Canadian Tire (CTC) investor relations material

Executive summary

• Achieved strong top-line and underlying retail performance in Q3, with consolidated comparable sales up 1.8% year-over-year and growth across all major banners, notably Sport Chek and Mark's.

• Retail revenue increased 3.2% (5.9% excluding Petroleum), and normalized diluted EPS grew 6.5% to $3.78, while reported diluted EPS declined 11.8% to $3.13 due to transformation expenses.

• Loyalty engagement rose, with over 7 million members shopping (up 3%), and new partnerships expanding the Triangle Rewards network.

• Completed a major internal restructuring under the True North strategy, positioning for accelerated transformation leveraging technology and AI.

• Annualized dividend was raised to $7.20 per share, marking the 16th consecutive annual increase, and a share repurchase intention of up to $400 million by end of 2026 was announced.

Financial highlights

• Consolidated revenue reached $4,105.8 million, up 3.0% year-over-year, with retail revenue (excluding Petroleum) up nearly 6%.

• Retail gross margin dollars (excluding Petroleum) up nearly 8% to $1,211.9 million, with margin rate improving by 57 basis points to 35.8%.

• Normalized retail EBITDA increased almost 4% to CAD 484 million; normalized consolidated IBT was $297.7 million, stable year-over-year.

• Normalized earnings per share rose 6.5% year-over-year to $3.78; reported diluted EPS declined to $3.13 due to transformation costs.

• Financial Services IBT declined to $84.4 million from $110.3 million, mainly due to higher net write-offs.

Outlook and guidance

• Cautiously optimistic for Q4 and 2026, with growth plans in place but mindful of weather, macroeconomic uncertainty, and Canada Post disruptions.

• Positioned to overachieve North Star retail gross margin rate for the year, with continued focus on margin management and AI capabilities.

• SG&A run-rate savings of CAD 100 million expected to benefit 2026, with stable investment levels and regular inflation anticipated.

• Full-year 2025 operating capital expenditures projected at $525–$575 million; 2026 guidance is $500–$550 million.

• 54 store enhancement projects planned for 2025, expanding omni-channel capabilities and launching new loyalty partnerships with RBC and WestJet in 2026.