Empire Company (EMP-A) Q4 2025 earnings summary

Executive summary

• Adjusted EPS grew 8.8% in fiscal 2025, with Q4 adjusted EPS up 17.5% year-over-year to $0.74, supported by 3.8% same-store sales growth and strong performance in Full-Service and Discount banners.

• Q4 sales reached $7,637 million, up 3.0% year-over-year, and annual sales were $31,277 million.

• E-commerce platforms saw 80% sales growth in Q4, with expanded partnerships and improved performance.

• Repurchased $400 million in shares and increased the annual dividend by 10%, marking 30 consecutive years of dividend growth.

• Customer behavior is normalizing, with a shift toward fresh products and Canadian retailers.

Financial highlights

• Q4 adjusted EPS was $0.74, up from $0.63 last year; full-year adjusted EPS was $2.98, up from $2.74.

• Q4 sales were $7,637 million, with gross margin (excluding fuel) up 32 basis points to 27.6% year-over-year.

• Adjusted EBITDA margin increased to 7.8% in Q4, and free cash flow for the year was $728 million.

• Effective tax rate for Q4 was 25.2%, and for the year was 25.0%, both down from prior periods.

• Book value per share increased to $23.13 from $21.54 year-over-year.

Outlook and guidance

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

• Plan to repurchase up to $400 million in shares in fiscal 2026.

• Aggregate pre-tax earnings from Other income plus Share of earnings from investments expected at $120–$140 million in fiscal 2026.

• Long-term adjusted EPS growth targeted at 8% to 11% annually.

• Company expects continued improvement in sales, gross margin (excluding fuel), and adjusted EBITDA margin.