Highlights
- Revenues of $263.5 million for the quarter ended January 25, 2026; operating earnings of $8.2 million; and net loss from continuing operations of $0.2 million (0.00 $ per share).
- Adjusted operating earnings before depreciation and amortization(1) of $33.1 million for the quarter ended January 25, 2026; adjusted operating earnings(1) of $17.5 million; and adjusted net earnings from continuing operations(1) of $6.7 million ($0.08 per share).
- Subsequent to the closing of the first quarter of fiscal year 2026, announcement of the closing of the sale of the Packaging Business.
- Appointment of Sam Bendavid as Chief Executive Officer, effective April 6, 2026.
(1) Please refer to the "Non-IFRS Financial Measures" section of this press release for a definition of these measures.
MONTRÉAL, March 10, 2026 (GLOBE NEWSWIRE) -- Transcontinental Inc. (TSX: TCL.A TCL.B) announces its results for the first quarter of fiscal year 2026 ended January 25, 2026.
"The closing of the sale of our packaging activities allows us to begin a new chapter of our history and focus our resources on our retail services and printing activities, as well as our educational publishing activities," said Thomas Morin, President and Chief Executive Officer of TC Transcontinental.
"The recent acquisitions in our in-store marketing activities enabled us to partially offset the slowdown in our traditional activities as well as the impact of strategic price concessions to secure our traditional activities. Despite a challenging start to our fiscal year, we remain confident that we will deliver adjusted operating earnings before depreciation and amortization from continuing operations for fiscal year 2026 that will be similar to fiscal year 2025 at the consolidated level. Lastly, building on the three acquisitions we completed last year and aligned with our growth strategy in growth activities that include in-store marketing, we expect to close another acquisition in this segment in the next few weeks, and I am confident in our growth plan."
"Furthermore, the sale of our packaging activities will contribute to reducing significantly our net indebtedness during fiscal year 2026," added Donald LeCavalier, Executive Vice President and Chief Financial Officer of TC Transcontinental. "Our balance sheet is solid, and we are well positioned to benefit from growth opportunities in our retail services and printing activities as well as in our educational publishing activities."
Financial Highlights
| (for continuing operations, in millions of dollars, except per share amounts) | Q1-2026 | Q1-2025 | Variation in % | ||||||
| Restated(1) | |||||||||
| Revenues | $263.5 | $257.7 | 2.3 | - | |||||
| Operating earnings before depreciation and amortization | 26.1 | 36.7 | (28.9 | - | |||||
| Adjusted operating earnings before depreciation and amortization(2) | 33.1 | 40.3 | (17.9 | - | |||||
| Operating earnings | 8.2 | 18.8 | (56.4 | - | |||||
| Adjusted operating earnings(2) | 17.5 | 23.4 | (25.2 | - | |||||
| Net earnings (loss) | (0.2 | - | 4.8 | (104.2 | - | ||||
| Net earnings per share | - | 0.06 | (100.0 | - | |||||
| Adjusted net earnings(2) | 6.7 | 8.2 | (18.3 | - | |||||
| Adjusted net earnings per share(2) | 0.08 | 0.10 | (20.0 | - | |||||
(1) Please refer to the "Discontinued Operations and Reclassification of Comparative Figures" section and Table #2 in the "Accounting Restatements" section of the Management's Discussion and Analysis for an explanation of the restated data presented above.
(2) Please refer to the "Reconciliation of Non-IFRS Financial Measures" section of this Press Release for the adjusted data presented above.
Results for the First Quarter of Fiscal Year 2026
Revenues increased by $5.8 million, or 2.3%, from $257.7 million in the first quarter of fiscal year 2025 to $263.5 million in the first quarter of fiscal year 2026. This increase is mostly attributable to our recent acquisitions and the favourable exchange rate effect, partially mitigated by lower volume and price concessions in the Retail Services and Printing Sector.
Operating earnings before depreciation and amortization decreased by $10.6 million, or 28.9%, from $36.7 million in the first quarter of fiscal 2025 to $26.1 million in the first quarter of fiscal 2026. This decrease is mainly due to lower volume and price concessions in the Retail Services and Printing Sector, an increase in asset impairment charges and the unfavourable impact of incentive compensation reflecting, among others, the increase in share price, partially offset by our recent acquisitions and the favourable exchange rate effect.
