TC Transcontinental Posts Q3 2026 Revenue Beat Amid *raddar®* Growth

TC Transcontinental Inc. (TSE: TCL.B) reported a third-quarter 2026 revenue beat, with earnings and operational metrics reflecting progress in its strategic pivot toward retail media and digital services. Revenue climbed to $306 million, surpassing the $294.5 million analyst forecast by 3.9%, while adjusted EBITDA surged 81.6% to $85.7 million—a notable outperformance driven by acquisitions and cost efficiencies. Adjusted EBITDA for consolidated operations rose 4.1% to $60.9 million, though the Books & Education segment saw a 5.7% revenue decline to $73.1 million, partly due to lower volumes and FX effects. Net indebtedness fell to $425.8 million, improving the debt-to-EBITDA ratio to 2.06 times from 3.49 times at the end of fiscal 2025, with management projecting further leverage improvements to ~1.75 times by year-end. Two buildings sold for $36.5 million in net proceeds, while capital expenditures remained steady at ~$60 million annually. The company’s raddar® retail media platform, completed nationwide, reached ~75% of Canadian households weekly, drawing interest from grocery, pharmacy, and home improvement sectors. In-store marketing revenue jumped 38% to $99.7 million, reflecting ~7% organic growth, while retail services and printing revenues grew 7.1% to $233.3 million, though organic revenue declined slightly. Chief Executive Sam Bendavid emphasized the platform’s expanding reach, stating that raddar® delivers to three out of four Canadian households weekly, positioning it as a key driver of growth. Despite an EPS miss of 13.9% to $0.32 (down from the $0.3717 forecast), the figure represented an 18.5% year-over-year improvement, and management maintained its full-year adjusted EBITDA outlook for fiscal 2026. The company’s fiscal year-end remains on October 25, with a slight shift in activity timing compared to prior years. The stock traded flat at $6.65 in premarket trading, within a $5.08–$27 52-week range and a P/E of 3.6.