LAVAL, QC, September 2, 2025 /PRNewswire/ - Alimentation Couche-Tard Inc. ("Couche-Tard" or the "Corporation") (TSX: ATD) announces its results for its first quarter ended July 20, 2025.
Executive Comments on the Quarter
Alex Miller, President and Chief Executive Officer, said: "We are pleased by our improved performance in this first quarter of the new fiscal year. Across our network, we are reporting positive same store sales, which includes our U.S. market for the first time in several quarters. This progress is propelled by our focus on providing compelling value and ease, especially in our food and beverage offers, to win our customers who continue to watch their spendings. In our fuel business, we had overall good results, especially in Canada and our larger European markets, while in North America, fuel margins remained aligned with previous quarters. We were also proud to close this quarter on 270 sites operating under the GetGo Café + Market brand, and we are already working closely with those teams to learn more about GetGo's popular food and loyalty programs as we start to grow together."
Filipe Da Silva, Chief Financial Officer, added: "We are encouraged by our first quarter results, which were partly driven by an enhanced gross profit margin resulting from better food program execution and reduced spoilage. Combined with our disciplined cost control and a sharp focus on efficiency keeping expense growth below the rate of inflation, we are optimistic about our operational priorities. Our TotalEnergies assets once again produced solid sequential performance, with synergy delivery tracking ahead of plan. With our share repurchase program now in full motion, we view it as another way to create sustainable long-term shareholder value while optimizing our balance sheet."
Quarterly Highlights
- Net earnings attributable to shareholders of the Corporation were $782.5 million for the first quarter of fiscal 2026 compared with $790.8 million for the first quarter of fiscal 2025. Adjusted net earnings attributable to shareholders of the Corporation1 were approximately $737.0 million compared with $790.0 million for the corresponding quarter of last year, representing a decrease of 6.7%.
- Net earnings attributable to shareholders of the Corporation were $0.82 per diluted share for the first quarter of fiscal 2026 compared with $0.83 per diluted share for the first quarter of fiscal 2025. Adjusted diluted net earnings per share1 were $0.78, representing a decrease of 6.0% from $0.83 for the corresponding quarter of last year.
- Total merchandise and service revenues of $4.7 billion, an increase of 4.5%. Same-store merchandise revenues2 increased by 0.4% in the United States, by 3.8% in Europe and other regions1, and by 4.1% in Canada.
- Merchandise and service gross margin1 increased by 0.9% in the United States to 34.6%, while it decreased by 0.9% in Europe and other regions to 38.9%, and by 0.9% in Canada to 33.9%.
- Same-store road transportation fuel volumes decreased by 0.9% in the United States, and by 1.3% in Europe and other regions, while it increased by 2.2% in Canada.
- Road transportation fuel gross margin1 of 44.00¢ per gallon in the United States, a decrease of 4.13¢ per gallon, US 11.41¢ per liter in Europe and other regions, an increase of US 2.73¢ per liter, and CA 14.21¢ per liter in Canada, an increase of CA 1.10¢ per liter.
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1 | Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS ® Accounting Standards. |
2 | This measure represents the growth of (decrease in) cumulative merchandise revenues between the current period and comparative period for those stores that were open for at least 23 days out of every 28-day period included in the reported periods. Merchandise revenues are defined as Merchandise and service revenues excluding service revenues. |
Summary of the First Quarter of Fiscal 2026
For its first quarter ended July 20, 2025, Couche-Tard reported net earnings attributable to shareholders of the Corporation of $782.5 million, representing $0.82 per share on a diluted basis, compared with $790.8 million for the corresponding quarter of fiscal 2025, representing $0.83 per share on a diluted basis. The results for the first quarter of fiscal 2026 were affected by a pre-tax gain of $66.4 million on regulatory divestitures related to the GetGo acquisition, by a pre-tax net foreign exchange gain of $14.2 million and by pre-tax acquisition costs of $10.0 million. The results for the comparable quarter of fiscal 2025 were affected by a pre-tax net foreign exchange gain of $2.2 million and by pre-tax acquisition costs of $1.1 million. Excluding these items, the adjusted net earnings attributable to shareholders of the Corporation1 were approximately $737.0 million, or $0.78 per share on a diluted basis for the first quarter of fiscal 2026, compared with $790.0 million, or $0.83 per share on a diluted basis for the corresponding quarter of fiscal 2025, a decrease of 6.0% in the adjusted diluted net earnings per share1. This decrease is primarily driven by lower road transportation fuel gross margins1 in the United States, the impact of inflation on operating expenses and of strategic investments on depreciation, as well as from the gains on disposal of various assets in the prior year, partly offset by improved road transportation fuel gross profit1 in Europe and other regions, and organic growth in our convenience activities. All financial information presented is in US dollars unless stated otherwise.
Significant Items of the First Quarter of Fiscal 2026
- On June 28, 2025, we closed the acquisition of 270 company-owned and operated convenience retail and fuel sites operating under the GetGo Café + Market ("GetGo") brand from supermarket retailer Giant Eagle Inc., for a purchase price of $1.6 billion, subject to post-closing adjustments. The acquisition also included surplus properties. GetGo sites are located in the states of Indiana, Maryland, Ohio, Pennsylvania and West Virginia, in the United States. The transaction was financed using our available cash and existing credit facilities, including our United States Commercial Paper Program.
In connection with obtaining U.S. Federal Trade Commission ("FTC") regulatory approval for our acquisition of GetGo, we have entered into a consent agreement to sell 34 Circle K-branded company-owned and operated convenience retail and fuel locations and one GetGo property, in Pennsylvania, Indiana and Ohio, in the United States. The sale was finalized for consideration of approximately $158.0 million which resulted in a Gain on disposal of property and equipment and other assets of $66.4 million for the 12-week period ended July 20, 2025. - On June 2, 2025, we fully repaid, upon maturity, our CA $700.0 million Canadian-dollar-denominated senior unsecured notes issued on June 2, 2015. In addition, on the same date, we settled, upon maturity, the cross-currency interest rate swaps associated with the notes, which had an unfavorable fair value of $62.8 million at settlement.
