Albertsons Companies (ACI) Q2 2027 earnings summary

Executive summary

• Q2 FY2026 net sales and other revenue fell 0.1% to $18.895B; identical sales excluding fuel declined 0.8%, while digital sales rose 11%.

• GAAP net income was $51.5M, or $0.11 per diluted share; adjusted net income was $179.0M, or $0.36, and adjusted EBITDA was $784.0M versus $848.4M YoY.

• Management acknowledged sales, earnings and market-share performance below expectations and accelerated a comprehensive turnaround review focused on execution, costs, customer value and portfolio choices.

Financial highlights

• Gross margin was $5.057B versus $5.107B; operating income was $174.5M versus $295.3M YoY.

• SG&A was 25.6% of revenue versus 25.4%; excluding fuel, the rate rose 38 bps, primarily due to sales deleveraging and lower pharmacy sales tied to the IRA.

• First-28-week revenue was $43.836B versus $43.797B; adjusted net income was $389.3M and adjusted EBITDA was $1.797B, down from $567.3M and $1.959B, respectively.

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

Outlook and guidance

• Fiscal 2026 outlook was suspended pending the comprehensive 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.

• Investor Day is planned for spring 2027 to detail the turnaround roadmap and refreshed financial framework.