TORONTO, Feb. 18, 2026 /CNW/ - Canadian Tire Corporation, Limited (TSX: CTC) (TSX: CTC.A) (CTC or the Company) today announced results for its fourth quarter (14 weeks) and full-year (53 weeks) ended January 3, 2026.

• Consolidated comparable sales¹ were up 4.2% in Q4 and up 4.1% in 2025
• Q4 Retail Revenue growth was 8.8% and 10.7% excluding Petroleum¹
• Q4 Normalized Diluted Earnings Per Share (EPS)¹ (Continuing Operations) was $4.47, up 38.0%, reflecting strong retail performance; FY Normalized Diluted Earnings Per Share (EPS)¹ (Continuing Operations) was $13.77, up 18.6%
• Q4 Diluted EPS (Continuing Operations) was $3.96, down 39.4%; FY Diluted EPS (Continuing Operations) was $10.57, down 29.1%

"Our standout fourth quarter capped a year of strong sales growth and market share gains," said Greg Hicks, President and CEO, Canadian Tire Corporation. "Customers visited us in greater numbers and we had one of the best holiday seasons in recent memory, a tribute to our retail readiness and the resilience of Canadian consumers in a year of economic uncertainty.

"As we advance True North, we are strengthening our competitive differentiation. Our retail system brings together an enhanced retail network, supplemented by the power of partnerships, tied tightly with Triangle Rewards and in service of customer value. Our modernization will accelerate in 2026, advancing our progress towards our True North vision: stronger connections with customers, higher retail performance, and accelerated shareholder value."

FOURTH-QUARTER CONTINUING OPERATIONS HIGHLIGHTS

• Consolidated comparable sales were up 4.2%, with strong December sales driven by weather and in-stock positions contributing to higher visits and sales growth at all major banners and in all regions.
  • CTR comparable sales¹ were up 2.7%, with Seasonal and Gardening the standout with double digit growth on strong sales of winter and holiday products. Automotive was up for the 22^nd consecutive quarter, with Automotive Service reaching record annual sales of $1 billion in Q4.
  • SportChek comparable sales¹ grew for the sixth consecutive quarter, up 9.5%, with outerwear and fanwear growth alongside growth in strategic categories such as footwear and hard goods.
  • Mark's comparable sales¹ were up 7.2%. Weather and Black Friday sales contributed to a record-breaking quarter for sales. Growth at new-concept Bigger Bolder Better (BBB) stores also remained a key driver.
• Retail Sales¹ and Revenue were up 8.9% and 8.8%, respectively; Excluding Petroleum, Retail Sales and Retail Revenue were up 10.2% and 10.7% respectively, benefiting from growth across all major banners and an extra week compared to the prior year.
• Normalized income before income taxes (IBT)¹ was up 32.5% to $349.6 million, driven by strong Retail performance. Normalized Diluted EPS was $4.47, up 38.0%.
• IBT was $318.7 million, down 32.0% from Q4 2024, due to this year's True North restructuring and impairment expenses, compared to a property sale gain recorded in the prior year. Diluted EPS was $3.96, compared to $6.54 in Q4 2024.

FULL-YEAR CONTINUING OPERATIONS HIGHLIGHTS

• Consolidated comparable sales were up 4.1%, with strong performance across all major banners; CTR was up 3.7%, SportChek was up 6.2% and Mark's was up 3.9% on a comparable 52-week basis.
• Strong retail sell-through as a result of being in-stock, combined with improving customer demand, and the benefit of an extra week in Q4 contributed to Retail Sales and Retail Revenue growth, up 4.5% and 5.4% respectively. Excluding Petroleum, Retail Revenue was up 7.5% for the year, outpacing Retail Sales, up 5.9%.
• Continuing to leverage margin management tools and streamline the organization led to improved retail operational performance; Normalized Retail Gross Margin rate excluding Petroleum¹ was up 27 bps to 35.5%. Normalized retail EBITDA was up 8.1%, representing a normalized Retail EBITDA as a percentage of retail revenue (excluding Petroleum) of 14.6%. Retail Return on Invested Capital (ROIC)¹ was up 119 bps to 11.0%.
• Normalized Diluted EPS was $13.77, up 18.6%. Normalized IBT was $1,109.0 million, up 14.3% compared to $970.3 million last year. Favourable normalized Retail IBT¹ more than offset a decline in Financial Services IBT, primarily reflecting previously communicated investments in the business.
• Diluted EPS was $10.57, compared to $14.91 in the prior year.