Adjusted operating earnings before depreciation and amortization decreased by $7.2 million, or 17.9%, from $40.3 million in the first quarter of fiscal 2025 to $33.1 million in the first quarter of fiscal 2026. This decrease is mainly due to lower volume and price concessions in the Retail Services and Printing Sector and the unfavourable impact of incentive compensation reflecting, among others, the increase in share price, partially offset by our recent acquisitions and the favourable exchange rate effect.
Net earnings (loss) from continuing operations decreased by $5.0 million, or 104.2%, from earnings of $4.8 million in the first quarter of fiscal year 2025 to a loss of $0.2 million in the first quarter of fiscal year 2026. This decrease is mainly due to the previously explained decline in operating earnings before depreciation and amortization, partially mitigated by lower income taxes and, to a lesser extent, the decrease in financial expenses. On a per share basis, net earnings attributable to shareholders of the Corporation from continuing operations decreased by 100.0%, from $0.06 to nil, respectively.
Adjusted net earnings decreased by $1.5 million, or 18.3%, from $8.2 million in the first quarter of fiscal year 2025 to $6.7 million in the first quarter of fiscal year 2026. This decrease is mainly due to the previously explained decline in adjusted operating earnings before depreciation and amortization, partially mitigated by lower income taxes and, to a lesser extent, the decrease in financial expenses. On a per share basis, adjusted net earnings from continuing operations decreased by 20.0%, from $0.10 to $0.08, respectively.
For more detailed financial information, please see the Management's Discussion and Analysis for the first quarter of fiscal year 2026 ended January 25, 2026, as well as the financial statements in the "Investors" section of our website at www.tc.tc
Outlook
The closing of the sale of our Packaging Business represents a key milestone for TC Transcontinental. This transaction will allow us to focus our resources on our Retail Services & Printing and Educational Publishing activities.
We anticipate lower volume in our traditional activities, including book printing which experienced very high growth in fiscal year 2025. This decrease should be partially offset by growth in our in-store marketing activities, including the positive impact of acquisitions.
At the consolidated level, we expect adjusted operating earnings before depreciation and amortization from continuing operations for fiscal year 2026 to remain stable compared to fiscal year 2025.
Lastly, we expect to continue generating significant cash flows from operating activities, which will enable us to continue to reduce net indebtedness while investing in our growth. We also expect our adjusted net indebtedness ratio to increase over the next two quarters before improving in the fourth quarter of fiscal year 2026.
Non-IFRS Financial Measures
In this document, unless otherwise indicated, all financial data are prepared in accordance with International Financial Reporting Accounting Standards ("IFRS") and the term "dollar", as well as the symbol "$" designate Canadian dollars.
In addition, in this press release, we also use certain non-IFRS financial measures for which a complete definition is presented below and for which a reconciliation to financial information in accordance with IFRS is presented in the "Reconciliation of Non-IFRS Financial Measures" section and in Note 4 "Segmented Information" to the condensed interim consolidated financial statements for the first quarter ended January 25, 2026.
