Empire Company (EMP-A) Q4 2025 earnings summary

Executive summary

• Adjusted EPS grew 8.8% in fiscal 2025, reaching $2.98, with Q4 adjusted EPS up 17.5% year-over-year to $0.74, driven by strong performance in Full-Service and Discount banners.

• Q4 sales increased 3.0% to $7,637 million, with annual sales up to $31,277 million, supported by 3.8% same-store sales growth and market share gains.

• E-commerce platforms saw 80% sales growth in Q4, with continued operational improvements and expanded partnerships.

• Repurchased $400 million in shares and declared a 10% dividend increase, marking 30 consecutive years of dividend growth.

• Customer behavior is returning to pre-inflation norms, with increased basket size, fewer stores visited, and a shift toward fresh products and Canadian retailers.

Financial highlights

• Q4 adjusted EPS was $0.74, up 17.5% year-over-year; full-year adjusted EPS was $2.98, up from $2.74.

• Q4 sales reached $7,637 million, up from $7,412 million in Q4 F24; full-year sales were $31,277 million, up from $30,733 million.

• Gross margin (excluding fuel) increased by 32 basis points to 27.6% in Q4, exceeding expectations.

• Adjusted EBITDA for Q4 was $599 million (margin 7.8%), up from $563 million (7.6%) in Q4 F24.

• Free cash flow before CapEx reached $1.5 billion; full-year free cash flow was $728 million.

Outlook and guidance

• Fiscal 2026 capital investment planned at $850 million, with 50% for store renovations and expansion.

• Plan to repurchase up to $400 million in shares under renewed NCIB.

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

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

• Expect food inflation to remain in line with long-term averages; tariff-related volatility and supply chain risks are being monitored.