Empire Company (EMP-A) Q3 2026 earnings summary

Executive summary

• Q3 F2026 sales reached $7,890 million, up 2.1% year-over-year, with food sales up 3% and same-store sales up 2%, driven by strong performance in Full-Service and Discount banners.

• Adjusted EPS was $0.72, up 16.1% year-over-year, reflecting cost discipline and operational efficiencies, while reported net loss was $385 million due to a $746 million e-commerce impairment.

• E-commerce sales grew 10.3% year-over-year, supported by third-party partnerships and Voilà platform growth.

• Strategic actions included e-commerce restructuring, executive leadership changes, and expansion of the loyalty program with Shell Canada and Tangerine Bank.

• The company is finalizing a new strategy anchored on four priorities: customers, stores, growth, and cost control.

Financial highlights

• Adjusted EPS reached $0.72, up from $0.62 last year, with core business results improving 8.8%.

• Gross margin held steady at 27.0%; excluding fuel, it declined by 25 basis points due to non-recurring items and business mix.

• Adjusted EBITDA for Q3 F26 was $602 million (7.6% margin), up from $564 million (7.3%) in Q3 F25.

• Free cash flow for Q3 F26 was $288 million, up from $147 million in Q3 F25.

• Dividend per share increased to $0.22 from $0.20.

Outlook and guidance

• Expects $95 million in annualized operating income benefits from e-commerce restructuring, with $15 million realized in Q4 F26 and full run-rate in fiscal 2027.

• Fiscal 2026 capital expenditures projected at $850 million, with half allocated to store renovations and expansion.

• Share repurchases are expected to total $400 million for the fiscal year.

• Targeting long-term adjusted EPS growth of 8–11%.

• More details on the refreshed strategy and FY2027 outlook will be provided in Q4.