| Terms Used | Definitions |
| Adjusted operating earnings before depreciation and amortization | Operating earnings before depreciation and amortization including realized gains (losses) on non-designated foreign exchange contracts and excluding restructuring and other costs (revenues) as well as impairment of assets. This measure is used to assess the operating performance of the Corporation and its sectors on a comparable basis. |
| Adjusted operating earnings | Operating earnings including realized gains (losses) on non-designated foreign exchange contracts and excluding restructuring and other costs (revenues), amortization of intangible assets arising from business combinations as well as impairment of assets. This measure is used to better assess the current operating performance of the Corporation and its sectors on a comparable basis. |
| Adjusted income taxes | Income taxes before income taxes on restructuring and other costs (revenues), amortization of intangible assets arising from business combinations, impairment of assets as well as the recognition of previous years tax assets of an acquired company. |
| Adjusted net earnings | Net earnings (loss) from continuing operations before restructuring and other costs (revenues), amortization of intangible assets arising from business combinations and impairment of assets, net of related income taxes as well as the recognition of previous years tax assets of an acquired company. This measure is used to assess the financial performance of the Corporation and its sectors on a comparable basis. |
| Net indebtedness | Total of long-term debt, of current portion of long-term debt, of lease liabilities and of current portion of lease liabilities, less cash. This measure is used to calculate the net indebtedness ratio. |
| Adjusted net indebtedness | Net indebtedness including long-term debt, current portion of long-term debt, lease liabilities and current portion of lease liabilities reclassified to liabilities held for sale. This measure is used to calculate the adjusted net indebtedness ratio. |
| Net indebtedness ratio | Net indebtedness divided by the last 12 months' adjusted operating earnings before depreciation and amortization. This ratio is used by the Corporation to measure its ability to repay its debts and assess its financial leverage. |
| Adjusted net indebtedness ratio | Adjusted net indebtedness divided by the last 12 months' adjusted operating earnings before depreciation and amortization, including adjusted operating earnings before depreciation and amortization from discontinued operations. This ratio is used by the Corporation to measure its ability to repay its debts and assess its financial leverage. |
Reconciliation of Non-IFRS Financial Measures
The financial information has been prepared in accordance with IFRS. However, financial measures used, namely adjusted operating earnings before depreciation and amortization, adjusted operating earnings margin before depreciation and amortization, adjusted operating earnings, adjusted operating earnings margin, adjusted income taxes, adjusted net earnings from continuing operations, adjusted net earnings per share from continuing operations, net indebtedness, adjusted net indebtedness, the net indebtedness ratio and the adjusted net indebtedness ratio, for which a reconciliation is presented in the following table, are not defined by IFRS. They may be calculated differently and may not be comparable to similar measures presented by other companies. We believe that many of our readers analyze the financial performance of the Corporation's activities based on these non-IFRS financial measures as such measures may allow for easier comparisons between periods. These measures should be considered as a complement to financial performance measures in accordance with IFRS. They do not substitute and are not superior to them.
The Corporation also believes that these measures are useful indicators of the performance of its operations and its ability to meet its financial obligations. Furthermore, management also uses some of these non-IFRS financial measures to assess the performance of its activities and managers.
| Reconciliation of operating earnings from continuing operations - First quarter | |||||
| Three months ended | |||||
| January 25, 2026 | January 26, 2025 | ||||
| (in millions of dollars) | Restated | ||||
| Operating earnings | - 8.2 | $18.8 | |||
| Excluding | |||||
| Restructuring and other costs | 3.5 | 3.6 | |||
| Amortization of intangible assets arising from business combinations(1) | 2.3 | 1.0 | |||
| Impairment of assets | 3.5 | - | |||
| Adjusted operating earnings | - 17.5 | $23.4 | |||
| Depreciation and amortization(2) | 15.6 | 16.9 | |||
| Adjusted operating earnings before depreciation and amortization | - 33.1 | $40.3 | |||
(1) Amortization of intangible assets arising from business combinations includes our customer relationships, educational book titles, non-compete agreements, trade names with finite useful lives and rights of first refusal.
(2) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations.
| Reconciliation of operating earnings - First quarter for the Retail Services and Printing Sector | |||||
| Three months ended | |||||
| January 25, 2026 | January 26, 2025 | ||||
| (in millions of dollars) | Restated | ||||
| Operating earnings | - 22.3 | $26.9 | |||
| Excluding | |||||
| Restructuring and other costs | 2.4 | 3.1 | |||
| Amortization of intangible assets arising from business combinations(1) | 2.1 | 0.6 | |||
| Impairment of assets | 3.5 | - | |||
| Adjusted operating earnings | - 30.3 | $30.6 | |||
| Depreciation and amortization(2) | 9.3 | 10.5 | |||
| Adjusted operating earnings before depreciation and amortization | - 39.6 | $41.1 | |||
(1) Amortization of intangible assets arising from business combinations includes our customer relationships, non-compete agreements and trade names with finite useful lives.
