Ms. Marie-Berthe Des Groseillers reports

BMTC GROUP INC. ANNOUNCES FINANCIAL RESULTS FOR THE YEAR ENDED JANUARY 31ST, 2026

BMTC Group Inc. has released its financial results for the year ended Jan. 31, 2026.

Results

For the year ended Jan. 31, 2026, the company's revenues increased by $16.89-million to $619,591,000, compared with $602,701,000 recorded for the corresponding year of 2025, an increase of 2.8 per cent. This increase is primarily attributable to the growth in commercial revenue from the Tanguay division, revenue of which rose by $20,123,000 or 3.4 per cent. Same-store sales increased by 3.6 per cent during the year. Investment property revenue from the real estate division declined by $3,233,000, compared with the corresponding year in 2025, representing a decrease of 92.9 per cent.

Net earnings for the year ended Jan. 31, 2026, amounted to $33,557,000, compared with the net earnings of $43,909,000 recorded for the corresponding year in 2025. Basic net earnings per share amounted to $1.05, compared with $1.35 recorded for the corresponding year in 2025.

Adjusted net earnings amounted to $33,557,000 for the year ended Jan. 31, 2026, compared with $34,665,000 for the corresponding year of 2025.

During the year ended Jan. 31, 2025, the company disposed of assets related to the Tanguay division for a total amount of $13,427,000, resulting in a net gain after taxes of $9,244,000, representing 28 cents per basic share. This amount includes a net gain after taxes of $2,097,000, or seven cents per basic share, received as an additional settlement following a favourable ruling in connection with the expropriation of the former Kirkland store by the Reseau express metropolitain (REM) in 2019. This amount also includes the sale of its Trois-Rivieres store for $4.5-million, resulting in a net gain after taxes of $3,362,000, or 10 cents per basic share. Finally, this amount includes the sale of its Brossard store, an asset classified as held for sale, for $6.51-million, resulting in a net gain after taxes of $3,785,000, or 11 cents per basic share.

The variation in adjusted net earnings related to non-recurring items amounted to ($1,108,000) or (two cents) per basic share, for the year ended Jan. 31, 2026, compared with the year ended Jan. 31, 2025, as explained in an attached table.

The variations in net adjusted earnings is allocated as detailed in an attached table.

Retail division

Adjusted net income amounted to $11.25-million, an increase of $5,132,000 compared with the corresponding year in 2025.

During the year ended Jan. 31, 2026, the company announced its decision to change the way it carries out its distribution and warehousing activities in the greater Montreal area by outsourcing these functions. This decision resulted in the recognition of severance costs totalling $9,441,000, or $6,939,000 after tax. This expense was offset by the defined benefit pension plans recovery totalling ($9,244,000), or ($6,794,000) after tax.

The positive variation in adjusted net income was primarily driven by sales growth of the Tanguay division, as well as the completion of the network revitalization program in 2025.

Investment division

Adjusted net income amounted to $35,414,000, an increase of $791,000 compared with the corresponding year in 2025. This positive variance is primarily attributable to the favourable performance of the stock markets during the year, which contributed to an increase in the net unrealized gain on financial assets.

Real estate division

Adjusted net loss amounted to $13,107,000, representing an increase of $7,031,000 compared with the corresponding year in 2025. This variance is primarily attributable to the expansion and optimization work carried out during the year, which led to a temporary increase in operating expenses. The completion of these projects toward year-end should support a gradual improvement in financial performance. During the year ended Jan. 31, 2026, the company disposed of its former Economax store located in Kirkland for proceeds of $13.4-million, resulting in a net gain after taxes of $2,765,000, which contributed to reducing the adjusted net loss for the year.

Financial position and dividends

Cash and investments, net of bank overdrafts, increased by $1,402,000 during the year ended Jan. 31, 2026. This increase is mainly driven by unrealized gains recorded on investments compared with the corresponding year in 2025. Investments consist mainly of interest-bearing cash, common and preferred shares, which, as at the end of the year ended Jan. 31, 2026, had a market value of $206,726,000 (including cash net of bank overdraft).

As at Jan. 31, 2026, working capital was in a deficit position of $2,443,000, representing a decrease in the deficit of $10,218,000 compared with Jan. 31, 2025. Although the company has a working capital deficit, it had an almost unused line of credit as at Jan. 31, 2026, as well as interest-bearing cash within its investment portfolio. Management believes that these resources are sufficient to meet its liquidity needs and short-term financial obligations. Shareholders' equity increased from $529,507,000 as at Jan. 31, 2025, to $584,415,000 as at Jan. 31, 2026. As at Jan. 31, 2026, the book value per share was $18.35, compared with $16.36 as at Jan. 31, 2025.

