ALIMENTATION COUCHE-TARD ANNOUNCES ITS RESULTS FOR ITS FIRST QUARTER OF FISCAL YEAR 2026

Executive Summary

• Alimentation Couche-Tard reported first-quarter fiscal 2026 results ending July 20, 2025, with net earnings attributable to shareholders of $782.5 million ($0.82 per diluted share), compared to $790.8 million ($0.83 per diluted share) in the prior year period.
• Adjusted net earnings decreased 6.7% to approximately $737.0 million ($0.78 per diluted share), driven primarily by lower road transportation fuel gross margins in the United States, inflationary pressures on operating expenses, and strategic investment-related depreciation, partially offset by improved fuel margins in Europe and organic growth in convenience activities.
• The company closed the acquisition of 270 GetGo Café + Market sites from Giant Eagle for $1.6 billion and completed regulatory divestitures resulting in a $66.4 million gain. Subsequent to the quarter, the company repurchased 7.9 million shares for $405.4 million.

Key Details

• Net Earnings: $782.5 million ($0.82 diluted EPS) vs. $790.8 million ($0.83 diluted EPS) in Q1 FY2025.
• Adjusted Net Earnings: ~$737.0 million ($0.78 diluted EPS), a 6.0% decrease from $790.0 million ($0.83 diluted EPS) in the prior year.
• Revenues: Total revenues were $17.3 billion, a decrease of 5.1% year-over-year.
  • Merchandise and Service Revenues: $4.7 billion, an increase of 4.5%. Same-store merchandise revenues increased 0.4% in the U.S., 3.8% in Europe/other regions, and 4.1% in Canada.
  • Road Transportation Fuel Revenues: $12.5 billion, a decrease of 8.2%, primarily due to lower average selling prices.
  • Other Revenues: $118.1 million, a decrease of 7.6%.
• Gross Profit: Total gross profit was $3.3 billion, an increase of 4.4%.
  • Merchandise and Service Gross Profit: $1.7 billion, up 5.5%.
  • Road Transportation Fuel Gross Profit: $1.6 billion, up 3.1%.
• Operational Metrics:
  • U.S. Fuel Margin: 44.00¢ per gallon (down 4.13¢ per gallon YoY).
  • Europe/Other Regions Fuel Margin: 11.41¢ per liter (up 2.73¢ per liter YoY).
  • Canada Fuel Margin: 14.21¢ per liter (up 1.10¢ per liter YoY).
  • Same-Store Fuel Volumes: Decreased 0.9% in the U.S., decreased 1.3% in Europe/other regions, and increased 2.2% in Canada.
• Acquisitions & Divestitures:
  • Closed acquisition of 270 GetGo sites for $1.6 billion on June 28, 2025.
  • Completed regulatory divestitures (34 Circle K sites and 1 GetGo property) for ~$158.0 million, resulting in a $66.4 million pre-tax gain.
• Capital Allocation:
  • Repaid CA $700.0 million senior unsecured notes upon maturity on June 2, 2025.
  • Post-quarter share repurchase: 7.9 million shares for $405.4 million.
  • Board declared a quarterly dividend of CA 19.5¢ per share.
• Balance Sheet & Ratios:
  • Total Assets: $40.5 billion.
  • Interest-bearing Debt: $15.2 billion.
  • Net Interest-Bearing Debt/Total Capitalization: 0.45:1.
  • Leverage Ratio: 2.18:1.
  • Return on Equity: 17.5%.
  • Return on Capital Employed: 11.8%.
• Store Network:
  • Total network sites: 17,268 (including 2,604 Circle K branded sites under licensing).
  • Company-operated sites: 10,708.
  • 63 stores currently under construction.

Notable Quotes

• Alex Miller, President and CEO: "We are pleased by our improved performance in this first quarter of the new fiscal year. Across our network, we are reporting positive same store sales, which includes our U.S. market for the first time in several quarters. This progress is propelled by our focus on providing compelling value and ease, especially in our food and beverage offers... We were also proud to close this quarter on 270 sites operating under the GetGo Café + Market brand, and we are already working closely with those teams to learn more about GetGo's popular food and loyalty programs as we start to grow together."
• Filipe Da Silva, CFO: "We are encouraged by our first quarter results, which were partly driven by an enhanced gross profit margin resulting from better food program execution and reduced spoilage. Combined with our disciplined cost control and a sharp focus on efficiency keeping expense growth below the rate of inflation, we are optimistic about our operational priorities. Our TotalEnergies assets once again produced solid sequential performance, with synergy delivery tracking ahead of plan. With our share repurchase program now in full motion, we view it as another way to create sustainable long-term shareholder value while optimizing our balance sheet."