(2) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations.
| Reconciliation of operating earnings - First quarter for the Other Sector | |||||||
| Three months ended | |||||||
| January 25, 2026 | January 26, 2025 | ||||||
| (in millions of dollars) | Restated | ||||||
| Operating earnings | - (14.1 | - | $(8.1 | - | |||
| Excluding | |||||||
| Restructuring and other costs | 1.1 | 0.5 | |||||
| Amortization of intangible assets arising from business combinations(1) | 0.2 | 0.4 | |||||
| Adjusted operating earnings | - (12.8 | - | $(7.2 | - | |||
| Depreciation and amortization(2) | 6.3 | 6.4 | |||||
| Adjusted operating earnings before depreciation and amortization | - (6.5 | - | $(0.8 | - | |||
(1) Amortization of intangible assets arising from business combinations includes our rights of first refusal and educational book titles.
(2) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations.
| Reconciliation of net earnings from continuing operations - First quarter | |||||||
| Three months ended | |||||||
| January 25, 2026 | January 26, 2025 | ||||||
| (in millions of dollars, except per share amounts) | Restated | ||||||
| Net earnings (loss) | - (0.2 | - | $4.8 | ||||
| Excluding | |||||||
| Restructuring and other costs | 3.5 | 3.6 | |||||
| Tax on restructuring and other costs | (0.9 | - | (0.9 | - | |||
| Amortization of intangible assets arising from business combinations(1) | 2.3 | 1.0 | |||||
| Tax on amortization of intangible assets arising from business combinations | (0.6 | - | (0.3 | - | |||
| Impairment of assets | 3.5 | - | |||||
| Tax on impairment of assets | (0.9 | - | - | ||||
| Adjusted net earnings | - 6.7 | $8.2 | |||||
| Net earnings attributable to shareholders of the Corporation per share | $- | $0.06 | |||||
| Adjusted net earnings per share | - 0.08 | $0.10 | |||||
| Weighted average number of shares outstanding | 83.6 | 84.2 | |||||
(1) Amortization of intangible assets arising from business combinations includes our customer relationships, educational book titles, non-compete agreements, trade names with finite useful lives and rights of first refusal.
| Reconciliation of net indebtedness | |||||||
| As at January 25, 2026 | As at October 26, 2025 | ||||||
| (for continuing operations, in millions of dollars, except for ratios) | Restated | ||||||
| Long-term debt | - 438.3 | $417.6 | |||||
| Current portion of long-term debt | 252.2 | 253.2 | |||||
| Lease liabilities | 49.6 | 91.1 | |||||
| Current portion of lease liabilities | 12.1 | 25.5 | |||||
| Cash | (43.0 | - | (47.0 | - | |||
| Net indebtedness | - 709.2 | $740.4 | |||||
| Adjusted operating earnings before depreciation and amortization (last 12 months) | - 204.7 | $211.9 | |||||
| Net indebtedness ratio | 3.46x | 3.49x | |||||
| Reconciliation of adjusted net indebtedness (last 12 months) | ||||||
| As at January 25, 2026 | As at October 26, 2025 | |||||
| (in millions of dollars, except for ratios) | Restated | |||||
| Net indebtedness | - 709.2 | $740.4 | ||||
| Including | ||||||
| Long-term debt held for sale | 1.1 | - | ||||
| Lease liabilities held for sale | 53.7 | - | ||||
| Adjusted net indebtedness | - 764.0 | $740.4 | ||||
| Adjusted operating earnings before depreciation and amortization - continuing operations | - 204.7 | $211.9 | ||||
| Including these items from discontinued operations | ||||||
| Operating earnings | 107.1 | 145.9 | ||||
| Realized gains on non-designated foreign exchange contracts(1) | 0.6 | 0.8 | ||||
| Excluding these items from discontinued operations | ||||||
| Restructuring and other costs (revenues) | 25.7 | (30.7 | - | |||
| Amortization of intangible assets from business combinations(2) | 44.9 | 54.4 | ||||
| Depreciation and amortization(3) | 69.2 | 83.3 | ||||
| Adjusted operating earnings before depreciation and amortization including discontinued operations | - 452.2 | $465.6 | ||||
| Adjusted net indebtedness ratio | 1.69x | 1.59x | ||||
(1) To mitigate the impact of foreign currency fluctuations when consolidating the Packaging Sector's earnings, the Corporation sometimes uses foreign exchange contracts. These contracts are not designated as part of a hedge accounting relationship, and resulting exchange gains or losses are added to adjusted operating earnings and adjusted operating earnings before depreciation and amortization.
