GROUPE DYNAMITE DELIVERS RECORD FISCAL 2025 RESULTS, CAPPED BY A STRONG FOURTH QUARTER

Executive Summary

• Groupe Dynamite reported record fiscal 2025 results, with revenue up 36.7% to C$1.31 bn and adjusted EBITDA margin expanding to 36.5%.
• Comparable store sales grew 26.7% year‑over‑year; Q4 comparable sales surged 30.4%, driving a 45.0% jump in quarterly revenue.
• The company announced FY2026 guidance: total revenue growth 22‑25%, comparable store sales growth 11‑14%, and adjusted EBITDA margin 37.75‑39.25%.

Key Details

• Revenue: Q4 2025 C$394.2 M (+45.0% YoY); Fiscal 2025 C$1,310.2 M (+36.7% YoY).
• Gross Margin: Q4 63.0% (up 400 bps); FY 2025 63.8% (up 100 bps).
• Adjusted EBITDA: Q4 C$144.4 M (margin 36.6%, +81.6% YoY); FY 2025 C$477.9 M (margin 36.5%, +57.6% YoY).
• Net Earnings: Diluted EPS Q4 $0.69 (↑ +146% YoY); FY 2025 $2.20 (↑ +76%).
• Store Activity FY 2025: Opened 20 new U.S. Garage stores; closed 11 stores (1 U.S., 10 Canada); renovated/relocated 13 stores.
• UK Expansion: Launched online platform Feb 1 2026; opened first UK Garage store at Bluewater Shopping Centre Mar 20 2026 and a second on Oxford Street Mar 27 2026.
• Leadership Change: Mary‑Ann Vitale promoted to Senior Vice President, Brand Garage (Feb 9 2026).
• Shareholder Reorganizations: Consolidation of multiple‑voting shares into 4370368 Canada Inc.; subsequent transfer to NewCo and cancellation of issued shares – no net change in share count.
• Free Cash Flow: Q4 C$101.5 M (↑ +84% YoY); FY 2025 C$335.2 M (↑ +105%).
• Leverage: Net leverage ratio improved to 0.83× (down from 0.98×).
• Capital Expenditure: FY 2025 CAPEX C$85.5 M (up from C$63.3 M).
• Guidance FY 2026:
• Comparable store sales growth 11‑14%
• Total revenue growth 22‑25%
• Adjusted EBITDA margin 37.75‑39.25%
• New store openings: 24‑26 gross, net 10‑12
• CAPEX C$100‑110 M

Notable Quotes

• Andrew Lutfy (CEO & Chair): “Q4 and Fiscal 2025 were exceptional… we entered the new year with strong momentum, staying disciplined and elevating our brands.”
• Stacie Beaver (President & COO): Highlighted $952 sales per square foot in Q4 and the launch of a U.S. distribution center supporting North‑American growth.