- During the first quarter of fiscal 2026, we did not repurchase any shares. Subsequent to the end of the quarter, the Toronto Stock Exchange approved the reinstatement of the share repurchase program (the "Program"). The Program allows us to repurchase up to 77.1 million common shares, representing 10% of the 771.2 million common shares comprising the Corporation's public float outstanding as at July 14, 2025, over the course of twelve months commencing July 23, 2025 and ending at the latest on July 22, 2026. Subsequent to the end the first quarter of fiscal year 2026, the Corporation repurchased 7.9 million common shares for an amount of $405.4 million.
- On April 28, 2025, our commercial paper program was amended and the aggregate principal amount of unsecured commercial paper notes outstanding at any given time was increased to an amount that cannot exceed $3.5 billion.
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1 | Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS Accounting Standards. |
Changes in our Network during the First Quarter of Fiscal 2026
- We completed the construction of 10 stores and the relocation or reconstruction of 3 stores, reaching a total of 13 stores since the beginning of fiscal 2026. As of July 20, 2025, another 63 stores were under construction and should open in the upcoming quarters.
Summary of changes in our store network
The following table presents certain information regarding changes in our store network over the 12-week period ended July 20, 2025(1):
12-week period ended July 20, 2025 | |||||||||
Type of site | Company- | CODO | DODO | Franchised and | Total | ||||
Number of sites, beginning of period | 10,487 | 1,386 | 1,424 | 1,180 | 14,477 | ||||
Acquisitions | 270 | - | - | - | 270 | ||||
Openings / constructions / additions | 10 | - | 2 | 2 | 14 | ||||
Closures / disposals / withdrawals | (55) | (3) | (17) | (22) | (97) | ||||
Store conversions | (4) | 3 | (1) | 2 | - | ||||
Number of sites, end of period | 10,708 | 1,386 | 1,408 | 1,162 | 14,664 | ||||
Circle K branded sites under licensing agreements | 2,604 | ||||||||
Total network | 17,268 | ||||||||
Number of automated fuel stations included in the period-end figures | 1,168 | 2 | 107 | - | 1,277 | ||||
(1) | Stores which are part of Circle K Belgium SA's network are included at 100%, while stores operated through our RDK joint venture are included at 50%. |
Exchange Rate Data
We use the US dollar as our reporting currency, which provides more relevant information given the predominance of our operations in the United States.
The following table sets forth information about exchange rates based upon closing rates expressed as US dollars per comparative currency unit:
12-week periods ended | ||
July 20, 2025 | July 21, 2024 | |
Average for the period (1) | ||
Canadian dollar | 0.7270 | 0.7310 |
Norwegian krone | 0.0983 | 0.0935 |
Swedish krone | 0.1041 | 0.0942 |
Danish krone | 0.1537 | 0.1448 |
Zloty | 0.2692 | 0.2514 |
Euro | 1.1465 | 1.0799 |
Hong Kong dollar | 0.1277 | 0.1280 |
(1) | Calculated by taking the average of the closing exchange rates of each day in the applicable period. |
For the analysis of consolidated results, the impact of the translation of our foreign currency operations into US dollars is defined as the impact from the translation of our Canadian, European, Asian, and corporate operations into US dollars. Variances of our foreign currency operations into US dollars are determined as being the difference between the corresponding period results in local currencies translated at the current period average exchange rate and the corresponding period results in local currencies translated at the corresponding period average exchange rate.
Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2026
The following table highlights certain information regarding our operations for the 12-week periods ended July 20, 2025, and July 21, 2024, and the results analysis in this section should be read in conjunction with this table. The results from our operations in Europe and Asia are presented together as Europe and other regions.
12-week periods ended | |||
(in millions of US dollars, unless otherwise stated) | July 20, 2025 | July 21, 2024 | Variation % |
Statement of Operations Data: | |||
Merchandise and service revenues(1): | |||
United States | 3,095.0 | 3,022.2 | 2.4 |
Europe and other regions | 983.2 | 867.2 | 13.4 |
Canada | 615.6 | 603.7 | 2.0 |
Total merchandise and service revenues | 4,693.8 | 4,493.1 | 4.5 |
Road transportation fuel revenues: | |||
United States | 6,819.8 | 7,459.7 | (8.6) |
Europe and other regions | 4,491.9 | 4,758.2 | (5.6) |
Canada | 1,223.3 | 1,438.7 | (15.0) |
Total road transportation fuel revenues | 12,535.0 | 13,656.6 | (8.2) |
Other revenues(2): | |||
United States | 12.8 | 11.4 | 12.3 |
Europe and other regions | 98.0 | 108.6 | (9.8) |
Canada | 7.3 | 7.8 | (6.4) |
Total other revenues | 118.1 | 127.8 | (7.6) |
Total revenues | 17,346.9 | 18,277.5 | (5.1) |
Merchandise and service gross profit(1)(3): | |||
United States | 1,070.5 | 1,019.1 | 5.0 |
Europe and other regions | 382.4 | 345.0 | 10.8 |
Canada | 208.5 | 210.0 | (0.7) |
Total merchandise and service gross profit | 1,661.4 | 1,574.1 | 5.5 |
Road transportation fuel gross profit(3): | |||
United States | 982.2 | 1,048.3 | (6.3) |
Europe and other regions | 475.4 | 372.8 | 27.5 |
Canada | 140.4 | 128.7 | 9.1 |
Total road transportation fuel gross profit | 1,598.0 | 1,549.8 | 3.1 |
Other revenues gross profit(2)(3): | |||
United States | 12.9 | 8.7 | 48.3 |
Europe and other regions | 34.8 | 33.2 | 4.8 |
Canada | 6.9 | 7.3 | (5.5) |
Total other revenues gross profit | 54.6 | 49.2 | 11.0 |
Total gross profit (3) | 3,314.0 | 3,173.1 | 4.4 |
Operating, selling, general and administrative expenses | 1,709.2 | 1,632.5 | 4.7 |
Gain on disposal of property and equipment and other assets | (60.0) | (38.3) | 56.7 |
Depreciation, amortization and impairment | 527.8 | 440.9 | 19.7 |
Operating income | 1,137.0 | 1,138.0 | (0.1) |
Net financial expenses | 118.3 | 115.1 | 2.8 |