FULL-YEAR STRATEGIC HIGHLIGHTS

• In March 2025, CTC launched a four-year transformative growth strategy called True North. True North upholds CTC's Brand Purpose and is designed to drive core retail growth through four strategic cornerstones, putting customers at the core of the strategy, enhancing the Triangle Rewards loyalty program, and applying privileged data, enabled by technology and AI, to deliver enhanced digital and store experiences. The strategy is being delivered by a newly constituted senior leadership team and organizational structure, supporting CTC's transition from a holding company structure to a more integrated operating model that is agile, can operate with scale, and deliver customer value.
• 2025 was a key foundational year for CTC's True North transformative growth strategy, with the implementation of a more agile, tech-driven and efficient operating model in place, contributing to new ways of working, and significant achievements delivered on a number of fronts:
  • Triangle Rewards came to life for more Canadians. 9.8 million are now active registered members of the program, representing a 6% increase on 2024. By early 2026, CTC had activated two loyalty partnerships and almost 100,000 RBC Avion members and 600,000 Petro-Canada Petro Points members had linked to Triangle. The Company's partnership with WestJet (WestJet Rewards) is scheduled to launch during Q2 of 2026, with the Tim Hortons partnership (Tim's Rewards) to follow in the second half of 2026.
  • Refreshed stores continue to drive growth. Fifty-two store projects were completed in 2025: Thirty-one CTR refreshed, expanded or replacement stores including new CTR stores in Kelowna, British Columbia, and Kingston, Ontario; and twenty-one new or refreshed stores at other banners, including compelling new format stores at Mark's and SportChek, in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec.
  • New capabilities around in-stock optimization, and a new AI tool (DaiVID) that optimizes pricing and margin, provided customer value and contributed to growth. Increasing awareness of same-day delivery across all banners contributed to eCommerce sales growth outpacing bricks and mortar.
  • HBC's Stripes became the newest Owned Brand to launch to customers, with a holiday capsule collection released in Q4 of 2025 that generated strong customer response and sell-through. A more comprehensive product set will come to market in the summer of 2026.
  • CTC's True North organizational model established clearly delineated responsibilities for the following: go-to-market strategy (under Chief Commercial Officer Matt Moore), retail execution (under Chief Operating Officer TJ Flood), performance management and capital discipline (under Chief Financial Officer Darren Myers) and transformation initiative management and value creation (under Chief Transformation Officer Susan O'Brien in a newly created role). 
  • With the True North restructuring completed in the third quarter of 2025, the Company is now benefiting from the associated run-rate savings, with approximately $30 million of savings reflected in operating expense in the fourth quarter of 2025. 2026 savings will continue to be balanced with focused investments to support growth and advance the True North strategy, including through investments in AI deployment.
  • During the third quarter of 2025, CTC negotiated amendments to its contracts with CTR Dealers, strengthening joint alignment on the True North strategic priorities.
  • At the end of the year, there were five percent fewer Class A Non-Voting (CTC.A) Shares outstanding compared to the prior year, as the Company continued to execute against its existing share buyback program. CTC had repurchased a total of $442.4 million, in excess of the amount required for anti-dilutive purposes, of its CTC.A shares during the fiscal year under its 2025 and 2026 Share Repurchase Intentions.

CONSOLIDATED OVERVIEW

Within these financial results, Helly Hansen's results have been presented separately as discontinued operations. Unless otherwise indicated, all financial information represents the Company's results from continuing operations and all comparisons of results for Q4 2025 (14 weeks ended January 3, 2026) are compared against results for Q4 2024 (13 weeks ended December 28, 2024).

FOURTH QUARTER HIGHLIGHTS

• Revenue was $4,551.1 million, up 8.3% compared to $4,200.8 million in the same period last year.
• Consolidated IBT was $318.7 million, down $149.9 million compared to the prior year. On a normalized basis, consolidated IBT was up $85.8 million.
• Diluted EPS was $3.96 and $4.47 on a normalized basis, compared to $6.54 and $3.24 on a normalized basis in the prior year.
• Diluted EPS for discontinued operations was $(0.06) in Q4 2025, compared to $0.83 in Q4 2024.
• Refer to the Company's Q4 and Full-Year 2025 MD&A section 5.1.1 for information on normalizing items and additional details on events that have impacted the Company in the quarter.

