Alimentation Couche-Tard (ATD) Q3 2025 earnings summary

Executive summary

• Net earnings attributable to shareholders for Q3 FY2025 were $641.4 million ($0.68 per diluted share), up from $623.4 million ($0.65 per share) in Q3 FY2024, driven by higher fuel margins, acquisitions, and organic growth, partially offset by increased operating expenses and depreciation.

• Revenues for Q3 FY2025 reached $20.9 billion, a 6.5% increase year-over-year, mainly due to acquisitions and higher wholesale fuel revenues, despite lower average fuel prices and adverse winter conditions in the US.

• Same-store sales were positive in Canada (+2.8%) and Europe (+0.2%), with sequential improvement in the US despite winter storms; food sales grew in the US and meal deals expanded to Canada.

• Network expansion continued with 39 new stores opened in Q3 and the pending acquisition of 270 GetGo stores, expected to close in H1 2025.

• Strategic focus includes integration of TotalEnergies assets in Europe, progress on the GetGo acquisition, and a potential combination with Seven & i Holdings for global growth.

Financial highlights

• Adjusted net earnings attributable to shareholders were $641 million ($0.68 per diluted share), up 4.6% year-over-year.

• Adjusted EBITDA for Q3 FY2025 was $1.64 billion, up 11.3% year-over-year.

• Merchandise and service revenues increased by $295 million (5.9%), with gross profit up $134 million (7.8%).

• Gross profit for Q3 FY2025 was $3.8 billion, up 9.4% year-over-year, with merchandise and service gross profit at $1.8 billion and road transportation fuel gross profit at $1.9 billion.

• Operating expense growth was 8.1%, with normalized opex growth at 2.6%, in line with inflation.

Outlook and guidance

• Management remains focused on disciplined cost control, capital allocation, and market share gains amid macro uncertainty.

• Q4 trends are expected to be similar to Q3, with continued focus on food, digital platforms, and cost discipline.

• Integration of newly acquired European assets is progressing as planned, with synergy run rate from the TotalEnergies acquisition reaching €13 million and targets of €120 million by FY2027 and €170 million by FY2029.

• Continued expansion through M&A and organic growth, with GetGo transaction expected to close in the first half of calendar 2025.

• Diversified geographic presence provides resilience, with strength in Canada and Europe offsetting U.S. challenges.