Andrew Peller (ADW) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 results with significant growth in margins, EBITDA, and net earnings, despite a year-over-year sales decline due to the prior year's LCBO strike impact; Q2 2026 revenue was $105.5 million, down 3.4% year-over-year.

• Gained market share in English Canada and all major markets, with strong performance in both eastern and western estates.

• Continued focus on innovation, infrastructure investment, and expanding production capacity to support long-term growth.

• Added Susan O'Brien to the board, bringing expertise in consumer goods, retail, and digital transformation.

• Dividend maintained at $0.123 per Class A share and $0.107 per Class B share.

Financial highlights

• Q2 gross margin was CAD 48.3 million (45.7% of revenue), up from 42.4% last year; excluding Ontario Grape Support Program, margin was 43.5%.

• EBITDA increased 18% to CAD 21.3 million, driven by cost savings and government support.

• Net earnings more than doubled to $8.9 million in Q2 and $13.5 million YTD.

• Interest expense decreased 28% due to lower debt and interest rates.

• Generated CAD 37.9 million in cash from operations in Q2, compared to CAD 40.8 million last year.

Outlook and guidance

• Expect continued strong performance and margin improvement for the remainder of the year, with top-line growth when adjusted for last year's strike.

• Ongoing investments in growth categories such as Sparkling and Better For You, with no anticipated increase in capital expenditure.

• Confident in long-term growth, supported by government policy and evolving consumer preferences.

• Positioned to grow market share in core wine businesses and expand in high-growth segments and new Ontario channels.

• Management expects continued margin and earnings strength, supported by cost savings and evolving retail markets.