ALIMENTATION COUCHE-TARD PRESENTS ITS 2026 BUSINESS STRATEGY UPDATE AND NEW LONG-TERM GUIDANCE

Executive Summary

• Alimentation Couche‑Tard presented its “Core + More” 2026 Business Strategy, outlining a focus on amplifying core platforms and targeted growth investments.
• New long‑term financial guidance was released for FY 2026‑2030, including targets such as 2‑3% CAGR in same‑store merchandise revenue, 4‑5% total revenue growth, 6‑8% adjusted EBITDA growth, and free cash flow of >US$2.5 bn for FY 2026.
• The guidance supersedes prior outlooks and does not incorporate any potential future transactions that could materially alter the business.

Key Details

• Strategy Highlights – “Core + More”:
• Amplify core convenience‑store and fuel operations.
• Invest in new growth avenues (e‑mobility, car‑wash, media, technology, selective site acquisitions).
• Long‑Term Financial Outlook (FY 2026‑2030):
• Same‑store merchandise revenue CAGR: 2%–3%.
• Total merchandise & service revenue CAGR: 4%–5%.
• Road‑fuel gross profit growth: in line with inflation.
• Normalized expense growth: in line with inflation or lower.
• Adjusted EBITDA CAGR: 6%–8%.
• Adjusted diluted EPS CAGR: ≥10%.
• FY 2026 Free Cash Flow: Expected to exceed US$2.5 bn.
• Assumptions & Exclusions: Guidance assumes no material acquisitions, divestitures or other transactions that would significantly change the portfolio or strategic direction.
• Recent FY 2025 Performance (for context):
• Consolidated same‑store merchandise revenue declined 0.4% YoY (US$18.4 bn total merch & service revenue).
• Road‑fuel gross profit: US$6.4 bn on US$53.9 bn fuel revenue.
• Normalized expense growth: +3.3% (OSG&A US$7.1 bn).
• Adjusted EBITDA: US$6.0 bn; adjusted diluted EPS: US$2.71; free cash flow: US$1.8 bn.

Notable Quotes

• “Core + More is a focused strategy that builds on our leadership in core categories while investing in the areas that will position Couche‑Tard to win the customer for years to come,” – Alex Miller, President & CEO.
• “Our focus remains on consistent operational execution and long‑term value creation… Core + More provides a path to support earnings growth and disciplined capital deployment,” – Filipe Da Silva, CFO.