(2) Amortization of intangible assets arising from business combinations include our customer relationships.
(3) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations.
Dividend
Following the sale of the Packaging Business completed on March 6, 2026, and subject to the approval of some changes by the shareholders of the Corporation at the Annual and Special meeting of shareholders to be held on March 10, 2026, the Corporation intends to declare a special distribution of $20.00 per share on Class A Subordinate Voting Shares and Class B Shares.
Additional information
Conference Call
Upon releasing its results for the first quarter of fiscal year 2026, the Corporation will hold a conference call for the financial community on March 10, 2026, at 4:00 p.m. The dial-in numbers are 1-289-514-5100 or 1-800-717-1738. Media may hear the call in listen-only mode or tune in to the simultaneous audio broadcast on TC Transcontinental's website, which will then be archived for 30 days. For media requests or interviews, please contact Laurence Boucicault, Senior Advisor, Corporate Communications of TC Transcontinental, at 438-226-0469.
Profile
Founded 50 years ago and 4,000 employees strong, Transcontinental Inc. (TSX: TCL.A TCL.B), known under the TC Transcontinental brand, is a Canadian retail marketing services company, Canada's largest printer, and the Canadian leader in French-language educational publishing. Driven by the vision of a more informed, educated and prosperous society, TC Transcontinental propels its clients' success across the retail, education, book and information industries. With agility, creativity and boldness, we design and deliver innovative, high-value products and services.
The Corporation's revenues from continuing operations were $1.1 billion for the fiscal year ended October 26, 2025. Until the sale of its Packaging Sector to ProAmpac, which was completed on March 6, 2026, the Corporation was also a North American leader in flexible packaging with approximately 3,600 employees, and revenues from the Corporation's discontinued operations were $1.6 billion for the fiscal year ended October 26, 2025. For more information, please visit www.tc.tc
Forward-looking Statements
Our public communications often contain oral or written forward-looking statements which are based on the expectations of management and inherently subject to a certain number of risks and uncertainties, known and unknown. By their very nature, forward-looking statements are derived from both general and specific assumptions. The Corporation cautions against undue reliance on such statements since actual results or events may differ materially from the expectations expressed or implied in them. Forward-looking statements may include observations concerning the Corporation's objectives, strategy, anticipated financial results and business outlook. The Corporation's future performance may also be affected by a number of factors, many of which are beyond the Corporation's will or control. These factors include, but are not limited to the impact of digital product development and adoption, the impact of changes in the participants in the distribution of newspapers and printed advertising materials and the disruption in their activities resulting mainly from labour disputes, including at Canada Post, the impact of regulations or legislation regarding door-to-door distribution on the printing of paper flyers or printed advertising materials, inflation and recession risks, economic conditions and geopolitical uncertainty, environmental risks as well as adoption of new regulations or amendments and changes to consumption habits, risk of an operational disruption that could be harmful to its ability to meet deadlines, the worldwide outbreak of a disease, a virus or any other contagious disease could have an adverse impact on the Corporation's operations, the ability to generate organic long-term growth and face competition, a significant increase in the cost of raw materials, the availability of those materials and energy consumption could have an adverse impact on the Corporation's activities, the ability to complete business acquisitions and disposals and properly integrate acquisitions, cybersecurity, data protection, warehousing and usage, the impact of digital product development and adoption on the demand for printed products other than flyers, the failure of patents, trademarks and confidentiality agreements to protect intellectual property, a difficulty to attract and retain employees in the main operating sectors, the safety and quality of packaging products used in the food industry, bad debts from certain customers, import and export controls, duties, tariffs or taxes, exchange rate fluctuations, increase in market interest rates with respect to its financial instruments as well as availability of capital at a reasonable cost, the legal risks related to its activities and the compliance of its activities with applicable regulations, the impact of major market fluctuations on the solvency of defined benefit pension plans, changes in tax legislation and disputes with tax authorities or amendments to statutory tax rates in force, the impact of impairment tests on the value of assets and a conflict of interest between the controlling shareholder and other shareholders. The main risks, uncertainties and factors that could influence actual results are described in the Management's Discussion and Analysis for the fiscal year ended October 26, 2025 and in the latest Annual Information Form.
