Quad/Graphics, Inc. (NYSE: QUAD) announced a temporary surcharge on its printing inks, UV coating, and varnishes to offset rising production costs. The surcharge will apply to all ink, coating, adhesive, and specialty fluid products and will be communicated to clients on a case‑by‑case basis.
The company cited higher oil and gas prices, transportation disruptions, and energy expenses linked to the ongoing Middle East conflict as the primary drivers of increased costs at its ink‑manufacturing subsidiary, Chemical Research/Technology (CR/T). CR/T supplies the vast majority of inks used by Quad’s printing plants and does not sell inks outside the company, making the cost impact directly relevant to Quad’s overall operations.
Quad’s Q4 2025 results showed a 9.4% decline in net sales to $2.4 billion versus $2.7 billion in 2024, while net earnings improved to $27 million from a $51 million loss in 2024. Adjusted EBITDA fell to $196 million from $224 million, reflecting lower sales and higher investment in innovative offerings. The surcharge is intended to protect margins in a market where ink costs are a significant component of production expenses.
President and COO Dave Honan said the company has absorbed some cost increases but that the pace of supply‑chain disruption and geopolitical uncertainty required “measured action” to maintain quality and service levels for its 2,100‑plus client base. The surcharge is temporary and will be phased out once input costs stabilize.
The move underscores Quad’s broader strategy of managing cost pressures while pursuing growth in high‑margin marketing experience solutions, including AI‑driven services. By passing on the cost of higher raw materials, Quad aims to preserve profitability without compromising the quality and reliability its clients expect.
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