Empire Company (EMP-A) Q2 2026 earnings summary

Executive summary

• Core business delivered 12.5% adjusted EPS growth year-over-year, with Q2 F2026 EPS at $0.69 and strong results from Full-Service, Discount banners, and wholesale distribution.

• Sales reached $7,995 million, up 2.8% year-over-year, with food sales up 3.4% and same-store sales up 2.5%.

• E-commerce sales surged 81.2% year-over-year, driven by new partnerships and Voilà platform growth.

• Gross margin improved by 14 basis points excluding fuel, reflecting operational discipline and efficiency.

• Strategic focus remains on extracting value from investments, cost discipline, digital/data initiatives, and profitable growth across all banners.

Financial highlights

• Adjusted EPS was $0.69 for Q2 F2026, four cents lower than last year due to lower real estate-related income; core operations showed strong growth when excluding these items.

• Gross margin rate, excluding fuel, increased by 14 basis points year-over-year to 26.9%.

• Adjusted EBITDA was $583 million, margin 7.3%, down from $601 million and 7.7% last year.

• Free cash flow for the quarter was $5 million, down from $76 million, mainly due to higher capital investments.

• Dividend per share increased to $0.22 from $0.20 year-over-year.

Outlook and guidance

• Fiscal 2026 capital spend expected at $850 million, with about 50% for store renovations and new store expansion.

• Share buyback program on track to complete up to $400 million in fiscal 2026; $195 million already repurchased.

• Aggregate pre-tax earnings from other income and investments projected at $120–$140 million for fiscal 2026.

• Long-term adjusted EPS growth targeted at 8% to 11%, driven by sales, gross margin, and EBITDA improvements.

• Focus remains on margin expansion of 10–20 basis points per year and disciplined cost control.