GROUPE DYNAMITE DELIVERS UNPRECEDENTED Q3 RESULTS ON EXCEPTIONAL 31.6% COMPARABLE STORE SALES GROWTH(1) AND INCREASES FULL-YEAR GUIDANCE
Executive Summary
- Groupe Dynamite reported record Q3 2025 operating income of $120.1 M and a record adjusted EBITDA margin of 40.2%, up 650 bps YoY.
- Comparable store sales surged 31.6% (28.6% on a constant‑currency basis), driving revenue to $363.0 M (+40.3% YoY).
- The Board declared a one‑time special cash dividend of $2.30 per share, with pro‑forma leverage expected at ~1.05× and total available liquidity of roughly $316 M.
Key Details
- Financial Performance
- Revenue: $363.0 M (↑40.3% YoY)
- Gross margin: 66.1% (↑310 bps) – highest in >3 years
- Operating income: $120.1 M (↑90.3%)
- Adjusted EBITDA: $146.1 M; adjusted EBITDA margin 40.2% (↑650 bps)
- Diluted EPS: $0.71 (↑87% YoY); Adjusted diluted EPS: $0.72 (↑76%)
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Free cash flow: $119.5 M (↑184% YoY)
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Store & Real Estate Activity
- Opened 8 new U.S. “Garage” stores in Q3; total gross openings YTD = 17.
- No store closures; renovated/relocated 4 stores (1 U.S., 3 Canada).
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FY 2025 target: 18‑20 gross new store openings, 8‑9 net new openings.
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Operational Metrics
- Retail sales per sq ft: $889 (↑24.7% YoY)
- Inventory turnover: 6.88× (up from 6.09×)
- Net leverage ratio: 0.45× (down from 1.41×)
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ROA: 27.2% (↑3.4 pts); ROCE: 50.5% (↑7.2 pts)
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Share Repurchase
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Re‑acquired 123,800 shares at an average price of $63.11 (~$7.8 M).
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Special Dividend
- One‑time cash dividend of $2.30 per share declared Dec 8, payable Dec 29 to shareholders of record Dec 19.
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Pro‑forma leverage post‑dividend: ~1.05×; pro‑forma liquidity: ~$316 M.
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Guidance Update
- Revised FY 2025 comparable store sales growth guidance: 25.5%–27.5% (up from 17.0%–19.0%).
- Adjusted EBITDA margin guidance: 35.0%–37.0% (up from 32.0%–33.5%).
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CAPEX guidance lowered to $85 M–$95 M (previously $95 M–$105 M).
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Conference Call
- Management call scheduled Dec 9, 2025 at 10:30 a.m. ET; webcast available via investor relations site.
Notable Quotes
“I'm incredibly proud of our teams…record operating income of $120.1 million and adjusted EBITDA margin reaching a record 40.2%.” – Andrew Lutfy, CEO & Chair
“A one‑time special dividend is an effective way to return capital to shareholders, consistent with our commitment to enhancing long‑term shareholder value.” – Jean‑Philippe D. Lachance, CFO
All figures are presented in Canadian dollars unless otherwise noted.