Pursuant to the normal course issuer bid put in place on April 15, 2024, and renewed on April 15, 2025, accordingly, 508,700 common shares were repurchased and cancelled by the company. As a result of this change, the company had, as at Jan. 31, 2026, 31,853,600 common shares issued and outstanding.

For the year ended Jan. 31, 2026, no options were granted. The company may still grant pursuant to the stock option plan a total of 5,710,864 options, representing 17.93 per cent of the issued and outstanding shares of the company.

During the year, the company paid eligible dividends totalling 36 cents per share to holders of common shares registered on the company's register.

For the three-month period ended Jan. 31, 2026, the company's revenues decreased by $7,515,000 to $144,867,000, compared with $152,382,000 recorded for the corresponding 2025 period, a 4.9-per-cent decrease. This decrease is mainly explained by a decline in commercial revenues from the Tanguay division, revenue of which decreased by $7,616,000 or 5 per cent. Same-store sales also decreased by 5 per cent during the period. Investment property revenue from the real estate division increased by $101,000 compared with the corresponding period in 2025.

Net earnings for the three-month period ended Jan. 31, 2026, amounted to $19,244,000, compared with the net earnings of $14.49-million recorded for the corresponding period of 2025. Basic net earnings per share for the three-month period ended Jan. 31, 2026, amounted to 60 cents, compared with 45 cents recorded for the corresponding period of 2025.

For the three-month period ended Jan. 31, 2026, no adjustments were made and adjusted net income therefore equaled net income. The variation in adjusted net earnings amounted to $4,754,000, or 15 cents per basic share, for the year ended Jan. 31, 2026, compared with the year ended Jan. 31, 2025, as explained in an attached table.

The variation in net adjusted earnings is allocated as detailed in an attached table.

Retail division

Adjusted net income amounted to $7.36-million, an increase of $2,305,000 compared with the corresponding period in 2025. Despite a 5-per-cent decline in sales compared with the same period in 2025, the division reported a positive variance, primarily attributable to a recovery related to defined benefit pension plans totalling ($9,244,000), or ($6,794,000) after tax.

Investment division

Adjusted net income amounted to $14,905,000, an increase of $3,202,000 compared with the corresponding period in 2025. This positive variation is mainly attributable to favourable stock market performance during the period, which contributed to an increase in the net unrealized gains on financial assets.

Real estate division

Adjusted net loss amounted to $3,021,000, an increase of $753,000 compared with the corresponding period in 2025. This variation is mainly attributable to expansion and optimization work carried out during the year, which resulted in a temporary increase in operating expenses. The completion of these projects toward year-end should support a gradual improvement in financial performance.

Operations

Retail division (Tanguay)

The network revitalization program, carried out over a two-year period, was completed during the year ended Jan. 31, 2025, at a total cost of $18,692,000, which is $1,308,000 below the planned budget. This program consisted of converting former Brault & Martineau and EconoMax stores into Tanguay stores, with the objective of providing a better product and service offering and a unique customer experience in its market. The program enabled a significant modernization of the network, the introduction of a broader and more targeted product offering, as well as a more attractive in-store presentation, better aligned with customer expectations.

During the year ended Jan. 31, 2026, the company completed its expansion project of its Quebec distribution centre, which will increase available square footage while improving operational efficiency and optimizing logistics processes. Costs related to this expansion totalled $6.5-million, which is $1-million less than the initially budgeted $7.5-million.

The company also announced its decision to change the way it carries out its distribution and warehousing activities in the greater Montreal area by outsourcing these functions.

The company announced the retirement of Jacques Tanguay, chief operating officer (COO) of BMTC, effective Dec. 31, 2025, as well as the departure of Charles Tanguay, president of the Tanguay division, effective Jan. 15, 2026, who, after several years leading the Tanguay division, chose to pursue new professional challenges.

On Jan. 19, 2026, the company announced the appointment of Louis-Philippe Auger as president of the Tanguay division. Mr. Auger previously held the position of vice-president of the Tanguay division, a role he had held since 2022, and has been working within the division for more than 26 years. A visionary and recognized for his mobilizing leadership and continuing commitment to the company and its employees, he has contributed significantly to the division's growth over the years and has notably been a key player in the expansion of the Tanguay division across Quebec.

Real estate division

As part of its long-term growth strategy and commitment to sustainable value creation, the company undertook a strategic diversification into the real estate sector during the past year. This initiative is intended to optimize the value of its real estate portfolio while creating recurring, complementary revenue streams alongside its core retail operations. The strategy includes the development of investment properties, strategic site repurposing and the selective acquisition of assets with strong long-term value potential.

