Pet Valu Holdings Ltd., the leading Canadian specialty retailer of pet food and pet-related supplies, announced Wednesday its financial results for the second quarter 2026.
Second Quarter Highlights
- Revenue was $290.7 million, up 3.6% versus Q2 2025.
- System-wide sales were $377.3 million, an increase of 2.0% versus Q2 2025. Same-store sales decline was 0.2%.
- Adjusted EBITDA was $65.0 million, up 8.0% versus Q2 2025, representing 22.4% of revenue. Operating income was $41.9 million, up 14.0% versus Q2 2025.
- Adjusted Net Income was $28.2 million or $0.41 per diluted share, compared to $26.2 million or $0.38 per diluted share, respectively, in Q2 2025. Net income was $24.9 million, up 14.3% versus Q2 2025.
- Opened 7 new stores and ended the quarter with 877 stores across the network.
- Free cash flow was $32.9 million, compared to $27.1 million in Q2 2025.
- Subsequent to Q2 2026, the Board of Directors of the Company declared a dividend of $0.13 per common share.
On a 52-week comparable basis, the company said it expects revenue growth between 2% and 4%, Adjusted EBITDA margin of approximately 21%, and Adjusted Net Income per Diluted Share similar to Fiscal 2025.
“We were pleased with our Q2 performance, demonstrating our ability to adapt in a dynamic environment,” said Greg Ramier, Chief Executive Officer of Pet Valu. “Our teams delivered improved profitability, solid revenue growth and further market share gains, supported by disciplined execution across the business.”
“The strength of our model continues to be reflected in the capital-light growth of our network, increasing engagement across our digital and loyalty platforms, and strong demand for our differentiated offering. With a clear strategy, passionate people and actions within our control, we remain confident in achieving our 2026 Outlook.”
The company noted that revenue increase was primarily due to higher retail sales and franchise and other revenues.
For Fiscal 2026, the Pet Valu said it expects:
- revenue growth between 2% and 4%, supported by approximately 40 new store openings, flat to 2% same-store sales growth and higher wholesale merchandise sales penetration;
- Adjusted EBITDA margin of approximately 21%, which incorporates heightened value-seeking consumer demand trends and higher fuel costs, offset by operating expense leverage;
- Adjusted Net Income per Diluted Share similar to Fiscal 2025; and
- business reinvestment of approximately $35 million, consisting of approximately $20 million in Net Capital Expenditures and approximately $15 million in transformation costs.
“The Company continues to monitor the evolving governmental foreign trade environment and believes it has the appropriate mechanisms in place to adapt, as necessary. The Outlook for 2026 is based on several assumptions, including, but not limited to, governmental foreign trade policies currently in place as of this release,” it said.
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