Loblaw Companies (L) Q4 2025 earnings summary

Executive summary

• Revenue grew 3.5% in Q4 2025 to CAD 15.5 billion, with full-year revenue up 4.4% to CAD 63.7 billion; retail revenue rose 6.3% to $63.9 billion.

• Adjusted EBITDA increased 4.8% to CAD 1.8 billion in Q4, with margin up 10 bps to 11.5%.

• Adjusted diluted EPS rose 10.9% in Q4; full-year EPS up 10.7% (13.6% including 53rd week).

• Strong performance in food and drug retail, with market share gains, robust digital sales growth, and increased customer visits.

• Sale of PC Financial to EQ Bank announced; results now presented as discontinued operations.

Financial highlights

• Q4 retail revenue: $16.4 billion, up 11.3% (13 weeks); up 3.5% on a 12-week comparable basis.

• Food same-store sales grew 1.5% in Q4; drug retail same-store sales up 3.9%.

• Pharmacy and healthcare services same-store sales rose 5.6%; front store same-store sales up 2.2%.

• Online/e-commerce sales exceeded CAD 4.5 billion for the year; Q4 digital sales up 19.6%.

• Free cash flow from retail operations: $1.24 billion in Q4; $1.91 billion for the year.

Outlook and guidance

• 2026 plan includes similar new store investments as 2025, with increased Shoppers Drug Mart stores and 30 new pharmacy care clinics.

• Excluding PC Financial sale and 53rd week, expect retail earnings to grow faster than sales and high single-digit adjusted EPS growth.

• Capital expenditures planned at approximately CAD 2.4 billion.

• Most free cash flow to be returned to shareholders via dividends and buybacks.

• Early 2026 shows continued same-store sales momentum.