Metro (MRU) Q1 2026 earnings summary

Executive summary

• Q1 sales grew 3.3% year-over-year to CAD 5.3 billion, with adjusted EBITDA up 4.7% and adjusted EPS up 5.5%.

• Net earnings declined 12.8% to CAD 226.3 million, but adjusted net earnings rose 1.3% to CAD 248.7 million, reflecting normalization after one-time costs.

• Fully diluted EPS fell 9.5% to CAD 1.05, while adjusted EPS grew 5.5% to CAD 1.16.

• Operations at the Toronto frozen food distribution center have fully resumed after a costly temporary shutdown.

• Dividend per share increased 10.1% to CAD 0.4075.

Financial highlights

• Adjusted EBITDA reached CAD 504.2 million, up 4.7% year-over-year, representing 9.5% of sales.

• Adjusted net earnings were CAD 248.7 million, up 1.3% year-over-year; adjusted EPS was CAD 1.16, up 5.5%.

• Gross margin was CAD 1.04 billion or 19.7% of sales, flat year-over-year.

• Operating expenses as a percentage of sales increased to 10.5%, impacted by CAD 20.8 million in direct costs from the Toronto freezer shutdown.

• Capital expenditures totaled CAD 61.9 million, down from CAD 89.3 million last year.

Outlook and guidance

• CapEx for fiscal 2026 expected to reach approximately CAD 550 million, focused on retail network investment.

• Plans to open a dozen discount stores and several major renovations in 2026.

• Continued emphasis on value for customers through merchandising, private labels, and loyalty programs amid a challenging economic environment.