Albertsons Companies (ACI) investor relations material

Executive summary

• Q2 identical sales declined 0.8%; adjusted EBITDA was $784.0 million and adjusted EPS was $0.36. A comprehensive business review is underway to accelerate the turnaround and address execution, costs, customer value, and portfolio choices.

• Net sales and other revenue decreased 0.1% to $18,894.7 million; GAAP net income was $51.5 million versus $168.5 million a year earlier.

• Management plans to present measurable turnaround commitments and a refreshed financial framework by the Q4 earnings call.

Financial highlights

• Gross margin was 26.8%, down 17 bps YoY excluding fuel and LIFO; pressure from e-commerce mix and higher shrink was partly offset by price investments and productivity.

• SG&A was 25.6% of sales; the rate excluding fuel rose 38 bps, primarily from sales deleveraging and lower pharmacy sales tied to the IRA.

• Operating income was $174.5 million versus $295.3 million; adjusted net income was $179.0 million, or $0.36 per diluted share, versus $248.4 million and $0.44.

• Adjusted EBITDA was $784.0 million, or 4.1% of sales, versus $848.4 million and 4.5% a year earlier.

• Q2 interest expense increased $20 million YoY to $125 million, reflecting higher borrowings and slightly higher average rates.

Outlook and guidance

• Fiscal 2026 outlook is suspended pending the comprehensive business review; no incremental financial outlook was issued.

• By the Q4 earnings call, management plans to provide a refreshed customer strategy, productivity and cost program, pricing framework, portfolio actions, capital allocation framework, KPIs, and multi-year financial outlook.

• An Investor Day is planned for spring 2027 to detail the turnaround roadmap; management expects measurable sequential improvement and sustained performance.