FULL-YEAR HIGHLIGHTS

• Retail sales were $18,986.9 million, up $809.2 million, or 4.5% over the prior year. Retail sales, excluding Petroleum¹, increased 5.9% and consolidated comparable sales were up 4.1%.
• Consolidated Revenue increased 5.2% to $16,315.5 million.
• Consolidated IBT was $878.5 million and $1,109.0 million on a normalized basis, with increases in normalized IBT primarily due to higher Retail segment earnings, partially offset by lower normalized Financial Services and REIT segment IBT.
• Diluted EPS was $10.57, compared to $14.91 in the prior year. Normalized diluted EPS was $13.77, an increase of 18.6%. Normalized diluted EPS was $11.61 in the prior year.
• Refer to the Company's Q4 and Full-Year 2025 MD&A section 5.1.1 for information on normalizing items and for additional details on events that have impacted the Company in the year.

RETAIL SEGMENT OVERVIEW

FOURTH QUARTER

• Retail sales were $5,860.7 million, up 8.9%, compared to the fourth quarter of 2024. Retail sales (excluding Petroleum) were up 10.2% and consolidated comparable sales were up 4.2%.
• CTR retail sales¹ were up 8.7% and comparable sales were up 2.7% over the same period last year.
• SportChek retail sales¹ increased 14.5% over the same period last year, and comparable sales were up 9.5%.
• Mark's retail sales¹ increased 13.0% over the same period last year, and comparable sales were up 7.2%.
• Retail revenue was $4,150.7 million, an increase of $334.0 million, or 8.8%, compared to the prior year; Retail revenue (excluding Petroleum) was up 10.7%.
• Retail gross margin was $1,361.0 million, up 16.5% compared to the fourth quarter of the prior year, and up 16.4% excluding Petroleum. On a normalized basis and excluding Petroleum, Retail gross margin increased 14.7% and Retail gross margin rate was up 118 bps to 35.4%.
• Retail IBT was $210.7 million in Q4 2025 or $241.6 million on a normalized basis, compared to Retail IBT of $376.2 million or $162.0 million on a normalized basis in the prior year when the Company recorded a property sale gain.
• Retail ROIC, calculated on a trailing twelve-month basis, was 11.0% at the end of the fourth quarter of 2025, compared to 9.8% at the end of the fourth quarter of 2024, due to the increase in earnings over the prior period.
• Refer to the Company's Q4 and Full-Year 2025 MD&A sections 5.1.1, 5.2.1 and 5.2.2 for information on normalizing items and additional details on events that have impacted the Retail segment in the quarter.

FINANCIAL SERVICES OVERVIEW

FOURTH QUARTER

• Financial Services segment IBT was $79.2 million, compared to $67.5 million or $76.9 million on a normalized basis in the prior year.
• Revenue was up 4.1%, which combined with a 319 bps increase in gross margin rate. Gross margin was up 11.4 % mainly as a result of higher revenue and lower net impairment.
• GAAR¹ increased by 2.5%, driven by continued cardholder engagement, which resulted in average account balance¹ up 1.7% on credit card sales growth and an increase in average number of accounts¹, up 0.8%.
• Refer to the Company's Q4 and Full-Year 2025 MD&A sections 5.3.1 and 5.3.2 for additional details on events that have impacted the Financial Services segment in the quarter.

CT REIT OVERVIEW

FOURTH QUARTER

• Diluted Adjusted Funds from Operations¹ (AFFO) per unit was up 2.9% compared to Q4 2024; diluted net income per unit was $0.636, compared to $0.452 in Q4 2024.
• For further information, refer to the Q4 and Full-Year 2025 CT REIT earnings release issued on February 17, 2026.

CAPITAL ALLOCATION

CAPITAL EXPENDITURES

• Total capital expenditures were $630.5 million in 2025, compared to $575.1 million in 2024.
• 2025 operating capital expenditures¹ were $502.2 million, compared to $478.4 million in 2024. Tighter project discipline and timing of projects led to 2025 operating capital expenditures being below the Company's previously disclosed range of $525.0 million to $575.0 million. 
• 2026 operating capital expenditures are expected to be in the range of $500.0 million to $550.0 million.

QUARTERLY DIVIDEND

• On February 18, 2026, the Company's Board of Directors declared dividends of $1.80 per share payable on June 1, 2026 to shareholders of record as of April 30, 2026. The dividend is considered an "eligible dividend" for tax purposes.

