Loblaw Companies (L) Q2 2026 earnings summary

Executive summary

• Delivered strong operational and financial performance in Q2 2026, with revenue up 4.1% to CAD 15.3 billion and adjusted diluted EPS up 11.9%, supported by new store openings and investments in distribution.

• All business segments showed momentum, with a positive outlook for the remainder of the year and 2027 plans underway.

• Sale of PC Financial to EQB completed after quarter-end; now holds 19.9% of EQB shares and will recognize proportionate EQB income going forward.

• 14 new stores opened in the quarter, including the first T&T location in California, achieving record first-week sales.

Financial highlights

• Revenue including PC Financial was CAD 15.3 billion, up 4.1% year-over-year; GAAP revenue was CAD 15 billion, also up 4.1%.

• Adjusted EBITDA increased 5.3% to CAD 1.9 billion; adjusted EBITDA margin improved by 10 basis points to 12.2%.

• Adjusted diluted EPS grew 11.9% to CAD 0.66; GAAP diluted EPS was CAD 0.64, up 8.5%.

• Net earnings available to common shareholders were CAD 751 million, up 5.2%; adjusted net earnings were CAD 774 million, up 8.6%.

• Free cash flow from Retail was CAD 856 million, up CAD 235 million year-over-year.

Outlook and guidance

• Expects retail business to grow earnings faster than sales, with adjusted net EPS growth in the high single digits.

• Confident in delivering consistent top-line sales growth and maintaining strong free cash flow.

• Plan to repurchase CAD 2.1 billion of shares in 2026, up CAD 200 million from initial plan.

• Plans $2.4 billion in gross capital expenditures for store network and distribution centers.