Empire Company (EMP-A) Q3 2025 earnings summary

Executive summary

• Q3 sales reached $7,725.2 million, up 3.1% year-over-year, with same-store food sales up 2.6% and basket size increasing for the first time since Q1 2024.

• E-commerce sales surged 72% year-over-year, driven by Voilà and expanded partnerships with Instacart and Uber Eats.

• Gross margin, excluding fuel, improved by 43 basis points, reflecting operational efficiencies and shrink reduction.

• Net earnings rose to $146.1M ($0.62/share), with adjusted EPS flat at $0.62; prior year EPS was $0.54.

• CFO Matt Reindel announced retirement, with Costa Pefanis set to join as CFO in May, ensuring a smooth transition.

Financial highlights

• Gross profit for Q3 was $2,083 million, up from $1,987 million, and gross margin improved to 27.0% from 26.5% year-over-year.

• Adjusted EBITDA for Q3 was $565 million, margin steady at 7.3% year-over-year.

• Free cash flow for Q3 was $148 million, down from $349 million, due to higher capital investments.

• CapEx for Q3 was $188 million, focused on store renovations, new stores, and IT, with a full-year target of $700 million.

• Share buybacks reached 8.6 million shares for $340 million, with $267 million spent in Q3.

Outlook and guidance

• Fiscal 2025 capital spend expected at ~$700 million, with half for store renovations and expansion.

• Pre-tax other income and equity earnings expected at $135–$155 million for fiscal 2025.

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

• Q4-to-date sales show similar momentum to Q3, with no signs of consumer caution.

• Inflation, excluding tariffs, is expected to be around 2% for the next year.