GRIMSBY, Ontario — February 10, 2026 — Leads & Copy — Andrew Peller Limited (TSX: ADW.A / ADW.B) (“APL” or the “Company”) announced its financial results today for the three and nine months ended December 31, 2025. All figures are in Canadian dollars unless otherwise noted.
The company reported revenue of $108.8 million for the third quarter of 2026, up from $105.4 million in Q3 2025. Gross margin increased to 41.8% from 40.2% in the prior year. EBITA rose by 6.1% to $19.7 million, from $18.5 million in Q3 2025, and net earnings improved to $7.9 million, compared to $7.7 million in Q3 2025.
For the year to date, revenue was $313.5 million, compared with $314.1 million in the prior year. Gross margin increased to 43.3% from 40.4% in the prior year. EBITA increased to $57.1 million, from $49.4 million in the prior year. Net earnings grew to $21.4 million ($0.50 per Class A Share), compared to $11.9 million ($0.28 per Class A Share) in the prior year. Dividends of $0.185 per Class A Share and $0.161 per Class B Share were issued.
CEO Paul Dubkowski noted that the company’s strong quarter was highlighted by top-line growth and continued expansion in margins and earnings. He added that the results reflect positive trends across multiple trade channels and regions, including a strong quarter in Western Canada and sustained momentum in emerging channels in Ontario. Dubkowski also stated that the company is making targeted investments in growth aimed at continuing to gain share in core markets and positioning the company for success in high-growth product segments.
Revenue for the three months ended December 31, 2025, increased by 3.3% compared to the same period in the prior year, driven primarily by strong performance in Western Canada and growth in wine club sales. This increase was partially offset by expected softness in the company’s owned retail stores as the Ontario retail market continues to evolve. Revenue for the nine months ended December 31, 2025, was relatively consistent with the prior year, as the company was able to offset the benefit from the LCBO strike in the second quarter of fiscal 2025. Several of the company’s well-established trade channels delivered strong performance, particularly sales to third-party restaurants and hospitality locations. Performance in grocery and big-box stores also remained strong during the continued evolution of the Ontario retail market, and traffic at the company’s estate properties continued to grow. These gains were offset by some softness in the company’s owned retail stores and its personal winemaking business.
Gross margin as a percentage of revenue increased to 41.8% from 40.2% for the three months ended December 31, 2025, and to 43.3% from 40.4% for the nine months ended December 31, 2025. The improvement was driven by lower input costs including glass bottles and inbound freight, resulting from the company’s ongoing cost savings programs. This favorability was partially offset by additional distribution costs incurred to serve the evolving Ontario retail market. Margin also improved due to the Ontario Grape Support Program (“OGSP”) which contributed $2.1 million and $6.6 million in the three and nine month periods ended December 31, 2025, respectively. This program was not in effect during the comparable periods in fiscal 2025.
As a percentage of revenue, selling and administrative expenses increased to 23.7% from 22.6% for the three months ended December 31, 2025, and to 25.1% from 24.7% for the nine months ended December 31, 2025. The increase reflects an increase in investments made for advertising and promotion expenses for innovation and to serve the evolving Ontario retail market.
EBITA was $19.7 million in the third quarter of fiscal 2026, up 6.1% from $18.5 million in the third quarter of fiscal 2025. EBITA was $57.1 million for the nine months ended December 31, 2025, an increase of 15.6% compared with $49.4 million in the prior year.
Interest expense for the three and nine months ended December 31, 2025, decreased by 25.8% and 22.8% respectively, compared to prior year, due to lower average debt levels and reduced interest rates.
The company recorded a net unrealized non-cash gain in the first nine months of fiscal 2026 of $0.9 million related to mark-to-market adjustments on interest rate swaps and foreign exchange contracts compared to a loss of $1.2 million in prior year. The company has elected not to apply hedge accounting and accordingly the change in fair value of these financial instruments is reflected in the company’s consolidated statement of earnings each reporting period. These instruments are considered to be effective economic hedges and are expected to mitigate the short-term volatility of changing foreign exchange and interest rates.
The company generated net earnings of $7.9 million ($0.18 per Class A share) for the third quarter of fiscal 2026 compared to $7.7 million ($0.18 per Class A share) in the third quarter of the prior year and net earnings of $21.4 million ($0.50 per Class A share) for the nine months ended December 31, 2025 compared to $11.9 million ($0.28 per Class A share) in the prior year.
Andrew Peller Limited will host a conference call on Wednesday, February 11, 2026, at 10:00 a.m. ET to discuss the results. The call will be hosted by Paul Dubkowski, CEO, Renee Cauchi, CFO, and Patrick O’Brien, President and CCO.
Q3 Conference Call Details:
Date: Wednesday, February 11, 2026
Time: 10:00 a.m. (ET)
Dial-in numbers: Local Toronto / International: (437) 900-0527
North American Toll Free: (888) 510-2154
RapidConnect: https://emportal.ink/3LqsTGy
Webcast: A live webcast will be available at ir.andrewpeller.com
Replay: Following the live call, a recording will be available on the Company’s investor relations website at ir.andrewpeller.com
Andrew Peller Limited is a Canadian producer and marketer of wines and craft beverage alcohol products. Its brands include Peller Estates, Trius, Thirty Bench, Wayne Gretzky, Sandhill, Red Rooster, Black Hills Estate Winery, Tinhorn Creek Vineyards, Gray Monk Estate Winery, Raven Conspiracy, and Conviction. The company also owns and operates 101 retail locations in Ontario under The Wine Shop, Wine Country Vintners, and Wine Country Merchants store names. It operates Andrew Peller Import Agency and The Small Winemaker’s Collection Inc., importers and marketing agents of premium wines, and produces and markets personal winemaking products through its subsidiary, Global Vintners Inc.
Andrew Peller Limited common shares trade on the Toronto Stock Exchange (symbols ADW.A and ADW.B).
Source: Andrew Peller Limited