Net earnings | 786.1 | 793.1 | (0.9) |
Less: Net earnings attributable to non-controlling interests | (3.6) | (2.3) | 56.5 |
Net earnings attributable to shareholders of the Corporation | 782.5 | 790.8 | (1.0) |
Per Share Data: | |||
Basic net earnings per share (dollars per share) | 0.83 | 0.83 | - |
Diluted net earnings per share (dollars per share) | 0.82 | 0.83 | (1.2) |
Adjusted diluted net earnings per share (dollars per share)(3) | 0.78 | 0.83 | (6.0) |
12-week periods ended | |||
(in millions of US dollars, unless otherwise stated) | July 20, 2025 | July 21, 2024 | Variation % |
Other Operating Data: | |||
Merchandise and service gross margin(1)(3): | |||
Consolidated | 35.4 % | 35.0 % | 0.4 |
United States | 34.6 % | 33.7 % | 0.9 |
Europe and other regions | 38.9 % | 39.8 % | (0.9) |
Canada | 33.9 % | 34.8 % | (0.9) |
Growth of (decrease in) same-store merchandise revenues(4): | |||
United States(5)(6) | 0.4 % | (1.1 %) | |
Europe and other regions(3)(7) | 3.8 % | (2.1 %) | |
Canada(5)(6) | 4.1 % | (3.9 %) | |
Road transportation fuel gross margin(3): | |||
United States (cents per gallon) | 44.00 | 48.13 | (8.6) |
Europe and other regions (cents per liter) | 11.41 | 8.68 | 31.5 |
Canada (CA cents per liter) | 14.21 | 13.11 | 8.4 |
Total volume of road transportation fuel sold: | |||
United States (millions of gallons) | 2,232.1 | 2,178.0 | 2.5 |
Europe and other regions (millions of liters) | 4,164.8 | 4,292.5 | (3.0) |
Canada (millions of liters) | 1,358.1 | 1,342.6 | 1.2 |
Growth of (decrease in) same-store road transportation fuel volumes(5): | |||
United States | (0.9 %) | (0.8 %) | |
Europe and other regions(7) | (1.3 %) | (1.4 %) | |
Canada | 2.2 % | (2.1 %) | |
(in millions of US dollars, unless otherwise stated) | As at July 20, 2025 | As at April 27, 2025 | Variation $ |
Balance Sheet Data: | |||
Total assets | 40,541.4 | 38,301.9 | 2,239.5 |
Interest-bearing debt(3) | 15,243.2 | 13,956.3 | 1,286.9 |
Equity attributable to shareholders of the Corporation | 15,645.7 | 14,946.8 | 698.9 |
Indebtedness Ratios (3): | |||
Net interest-bearing debt/total capitalization | 0.45: 1 | 0.44: 1 | |
Leverage ratio | 2.18: 1 | 1.96: 1 | |
Returns (3): | |||
Return on equity | 17.5 % | 18.3 % | |
Return on capital employed | 11.8 % | 12.2 % | |
(1) | Includes revenues derived from franchise fees, royalties, suppliers' rebates on some purchases made by franchisees and licensees, as well as from wholesale of merchandise. Franchise fees from international licensed stores are presented in the United States. |
(2) | Includes revenues from the rental of assets and from the sale of energy for stationary engines and aviation fuel. |
(3) | Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on our performance measures not defined by IFRS Accounting Standards, as well as our capital management measure. |
(4) | This measure represents the growth of (decrease in) cumulative merchandise revenues between the current period and comparative period for those stores that were open for at least 23 days out of every 28-day period included in the reported periods. Merchandise revenues are defined as Merchandise and service revenues excluding service revenues. |
(5) | For company-operated stores only. |
(6) | Calculated based on respective functional currencies. |
(7) | Growth of (decrease in) same-store merchandise revenues and growth of (decrease in) same-store road transportation fuel volumes for Europe and other regions include results from the acquisition of certain European retail assets from TotalEnergies SE starting December 28, 2023. |
Revenues
Our revenues were $17.3 billion for the first quarter of fiscal 2026, down by $930.6 million, a decrease of 5.1% compared with the corresponding quarter of fiscal 2025, mainly attributable to a lower average road transportation fuel selling price, partly offset by the contribution from acquisitions, and by the net impact from organic changes to our network. The translation of our foreign currency operations into US dollars had a net positive impact of approximately $348.0 million on our revenues for the first quarter.
Merchandise and service revenues
Total merchandise and service revenues for the first quarter of fiscal 2026 were $4.7 billion, an increase of $200.7 million compared with the corresponding quarter of fiscal 2025. The translation of our foreign currency operations into US dollars had a net positive impact of approximately $43.0 million. The remaining increase of approximately $158.0 million, or 3.5%, is primarily attributable to organic growth, the contribution from acquisitions, which amounted to approximately $59.0 million, and the net impact from organic changes to our network. Same-store merchandise revenues increased by 0.4% in the United States. Same-store merchandise revenues increased by 3.8% in Europe and other regions1, supported by cigarettes sales in the Netherlands as new legislation continues to be favorable to our industry. In Canada, same-store merchandise revenues increased by 4.1%, driven by a strong growth of the alcohol category, partly offset by a decrease in other nicotine products revenues, both also impacted by new legislation.
Road transportation fuel revenues
Total road transportation fuel revenues for the first quarter of fiscal 2026 were $12.5 billion, a decrease of $1.1 billion compared with the corresponding quarter of fiscal 2025. The translation of our foreign currency operations into US dollars had a net positive impact of approximately $299.0 million. The remaining decrease of approximately $1.4 billion, or 10.4%, is mainly attributable to a lower average road transportation fuel selling price, which had a negative impact of approximately $1.5 billion, softness in fuel demand, partly offset by the contribution from acquisitions, which amounted to approximately $147.0 million. Same-store road transportation fuel volumes decreased by 0.9% in the United States, and by 1.3% in Europe and other regions, both driven by lower demand, while it increased by 2.2% in Canada, favorably impacted by promotional activities and market growth.
