the MD&A for the year ended December 31, 2025, and, in the Company's Annual Information Form dated March 27, 2026, particularly in "Risk Factors". Consequently, the Company cannot guarantee that any forward-looking information will materialize. Readers should not place any undue reliance on such forward-looking information unless otherwise required by applicable securities legislation. The Company expressly disclaims any intention and assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

The Management's Discussion and Analysis and Financial Statements can be found on www.sedarplus.ca and on Supremex' website.

About Supremex

Supremex is a provider of paper-based packaging solutions, a key component of the Company's expansion strategy, as well as a leading North American manufacturer and marketer of envelopes. Supremex operates nine manufacturing facilities across four provinces in Canada and four manufacturing facilities in three states in the United States employing approximately 900 people. Supremex' extensive network allows it to efficiently manufacture and distribute packaging solutions and envelope designed to the specifications of major national and multinational corporations, direct mailers, resellers, government entities, SMEs, and solutions providers.

For more information, please visit www.supremex.com.

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¹ Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
² Organic change is a non-IFRS ratio that represents the change in revenue excluding revenue from businesses acquired during the previous twelve months, expressed as a percentage of revenue for the comparative period.
³ Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
⁴ Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
⁵ Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.
⁶ Non-IFRS financial measures or ratios. Refer to the non-IFRS financial measures section for definitions and reconciliations.

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