The North West Company (NWC) Q2 2027 earnings summary

Executive summary

• Sales grew 5.4% year-over-year to $682.0 million, driven by strong same-store sales and positive foreign exchange impact.

• EBITDA increased 5.4% and adjusted net earnings rose 5%, supported by operational momentum and Next 100 initiatives, despite inflation and higher fuel costs.

• Same-store sales gains across all business units, with Canadian operations up 7.4% and international same-store sales up 5.8%.

• Results were partially offset by unusually high fuel-related freight costs.

• Quarterly dividend increased by 2.4% to $0.42 per share.

Financial highlights

• Consolidated sales rose 5.4% to $682.0 million, with food sales up 4.1% and general merchandise and other sales up 6.6%.

• Gross profit increased 5.7% to $232.4 million, with an 8 basis point improvement in gross profit rate.

• EBITDA up 5.4% to $89.8 million, EBIT up 4.7% to $57.8 million, and adjusted net earnings up 5% excluding a non-comparable withholding tax expense.

• Net earnings increased 1.9% to $38.3 million; adjusted net earnings up 2.4% to $40.6 million.

• Diluted EPS rose to $0.76 from $0.74 year-over-year.

Outlook and guidance

• Expect continued impact from First Nations Child and Family Services and Claim Settlement payments, with distribution to increase in the second half of 2026 and extend for several years.

• Ongoing headwinds from higher oil prices and fuel costs anticipated in the near term.

• Management remains focused on disciplined execution, expense management, and productivity improvements to mitigate ongoing cost pressures.

• Optimism for continued strong demand in international segment, especially entering the holiday season.