Albertsons Companies reported fiscal 2025 fourth‑quarter revenue of $20.3 billion, a 7.9% year‑over‑year increase that reflects robust grocery sales growth but a deceleration in identical sales, which rose only 0.7% from 2.3% in the prior year. The company’s adjusted earnings per share for the quarter were $0.48, missing consensus estimates of $0.53 by $0.05 (about 9.4%). The miss was largely driven by a $774 million opioid settlement charge that pushed net income into a $481 million loss for the quarter.
Gross margin rate slipped to 27.4% from 28.0% in Q4 FY2024, a contraction attributed to a mix shift toward higher‑margin pharmacy sales and increased digital fulfillment costs. Pharmacy sales grew, but pricing headwinds from the Inflation Reduction Act limited the upside, while digital sales expanded 16% year‑over‑year, supporting the company’s “Customers for Life” strategy.
Full‑year 2025 adjusted EPS fell to $2.18 from $2.34 in FY2024, and adjusted EBITDA declined to $3,902 million from $4,005 million. Net income for the year was $217 million, down from $959 million in FY2024, largely due to the opioid settlement charge and a modest decline in grocery sales.
Management guided for fiscal 2026 identical sales growth of 0.0%–1.0%, maintaining the same range as previously issued. The company emphasized disciplined execution and resilience, noting that it remains focused on building a stronger foundation through investments in digital and loyalty initiatives and scaling its productivity engine.
CEO Susan Morris said, “Fiscal 2025 was a year of disciplined execution and resilience, as we closed the year with a solid fourth quarter that delivered strong Adjusted EBITDA despite meaningful top‑line pharmacy‑related headwinds.” She added, “We remain focused on building a stronger foundation for the future, including investing in our customer value proposition, advancing digital and loyalty, and strengthening the capabilities that support sustainable, long‑term growth.”
Investor reaction was mixed: the earnings beat was tempered by the opioid settlement charge and the cautious guidance for fiscal 2026, leading to a subdued market response.
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