Wm Morrison Supermarkets (WMS) Q4 2025 earnings summary

Executive summary

• Like-for-like sales grew 2.8% year-over-year, with Q4 up 2.4%, marking 12 consecutive quarters of growth.

• EBITDA held flat at GBP 835 million despite significant cost headwinds and a major cyber attack.

• Market share remained stable at 8.5% despite challenging conditions and inflationary pressures.

• Strong Christmas trading, with fresh food and premium own brand ranges driving sales.

Financial highlights

• Underlying EBITDA for FY25 was GBP 835 million, flat year-on-year.

• Free cash flow generation continued, with GBP 69 million inflow.

• Gross debt reduced by 10% during the year.

• Interest costs fell by GBP 117 million to GBP 281 million due to debt reduction and refinancing.

• CapEx was GBP 308 million, focused on store refreshes and technology.

Outlook and guidance

• EBITDA expected to increase in FY26, with positive free cash flow generation.

• Cost savings and working capital targets (GBP 1 billion and GBP 600 million, respectively) expected to be exceeded in FY26.

• CapEx planned at GBP 330 million, lease costs at GBP 290 million, and interest costs at GBP 275 million for FY26.