What Ennis, Inc. told the SEC could break it.

Changes in U.S. tariff and trade policy could adversely affect Ennis, which is monitoring the dynamic environment of imposed, modified and paused tariffs and exemptions and possible reciprocal foreign countermeasures — a heightened exposure now that it must source carbonless and other paper internationally after the U.S. mill closure; it is also subject to the Inflation Reduction Act's 1% excise tax on stock repurchases (relevant given its active buyback program).

“Changes in U.S. tariff and trade policy could adversely affect our business. We are monitoring changes and potential changes to U.S. tariff and trade policies under the current Presidential administration, along with reciprocal tariffs or other countermeasures imposed or that may be imposed by other countries in response.”

Ennis operates roughly 50 printing plants subject to EPA hazardous-waste regulation — two-thirds classified as Very Small Quantity Generators and one-third as Small Quantity Generators — requiring proper storage and disposal of hazardous waste under EPA permits; while current compliance is not deemed material, future regulatory changes, reinterpretations or discovery of previously unknown conditions could require material expenditures, and liability for any past noncompliance cannot be reasonably estimated.

Paper is a key input for Ennis's printed products, and supply is concentrated and disrupted: during fiscal 2026 its primary domestic carbonless-paper supplier permanently closed a mill, eliminating the sole U.S. source for that product, forcing Ennis to transition to alternative and international suppliers; combined with recent paper-industry consolidation, this is expected to create volatility in paper pricing and availability that could raise costs and constrain production.

“During fiscal year 2026, our primary domestic supplier of carbonless papers, permanently closed one of its mills, eliminating the sole U.S. source for this product. As a result, we are transitioning to alternative suppliers, including international sources, which may exp”

Ennis is heavily dependent on one supplier for raw materials: it purchased 59% of its materials from a single third-party vendor in fiscal 2026 (vs. 42% in 2025 and 40% in 2024), and buys its paper products (a key input) from a limited number of suppliers for quality and pricing reasons; a disruption, price action or loss of that dominant vendor could materially affect its production and costs.

“For fiscal years 2026, 2025 and 2024, the Company purchased 59 %, 42 % and 40 %, respectively, of its materials from one third party vendor.”