Koninklijke Ahold Delhaize (AD) Q4 2025 earnings summary

Executive summary

• Q4 2025 net sales reached €23.5 billion, up 6.1% at constant rates, with strong online growth and the Profi acquisition contributing significantly.

• Full year 2025 net sales were €92.4 billion, underlying operating margin 4.0%, and diluted underlying EPS €2.67, meeting or exceeding guidance.

• Online sales surged 12.9% for the year, led by 22.8% growth in the U.S., and the company completed a strategic shift to a store-first omnichannel model.

• Portfolio expansion included the acquisition of Profi in Romania and Louis Delhaize/Delfood in Belgium, strengthening market positions.

• Sustainability initiatives reduced food waste and CO2 emissions by over 39% versus baselines, and healthy food sales reached 52.1% of own brand sales.

Financial highlights

• Q4 underlying operating income was €994 million (margin 4.2%), with diluted underlying EPS of €0.73; full year underlying operating income was €3.7 billion, diluted underlying EPS €2.67.

• Q4 IFRS operating income was €899 million; full year IFRS operating income was €3.5 billion (3.8% margin).

• Free cash flow for 2025 was €2.6 billion, exceeding guidance.

• Dividend per share for 2025 proposed at €1.24, a 6% increase; €1 billion share buyback program completed in 2025 and initiated for 2026.

• Net debt at year-end was €14.7 billion.

Outlook and guidance

• 2026 guidance: underlying operating margin around 4%, mid to high single-digit EPS growth at constant rates, free cash flow of at least €2.3 billion, and gross CapEx of approximately €2.7 billion.

• 53rd week in 2026 expected to add 1.5%-2% to net sales and 2%-3% to underlying net income.

• U.S. pharmacy sales to decrease by $350 million due to the Inflation Reduction Act, with no profit impact.

• Persistent focus on value, disciplined investment, and cost control amid macroeconomic and geopolitical uncertainties.

• Commitment to share buyback and dividend programs, with flexibility for adjustments.