Andrew Peller (ADW) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was stable at $99.2 million, with strong performance in western Canada and big box channels offsetting softness in Ontario retail and personal winemaking.

• EBITA increased 25.4% to $16.1 million, driven by margin improvements, cost savings, and operational efficiencies.

• Net income improved to $4.6 million from a net loss of $0.4 million in Q1 2025.

• The company completed the sale of a non-core seven-acre land parcel in BC for $1.3 million, supporting its strategy to focus on high-return assets.

• Focus on innovation, premiumization, and expanding presence in both domestic and international markets.

Financial highlights

• Q1 FY26 revenue was $99.2 million, nearly flat year-over-year; EBITA rose 25.4% to $16.1 million; gross margin improved by 400bps to 42.4%.

• Gross margin rose to $42 million (42.4%), up from 38.4% last year, aided by a $20 million cost-savings program and the Ontario Grape Support Program.

• Excluding the Ontario Grape Support Program, gross margin was 40.2%, still showing strong year-over-year growth.

• Interest expense decreased by nearly 15% due to lower debt and interest rates.

• Cash from operations was $19.2 million, up from $15.3 million in the prior year.

Outlook and guidance

• Optimism for the remainder of fiscal 2026, with a strong balance sheet and continued focus on cost savings and operational efficiency.

• Management aims for sustained long-term value through above-category sales and EBITA growth.

• The company expects to benefit from sustained consumer preference for domestic wines and supportive government policies.

• Harvest outlook is positive, with strong expectations in Ontario and improving conditions in the west.

• Strategic focus on above-category revenue growth, sustained EBITA growth, and expanded gross margins.