Canadian Tire (CTC) investor relations material

Executive summary

• Q2 2026 delivered strong results with normalized diluted EPS up 10.4% to CAD 3.94, driven by higher net income, lower share count, and robust performance at SportChek and Mark's, despite challenging weather and soft consumer sentiment.

• The True North strategy advanced with customer-centric growth, digital harmonization, AI-driven merchandising, and increased loyalty and e-commerce engagement outpacing broader retail sales.

• Operational agility included price reductions for value-seeking customers and adaptation to weather impacts, supporting strong comparable sales and profitability.

• Mark's and SportChek achieved impressive comparable sales, supported by new store formats, World Cup-related demand, and loyalty member engagement.

• YTD Q2 2026 normalized diluted EPS grew by $0.40 to $5.96, and reported diluted EPS increased by $2.97 to $5.67 compared to the prior year.

Financial highlights

• Q2 2026 consolidated revenue rose 2.4% year-over-year to $4,302.9M, with retail sales up 4.5% to $5,391.6M and retail sales excluding petroleum up 2.5%.

• Diluted normalized EPS rose 10% year-over-year to CAD 3.94, driven by higher retail IBT, lower share count, and favorable tax rate.

• Retail gross margin dollars increased 0.7% to $1,223.5M; gross margin rate excluding petroleum improved 33 bps to 35.1%.

• EBITDA for Q2 2026 was $547.1M, up 6.3% on a normalized basis; normalized retail EBITDA increased 2.2% to CAD 498M.

• Retail IBT was $201.1M normalized, up from $198.8M in Q2 2025; net income from continuing operations increased 13.8% to $214.2M.

Outlook and guidance

• Early Q3 sales growth observed as summer weather improved; planning for growth in the back half of 2026 on a 52-week basis.

• Full-year gross margin rate target of 35%+ reaffirmed, with some Q3 headwinds from transportation costs and targeted investments.

• CapEx expected in the CAD 450–500 million range for 2026, revised down from $500–550 million due to timing shifts.

• The Triangle Rewards program will add a fourth partner in fall 2026, expanding member engagement.

• Continued rollout of new store concepts and Destination Sport stores planned for the second half of 2026 and into 2027.