Empire Company (EMP-A) Q2 2026 earnings summary

Executive summary

• Core business delivered 12.5% year-over-year adjusted EPS growth, excluding real estate and equity investment income, with strong operational execution and margin expansion.

• Sales rose 2.8% year-over-year to $7,995 million, with food sales up 3.4% and same-store food sales up 2.5%, driven by both full-service and discount banners.

• E-commerce sales surged 81.2% year-over-year, supported by new partnerships and Voilà platform growth, while pausing further CFC expansion.

• Gross margin improved by 14 basis points excluding fuel, with further improvement to 20 basis points when excluding wholesale mix impact.

• Strategic priorities include disciplined cost control, digital/data investments, store renovations, and efficiency initiatives.

Financial highlights

• Adjusted EPS was $0.69 for Q2 F2026, four cents lower than last year due to lower real estate-related income; core operations showed strong growth when excluding these items.

• Gross profit for Q2 F26 was $2,147 million, with a gross margin of 26.9%, up 40 bps year-over-year.

• Adjusted EBITDA was $583 million, with a margin of 7.3%, down from $601 million and 7.7% last year.

• Free cash flow for the quarter was $5 million, down from $76 million, mainly due to higher capital investments.

• Dividend per share increased to $0.22 from $0.20 year-over-year.

Outlook and guidance

• Fiscal 2026 capital spend expected at $850 million, with half for store renovations and expansion.

• Aggregate pre-tax earnings from other income and investments expected at $120–$140 million in fiscal 2026, with catch-up anticipated in the second half.

• Share buyback program on track, targeting up to $400 million for fiscal 2026, with $195 million already repurchased.

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