Loblaw Reports Adjusted Diluted Net Earnings Per Common Share Growth of 10.9% in the Fourth Quarter on a 12-Week Comparable Basis

Executive Summary

• Loblaw Companies reported unaudited Q4 2025 results showing revenue of C$16.38 bn (+11.3% YoY), adjusted net earnings per share of $0.67 (+21.8%), and free cash flow of C$1.24 bn.
• Full‑year 2025 revenue reached C$63.90 bn (+6.3% YoY) with adjusted diluted EPS of $2.43 (+13.6%). Net capital investments were C$677 m (continuing) and share repurchases totaled 9.8 m shares for C$592 m.
• The company announced the pending sale of PC Financial to EQB Inc., expected to close in calendar‑2026, and outlined strategic priorities for 2026 including further store openings, logistics automation, and continued investment in its loyalty program.

Key Details

• Quarterly Revenue: C$16,382 m (up C$1,657 m or 11.3% YoY).
• Retail Gross Profit %: 30.8% (down 10 bps); on a 12‑week comparable basis 31.0% (up 10 bps).
• Operating Income Q4: C$1,134 m (+43.0%).
• Adjusted EBITDA Q4: C$1,775 m (+11.3%).
• Adjusted Net Earnings per Share (Diluted) Q4: $0.67 (+21.8%); Adjusted net earnings available to shareholders: C$794 m (+18.7%).
• Free Cash Flow (Continuing Operations) Q4: C$1,239 m.
• Full‑Year Revenue 2025: C$63,903 m (+6.3% YoY).
• Adjusted Diluted EPS FY 2025: $2.43 (+13.6%).
• Net Capital Investments FY 2025: C$677 m (continuing) / C$722 m gross; includes automated distribution centre rollout.
• Share Repurchases FY 2025: 9.8 m shares for C$592 m (Q4); 34.8 m shares for C$1,875 m (full year).
• Dividends Declared: Quarterly dividend of $0.141075 per common share payable 2026‑04‑01.
• Strategic Update:
• Sale of PC Financial to EQB Inc. pending; results presented as discontinued operations.
• Opened 77 new stores in FY 2025; plans ~70 new food/drug stores and 30 pharmacy clinics in 2026.
• Completed first automated 1‑million‑sq‑ft distribution centre; second facility under construction.
• Continued expansion of PC Optimum loyalty program and digital platforms (PC Express, Loblaw Advance).
• Outlook 2026: Expect retail earnings growth outpacing sales, adjusted EPS growth in high single digits, capital expenditures ≈ C$2.4 bn, and continued share repurchases.

Notable Quotes

“We are pleased to deliver another year of consistent operational and financial performance, reflecting our continuous focus on retail excellence, strategic execution, leading digital engagement and adoption of Agentic AI,” – Per Bank, President & CEO.