The following table shows the average selling price of road transportation fuel of our company-operated stores in our various markets for the last eight quarters. The average selling price of road transportation fuel consists of the road transportation fuel revenues divided by the volume of road transportation fuel sold:
Quarter | 2nd | 3rd | 4th | 1st | Weighted | |
52-week period ended July 20, 2025 | ||||||
United States (US dollars per gallon) | 3.22 | 3.03 | 3.09 | 3.06 | 3.10 | |
Europe and other regions (US cents per liter) | 115.46 | 114.06 | 115.07 | 118.99 | 115.79 | |
Canada (CA cents per liter) | 140.32 | 137.05 | 133.74 | 125.55 | 134.35 | |
52-week period ended July 21, 2024 | ||||||
United States (US dollars per gallon) | 3.76 | 3.18 | 3.40 | 3.44 | 3.43 | |
Europe and other regions (US cents per liter) | 108.87 | 112.53 | 125.90 | 120.73 | 118.22 | |
Canada (CA cents per liter) | 152.03 | 136.26 | 143.91 | 149.20 | 144.81 | |
Other revenues
Total other revenues for the first quarter of fiscal 2026 were $118.1 million, a decrease of $9.7 million compared with the corresponding quarter of fiscal 2025. The translation of our foreign currency operations into US dollars had a net positive impact of approximately $7.0 million. The remaining decrease of approximately $17.0 million, or 13.3%, is primarily driven by lower prices on our other fuel products.
Gross profit1
Our gross profit was $3.3 billion for the first quarter of fiscal 2026, up by $140.9 million, or 4.4%, compared with the corresponding quarter of fiscal 2025, mainly attributable to improved fuel market conditions in certain European regions, organic growth in our convenience activities in all regions, the contribution from acquisitions, as well as the net impact from organic changes to our network, partly offset by lower road transportation fuel gross profit1 in the United States. The translation of our foreign currency operations into US dollars had a net positive impact of approximately $44.0 million.
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1 | Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS Accounting Standards. |
Merchandise and service gross profit
In the first quarter of fiscal 2026, our merchandise and service gross profit was $1.7 billion, an increase of $87.3 million compared with the corresponding quarter of fiscal 2025. The translation of our foreign currency operations into US dollars had a net positive impact of approximately $17.0 million. The remaining increase of approximately $70.0 million, or 4.4%, is primarily attributable to organic growth in all regions, and to the contribution from acquisitions, which amounted to approximately $19.0 million. Our merchandise and service gross margin5 increased by 0.9% in the United States to 34.6%, impacted favorably by strong food execution, higher support from vendors on promotional offers, and by a change in product mix. Our merchandise and service gross margin1 decreased by 0.9% to 38.9% in Europe and other regions, and by 0.9% in Canada to 33.9%, both impacted by changes in product mix with the implementation of new legislations in our various locations.
Road transportation fuel gross profit
In the first quarter of fiscal 2026, our road transportation fuel gross profit was $1.6 billion, an increase of $48.2 million compared with the corresponding quarter of fiscal 2025. The translation of our foreign currency operations into US dollars had a net positive impact of approximately $23.0 million. The remaining increase of approximately $25.0 million, or 1.6%, is mainly driven by improved road transportation fuel gross margin1 in Europe and other regions and Canada, the contribution from acquisitions, which amounted to approximately $22.0 million, as well by the net impact from organic changes to our network, partly offset by lower road transportation fuel gross margin1 in the United States, and by softness in fuel demand in both the United States and Europe and other regions. In the United States, our road transportation fuel gross margin1 was 44.00¢ per gallon, a decrease of 4.13¢ per gallon, mainly due to competitive pressure, especially in our southern markets. In Europe and other regions, it was US 11.41¢ per liter, an increase of US 2.73¢ per liter, due to improved fuel market conditions in certain of our regions, and in Canada, it was CA 14.21¢ per liter, an increase of CA 1.10¢ per liter. Fuel margins remained healthy throughout our network, due the continued work on the optimization of our supply chain and strong execution in our stores.
The road transportation fuel gross margin1 of our company-operated stores in the United States and the impact of expenses related to electronic payment modes for the last eight quarters, were as follows:
(US cents per gallon) | |||||
Quarter | 2nd | 3rd | 4th | 1st | Weighted |
52-week period ended July 20, 2025 | |||||
Before deduction of expenses related to electronic payment modes | 47.57 | 45.35 | 43.86 | 44.81 | 45.40 |
Expenses related to electronic payment modes(1) | 6.02 | 5.84 | 6.09 | 5.34 | 5.82 |
After deduction of expenses related to electronic payment modes | 41.55 | 39.51 | 37.77 | 39.47 | 39.58 |
52-week period ended July 21, 2024 | |||||
Before deduction of expenses related to electronic payment modes | 51.15 | 44.38 | 39.28 | 49.49 | 45.99 |
Expenses related to electronic payment modes(1) | 6.04 | 5.77 | 6.03 | 6.16 | 5.99 |
After deduction of expenses related to electronic payment modes | 45.11 | 38.61 | 33.25 | 43.33 | 40.00 |
(1) | Expenses related to electronic payment modes are determined by allocating the portion of total electronic payment modes, which are included in Operating, selling, general and administrative expenses, deemed related to our United States company-operated stores road transportation fuel transactions. |
The road transportation fuel gross margin1 of our network in Europe and other regions and in Canada for the last eight quarters, were as follows:
Quarter | 2nd | 3rd | 4th | 1st | Weighted |
52-week period ended July 20, 2025 | |||||
Europe and other regions (US cents per liter) | 10.51 | 9.29 | 9.57 | 11.41 | 10.15 |
Canada (CA cents per liter) | 13.35 | 13.54 | 14.05 | 14.21 | 13.77 |
52-week period ended July 21, 2024 | |||||
Europe and other regions (US cents per liter) | 10.20 | 8.56 | 8.30 | 8.68 | 8.80 |
Canada (CA cents per liter) | 13.63 | 12.99 | 13.68 | 13.11 | 13.32 |
Generally, road transportation fuel gross margins1 can be volatile from one quarter to another but tend to be more stable over longer periods. In Europe and other regions, fuel margin volatility is impacted by a longer supply chain due to a more integrated model. In Europe and other regions and in Canada, expenses related to electronic payment modes are not as volatile as in the United States.
Other revenues gross profit
In the first quarter of fiscal 2026, other revenues gross profit was $54.6 million, an increase of $5.4 million, or 11.0%, compared with the corresponding quarter of fiscal 2025. The translation of our foreign currency operations into US dollars had a net positive impact of approximately $2.0 million.
