Loblaw Companies Limited released the transcript of its fourth-quarter and full-year 2025 results conference call, held February 25, 2026. The call was hosted by Vice President of Investor Relations Roy MacDonald, with remarks from President and CEO Per Bank and CFO Richard Dufresne, followed by Q&A with analysts from UBS, RBC Capital Markets, Desjardins Securities, National Bank Financial, CIBC, TD Cowen, BMO Capital Markets, and Scotiabank. Management highlighted steady operating performance, store expansion, margin stability, and continued digital growth. On a 12-week basis, the company reported Q4 revenue growth of 3.5% to $15.5 billion and adjusted EBITDA up 4.8% to $1.8 billion, with adjusted diluted EPS up 10.9%. Food same-store sales grew 1.5%, while drug retail same-store sales rose 3.9%, supported by pharmacy and healthcare services growth of 5.6%. The company also emphasized momentum in hard discount, noting 48 new hard discount stores opened in 2025, and said online sales reached over $4.5 billion for the year, with Q4 digital sales up 19.6%. Executives said consumers remain value-focused, with strong promotional activity and private label outperforming national brands. “Promo penetration stays high. And private label in the quarter four is outperforming national brands,” the CEO said, adding the company is seeing “some category trade downs.” The CFO said food retail same-store sales improved as the quarter progressed and that momentum has continued into early 2026: “We saw a sequential improvement in same-store sales. And we're actually seeing further improvement as we begin 2026.” The company discussed operational initiatives including automated distribution centers, with the CFO noting the East Gwillimbury facility’s ramp-up is ahead of schedule in some areas: “Both cost and productivity improvements came in better than planned,” and the company expects it to be “fully ramped up later this year.” Loblaw also addressed its planned sale of PC Financial to EQ Bank, reiterating it will remain active in financial services via an interest in EQB and expects the deal to close later in 2026. On outlook, management guided to adjusted EPS growth in the high single digits for 2026 excluding impacts from the PC Financial transaction timing and lapping the 53rd week, with planned capital expenditures of approximately $2.4 billion and continued significant share repurchases. “We have a solid plan in place,” the CFO said, adding the company expects “stability in gross margin, stability in SG&A rate.” The call also covered AI initiatives and e-commerce economics. The CEO said Loblaw is “building an AI-enabled organization,” citing partnerships with OpenAI and Google and internal tools to help store teams act faster. On e-commerce profitability, the CEO said online is no longer a drag: “Now it's not diluting anymore,” while the CFO attributed improvement to delivery partnerships: “The key driver for it is us using third parties to do delivery.” The full transcript can be accessed through the link below.

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