Unless otherwise indicated by the Corporation, forward-looking statements do not take into account the potential impact of non-recurring or other unusual items, nor of disposals, business combinations, mergers or acquisitions which may be announced or entered into after the date of March 10, 2026. The forward-looking statements in this press release are made pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. The forward-looking statements in this release are based on current expectations and information available as at March 10, 2026. Such forward-looking information may also be found in other documents filed with Canadian securities regulators or in other communications. The Corporation's management disclaims any intention or obligation to update or revise these statements unless otherwise required by the securities authorities.
For information:
| Media Laurence Boucicault Senior Advisor, Corporate Communications TC Transcontinental Telephone: 438-226-0469 laurence.boucicault@tc.tc www.tc.tc | Financial Community Yan Lapointe Senior Director, Investor Relations and Treasury TC Transcontinental Telephone: 514-954-3574 yan.lapointe@tc.tc www.tc.tc |
| CONSOLIDATED STATEMENTS OF EARNINGS | ||||
| Unaudited | ||||
| (in millions of Canadian dollars, unless otherwise indicated and per share data) | ||||
| Three months ended | ||||
| January 25, 2026 | January 26, 2025 | |||
| Restated | ||||
| Revenues | $263.5 | $257.7 | ||
| Operating expenses | 230.4 | 217.4 | ||
| Restructuring and other costs | 3.5 | 3.6 | ||
| Impairment of assets | 3.5 | - | ||
| Operating earnings before depreciation and amortization | 26.1 | 36.7 | ||
| Depreciation and amortization | 17.9 | 17.9 | ||
| Operating earnings | 8.2 | 18.8 | ||
| Net financial expenses | 9.3 | 9.7 | ||
| (Loss) earnings before income taxes | (1.1 | - | 9.1 | |
| (Recovery) Income taxes | (0.9 | - | 4.3 | |
| Net (loss) earnings from continuing operations | (0.2 | - | 4.8 | |
| Net earnings from discontinued operations | 30.1 | 51.9 | ||
| Net earnings | 29.9 | 56.7 | ||
| Non-controlling interests | 0.2 | 0.1 | ||
| Net earnings attributable to shareholders of the Corporation | $29.7 | $56.6 | ||
| Net earnings attributable to shareholders of the Corporation per share - basic and diluted | ||||
| Continuing operations | $- | $0.06 | ||
| Discontinued operations | 0.36 | 0.61 | ||
| $0.36 | $0.67 | |||
| Weighted average number of shares outstanding - basic and diluted (in millions) | 83.6 | 84.2 | ||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
| Unaudited | ||||
| (in millions of Canadian dollars) | ||||
| Three months ended | ||||
| January 25, 2026 | January 26, 2025 | |||
| Restated | ||||
| Net earnings | $29.9 | $56.7 | ||
| Other comprehensive (loss) income | ||||
| Items that may be subsequently reclassified to net earnings | ||||
| Net change related to cash flow hedges | ||||
| Net change in the fair value of designated derivatives - foreign exchange risk | 6.0 | (10.0 | - | |
| Net change in the fair value of designated derivatives - interest rate risk | 0.6 | 1.4 | ||
| Reclassification of the net change in the fair value of designated derivatives recognized in net earnings during the period | 0.4 | 2.0 | ||
| Related income taxes (recovery) | 1.8 | (1.8 | - | |
| 5.2 | (4.8 | - | ||
| Cumulative translation differences | ||||
| Net unrealized exchange (losses) gains on the translation of the financial statements of foreign operations | (31.0 | - | 54.1 | |
