Loblaw Companies (L) Q3 2025 earnings summary

Executive summary

• Achieved consolidated revenue growth of 4.6% year-over-year to CAD 19.4 billion, driven by new store openings, value offerings, loyalty rewards, and strong retail performance.

• Adjusted EBITDA rose 7.2% to CAD 2.2 billion, with margin improvement of 20 basis points to 11.4%.

• Adjusted diluted EPS increased 11.3% to CAD 0.69; GAAP EPS up 4.8%.

• Opened 76 stores in the past 12 months, expanding retail square footage by 2%.

• E-commerce/online sales grew 18% year-over-year across retail businesses.

Financial highlights

• Food retail sales grew 4.8% year-over-year to CAD 13.6 billion; same-store sales up 2%.

• Drug retail sales increased 3.8% to CAD 5.5 billion; same-store sales up 4%.

• Retail gross margin improved by 20 basis points, led by drug retail, reaching 31.1%.

• Free cash flow from retail segment was CAD 325 million; share repurchases totaled CAD 450 million in the period.

• Return on equity at 24.8%, return on capital at 11.9%.

Outlook and guidance

• Full-year adjusted EPS growth now forecast to be in the low double digits, excluding the 53rd week.

• Retail business expected to grow earnings faster than sales.

• Continued investment in new stores, automation, and digital initiatives to support long-term growth.

• Net capital investments for the year projected at CAD 1.9 billion.

• Significant portion of free cash flow to be allocated to share repurchases.