The North West Company (NWC) Q4 2025 earnings summary

Executive summary

• Consolidated sales increased 4.9% to $674.9M in Q4, with strong same-store sales and new store contributions.

• Net earnings for Q4 rose 18.9% year-over-year to $42.8M, with annual net earnings up 6.7% to $143.3M.

• The Next 100 operational excellence initiatives, including technology upgrades and private label expansion, began contributing to the bottom line, net of one-time costs.

• Dividend increased to $0.40 per share, payable April 24, 2025.

Financial highlights

• Q4 same-store sales up 5.4% overall; Canadian Operations up 6.7%, International up 3.5%.

• Q4 gross profit up 9.4% to $234.8M, with a 141 basis point increase in gross profit rate.

• EBIT increased 17.5% and net earnings up 18.9% year-over-year.

• Q4 EBITDA rose 14.2% to $90.4M; adjusted EBITDA up 10.8% to $92.8M.

• Selling, operating, and administrative expenses increased 6.8%, or 45 basis points as a rate of sales.

Outlook and guidance

• Macroeconomic uncertainty persists, especially regarding tariffs, inflation, and regulatory changes.

• Expectation of continued consumer demand in 2025, supported by government payments and programs.

• Next 100 initiatives to drive annualized incremental EBIT, with one-time costs expected to increase in the first half of 2025 and benefits offsetting costs by year-end.

• Focus remains on expanding private label offerings and leveraging technology for operational efficiency.

• Q1 2025 results expected to moderate compared to strong Q1 2024.