Overview

* Donnelley Financial Q2 net sales fall 10.1% yr/yr due to lower print volumes

* Adjusted EPS for Q2 beats analyst expectations, per LSEG data

* Co announces new $150 mln stock repurchase program

Outlook

* DFIN says encouraged by the level of capital markets transactional activity so far in Q3

* Company expects Q3 2025 net sales of $165 mln to $175 mln

* DFIN anticipates Q3 2025 adjusted EBITDA margin between 23% and 25%

* Company forecasts Q3 2025 capital markets transactional net sales of $35 mln to $40 mln

* DFIN sees improving market conditions in Q3 2025

Result Drivers

* EBITDA HIT - Drop in adjusted EBITDA and adjusted EBITDA margin was mainly due to lower capital markets transactional volumes

* SOFTWARE SALES - Record quarterly software solutions net sales driven by compliance products ActiveDisclosure and Arc Suite

* MARKET CONDITIONS - Improved market activity helped drive solid overall results despite macroeconomic headwinds

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.49 $1.42 (3

Adjusted Analysts

EPS )

Q2 EPS $1.28

Q2 $42.10

Adjusted mln

Net

Income

Q2 Net $36.10

Income mln

Q2 $76.30

Adjusted mln

EBITDA

Q2 35.0%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the professional information services peer group is "buy"

* Wall Street's median 12-month price target for Donnelley Financial Solutions Inc ( DFIN ) is $72.00, about 11.3% above its July 30 closing price of $63.86

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)