Canadian Tire Corporation Reports Third Quarter 2025 Results; Announces Annual Dividend Increase for 16th Consecutive Year and Share Repurchase Intention
Executive Summary
- Canadian Tire Corp. reported Q3 2025 consolidated comparable sales up 1.8% and retail revenue growth of 3.2% (5.9% excluding petroleum).
- Normalized diluted EPS rose 6.5% to C$3.78 (GAAP diluted EPS fell 11.8% to C$3.13 due to transformation costs).
- The Board increased the annual dividend for the 16th consecutive year to C$7.20 per share and reaffirmed a $400 M share‑repurchase program through end‑2026.
Key Details
- Financial Highlights
- Consolidated revenue: C$4,105.8 M (↑3.0% YoY).
- Consolidated IBT: C$249.9 M (↓C$46.8 M YoY); normalized IBT up C$1.0 M.
- Diluted EPS: GAAP C$3.13; Normalized C$3.78 (+6.5%).
- Retail revenue (ex‑Petroleum): C$3,705.8 M (↑3.2% YoY); gross margin rate ex‑Petroleum 35.8% (↑57 bps).
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Retail IBT: C$144.6 M (down from C$162.2 M YoY); normalized retail IBT up 18.6% to C$192.4 M.
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Segment Performance
- Canadian Tire Retail (CTR): Comparable sales +1.2%; retail sales +1.3%. Automotive sales up for the 21st consecutive quarter.
- SportChek: Comparable sales +4.2% driven by back‑to‑school/hockey demand; retail sales +3.2%.
- Mark’s: Comparable sales +2.5%; retail sales +3.0%.
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Financial Services: IBT C$84.4 M (down from C$110.3 M YoY); revenue up 0.6%, gross margin down 2.9% due to higher write‑offs.
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Loyalty & Partnerships
- Triangle Rewards membership grew by ~70,000 in Q3, reaching 518,000 total members.
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New partnership with Tim Hortons announced; RBC and WestJet programs slated for launch in 2026.
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Store Enhancements & Omni‑Channel
- 54 store enhancement projects planned for 2025; Q3 completions include new Mark’s BBB stores (Laurier, Vaughan, Cross Iron Mills) and SportChek Destination Sport stores (Windsor, Richmond).
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New CTR replacement store opened in Kelowna (early Q4).
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Capital Allocation
- Total capital expenditures: C$190.6 M (down from C$195.1 M YoY).
- Operating capex: C$108.6 M (down from C$127.1 M YoY).
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FY 2025 operating capex guidance: C$525‑575 M; FY 2026 guidance: C$500‑550 M.
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Dividend & Share Repurchase
- Annual dividend increased to C$7.20 per share (↑1.4%). Board declared quarterly dividend of C$1.80 payable March 1, 2026.
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Share repurchase: up to C$400 M authorized through end‑2026; YTD repurchases total 2.2 M shares for C$362.1 M (average cost $164.53).
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CT REIT
- Income before tax +23.9% YoY; adjusted funds from operations up 3.9%.
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New investments in Fort Saskatchewan, AB and Collingwood, ON totaling C$19 M (~50,000 sq ft GLA).
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Transformation (True North) Update
- New operating structure implemented at end of Q3 2025; first full‑quarter savings expected in Q4 2025.
- Ongoing restructuring costs and transformation advisory expenses reflected in GAAP earnings decline.
Notable Quotes
“In a continued dynamic consumer environment, we grew retail sales for a third consecutive quarter… Our confidence is reflected in our continued strategic investments, our dividend increase and our share repurchase program.” – Greg Hicks, President & CEO
Conference call scheduled for 8:00 a.m. ET on November 6, 2025; webcast available at the investor relations website.