The North West Company (NWC) Q4 2026 earnings summary

Executive summary

• Q4 was challenging due to headwinds in Canadian operations, offset by strong international performance, especially in the Caribbean and Alaska.

• Fourth quarter results reflect a challenging environment, with modest adjusted EBITDA growth and solid annual financial performance, supported by strategic Next 100 initiatives.

• Consolidated sales were up slightly year-over-year, but net earnings decreased 7.7% compared to a strong 18.9% increase last year.

• Annual sales and earnings increased, with continued advancement of operational and strategic priorities.

Financial highlights

• Q4 sales rose 0.1% to $675.5M, annual sales up 0.8% to $2.60B year-over-year.

• Q4 net earnings decreased 7.7% to $39.5M; annual net earnings increased 1.9% to $145.9M.

• Q4 adjusted EBITDA grew 1.3% to $94.0M; annual adjusted EBITDA up 3.3% to $351.8M.

• Consolidated same-store sales increased 0.5% versus 5.4% last year.

• Gross profit decreased 2% and gross profit rate fell by 74 basis points compared to last year.

Outlook and guidance

• Canadian sales in Q1 expected to remain pressured by the elimination of the ICFI Food Voucher Program and reduced Jordan's Principle funding.

• Anticipated ramp-up in First Nations Child and Care settlement payments expected to partially offset Canadian headwinds and extend over several years.

• Focus remains on disciplined execution of Next 100 initiatives amid economic uncertainty, higher oil prices, and fuel costs.

• Ongoing monitoring of macroeconomic risks, including higher oil prices and freight costs, with some cost pass-through to customers expected.

• Management anticipates ongoing challenges from reduced government funding and volatile market conditions.