The North West Company Inc. Announces Third Quarter Earnings and a Quarterly Dividend

Executive Summary

• The North West Company reported unaudited Q3 2025 results showing double‑digit earnings growth despite a slight sales decline.
• Net earnings rose 12.9% to $41.1 million ($0.82 EPS), and adjusted EBITDA increased 3.9% to $91.9 million, reflecting margin improvements from the “Next 100” initiative and lower expenses.
• The Board declared a quarterly cash dividend of $0.41 per share payable on January 15 2026.

Key Details

• Sales: Consolidated sales $634.3 M, down 0.5% YoY; same‑store sales fell 1.7% (driven by Canadian Operations).
• Gross Profit: $217.1 M, up 1.4% YoY; gross profit rate improved 64 bps due to favorable sales mix and Next 100 initiatives.
• Expenses: Selling, operating & administrative expenses decreased $1.6 M (‑1.0%) versus last year, helped by lower share‑based compensation ($3.3 M) and reduced vessel repairs. Excluding share‑based comp and one‑time Next 100 costs, expenses rose $0.3 M (+0.2%).
• EBIT: $58.7 M, up 8.5% YoY.
• EBITDA: $88.9 M, up 6.5% YoY; Adjusted EBITDA (ex‑share‑based comp & Next 100 one‑time costs) $91.9 M, +3.9% YoY, representing 14.5% of sales.
• Interest Expense: Down 7.4% to $4.6 M due to lower rates and debt levels.
• Income Tax: $13.1 M (effective tax rate 24.2% vs. 26.0% prior year).
• Net Earnings: $41.1 M, up 12.9%; diluted EPS $0.82 vs. $0.72 last year. Adjusted net earnings $43.3 M (+8.1%).
• Dividend: Quarterly dividend of $0.41 per share declared; record date Dec 31 2025; payable Jan 15 2026.
• Conference Call: Scheduled for Dec 10 2025, 8:00 a.m. CT (webcast & call‑in details provided).

Notable Quotes

“Our third‑quarter performance demonstrates the underlying strength of our business model… results driven by margin improvements unlocked through our Next 100 initiative and lower expenses which contributed to delivering double‑digit earnings growth,” – Dan McConnell, President & CEO.