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1 | Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS Accounting Standards. |
Operating, selling, general and administrative expenses ("expenses")
For the first quarter of fiscal 2026, expenses increased by 4.7% compared with the corresponding period of fiscal 2025, while normalized growth of expenses1 was 2.4%, as shown in the table below:
12-week periods ended | ||
July 20, 2025 | July 21, 2024 | |
Growth of expenses, as reported | 4.7 % | 13.4 % |
Adjusted for: | ||
Increase from incremental expenses related to acquisitions | (1.4 %) | (10.0 %) |
(Increase) decrease from the net impact of foreign exchange translation | (1.4 %) | 0.4 % |
Decrease (increase) from changes in electronic payment fees, excluding acquisitions | 1.2 % | (0.2 %) |
(Increase) decrease from changes in acquisition costs recognized to earnings | (0.6 %) | 0.2 % |
Increase from incremental system integration costs related to acquisitions | (0.2 %) | - |
Decrease from expenses related to disposals | 0.1 % | - |
Normalized growth of expenses 1 | 2.4 % | 3.8 % |
Normalized growth of expenses1 for the first quarter of fiscal 2026 was mainly driven by inflationary pressures and incremental investments to support our strategic initiatives, while being partly offset by the continued strategic efforts to control our expenses.
Earnings before interest, taxes, depreciation, amortization and impairment ("EBITDA1") and adjusted EBITDA1
During the first quarter of fiscal 2026, EBITDA stood at $1.7 billion, an increase of $82.9 million, or 5.2%, compared with the corresponding quarter of fiscal 2025. Adjusted EBITDA for the first quarter of fiscal 2026 increased by $25.4 million, or 1.6%, compared with the corresponding quarter of fiscal 2025, mainly due to organic growth in our convenience activities, and to the contribution from acquisitions, which amounted to approximately $19.0 million, partly offset by the gains on disposal of various assets in the prior year. The translation of our foreign currency operations into US dollars had a net positive impact of approximately $22.0 million.
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1 | Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS Accounting Standards. |
Depreciation, amortization and impairment ("depreciation")
For the first quarter of fiscal 2026, our depreciation expense increased by $86.9 million compared with the first quarter of fiscal 2025. The translation of our foreign currency operations into US dollars had a net unfavorable impact of approximately $8.0 million. The remaining increase of approximately $79.0 million, or 17.9%, is mainly driven by the replacement of equipment, the ongoing improvement of our network, strategic investments, as well as the impact from investments made through business acquisitions, which amounted to approximately $8.0 million.
Net financial expenses
Net financial expenses for the first quarter of fiscal 2026 were $118.3 million, an increase of $3.2 million compared with the corresponding period of fiscal 2025. A portion of the variation is explained by certain items that are not considered indicative of future trends, as shown in the table below:
12-week periods ended | |||
(in millions of US dollars) | July 20, 2025 | July 21, 2024 | Variation |
Net financial expenses, as reported | 118.3 | 115.1 | 3.2 |
Explained by: | |||
Net foreign exchange gain | 14.2 | 2.2 | 12.0 |
Change in fair value of financial instruments classified at fair value through earnings or loss | 1.0 | 0.4 | 0.6 |
Remaining variation | 133.5 | 117.7 | 15.8 |
The remaining variation of the first quarter of fiscal 2026 is mainly driven by higher net debt level in connection with the GetGo acquisition.
Income taxes
The income tax rate for the first quarter of fiscal 2026 was 23.2% compared with 23.1% for the corresponding quarter of fiscal 2025. The increase is mainly stemming from higher income tax rate due to the gain on regulatory divestitures related to the acquisition of GetGo, partly offset by the impact of a different mix in our earnings across the various jurisdictions in which we operate.
Net earnings attributable to shareholders of the Corporation and adjusted net earnings attributable to shareholders of the Corporation1
Net earnings attributable to shareholders of the Corporation for the first quarter of fiscal 2026 were $782.5 million, compared with $790.8 million for the first quarter of the previous fiscal year, a decrease of $8.3 million, or 1.0%. Diluted net earnings per share stood at $0.82, compared with $0.83 for the corresponding quarter of the previous fiscal year. The translation of our foreign currency operations into US dollars had a net positive impact of approximately $17.0 million on net earnings attributable to shareholders of the Corporation for the first quarter of fiscal 2026.
Adjusted net earnings attributable to shareholders of the Corporation for the first quarter of fiscal 2026 were approximately $737.0 million, compared with $790.0 million for the first quarter of fiscal 2025, a decrease of $53.0 million, or 6.7%. Adjusted diluted net earnings per share1 were $0.78 for the first quarter of fiscal 2026, compared with $0.83 for the corresponding quarter of fiscal 2025, a decrease of 6.0%.
Dividends
During its September 2, 2025 meeting, the Board of Directors declared a quarterly dividend of CA 19.5¢ per share for the first quarter of fiscal 2026 to shareholders on record as at September 11, 2025, and approved its payment effective September 25, 2025. This is an eligible dividend within the meaning of the Income Tax Act (Canada).
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1 | Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS Accounting Standards. |
Non-IFRS Accounting Standards Measures
To provide more information for evaluating the Corporation's performance, the financial information included in our financial documents contains certain data that are not performance measures under IFRS® Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards"), which are also calculated on an adjusted basis to exclude specific items. Those performance measures are called "Non-IFRS Accounting Standards measures". We believe that providing those Non-IFRS Accounting Standards measures is useful to management, investors, and analysts, as they provide additional information to measure the performance and financial position of the Corporation.
The following Non-IFRS Accounting Standards financial measures are used in our financial disclosures:
- Gross profit;
- Earnings before interest, taxes, depreciation, amortization and impairment ("EBITDA") and adjusted EBITDA;
- Adjusted net earnings attributable to shareholders of the Corporation;
- Interest-bearing debt.
The following Non-IFRS Accounting Standards ratios are used in our financial disclosures:
- Merchandise and service gross margin and Road transportation fuel gross margin;
- Normalized growth of operating, selling, general and administrative expenses;
- Growth of (decrease in) same-store merchandise revenues for Europe and other regions;
- Adjusted diluted net earnings per share;
- Leverage ratio;
- Return on equity and return on capital employed.