On April 15, 2024, the company finalized the purchase of the RONA distribution centre bearing the civic address 2055 boul. des Entreprises in the city of Terrebonne. The transaction was in the amount of $96-million before taxes, which includes a lease-back agreement with RONA. The transaction was paid in full in cash from investments held by the company. The company carried out expansion and optimization work at this centre, aimed at improving its operational efficiency and, consequently, increasing its rental value. During the year ended Jan. 31, 2025, the company entered into commitments totalling $28.81-million related to the expansion project and $20,125,000 related to the optimization work. As at Jan. 31, 2026, all of these amounts had been incurred and an amount of $6,012,000 remained outstanding. Following the decision announced to outsource distribution and warehousing activities, management reassessed the intended use of a portion of this property that had initially been held for rental purposes. This reassessment resulted in the reclassification of the property from investment properties to property, plant and equipment, in accordance with IAS 16, Property, Plant and Equipment. The carrying amount of the property at the date of transfer amounted to $104.03-million. The portion of the property that was not transferred to property, plant and equipment remains held for rental purposes, and was available for such use as at Jan. 31, 2026.

The company entered into a partnership agreement with Urbania, who will be responsible for the development and construction of its property at 500 boul. Le Corbusier in Laval into several residential rental towers. The company intends to finance this real estate project at 75 per cent with a long-term mortgage. The estimated value of the entire project is approximately $600-million. The company created a new subsidiary, Le Corbusier-Concorde S.E.C., for this real estate project on Jan. 31, 2022. The real estate project was initially expected to be launched in the summer of 2025; however, delays were encountered in obtaining the required authorizations. During the year ended Jan. 31, 2026, significant progress was achieved, including approval of the project by the executive committee of the City of Laval and the issuance of demolition permits for the existing building. Management anticipates that construction will begin during the summer of 2026. The project contemplates the construction of five rental residential towers totalling approximately 1,200 units, over a period of eight to 10 years.

At the end of April, 2024, the company finalized the purchase of land in Levis located in the Quebec region, for an amount of $20,223,000. As of Jan. 31, 2025, this land was transferred to the company's real estate division, in accordance with the company's intention to hold it for real estate development purposes or as long-term investment. During the year ended Jan. 31, 2026, the company confirmed its intention to hold this land for the long term, with a view to generating capital appreciation.

The company intends to proceed with the real estate development of several rental residential towers on its property located at 125 boul. Desjardins Est in Sainte-Therese. The company is currently evaluating the initial budget estimates and financial models to complete the project's profitability analysis. At the same time, the company has initiated preliminary steps with the City of Ste-Therese, with a view to pro-active planning aimed at optimizing completion times. Following the profitability analysis and the conclusion of an agreement with a potential developer, the company should be able to announce the details of this real estate project during the coming quarters.

These investments are part of the company's strategy to increase the value of its real estate assets while generating new sources of recurring revenue.

Management discussion and outlook for the future of the company

In a constantly evolving retail environment, forecasting consumer behaviour is an increasing challenge. Preferences shift rapidly, economic conditions influence both purchasing power and willingness to spend, and consumption habits are increasingly migrating toward digital channels.

Despite these uncertainties, management believes that the company succeeds in setting itself apart through a set of complementary strengths. Its well-established brand image, widely recognized customer service quality, and its network of stores and distribution across Quebec ensure strong local presence. In addition, its continuously improving digital platform enables it to respond effectively to the evolving expectations of consumers. This combination of factors allows the company to maintain a solid market position and stable performance, even in a complex and ever-changing commercial environment.

The diversification into the real estate sector, although outside the company's core operations, presents natural synergies with its retail network, particularly in asset management and the generation of stable cash flows. Management believes that this diversification will enhance the company's financial resilience, create new growth levers and reduce its reliance on the retail sector.

Management plans to continue its initiatives aimed at supporting the company's growth and performance, as reflected in the results for the year ended Jan. 31, 2026. However, it remains cautious in light of the slowdown in sales momentum observed toward the end of the fiscal year.

BMTC Group is a company governed the Business Companies Act (Quebec). Its registered office is located at 4 Place Ville-Marie (fourth floor), Suite 400, Montreal, Que., H4B 5G9. Its common shares are listed on the Toronto Stock Exchange. BMTC Group is now formed of the Tanguay division and its subsidiaries, Le Corbusier-Concorde, Commandite Le Corbusier-Concorde Inc. and 9519-2340 Quebec Inc. The company manages and operates a retail network of furniture, household appliances and electronic products, in Quebec, while also overseeing the management of its real estate division.

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