SHARE REPURCHASES

• On November 7, 2024, the Company announced its intention to repurchase up to $200 million of its Class A Non-Voting Shares, in excess of the amount required for anti-dilutive purposes, in 2025.
• On March 6, 2025, as part of the announcement of its True North strategy, the Company increased its share repurchase intention to up to $400 million in 2025, subject to the completion of the sale of Helly Hansen (the 2025 Share Repurchase Intention).
• On November 5, 2025, the Board approved the Company's intention to repurchase up to $400 million of its Class A Non-Voting Shares in excess of the amount required for anti-dilutive purposes by the end of 2026, subject to regulatory approval of the renewal of the Company's normal course issuer bid (the 2025-26 Share Repurchase Intention).
• In 2025, the Company repurchased a total of 2,673,292 Class A Non-Voting Shares beyond anti-dilutive shares for $442.4 million: 2,423,492 shares for $400.0 million under the 2025 Share Repurchase Intention and 249,800 shares for $42.4 million under the 2025-26 Share Repurchase Intention.

1.    NON-GAAP FINANCIAL MEASURES AND RATIOS AND SUPPLEMENTARY FINANCIAL MEASURES

This press release contains non-GAAP financial measures and ratios, and supplementary financial measures. References below to the Q4 and Full-Year 2025 MD&A mean the Company's Management's Discussion and Analysis for the Fourth Quarter and Full-Year ended January 3, 2026, which is available on SEDAR+ at http://www.sedarplus.ca and is incorporated by reference herein. Non-GAAP measures and non-GAAP ratios have no standardized meanings under GAAP and may not be comparable to similar measures of other companies. 

A)   Non-GAAP Financial Measures and Ratios

Normalized Diluted Earnings per Share

Normalized diluted EPS, a non-GAAP ratio, is calculated by dividing Normalized Net Income Attributable to Shareholders, a non-GAAP financial measure, by total diluted shares of the Company. For information about these measures, see section 10.1 of the Company's Q4 and Full-Year 2025 MD&A.

The following table is a reconciliation of normalized net income attributable to shareholders of the Company to the respective GAAP measures:

Consolidated Normalized Income Before Income Taxes, Retail Normalized Income Before Income Taxes, and Financial Services Normalized Income Before Income Taxes

Consolidated Normalized Income Before Income Taxes, Retail Normalized Income before Income Taxes, and Financial Services Normalized Income Before Income Taxes are non-GAAP financial measures. For information about these measures, see section 10.1 of the Company's Q4 and Full-Year 2025 MD&A.

The following table reconciles Consolidated Normalized Income Before Income Taxes to Income Before Income Taxes: 

The following table reconciles Retail Normalized Income (Loss) Before Income Taxes to Income Before Income Taxes: 

The following table reconciles Financial Services Normalized Income before income taxes to Income before income taxes which is a GAAP measure reported in the consolidated financial statements.

CT REIT Adjusted Funds from Operations and AFFO per unit

AFFO per unit, a non-GAAP ratio, is calculated by dividing AFFO by the weighted average number of units outstanding on a diluted basis. AFFO is a non-GAAP financial measure. The following table reconciles GAAP Income before income taxes to FFO and further reconciles FFO to AFFO:

Diluted FFO per unit and Diluted AFFO per unit

Diluted FFO per unit and Diluted AFFO per unit are calculated by dividing FFO or AFFO by the weighted average number of units outstanding on a diluted basis. Management believes that these measures are useful to investors to assess the effect of this measure as it relates to their holdings.

Retail Return on Invested Capital (ROIC)

ROIC is calculated as Retail return divided by the Retail invested capital. Retail return is defined as trailing 12-month Retail after-tax earnings excluding interest expense, lease related depreciation expense, inter-segment earnings, and any normalizing items. Retail invested capital is defined as Retail segment total assets, less Retail segment trade payables and accrued liabilities and inter-segment balances based on an average of the trailing four quarters. Retail return and Retail invested capital are non-GAAP financial measures. For more information about these measures, see section 10.1 of the Company's Q4 and Full-Year 2025 MD&A.

Operating Capital Expenditures 

Operating capital expenditures is a non-GAAP financial measure. For more information about this measure, see section 10.1 of the Company's Q4 and Full-Year 2025 MD&A.

The following table reconciles total additions from the Investing activities reported in the Consolidated Statement of Cash Flows to Operating capital expenditures:

B)   Supplementary Financial Measures and Ratios

The measures below are supplementary financial measures. See Section 10.2 (Supplementary Financial Measures) of the Company's Q4 2025 MD&A for information on the composition of these measures.