| Reclassification to net earnings of net exchange gains on the translation of the financial statements of foreign operations during the period | - | (8.2 | - | |
| Net gains (losses) on hedge of the net investment in foreign operations | 8.3 | (24.4 | - | |
| Related income taxes | 0.6 | 1.5 | ||
| (23.3 | - | 20.0 | ||
| Items that will not be reclassified to net earnings | ||||
| Changes related to defined benefit plans | ||||
| Actuarial (losses) gains on defined benefit plans | (1.8 | - | 0.6 | |
| Related income taxes (recovery) | (0.5 | - | 0.1 | |
| (1.3 | - | 0.5 | ||
| Other comprehensive (loss) income | (19.4 | - | 15.7 | |
| Comprehensive income | $10.5 | $72.4 | ||
| Comprehensive income from continuing operations | $2.0 | $1.6 | ||
| Comprehensive income from discontinued operations | 8.5 | 70.8 | ||
| CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||
| (in millions of Canadian dollars) | ||||||||||||||||||||||
| Accumulated | ||||||||||||||||||||||
| other | Non- | |||||||||||||||||||||
| Share | Contributed | Retained | comprehensive | controlling | Total | |||||||||||||||||
| capital | surplus | earnings | income | Total | interests | equity | ||||||||||||||||
| Balance as at October 26, 2025 - As reported | $611.4 | $0.9 | $1,258.3 | $42.3 | $1,912.9 | $5.9 | $1,918.8 | |||||||||||||||
| Restatement | - | - | (8.7 | - | - | (8.7 | - | - | (8.7 | - | ||||||||||||
| Balance as at October 26, 2025 - Restated | 611.4 | 0.9 | 1,249.6 | 42.3 | 1,904.2 | 5.9 | 1,910.1 | |||||||||||||||
| Net earnings | - | - | 29.7 | - | 29.7 | 0.2 | 29.9 | |||||||||||||||
| Other comprehensive loss | - | - | - | (19.4 | - | (19.4 | - | - | (19.4 | - | ||||||||||||
| Shareholders' contributions and distributions to shareholders | ||||||||||||||||||||||
| Dividends | - | - | (18.8 | - | - | (18.8 | - | - | (18.8 | - | ||||||||||||
| Balance as at January 25, 2026 | $611.4 | $0.9 | $1,260.5 | $22.9 | $1,895.7 | $6.1 | $1,901.8 | |||||||||||||||
| Balance as at October 27, 2024 - As reported | $619.2 | $0.9 | $1,237.5 | $51.7 | $1,909.3 | $5.5 | $1,914.8 | |||||||||||||||
| Restatement | - | - | (8.3 | - | - | (8.3 | - | - | (8.3 | - | ||||||||||||
| Balance as at October 27, 2024 - Restated | 619.2 | 0.9 | 1,229.2 | 51.7 | 1,901.0 | 5.5 | 1,906.5 | |||||||||||||||
| Net earnings - Restated | - | - | 56.6 | - | 56.6 | 0.1 | 56.7 | |||||||||||||||
| Other comprehensive income | - | - | - | 15.7 | 15.7 | - | 15.7 | |||||||||||||||
| Shareholders' contributions and distributions to shareholders | ||||||||||||||||||||||
| Share repurchases and related income taxes | (7.8 | - | - | 8.8 | - | 1.0 | - | 1.0 | ||||||||||||||
| Dividends | - | - | (18.9 | - | - | (18.9 | - | - | (18.9 | - | ||||||||||||
| Balance as at January 26, 2025 - Restated | $611.4 | $0.9 | $1,275.7 | $67.4 | $1,955.4 | $5.6 | $1,961.0 | |||||||||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||
| Unaudited | ||||
| (in millions of Canadian dollars) | ||||
| As at | As at | |||
| January 25, 2026 | October 26, 2025 | |||
| Restated | ||||
| Current assets | ||||
| Cash | $43.0 | $47.0 | ||
| Accounts receivable | 187.0 | 468.1 | ||
| Income taxes receivable | 7.8 | 7.2 | ||
| Inventories | 95.0 | 372.7 | ||
| Prepaid expenses and other current assets | 26.3 | 25.0 | ||
| Assets held for sale | 2,153.6 | 12.0 | ||
| 2,512.7 | 932.0 | |||
| Property, plant and equipment | 130.6 | 725.5 | ||
| Right-of-use assets | 49.7 | 98.5 | ||
| Intangible assets | 126.6 | 328.0 | ||
| Goodwill | 396.2 | 1,179.5 | ||
