Canadian Tire (CTC) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2025 results, with consolidated comparable sales up 4.2% in Q4 and 4.1% for the year, driven by robust performance across all major retail banners and successful execution of the True North transformation strategy.

• Retail sales and revenue rose 5% for the year, with EPS up 19% to CAD 13.77, aided by an extra week of operations and all banners contributing to growth.

• Transformation initiatives under the True North strategy included organizational change, a new operating model, and strategic advances, positioning for long-term value creation.

• Q4 2025 normalized diluted EPS from continuing operations rose by $1.23 to $4.47, while reported diluted EPS fell by $3.47 to $3.90 compared to Q4 2024, reflecting significant non-recurring items in both periods.

• FY 2025 normalized diluted EPS from continuing operations increased by $2.16 to $13.77, but reported diluted EPS dropped by $6.25 to $9.67 year-over-year, mainly due to the absence of a large property sale gain and higher transformation costs.

Financial highlights

• Q4 consolidated revenue rose 8.3% year-over-year to $4,551.1 million; full-year consolidated revenue increased 5.2% to $16,315.5 million.

• Q4 Normalized IBT up 32.5% to $349.6 million; full-year Normalized IBT up 14.3% to $1,109.0 million.

• Q4 Normalized Diluted EPS was $4.47 (up 38%); full-year Normalized Diluted EPS was $13.77 (up 18.6%).

• Q4 Diluted EPS (GAAP) was $3.91 (down 47.2%); FY 2025 basic EPS was $9.70 (down 39.2%), impacted by restructuring and prior-year property sale gain.

• Retail gross margin rate (excluding Petroleum) increased 27 bps to 35.5% for the year; normalized retail EBITDA margin (excluding Petroleum) was 14.6%.

Outlook and guidance

• Q1 2026 is off to a good start, with winter weather driving sales, but tough weather comps and strong patriotic purchasing in early 2025 will be cycled.

• 2026 operating capital expenditures expected to be $500–$550 million.

• Modernization and digital transformation to accelerate in 2026, with new loyalty partnerships (WestJet, Tim Hortons) launching.

• Long-term goal is annual retail sales growth of 3%-5% and faster earnings growth, though not near-term guidance.

• Continued focus on cost savings from True North restructuring, balanced with investments in AI and technology.