Empire Company (EMP-A) Q2 2025 earnings summary

Executive summary

• Same-store sales excluding fuel rose 1.8% year-over-year in Q2, with both full-service and discount channels outpacing their respective markets.

• Gross margin improved by 48 basis points to 26.5%, driven by operational efficiencies and supply chain initiatives.

• E-commerce sales grew 12.2% year-over-year, led by Voilà and expanded partnerships with Instacart and Uber Eats.

• Adjusted EPS reached $0.73, up from $0.71 last year, reflecting strong execution and digital expansion.

• Strategic priorities include store renovations, digital/data investments, and efficiency initiatives, with 20–25% of stores targeted for upgrades by F26.

Financial highlights

• Q2 sales were $7,778 million, up 0.3% year-over-year; gross profit was $2,064 million.

• Adjusted EBITDA for Q2 was $601 million (7.7% margin), up from $577 million (7.4%) last year.

• Free cash flow in Q2 was $76 million, compared to negative $62 million last year.

• Dividend per share increased to $0.20 from $0.1825 year-over-year.

• Capital expenditures for Q2 were $149 million, with YTD capex at $301 million.

Outlook and guidance

• FY2025 capital spend expected at ~$700 million, with half for renovations/new stores and 25% for IT/business development.

• Pre-tax earnings from other income and equity investments projected at $135–$155 million for FY2025.

• Long-term adjusted EPS growth targeted at 8–11%, driven by sales, margin, and EBITDA improvements.

• Share buyback program on track to complete $400 million for FY2025.

• Effective tax rate for Q2 was 25.8%; full-year estimate remains 25%–27%.