Loblaw Companies (L) Q2 2026 earnings summary

Executive summary

• Revenue increased to $15.3 billion in Q2 2026, up 4.1% year-over-year, with strong operational and financial performance across all business segments and a positive outlook for the remainder of the year and 2027.

• Adjusted EBITDA rose 5.1% to $1.9 billion, with margin improving by 10 basis points to 12.6%.

• Adjusted diluted EPS grew 11.9% to $0.66; GAAP diluted EPS was $0.64, up 8.5%.

• Sale of PC Financial to EQB completed after quarter-end; received $625 million in cash and now holds 19.9% of EQB shares, with plans to increase to 25% by November 2027.

• 14 new stores opened in the quarter, including the first T&T location in California, achieving record first-week sales.

Financial highlights

• Revenue including PC Financial was $15.3 billion, up 4.1% year-over-year; retail revenue reached $15.05 billion.

• Adjusted EBITDA increased 5.1% to $1.9 billion; adjusted EBITDA margin improved by 10 basis points to 12.6%.

• Adjusted diluted EPS grew 11.9% to $0.66; adjusted net earnings available to common shareholders were $774 million, up 8.6%.

• Free cash flow from Retail was $856 million, up $235 million year-over-year.

• Retail gross profit was $4.85 billion, up 4.7%, with gross margin stable at 32.2%.

Outlook and guidance

• Expects Retail earnings to grow faster than sales in 2026, with adjusted net EPS growth projected in the high single digits.

• Confident in delivering consistent top-line sales growth and maintaining strong free cash flow.

• Plans $2.4 billion in gross capital expenditures for store network and distribution centers.

• Plan to repurchase $2.1 billion of shares in 2026, up $200 million from initial plan.

• Significant portion of free cash flow to be allocated to share repurchases.