ALIMENTATION COUCHE-TARD ANNOUNCES ITS RESULTS FOR ITS SECOND QUARTER OF FISCAL YEAR 2026
Executive Summary
- Alimentation Couche‑Tard reported Q2 FY 2026 net earnings of $740.6 M ($0.79 per diluted share), up 4.5% YoY and a 5.4% increase in adjusted EPS to $0.78.
- Total revenues rose 2.6% to $17.9 B, driven by higher merchandise & service sales (+6.6%) and road‑fuel revenue growth, partially offset by lower fuel prices.
- The Board increased the quarterly dividend to CA 21.5¢ per share (up 10.3%). Share repurchases totaled $886.7 M in Q2, with an additional $306.3 M bought after quarter‑end.
Key Details
- Financial Performance
- Net earnings attributable to shareholders: $740.6 M vs. $708.8 M (FY 2025).
- Adjusted net earnings: $734.0 M vs. $705.0 M; adjusted diluted EPS $0.78 vs. $0.74.
- Basic & diluted EPS: $0.79, up from $0.75 YoY.
- EBITDA: $1.632 B (up 7.5% YoY); Adjusted EBITDA $1.632 B (+7.5%).
- Gross profit: $3.407 B (+8.1% YoY).
- Merchandise & service revenues: $4.677 B (+6.6%).
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Road‑transportation fuel revenues: $13.049 B (+1.3%).
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Margins
- Consolidated gross margin improved to 35.5% (up 0.9 pts).
- Merchandise & service gross margin: US 34.7%, Europe 38.9%, Canada 34.2%.
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Road‑fuel gross margin: US 45.86¢/gal (down 0.24¢), Europe 11.51¢/L (up 1.00¢), Canada 15.07¢/L (up 1.72¢).
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Capital Allocation
- Issued senior unsecured notes:
- US‑dollar $1.2 B (700 M @4.15% maturing 2028; 500 M @5.08% maturing 2035).
- Canadian‑dollar CA 500 M ($359.9 M) @3.86% maturing 2032.
- Net proceeds $1.6 B used to repay US commercial paper indebtedness.
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Share repurchase program renewed (July 2025): up to 77.1 M shares (≈10% float); Q2 repurchased 16.6 M shares for $886.7 M plus post‑quarter 6.1 M shares for $306.3 M.
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Store Network Activity
- Acquired 14 company‑operated stores (7 Texaco sites in Ireland, 7 US convenience/fuel sites).
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Constructed 19 new stores, relocated/reconstructed 3, total openings 33 during the quarter; 73 additional stores under construction.
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Dividends
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Quarterly dividend increased to CA 21.5¢ per share (effective Dec 17, 2025).
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Operational Highlights
- Same‑store merchandise revenue growth: US +1.2%, Canada +5.4%, Europe +0.5%.
- Same‑store fuel volume change: US ‑0.6%, Europe ‑1.8%, Canada +1.1%.
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First full quarter of GetGo integration, contributing to food & convenience expansion in the U.S.
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Liquidity & Leverage
- Total assets $40.624 B; interest‑bearing debt $15.623 B (net $13.498 B).
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Net debt/total capitalization 0.47:1; leverage ratio 2.21:1.
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Guidance & Outlook
- Management reaffirmed confidence in earnings growth for the year, citing continued same‑store sales momentum, margin expansion initiatives, and ongoing capital investment program.
Notable Quotes
“We are encouraged by the positive momentum we’re continuing to build… We remain focused on delivering compelling value and investing in programs that drive operational excellence.” – Alex Miller, President & CEO
“Core operating expenses growth remained under control… we repurchased nearly $900 M of our shares through the buyback program.” – Filipe Da Silva, CFO