Loblaw Companies (L) investor relations material

Executive summary

• Revenue increased to $15,270 million in Q2 2026, up 4.1% year-over-year, with strong performance in both retail and financial segments and adjusted diluted EPS up 11.9%.

• Adjusted EBITDA rose 5.1% to $1,924 million, with margin improving by 10 basis points to 12.6%.

• All business segments showed momentum, with positive outlook for the remainder of the year and 2027 plans underway.

• Sale of PC Financial to EQB completed after quarter-end; now holds 19.9% of EQB shares and will recognize proportionate EQB income going forward.

• 14 new stores opened in the quarter, including the first T&T location in California.

Financial highlights

• Revenue including PC Financial was CAD 15.3 billion, up 4.1% year-over-year; GAAP revenue was CAD 15 billion, also up 4.1%.

• Adjusted EBITDA increased 5.1% to CAD 1.9 billion; adjusted EBITDA margin improved by 10 basis points.

• Adjusted diluted EPS grew 11.9% to CAD 0.66; GAAP diluted EPS was CAD 0.64, up 8.5%.

• Free cash flow surged to $807 million from $468 million year-over-year; Retail free cash flow was $856 million, up $235 million.

• Retail gross profit was $4,851 million, up 4.7%, with gross margin stable at 32.2%.

Outlook and guidance

• Expects Retail earnings to grow faster than sales in 2026, with adjusted net EPS growth projected in the high single digits.

• Confident in delivering consistent top-line sales growth and maintaining strong free cash flow.

• Plans $2.4 billion in gross capital expenditures for store network and distribution centers.

• Plan to repurchase CAD 2.1 billion of shares in 2026, up CAD 200 million from initial plan.

• Significant portion of free cash flow to be allocated to share repurchases.