The following capital management measure is used in our financial disclosures:
- Net interest-bearing debt/total capitalization.
Supplementary financial measures are also used in our financial disclosures and those measures are described where they are presented.
Non-IFRS Accounting Standards financial measures and ratios, as well as the capital management measure, are mainly derived from the consolidated financial statements but do not have standardized meanings prescribed by IFRS Accounting Standards. These Non-IFRS Accounting Standards measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with IFRS Accounting Standards. In addition, our definitions of Non-IFRS Accounting Standards measures may differ from those of other public corporations. Any such modification or reformulation may be significant. These measures are also adjusted for the pro forma impact of our acquisitions and impacts of new accounting standards if they are considered to be material.
Gross profit. Gross profit consists of Revenues less the Cost of sales, excluding depreciation, amortization and impairment. This measure is considered useful for evaluating the underlying performance of our operations.
The table below reconciles Revenues and Cost of sales, excluding depreciation, amortization and impairment, as per IFRS Accounting Standards, to Gross profit:
12-week periods ended | ||
(in millions of US dollars) | July 20, 2025 | July 21, 2024 |
Revenues | 17,346.9 | 18,277.5 |
Cost of sales, excluding depreciation, amortization and impairment | 14,032.9 | 15,104.4 |
Gross profit | 3,314.0 | 3,173.1 |
Please note that the same reconciliation applies in the determination of gross profit by category and by geography presented in the section "Summary Analysis of Consolidated Results".
Merchandise and service gross margin. Merchandise and service gross margin consists of Merchandise and service gross profit divided by Merchandise and service revenues, both measures are presented in the section "Summary Analysis of Consolidated Results". Merchandise and service gross margin is considered useful for evaluating how efficiently we generate gross profit by dollar of revenue.
Road transportation fuel gross margin. Road transportation fuel gross margin consists of Road transportation fuel gross profit divided by Total volume of road transportation fuel sold. For the United States and Europe and other regions, both measures are presented in the section "Summary Analysis of Consolidated Results". For Canada, this measure is presented in functional currency and the table below reconciles, for road transportation fuel, Revenues and Cost of sales, excluding depreciation, amortization and impairment, as per IFRS Accounting Standards, to Gross profit and the resulting road transportation fuel gross margin. This measure is considered useful for evaluating how efficiently we generate gross profit by gallon or liter of road transportation fuel sold.
12-week periods ended | ||
(in millions of Canadian dollars, unless otherwise noted) | July 20, 2025 | July 21, 2024 |
Road transportation fuel revenues | 1,682.6 | 1,968.1 |
Road transportation fuel cost of sales, excluding depreciation, amortization and impairment | 1,489.6 | 1,792.1 |
Road transportation fuel gross profit | 193.0 | 176.0 |
Total road transportation fuel volume sold (in millions of liters) | 1,358.1 | 1,342.6 |
Road transportation fuel gross margin (CA cents per liter) | 14.21 | 13.11 |
Normalized growth of operating, selling, general and administrative expenses ("normalized growth of expenses"). Normalized growth of expenses consists of the growth of Operating, selling, general and administrative expenses adjusted for the impact of the changes in our network, the impact from changes in accounting policies and adoption of accounting standards, the impact of more volatile items over which we have limited control including, but not limited to, the net impact of foreign exchange translation, electronic payment fees excluding acquisitions, acquisition costs, and incremental system integration costs related to acquisitions, as well as other specific items for which the impact on consolidated results is not deemed indicative of future trends. Please note that the composition of this measure was adjusted to include the incremental system integration costs related to acquisitions, given the level of associated efforts is related to the magnitude and complexity of the acquired businesses. This measure is considered useful for evaluating our ability to control our expenses on a comparable basis.
The tables below reconcile growth of Operating, selling, general and administrative expenses to normalized growth of expenses:
12-week periods ended | ||||||
(in millions of US dollars, unless otherwise noted) | July 20, 2025 | July 21, 2024 | Variation | July 21, 2024 | July 23, 2023 | Variation |
Operating, selling, general and administrative | 1,709.2 | 1,632.5 | 4.7 % | 1,632.5 | 1,439.1 | 13.4 % |
Adjusted for: | ||||||
Increase from incremental expenses related to | (22.5) | - | (1.4 %) | (143.7) | - | (10.0 %) |
(Increase) decrease from the net impact of foreign | (22.5) | - | (1.4 %) | 5.1 | - | 0.4 % |
Decrease (increase) from changes in electronic | 19.6 | - | 1.2 % | (2.3) | - | (0.2 %) |
(Increase) decrease from changes in acquisition | (8.9) | - | (0.6 %) | 2.4 | - | 0.2 % |
Increase from incremental system integration costs | (3.7) | - | (0.2 %) | (0.6) | - | - |
Decrease from expenses related to disposals | 1.0 | - | 0.1 % | - | - | - |
Normalized growth of expenses | 1,672.2 | 1,632.5 | 2.4 % | 1,493.4 | 1,439.1 | 3.8 % |
Growth of (decrease in) same-store merchandise revenues for Europe and other regions. Same-store merchandise revenues represent cumulative merchandise revenues between the current period and comparative period for those stores that were open for at least 23 days out of every 28-day period included in the reported periods. Merchandise revenues are defined as Merchandise and service revenues excluding service revenues. For Europe and other regions, the growth of (decrease in) same-store merchandise revenues is calculated based on constant currencies using the respective current period average exchange rate for both the current and corresponding period. In Europe and other regions, same-store merchandise revenues include same-store revenues from company-operated stores, as well as CODO and DODO stores which are not included in our consolidated results. This measure is considered useful for evaluating our ability to generate organic growth on a comparable basis in our overall European and other regions store network. Growth of (decrease in) same-store merchandise revenues for Europe and other regions include results from the acquisition of certain European retail assets from TotalEnergies SE starting December 28, 2023.
