L US S&P 500Russell 1000 Earnings call · transcribed from the recording
Loews Corporation (L) · Q2 2026 results and valuation
Share price: $111.51 · 2026-11-11
Loews Corporation is a holding company with subsidiaries engaged in commercial property and casualty insurance, the transportation and storage of natural gas and other hydrocarbons, and the operation of a hotel chain. The company also holds an interest in a business that manufactures rigid plastic packaging solutions. It operates in the insurance, energy, hospitality, and packaging industries across North America and international markets. Source: 10-K annual report (2026-02-10)
Results Q2 2026 vs Q4 2024 · previous quarter · published 30 Jul 2026 and 20 Feb 2025
Net income up 137.4% on the previous quarter. Management sounded upbeat, though noticeably less so answering analysts.
1 · Numbers
+137.4%
Net income vs Q4 2024
Outlook given
Net income 444.0M vs 187.0M
Revenue +4.1%
Against the same quarter last year (Q2 2025) it is +13.6% — part of the move on last quarter is seasonal.
Why Against the same quarter last year (+13.6%), net income rose primarily due to higher online sales, positive tailwinds on gross margin from GLP-1 drugs going generic, and operating leverage from higher sales that offset costs from new store openings and distribution facility ramp-up.
2 · How management spoke
Upbeat
More upbeat than 82% of company calls
Answers to analysts: restrained, but clearly less so than the script.
Last call it was different: script and answers matched.
3 · What stood out
Loews Corporation increased its share repurchase target to $2.1 billion this year, an increase of $200 million from its initial plan due to a strong balance sheet and growing free cash flow.
Valuation
Is Loews Corporation undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 9.5% growth a year (3-year revenue growth), the model's fair value is $186.43 a share — the stock trades 40% below it. Today's price assumes 2.5% growth a year.
Current price
$111.51
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+2.5% for 10 yrs
Fair value / share
$186.43
Buy below
$139.82
Price vs fair value
Undervalued 40%
Price vs buy-below price
Undervalued 20%
Read between the lines
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Guidance
L increased its share repurchase target to $2.1 billion this year, an increase of $200 million from its initial plan due to a strong balance sheet and growing free cash flow.
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Figure
Revenue, including PC Financial, reached $15 billion in the second quarter, an increase of 4.1%.
Source quote
“In the second quarter, revenue, including PC Financial, was $15 billion up 4.1%.”
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Figure
Pharmacy and health care services grew same-store sales by 7.5% this quarter.
Source quote
“Pharmacy and health care services grew same-store sales by 7.5%.”
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Figure
E-commerce grew by 19.3% and Click and Collect sales remained stable at 40% because of PC Express delivery and third-party options.
Source quote
“E commerce growth remains very strong at 19.3%, Our Click and Collect sales remain stable while 40%, led by our PC Express delivery and third party options.”
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Key theme
L expects the Retail business to grow earnings faster than sales and adjusted net earnings per common share growth in the high single digits.
Source quote
“Looking ahead, we continue to expect our Retail business to grow earnings faster than sales and adjusted net earnings per common share growth in the high single digits.”
4 more
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Key theme
The quarter was characterized by solid revenue growth stable gross margin, a flat SG&A rate, and strong adjusted EPS growth.
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Figure
Loews' hard discount banners continue to perform well in the quarter with comparable sales close to 4%.
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Key theme
The San Jose store generated the highest first week sales of any store opening in the history of Loblaw.
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Figure
The company completed 17 stores and has 11 more on the way to expand its physical presence.
Source quote
“So we have completed 17 stores now, and we have 11 more on the way.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q4 2024.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 94% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“The quarter was characterized by solid revenue growth stable gross margin, a flat SG&A rate, and strong adjusted EPS growth.”
“We are seeing improving efficiencies and profitability as our growth accelerate in both third party pick and delivery.”
“As we begin this new partnership, we are excited to continue expanding the benefits of PC Optimum while participating in the future growth of EQB.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q4 2024period end 2024-12-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 4.73B | 4.55B | +4.1% | 4.55B | +3.9% |
| Operating income | 612.0M | 188.0M | +225.5% | 539.0M | +13.5% |
| Net income | 444.0M | 187.0M | +137.4% | 391.0M | +13.6% |
| EPS | 2.16 | 0.87 | +148.3% | 1.87 | +15.5% |
| P/E today 15.2 | 13.9 | 13.2 | +0.7 | 14.5 | −0.6 |
Topics
Most discussed now
- Every day, Loews' merchant sourcing teams and suppliers work together to better to balance delivering affordable products for Canadians…
- Using promotions, engaging with PC Optimum offers, and making choices across the basket to manage their budgets.
- It is more than it is more than 500-basis-points growth in the frozen vegetables in Loews' in its hard discount...
Faded since Q4 2024
- Dropped In 2025, Loews will invest another $2.2 billion into the Canadian economy, reflecting Loblaw's commitment to enhancing its store and...
- Dropped It is a different shopping trip, you can definitely do a full shop.
- Fading Loews delivered improving sales momentum, stable gross margin, and carefully managed its expenses while once again delivering strong…
- Fading Loews is very pleased to have delivered another year of consistent operational financial performance.
Metrics dropped
Language like “we will no longer report X”, sometimes used to hide a weakening number.
Starting in the third quarter, we will no longer report PC Financial results and will begin to recognize our proportionate shares of EQB's net income within our consolidated financial results as financial services remain important to Loblaw's strategy.
— Richard Dufresne
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
Loews Corporation reported net income of $444 million for the second quarter of 2026, compared to $391 million in the second quarter of 2025.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Loews Corporation reported net income of $337 million for the first quarter of 2026, compared to $370 million in the first quarter of 2025.
- Other events · SEC 8-K
Loews Corporation completed a public offering of $500,000,000 of its 4.940% Senior Notes due 2036 on February 18, 2026.
- Results of operations · SEC 8-K
Loews Corporation reported net income of $402 million for the fourth quarter of 2025, compared to $187 million in the fourth quarter of 2024.
- Director or officer change · SEC 8-K
Directors Ann E. Berman and Charles M. Diker announced their retirement from the Loews Corporation Board of Directors effective at the 2026 Annual Meeting of Shareholders, reducing the board size to ten members.
- Director or officer change · SEC 8-K
Loews Corporation elected Dino Robusto to its Board of Directors, increasing the board size from 11 to 12 members effective January 1, 2026.