Albertsons Companies (ACI) Q1 2026 earnings summary

Executive summary

• Identical sales grew 2.8% year-over-year, with digital sales up 25% and pharmacy sales up 20%, supported by a 14% increase in loyalty members to 47.3 million.

• Net sales and other revenue rose 2.5% to $24.88 billion, with net income at $236 million ($0.41/share) and adjusted net income at $319 million ($0.55/share).

• Adjusted EBITDA reached $1.11 billion, reflecting ongoing investments in digital, technology, and operational productivity.

• Strategic priorities included digital engagement, loyalty, Media Collective, technology modernization, and productivity.

• Over $400 million was returned to shareholders via dividends and buybacks, with continued investment in store remodels, new stores, and own brands.

Financial highlights

• Gross margin rate declined to 27.1% from 27.8% year-over-year, mainly due to investments in value and higher digital sales costs.

• Adjusted EBITDA was $1,111 million (4.5% of revenue), down from $1,184 million (4.9%) last year.

• Selling and administrative expense rate improved by 63 bps, aided by productivity and lower merger costs.

• Interest expense decreased to $141.8 million, and income tax expense rose to $75 million (24.1% rate).

• Capital expenditures totaled $585 million, including 36 remodels and 3 new stores.

Outlook and guidance

• FY2025 identical sales growth guidance raised to 2.0–2.75%, with adjusted EBITDA guidance unchanged at $3.8–$3.9 billion and adjusted EPS at $2.03–$2.16.

• Expect Q2 identical sales at the low end of the range, with acceleration in the second half.

• Capital expenditures projected at $1.7–$1.9 billion; effective tax rate expected at 23.5%–24.5%.

• Long-term algorithm targets 2%+ identical sales and higher adjusted EBITDA growth in FY2026.

• Management expects sufficient liquidity for the next 12 months, with estimated needs of $5.5 billion.