| Deferred taxes | 41.7 | 47.3 | ||
| Other assets | 16.3 | 30.0 | ||
| $3,273.8 | $3,340.8 | |||
| Current liabilities | ||||
| Accounts payable and accrued liabilities | $211.6 | $435.2 | ||
| Income taxes payable | 1.8 | 3.5 | ||
| Deferred revenues and deposits | 23.7 | 14.5 | ||
| Current portion of long-term debt | 252.2 | 253.2 | ||
| Current portion of lease liabilities | 12.1 | 25.5 | ||
| Liabilities held for sale | 252.2 | - | ||
| 753.6 | 731.9 | |||
| Long-term debt | 438.3 | 417.6 | ||
| Lease liabilities | 49.6 | 91.1 | ||
| Deferred taxes | 35.0 | 69.1 | ||
| Other liabilities | 95.5 | 121.0 | ||
| 1,372.0 | 1,430.7 | |||
| Equity | ||||
| Share capital | 611.4 | 611.4 | ||
| Contributed surplus | 0.9 | 0.9 | ||
| Retained earnings | 1,260.5 | 1,249.6 | ||
| Accumulated other comprehensive income | 22.9 | 42.3 | ||
| Attributable to shareholders of the Corporation | 1,895.7 | 1,904.2 | ||
| Non-controlling interests | 6.1 | 5.9 | ||
| 1,901.8 | 1,910.1 | |||
| $3,273.8 | $3,340.8 | |||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
| Unaudited | ||||
| (in millions of Canadian dollars) | ||||
| January 25, 2026 | January 26, 2025 | |||
| Restated | ||||
| Operating activities | ||||
| Net earnings | $29.9 | $56.7 | ||
| Less: Net earnings from discontinued operations | 30.1 | 51.9 | ||
| Net (loss) earnings from continuing operations | $(0.2 | - | $4.8 | |
| Adjustments to reconcile net earnings and cash flows from operating activities: | ||||
| Impairment of assets | 3.5 | - | ||
| Depreciation and amortization | 17.9 | 17.9 | ||
| Financial expenses on long-term debt and lease liabilities | 8.1 | 11.7 | ||
| Net gains on disposal of assets | (0.4 | - | (0.2 | - |
| (Recovery) Income taxes | (0.9 | - | 4.3 | |
| Net foreign exchange differences and other | 0.3 | 0.5 | ||
| Cash flows generated by operating activities before changes in non-cash operating items and income taxes paid | 28.3 | 39.0 | ||
| Changes in non-cash operating items | (10.8 | - | (36.4 | - |
| Income taxes paid | (6.7 | - | (5.6 | - |
| Cash flows from operating activities of continuing operations | 10.8 | (3.0 | - | |
| Investing activities | ||||
| Business combinations, net of acquired cash | (0.2 | - | - | |
| Acquisitions of property, plant and equipment | (5.1 | - | (3.6 | - |
| Disposals of property, plant and equipment and other | 0.6 | 0.1 | ||
| Increase in intangible assets | (6.8 | - | (7.2 | - |
| Cash flows from investing activities of continuing operations | (11.5 | - | (10.7 | - |
| Financing activities | ||||
| Reimbursement of long-term debt | (0.6 | - | (0.5 | - |
| Net increase in credit facilities | 28.0 | - | ||
| Financial expenses paid on long-term debt and credit facilities | (7.7 | - | (8.2 | - |
| Repayment of principal on lease liabilities | (3.6 | - | (3.4 | - |
| Interest paid on lease liabilities | (0.4 | - | (0.5 | - |
| Dividends | (18.8 | - | (18.9 | - |
| Shares repurchased | - | (16.3 | - | |
| Cash flows from financing activities of continuing operations | (3.1 | - | (47.8 | - |
| Effect of exchange rate changes on cash denominated in foreign currencies | (0.7 | - | 5.4 | |
| Net change in cash from continuing operations | (4.5 | - | (56.1 | - |
| Net change in cash from discontinued operations | 0.5 | 144.0 | ||
| Cash at beginning of the period | 47.0 | 185.2 | ||
| Cash at end of period | $43.0 | $273.1 | ||
| Non-cash investing activities | ||||
| Net change in capital asset acquisitions financed by accounts payable | $(2.4 | - | $(0.5 | - |