The tables below reconcile Merchandise and service revenues, as per IFRS Accounting Standards, to same-store merchandise revenues for Europe and other regions and the resulting percentage of growth (decrease):
12-week periods ended | ||||
(in millions of US dollars, unless otherwise noted) | July 20, 2025 | July 21, 2024 | July 21, 2024 | July 23, 2023 |
Merchandise and service revenues for Europe and other regions | 983.2 | 867.2 | 867.2 | 622.0 |
Adjusted for: | ||||
Service revenues | (126.2) | (103.9) | (103.9) | (54.4) |
Net foreign exchange impact | - | 39.5 | - | (1.3) |
Merchandise revenues not meeting the definition of same-store | (67.7) | (56.0) | (246.2) | (30.2) |
Same-store merchandise revenues from stores not included in our | 346.7 | 347.1 | 88.2 | 82.4 |
Total same-store merchandise revenues for Europe and other regions | 1,136.0 | 1,093.9 | 605.3 | 618.5 |
Growth of (decrease in) same-store merchandise revenues for Europe and | 3.8 % | (2.1 %) | ||
Earnings before interest, taxes, depreciation, amortization and impairment ("EBITDA") and adjusted EBITDA. EBITDA represents Net earnings plus Income taxes, Net financial expenses, and Depreciation, amortization and impairment. Adjusted EBITDA represents the EBITDA adjusted for acquisition costs, the impact from changes in accounting policies and adoption of accounting standards, as well as other specific items for which the impact on consolidated results is not deemed indicative of future trends. These performance measures are considered useful to facilitate the evaluation of our ongoing operations and our ability to generate cash flows to fund our cash requirements, including our capital expenditures program, share repurchases, and payment of dividends.
The table below reconciles Net earnings, as per IFRS Accounting Standards, to EBITDA and adjusted EBITDA:
12-week periods ended | ||
(in millions of US dollars) | July 20, 2025 | July 21, 2024 |
Net earnings | 786.1 | 793.1 |
Add: | ||
Income taxes | 238.0 | 238.2 |
Net financial expenses | 118.3 | 115.1 |
Depreciation, amortization and impairment | 527.8 | 440.9 |
EBITDA | 1,670.2 | 1,587.3 |
Adjusted for: | ||
Gain on regulatory divestiture related to GetGo acquisition | (66.4) | - |
Acquisition costs | 10.0 | 1.1 |
Adjusted EBITDA | 1,613.8 | 1,588.4 |
Adjusted net earnings attributable to shareholders of the Corporation and adjusted diluted net earnings per share. Adjusted net earnings attributable to shareholders of the Corporation represents Net earnings attributable to shareholders of the Corporation adjusted for net foreign exchange gains or losses, acquisition costs, the impact from changes in accounting policies and adoption of accounting standards, impairment on goodwill, investments in subsidiaries, joint ventures and associated companies, as well as other specific items for which the impact on consolidated results is not deemed indicative of future trends, and the impact of the non-controlling interests on the items mentioned previously. These measures are considered useful for evaluating the underlying performance of our operations on a comparable basis.
The table below reconciles Net earnings attributable to shareholders of the Corporation, as per IFRS Accounting Standards, with adjusted net earnings attributable to shareholders of the Corporation and adjusted diluted net earnings per share:
(in millions of US dollars, except per share amounts, or unless otherwise noted) | 12-week periods ended | |
July 20, 2025 | July 21, 2024 | |
Net earnings attributable to shareholders of the Corporation | 782.5 | 790.8 |
Adjusted for: | ||
Gain on regulatory divestiture related to GetGo acquisition | (66.4) | - |
Net foreign exchange gain | (14.2) | (2.2) |
Acquisition costs | 10.0 | 1.1 |
Tax impact of the items above and rounding | 25.1 | 0.3 |
Adjusted net earnings attributable to shareholders of the Corporation | 737.0 | 790.0 |
Weighted average number of shares - diluted (in millions) | 948.6 | 957.3 |
Adjusted diluted net earnings per share | 0.78 | 0.83 |
Interest-bearing debt. This measure represents the sum of the following balance sheet accounts: Short-term debt and current portion of long-term debt, Long-term debt, Current portion of lease liabilities and Lease liabilities. This measure is considered useful to facilitate the understanding of our financial position in relation with financing obligations. The calculation of this measure of financial position is detailed in the "Net interest-bearing debt/total capitalization" section below.
Net interest-bearing debt/total capitalization. This measure represents the basis for monitoring our capital and is considered useful to assess our financial health, risk profile, and ability to meet our financing obligations. It also provides insights into how our financing obligations are structured in relation with our total capitalization.
The table below presents the calculation of this performance measure:
(in millions of US dollars, except ratio data) | As at | As at |
Short-term debt and current portion of long-term debt | 2,439.1 | 690.2 |
Current portion of lease liabilities | 550.0 | 523.9 |
Long-term debt | 7,976.2 | 8,776.8 |
Lease liabilities | 4,277.9 | 3,965.4 |
Interest-bearing debt | 15,243.2 | 13,956.3 |
Less: Cash and cash equivalents | (2,193.4) | (2,263.0) |
Net interest-bearing debt | 13,049.8 | 11,693.3 |
Equity attributable to shareholders of the Corporation | 15,645.7 | 14,946.8 |
Net interest-bearing debt | 13,049.8 | 11,693.3 |
Total capitalization | 28,695.5 | 26,640.1 |
Net interest-bearing debt to total capitalization ratio | 0.45: 1 | 0.44: 1 |
Leverage ratio. This measure represents a measure of financial condition considered useful to assess our financial leverage and our ability to cover our net financing obligations in relation to our adjusted EBITDA.
The table below reconciles net interest-bearing debt and adjusted EBITDA, for which the calculation methodologies are described in other tables of this section, with the leverage ratio:
52-week periods ended | ||
(in millions of US dollars, except ratio data) | July 20, 2025 | April 27, 2025 |
Net interest-bearing debt | 13,049.8 | 11,693.3 |
Adjusted EBITDA | 5,984.8 | 5,959.4 |
Leverage ratio | 2.18: 1 | 1.96: 1 |
Return on equity. This measure is considered useful to assess the relationship between our profitability and our net assets and it also provides insights into how efficiently we are using our equity to generate returns for our shareholders. Average equity attributable to shareholders of the Corporation is calculated by taking the average of the opening and closing balance for the 52-week periods.
