Albertsons Companies (ACI) Q2 2025 earnings summary

Executive summary

• Net sales and other revenue rose 2.0% year-over-year to $18.92 billion for Q2 2025, driven by a 2.2% increase in identical sales, with pharmacy and digital sales as key contributors; digital sales were up 23% year-over-year.

• Net income for Q2 2025 was $169 million ($0.30 per share), up from $145.5 million ($0.25 per share) in Q2 2024; adjusted net income was $248 million ($0.44 per share).

• Adjusted EBITDA for Q2 2025 was $848.4 million (4.5% of revenue), down from $900.6 million (4.9%) in Q2 2024.

• Loyalty members increased 13% to 48.7 million, and the company operated 2,257 stores at quarter-end.

• Announced a $750 million accelerated share repurchase and increased the total repurchase authorization to $2.75 billion.

Financial highlights

• Gross margin rate decreased to 27.0% from 27.6% year-over-year, mainly due to pharmacy sales mix and higher digital delivery costs.

• Selling and administrative expenses improved to 25.4% of revenue from 25.8%, aided by productivity initiatives and lower merger-related costs.

• Operating income was $295.3 million for Q2 2025, up slightly from $292.0 million in Q2 2024.

• Adjusted net income per share was $0.44, down from $0.51 year-over-year.

• Cash flow from operations for the first 28 weeks was $1.28 billion, with $837.9 million used in investing and $467.0 million used in financing activities.

Outlook and guidance

• Fiscal 2025 identical sales growth expected between 2.2% and 2.75% (raised from 2.0%-2.75%).

• Adjusted EBITDA guidance remains $3.8–$3.9 billion, including $65 million from the 53rd week.

• Adjusted net income per share outlook increased to $2.06–$2.19 (from $2.03–$2.16).

• Capital expenditures guidance raised to $1.8–$1.9 billion.

• Management expects sufficient liquidity for the next 12 months, with estimated needs of $6.5–$7.0 billion, supported by cash on hand, operating cash flow, and credit facilities.