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North West delivered solid Q2 growth: Consolidated sales rose 5.4%, with Canadian and international same-store sales increasing 7.4% and 5.8%, respectively. EBITDA grew 5.4%, EBIT 4.7% and adjusted net earnings 5%.
Higher costs pressured margins: Fuel-related freight, labor, utilities and renovation-related depreciation increased expenses. The company passed through much of the inflation while limiting markups on key essentials, creating near-term gross-margin pressure.
Management expects additional demand and productivity support: First Nations settlement payments are expected to boost Canadian sales in the second half of 2026 and for several years. The Next 100 program and selective aircraft purchases are intended to improve efficiency, reduce leased-aircraft costs and support future growth.
North West (TSE:NWC) reported second-quarter sales and earnings growth as same-store sales increased across its Canadian and international operations, helping offset higher fuel-related freight, labor and other inflationary costs.