Empire Company (EMP-A) Q3 2026 earnings summary

Executive summary

• Q3 F2026 sales reached $7,890 million, up 2.1% year-over-year, driven by growth in Full-Service, Discount, and wholesale banners.

• Food sales grew 3% year-over-year, with same-store sales up 2%, led by full service and discount banners.

• Adjusted EPS was $0.72, up 16.1% year-over-year, reflecting strong performance and excluding a $746 million e-commerce impairment.

• Strategic actions included e-commerce restructuring, executive leadership changes, and new partnerships with Shell Canada and DoorDash.

• The company is finalizing a new strategy anchored on four priorities: customers, stores, growth, and cost control.

Financial highlights

• Gross margin was flat year-over-year; excluding fuel, it declined by 25 basis points due to non-recurring items and business mix.

• Adjusted EBITDA for Q3 F26 was $602 million (7.6% margin), up from $564 million (7.3%) in Q3 F25.

• Free cash flow for Q3 F26 was $288 million, up from $147 million in Q3 F25.

• Dividend per share increased to $0.22 from $0.20.

• A $746 million impairment charge was recorded due to the closure of Calgary CFC and related e-commerce restructuring.

Outlook and guidance

• Expects $95 million in annualized operating income benefits from e-commerce restructuring, with $15 million realized in Q4 F26 and full run-rate in fiscal 2027.

• Approximately one-third of e-commerce benefits to be reinvested in growth engines.

• Fiscal 2026 capital expenditures projected at $850 million, with half allocated to store renovations and expansion.

• Targeting long-term adjusted EPS growth of 8–11%.

• Aggregate pre-tax earnings from Other income plus Share of earnings from investments expected at $120–$140 million for fiscal 2026.