Loblaw Companies (L) Q4 2025 earnings summary

Executive summary

• Achieved consistent financial and operational performance in Q4 and full year 2025, driven by retail excellence, new stores, automation, and digital initiatives.

• Adjusted diluted net earnings per share grew 10.9% in Q4 2025 on a comparable basis, with revenue up 3.5% and gross profit percentage improving by 10 bps.

• Full-year 2025 retail revenue rose to CAD 63.9 billion, with adjusted diluted EPS up 13.6% year-over-year.

• Sale of PC Financial to EQ Bank announced; results now presented as discontinued operations, with future earnings reflecting proportional EQB ownership.

• 77 new stores opened in 2025, and the first of two automated distribution centers ramped up.

Financial highlights

• Q4 2025 retail revenue: CAD 16.4 billion, up 11.3% (13 weeks); up 3.5% on a 12-week comparable basis.

• Adjusted EBITDA up 11.3% to CAD 1.78 billion in Q4; margin steady at 10.8%.

• Adjusted diluted EPS up 10.9% in Q4; reported EPS up 22% to CAD 0.67.

• Net earnings for the year reached CAD 2.91 billion; adjusted diluted EPS up 13.6%.

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

Outlook and guidance

• 2026 plan targets continued consistent financial and operational performance, with new store investments similar to 2025 and increased Shoppers Drug Mart footprint.

• Retail business expected to grow earnings faster than sales; adjusted EPS growth projected in high single digits, excluding PC Financial sale and 53rd week impacts.

• Capital expenditures planned at approximately CAD 2.4 billion; most free cash flow to be returned to shareholders via dividends and buybacks.

• Will open approximately 70 new food and drug stores and 30 new pharmacy care clinics in 2026.

• Early 2026 shows continued momentum in same-store sales.