ALIMENTATION COUCHE-TARD ANNOUNCES ITS RESULTS FOR ITS FIRST QUARTER OF FISCAL YEAR 2026

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-operated

CODO

DODO

Franchised and other affiliated

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 ...