The table below reconciles Net earnings attributable to shareholders of the Corporation, as per IFRS Accounting Standards, with the ratio of return on equity:
52-week periods ended | ||
(in millions of US dollars, unless otherwise noted) | July 20, 2025 | April 27, 2025 |
Net earnings attributable to shareholders of the Corporation | 2,581.7 | 2,580.4 |
Equity attributable to shareholders of the Corporation - Opening balance | 13,898.4 | 13,189.2 |
Equity attributable to shareholders of the Corporation - Ending balance | 15,645.7 | 14,946.8 |
Average equity attributable to shareholders of the Corporation | 14,772.1 | 14,068.0 |
Return on equity | 17.5 % | 18.3 % |
Return on capital employed. This measure is considered useful as it provides insights into our ability to generate returns from the total amount of capital invested in our operations and it also helps in assessing our operational efficiency and capital allocation decisions. Earnings before interest and taxes ("EBIT") represents Net earnings plus Income taxes and Net financial expenses. Capital employed represents total assets less short-term liabilities not bearing interest, which excludes the Short-term debt and current portion of long-term debt and Current portion of lease liabilities. Average capital employed is calculated by taking the average of i) the opening balance of capital employed for the 52-week periods and ii) the ending balance of capital employed for the 52-week periods.
The table below reconciles Net earnings, as per IFRS Accounting Standards, to EBIT with the ratio of Return on capital employed:
52-week periods ended | ||
(in millions of US dollars, unless otherwise noted) | July 20, 2025 | April 27, 2025 |
Net earnings | 2,585.4 | 2,592.4 |
Add: | ||
Income taxes | 729.5 | 729.7 |
Net financial expenses | 515.7 | 512.5 |
EBIT | 3,830.6 | 3,834.6 |
Capital employed - Opening balance(1) | 31,127.0 | 30,962.0 |
Capital employed - Ending balance(1) | 34,050.3 | 31,898.7 |
Average capital employed | 32,588.7 | 31,430.4 |
Return on capital employed | 11.8 % | 12.2 % |
(1) | The table below reconciles balance sheet line items, as per IFRS Accounting Standards, to capital employed: |
(in millions of US dollars) | As at | As at | As at | As at |
Total Assets | 40,541.4 | 37,271.0 | 38,301.9 | 37,218.0 |
Less: Current liabilities | (9,480.2) | (7,909.1) | (7,617.3) | (7,832.9) |
Add: Short-term debt and current portion of long-term debt | 2,439.1 | 1,263.3 | 690.2 | 1,066.8 |
Add: Current portion of lease liabilities | 550.0 | 501.8 | 523.9 | 510.1 |
Capital employed | 34,050.3 | 31,127.0 | 31,898.7 | 30,962.0 |
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1 | The information as at April 28, 2024 has been adjusted based on our final estimates of the fair value of assets acquired and liabilities assumed for the acquisition of convenience retail and fuel sites operating under the MAPCO brand, and for the acquisition of certain European retail assets from TotalEnergies SE. |
Profile
Couche-Tard is a global leader in convenience and mobility, operating in 29 countries and territories, with close to 17,300 stores, of which approximately 13,200 offer road transportation fuel. With its well-known Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States and it is a leader in the convenience store industry and road transportation fuel retail in Canada, Scandinavia, the Baltics, Belgium, as well as in Ireland. It also has an important presence in Luxembourg, Germany, the Netherlands, Poland, as well as in Hong Kong Special Administrative Region of the People's Republic of China. Approximately 149,500 people are employed throughout its network.
For more information on Alimentation Couche-Tard Inc., or to consult its audited annual Consolidated Financial Statements, unaudited interim condensed consolidated financial statements and Management Discussion and Analysis, please visit: https://corpo.couche-tard.com.
Forward-looking statements
The statements set forth in this press release, which describes Couche-Tard's objectives, projections, estimates, expectations, or forecasts, may constitute forward-looking statements within the meaning of securities legislation. Positive or negative verbs such as "believe", "can", "shall", "intend", "expect", "estimate", "assume", and other related expressions are used to identify such statements. Couche-Tard would like to point out that, by their very nature, forward-looking statements involve risks and uncertainties such that its results, or the measures it adopts, could differ materially from those indicated in or underlying these statements, or could have an impact on the degree of realization of a particular projection. Major factors that may lead to a material difference between Couche-Tard's actual results and the projections or expectations set forth in the forward-looking statements include the effects of the integration of acquired businesses and the ability to achieve projected synergies, ongoing military conflicts, fluctuations in margins on motor fuel sales, competition in the convenience store and retail motor fuel industries, exchange rate variations, and such other risks as described in detail from time to time in the reports filed by Couche-Tard with securities authorities in Canada and the United States. Among other things, our synergies objective is based on our comparative analysis of organizational structures and current level of spending across our network as well as on our ability to bridge the gap, where relevant. Our synergies objective is also based on our assessment of current contracts in the geographical areas of operations and how we expect to be able to renegotiate these contracts to take advantage of our increased purchasing power. In addition, our synergies objective assumes that we will be able to establish and maintain an effective process for sharing best practices across our network. Finally, our objective is also based on our ability to integrate acquired business. An important change in these facts and assumptions could significantly impact our synergies estimate as well as the timing of the implementation of our different initiatives. Unless otherwise required by applicable securities laws, Couche-Tard disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking information in this release is based on information available as of the date of the release.
Webcast on September 3, 2025 at 8:00 A.M. (EDT)
Couche-Tard invites analysts known to the Corporation to ask their questions to its management on September 3, 2025, during the question and answer period of the webcast.
Financial analysts, investors, media, and other interested parties are invited to join the webcast on September 3, 2025, at 8:00 A.M. (EDT). A presentation will include slides detailing the quarterly and fiscal year results. The webcast can be accessed via the "Investors/Events & Presentations" section on the Corporation's website https://corpo.couche-tard.com/ or directly via this link https://emportal.ink/3HqoQrB to join the call without operator assistance.
Another option could be to access the conference call through an operator by dialing 1-289-819-1299 or the international number 1-800-990-4777.
Rebroadcast: For individuals who will not be able to listen to the live webcast, a recording of the webcast will be available on the Corporation's website for a period of 90 days.
SOURCE Alimentation Couche-Tard Inc.
