Canadian Tire Corporation Reports Strong Fourth Quarter and Full-Year 2025 Results and Significant Progress in First Year of True North Transformation Strategy

Executive Summary

• Canadian Tire Corp. reported a strong Q4 2025 with consolidated comparable sales up 4.2% and retail revenue growth of 8.8% (10.7% ex‑Petroleum).
• Normalized diluted EPS rose 38.0% YoY to C$4.47 in Q4 and 18.6% YoY to C$13.77 for the full year, driven by higher retail performance despite a decline in GAAP diluted EPS.
• The company highlighted progress on its four‑year “True North” transformation: 52 store refreshes/completions, expansion of Triangle Rewards (9.8 M members), new loyalty partnerships slated for 2026, and $30 M of Q4 operating expense savings from restructuring.

Key Details

• Financial Highlights – Q4 2025
• Revenue: C$4,551.1 M (+8.3% YoY)
• Consolidated IBT (pre‑tax): C$318.7 M (down $149.9 M); normalized IBT up $85.8 M.
• Diluted EPS (GAAP): C$3.96 (‑39.4% YoY). Normalized diluted EPS: C$4.47 (+38.0%).
• Retail sales: C$5,860.7 M (+8.9%); retail revenue: C$4,150.7 M (+8.8%).

• Retail gross margin rate (ex‑Petroleum): 35.4% (up 118 bps).

• Financial Highlights – Full Year 2025

• Revenue: C$16,315.5 M (+5.2% YoY)
• Consolidated IBT: C$878.5 M (down 25.3% YoY); normalized IBT: C$1,109.0 M (+14.3%).
• Diluted EPS (GAAP): C$10.57 (‑29.1% YoY). Normalized diluted EPS: C$13.77 (+18.6%).
• Retail sales: C$18,986.9 M (+4.5% YoY); retail revenue (ex‑Petroleum) up 7.5%.

• Retail ROIC improved to 11.0% from 9.8% YoY.

• True North Transformation Progress

• 52 store projects completed in 2025 (31 CTR, 21 other banners).
• Triangle Rewards membership grew to 9.8 M (‑6% YoY increase). Partnerships with WestJet (launch Q2 2026) and Tim Hortons (H2 2026) announced.
• New AI pricing tool “DaiVID” deployed; same‑day delivery awareness expanded, boosting e‑commerce growth.
• Organizational changes: new CCO (Matt Moore), COO (TJ Flood), CFO (Darren Myers), Chief Transformation Officer (Susan O’Brien).

• $30 M of Q4 operating expense savings realized from restructuring completed Q3 2025; ongoing 2026 savings to be balanced with AI‑driven investments.

• Capital Allocation

• Total capex 2025: C$630.5 M (operating capex C$502.2 M). 2026 operating capex guidance: $500–$550 M.
• Quarterly dividend declared: $1.80 per share, payable June 1 2026 (eligible dividend).

• Share repurchases FY 2025: 2,673,292 Class A non‑voting shares for $442.4 M (exceeds anti‑dilutive requirement).

• Other Notable Items

• Helly Hansen results presented as discontinued operations.
• Conference call scheduled for Feb 19 2026, 8:00 a.m. ET.

Notable Quotes

“Our standout fourth quarter capped a year of strong sales growth and market share gains,” – Greg Hicks, President & CEO.
“As we advance True North, we are strengthening our competitive differentiation… accelerating shareholder value.” – Greg Hicks.