Canadian Tire (CTC) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 delivered strong results with consolidated comparable sales up 4.1%, normalized EPS up 18.6% to CAD 13.77, and all banners contributing to growth, supported by the True North transformation and digital initiatives.

• Q4 2025 normalized diluted EPS from continuing operations rose to CAD 4.47, while reported diluted EPS fell due to non-recurring items and higher transformation costs.

• Triangle Rewards active members increased 6% to 9.8 million, with loyalty engagement and new partnerships driving incremental sales.

• The sale of Helly Hansen was completed May 31, 2025, with results presented as discontinued operations.

• The True North transformation drove organizational change, new operating models, and foundational progress in customer-centric growth and technology.

Financial highlights

• Q4 consolidated revenue rose 8.3% to CAD 4,551.1 million; full-year consolidated revenue increased 5.2% to CAD 16,315.5 million.

• Q4 normalized IBT grew 32.5% to CAD 349.6 million; full-year normalized IBT up 14.3% to CAD 1,109.0 million.

• Q4 normalized EPS up 38% to CAD 4.47; full-year normalized EPS up 18.6% to CAD 13.77.

• Retail revenue and sales grew close to 9% and over 10% in Q4 (excluding petroleum), with comp sales up 4.2% in the 13-week quarter.

• Retail gross margin rate (excluding petroleum) increased 27 bps to 35.5% for the year; normalized retail EBITDA margin was 14.6%.

Outlook and guidance

• 2026 operating capital expenditures expected to be CAD 500–550 million, with continued share repurchases and digital transformation acceleration.

• New loyalty partnerships (WestJet, Tim Hortons) and AI initiatives (Mosaic with Microsoft) to launch in late 2026.

• Retail gross margin rate target is 35%+, with ongoing optimization and technology rollouts planned.

• Q1 2026 is off to a good start, but faces tough comps from last year.