Loblaw Companies (L) Q4 2025 earnings summary

Executive summary

• Revenue grew 3.5% in Q4 2025 to CAD 15.5 billion, with full-year revenue up 6.3% to CAD 63.9 billion.

• Adjusted EBITDA rose 4.8% to CAD 1.8 billion in Q4, with margin up 10 bps to 11.5%.

• Adjusted diluted EPS increased 10.9% in Q4; full-year adjusted EPS up 13.6%.

• Strong performance in food and drug retail, with market share gains and robust digital sales growth.

• Sale of PC Financial to EQ Bank; results now presented as discontinued operations.

Financial highlights

• Q4 2025 retail revenue: $16.4 billion, up 11.3% (13 weeks); up 3.5% on a 12-week comparable basis.

• Food same-store sales grew 1.5% in Q4; drug retail same-store sales up 3.9%.

• Q4 adjusted EBITDA: $1.78 billion, up 11.3%; adjusted EBITDA margin steady at 10.8%.

• Free cash flow from retail operations: $1.24 billion in Q4; $1.91 billion for the year.

• Net earnings available to common shareholders: $656 million, up 42% year-over-year.

Outlook and guidance

• 2026 plan expects similar new store investments as 2025, with increased Shoppers Drug Mart stores and 30 new pharmacy care clinics.

• Retail business expected to grow earnings faster than sales; adjusted EPS growth projected in high single digits, excluding PC Financial sale and 53rd week impacts.

• Capital expenditures planned at approximately CAD 2.4 billion.

• Most free cash flow to be returned to shareholders via dividends and buybacks.