Albertsons Companies (ACI) Q4 2026 earnings summary

Executive summary

• Q4 identical sales rose 0.7% to $20.3 billion, aided by an extra week, with digital sales up 16% and Adjusted EBITDA reaching $903 million, exceeding expectations.

• Net loss of $481 million in Q4 was driven by a $600 million after-tax charge for the opioid settlement; adjusted net income was $252 million.

• Full-year identical sales increased 2%, digital sales up 21%, and net income was $217 million; adjusted net income was $1.2 billion.

• Over $1.8 billion was returned to shareholders in 2025 via dividends and share repurchases, reflecting disciplined capital allocation.

• Strategic focus remains on personalization, digital transformation, and leveraging a strong store network for competitive advantage.

Financial highlights

• Q4 Adjusted EBITDA was $903 million, including $68 million from the 53rd week; Adjusted EPS was $0.48 per diluted share.

• Full-year identical sales increased 2%, with $3.9 billion in Adjusted EBITDA.

• Gross margin in Q4 was 27.2%, down 25 bps year-over-year, mainly due to digital sales mix shift and higher delivery costs.

• Q4 interest expense rose to $141 million from $101 million last year, reflecting higher borrowings and an extra week.

• Selling and administrative expenses rose to 29.6% of net sales in Q4, up from 25.7% last year, largely due to the opioid settlement charge.

Outlook and guidance

• Fiscal 2026 identical sales expected at 0%-1%, or 1.5%-2.5% excluding a 150 bps IRA headwind.

• Adjusted EBITDA guidance for 2026 is $3.85-$3.93 billion; Adjusted EPS expected at $2.22-$2.32, including $600 million in share repurchases.

• CapEx planned at $2-$2.2 billion, focusing on new stores, remodels, AI, and digital investments.

• Sequential improvement in sales and earnings anticipated through 2026, with Q1 being the most pressured quarter.