ACI · Albertsons Companies, Inc.

Albertsons Companies delivered resilient Q4 FY2025 results with net sales of $20.3 billion, including a $1.4 billion boost from the extra 53rd week, and identical sales growth of 0.7% driven by pharmacy and 16% digital sales expansion, though pharmacy faced IRA pricing headwinds. Gross margin dipped to 27.2% from 27.4% due to rising digital delivery costs, offset by IRA-related pharmacy improvements and productivity gains funding customer value investments. SG&A rose to 29.6% of sales, but ex-fuel and opioid charge, it held steady, reflecting cost discipline amid lower pharmacy volumes. The $774 million pre-tax opioid settlement charge ($600 million net) in Q4 caused a GAAP net loss of $481 million or ($0.94)/share, but Adjusted EBITDA rose to $903 million from $855 million prior year, and Adjusted EPS edged to $0.48 from $0.46. Full year FY2025 showed Adjusted EBITDA of $3.902 billion and Adjusted net income of $1.209 billion. Management highlighted disciplined execution, loyalty growth to 51.2 million members, and productivity scaling into FY2026. Capital allocation strengthened with 13% dividend hike to $0.17/share (payable May 8), $2 billion buyback authorization, and $1.492 billion repurchases including 78.7 million shares via ASR. Debt refinancing extended maturities with $2.1 billion notes. FY2026 outlook projects identical sales flat to +1% (150bps IRA headwind), Adjusted EBITDA $3.85-3.925 billion, and Adjusted EPS $2.22-2.32, signaling earnings growth and robust cash flow focus amid macro challenges.