Empire Company (EMP-A) investor relations material

Executive summary

• Q4 F2026 sales reached $7,807 million, up 2.2% year-over-year, with food sales rising 2.1% and same-store food sales up 1.5%.

• Q4 adjusted EPS was $0.94, up 27% year-over-year; core EPS growth for the year was 11.9%.

• Annual dividend increased by 10.2%, marking the 31st consecutive year of growth.

• Strategic focus on customers, stores, growth, and cost efficiency, leveraging technology and analytics.

• Announced a 10.2% dividend increase and plans for over 70 new stores in the next three years, focusing on discount formats.

Financial highlights

• Q4 adjusted EPS was $0.94, up 27% year-over-year; excluding real estate-related income, EPS grew 14.8%.

• Gross margin, excluding fuel, was flat in Q4 and expanded by 14 basis points for the year, within the 10–20 basis point target.

• Adjusted EBITDA for Q4 F26 was $644 million (8.2% margin), up from $599 million (7.8%) in Q4 F25.

• SG&A, excluding depreciation and amortization, improved by 31 basis points as a percentage of sales year-over-year.

• Effective tax rate in Q4 was 19.3%, down from 25.2% last year, mainly due to non-taxable capital items.

Outlook and guidance

• Fiscal 2027 adjusted EPS growth expected at the high end of the 8%-11% financial framework.

• CapEx for fiscal 2027 projected at $850 million, with half allocated to new stores and renovations.

• Other income and equity earnings expected to contribute $90–110 million in fiscal 2027.

• Dividend increased for the 31st consecutive year; NCIB renewal planned for up to 9.6% of public float.

• E-commerce restructuring expected to yield $95 million in annualized operating income improvements.