• Consolidated retail sales and consolidated retail sales (excluding Petroleum)
• Consolidated comparable sales
• Revenue (excluding Petroleum)
• Retail revenue (excluding Petroleum)
• Retail sales and retail sales (excluding Petroleum)
• Canadian Tire Retail comparable and retail sales
• SportChek comparable and retail sales
• Mark's comparable and retail sales
• Retail gross margin rate (excluding Petroleum)
• Retail gross margin rate and retail gross margin rate (excluding Petroleum)
• Gross Average Accounts Receivables
• Average account balance
• Average number of accounts

To view a PDF version of Canadian Tire Corporation's full quarterly earnings report please see: https://mma.prnewswire.com/media/2916543/CANADIAN_TIRE_CORPORATION__LIMITED___INVESTOR_RELATIONS_Canadian.pdf

FORWARD-LOOKING STATEMENTS
This press release contains information that may constitute forward-looking information within the meaning of applicable securities laws, which reflect management's current expectations regarding future events and the Company's True North strategy. All statements other than statements of historical facts contained in this press release may constitute forward-looking information, including but not limited to, information with respect to: the impacts of the Company's True North strategy, including operating expense savings; the planned launch of loyalty partnerships with WestJet and Tim Hortons; the Company's operating capital expenditure expectations; and the Company's intention to repurchase its Class A Non-Voting Shares. Readers are cautioned that such information may not be appropriate for other purposes. Often, but not always, forward-looking information can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "believe", "estimate", "plan", "can", "could", "should", "would", "outlook", "target", "forecast", "anticipate", "aspire", "foresee", "continue", "ongoing" or the negative of these terms or variations of them or similar terminology. Although the Company believes that the forward-looking information in this press release is based on information, estimates and assumptions that are reasonable, such information is necessarily subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking information. For information on the material risks, uncertainties, factors and assumptions that could cause the Company's actual results to differ materially from the forward-looking information, refer to section 16.0 (Caution Regarding Forward-Looking Information) of the Company's Q4 and Full-Year MD&A, available on the SEDAR+ website at http://www.sedarplus.ca and https://investors.canadiantire.ca. The Company does not undertake to update any forward-looking information, whether written or oral, except as is required by applicable laws.

CONFERENCE CALL
Canadian Tire will conduct a conference call to discuss information included in this news release and related matters at 8:00 a.m. ET on Thursday, February 19, 2026. The conference call will be available simultaneously and in its entirety to all interested investors and the news media through a webcast at https://investors.canadiantire.ca and will be available through replay at this website for 12 months.

ABOUT CANADIAN TIRE CORPORATION                                                           
Canadian Tire Corporation, Limited (TSX: CTC.A, TSX: CTC, "CTC") has been a proudly Canadian business since 1922. Guided by its brand purpose, "We are here to make life in Canada better," CTC has built an expansive national retail presence, exceptional customer brand trust and one of Canada's strongest workforces – employing, along with its local Dealers and franchisees, tens of thousands of Canadians. At its core are retail businesses, each designed to serve life's pursuits: Canadian Tire, offering products spanning Living, Playing, Fixing, Automotive, and Seasonal & Gardening, bolstered by notable banners Party City and PartSource; Mark's, a leading source for casual and industrial wear; SportChek, Hockey Experts, Sports Experts and Atmosphere, offering the best brands of active wear and gear; and Pro Hockey Life, a hockey specialty store catering to elite players. CTC's banners, brand partners and credit card offerings are unified through its Triangle Rewards loyalty program – a linchpin of CTC's customer-driven strategy. With more than 12 million members, Triangle integrates first-party data to deliver valuable rewards and personalized experiences across nearly 1,700 retail and gasoline outlets. CTC also operates a retail petroleum business and a Financial Services business and holds a majority interest in CT REIT, a TSX-listed Canadian real estate investment trust. For more information, visit Corp.CanadianTire.ca.

FOR MORE INFORMATION
Media: Stephanie Nadalin, (647) 271-7343, stephanie.nadalin@cantire.com
Investors: Karen Keyes, (647) 518-4461, karen.keyes@cantire.com

Consolidated Balance Sheets

Consolidated Statements of Income                                                     

Consolidated Statements of Comprehensive Income

Consolidated Statements of Cash Flows 

SOURCE CANADIAN TIRE CORPORATION, LIMITED - INVESTOR RELATIONS