Canadian Tire (CTC) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw consolidated revenue rise 3.0% year-over-year to $4,105.8 million, with strong top-line and underlying retail performance, and a 7% increase in diluted EPS year-over-year, though reported EPS declined 11.8% to $3.13 due to transformation expenses.

• Normalized diluted EPS from continuing operations grew 6.5% to $3.78, reflecting adjustments for transformation and restructuring costs.

• Loyalty engagement rose, with over 7 million members shopping, up 3%, and new partnerships expanding the Triangle Rewards network.

• Completed a major internal restructuring and reorganization under the True North strategy, positioning for accelerated transformation leveraging technology and AI.

• Annualized dividend was raised to $7.20 per share, marking the 16th consecutive annual increase, and a share repurchase intention of up to $400 million by end of 2026 was announced.

Financial highlights

• Consolidated revenue reached $4,105.8 million, up 3.0% year-over-year, with retail revenue (excluding Petroleum) up nearly 6%.

• Retail gross margin dollars (excluding Petroleum) up nearly 8%, with margin rate improving by 57 bps year-over-year to 35.8%.

• Normalized retail EBITDA increased almost 4% to CAD 484 million; normalized consolidated IBT was $297.7 million, stable year-over-year.

• Retail segment normalized income before income taxes rose 18.6% to $192.4 million.

• Financial Services IBT declined to $84.4 million from $110.3 million, mainly due to higher net write-offs.

Outlook and guidance

• Cautiously optimistic for Q4 and 2026, with growth plans in place but mindful of weather, macroeconomic uncertainty, and Canada Post disruptions.

• Positioned to overachieve North Star retail gross margin rate for the year, with continued focus on margin management and AI capabilities.

• SG&A run-rate savings of CAD 100 million expected to benefit 2026, with stable investment levels and regular inflation anticipated.

• Full-year 2025 operating capital expenditures projected at $525–$575 million; 2026 guidance is $500–$550 million.

• New loyalty partnerships with RBC and WestJet are set to launch in 2026.