Albertsons Companies (ACI) quarter year Financial Results Summary
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Albertsons Companies, Inc. (ACI) Q3 2025 Financial Results Summary
Boise, ID – January 7, 2026 – Albertsons Companies, Inc. (NYSE: ACI) has reported its financial results for the third quarter of fiscal 2025, which ended on November 29, 2025.
Financial Highlights
- Identical Sales: Increased 2.4% compared to Q3 2024.
- Digital Sales: Increased 21% year-over-year.
- Loyalty Members: Increased 12% to 49.8 million.
- Net Income: Recorded at $293 million, or $0.55 per share, down from $400.6 million, or $0.69 per share in Q3 2024.
- Adjusted Net Income: Amounted to $390 million, or $0.72 per share, slightly up from $420.3 million, or $0.71 per share in Q3 2024.
- Adjusted EBITDA: Was $1,039 million, down from $1,065.1 million in Q3 2024.
Revenue Analysis
- Net Sales and Other Revenue: Increased 1.9% to $19,123.7 million from $18,774.5 million in Q3 2024, primarily driven by a 2.4% increase in identical sales.
- Pharmacy Sales: Significant contributor to identical sales growth.
- Impact of Temporary Government Shutdown: Estimated negative impact on identical sales was approximately 10 to 20 basis points.
- Gross Margin Rate: Decreased to 27.4% from 27.9% in Q3 2024; when excluding fuel and LIFO expenses, the rate dropped by 55 basis points.
Expense Management
- Selling and Administrative Expenses: Decreased to 24.9% of net sales from 25.1% in Q3 2024.
- Employee Costs: Leveraged sales growth to manage employee costs, despite increases due to inflation.
- Interest Expense: Increased to $116 million from $109 million in Q3 2024.
- Income Tax Expense: Increased significantly to $84.4 million, representing a 22.3% effective tax rate, compared to $14.5 million (or 3.5%) in Q3 2024.
Shareholder Returns
- Quarterly Dividend: Paid $0.15 per share on November 7, 2025. A subsequent dividend of $0.15 per share was announced to be paid on February 6, 2026.
- Share Repurchase Program: An accelerated share repurchase agreement was entered with JPMorgan to repurchase $750 million of shares, with the total repurchase authorization increased from $2.0 billion to $2.75 billion.
Capital Expenditures and Investments
- Capital Expenditures: Totaled $1,412.8 million for the first 40 weeks of fiscal 2025, including the completion of 74 remodels and the opening of 5 new stores.
Future Outlook
The company provided updated guidance for the remainder of fiscal 2025:
- Identical Sales Growth: Expected in the range of 2.2% to 2.5%.
- Adjusted EBITDA: Projected at $3.825 billion to $3.875 billion.
- Adjusted Net Income per Class A Common Share: Anticipated between $2.08 and $2.16.
- Effective Income Tax Rate: Expected to be in the range of 23% to 24%.
Summary
Albertsons Companies, Inc. continues to navigate a complex environment with strategic investments and operational adjustments. Despite a slight decline in net income, the company shows resilience through growth in digital sales and loyalty memberships, alongside disciplined expense management and a commitment to returning value to shareholders. The implications of legislative changes and economic factors remain a focus for future performance, highlighting the company’s proactive stance towards sustainability and innovation in the retail sector.
| 12 weeks ended | 12 weeks ended | 40 weeks ended | 40 weeks ended | |
|---|---|---|---|---|
| November 29, 2025 | November 30, 2024 | November 29, 2025 | November 30, 2024 | |
| Net sales and other revenue | $19,123.7 | $18,774.5 | $62,920.3 | $61,591.4 |
| Cost of sales | $13,874.9 | $13,528.1 | $45,826.6 | $44,484.8 |
| Gross margin | $5,248.8 | $5,246.4 | $17,093.7 | $17,106.6 |
| Selling and administrative expenses | $4,760.3 | $4,717.7 | $15,888.1 | $15,777.1 |
| (Gain) loss on property dispositions and impairment losses, net | $-1.2 | $10.2 | $-28.7 | $59.4 |
| Operating income | $489.7 | $518.5 | $1,234.3 | $1,270.1 |
| Interest expense, net | $116.0 | $109.0 | $363.1 | $358.3 |
| Other (income) expense, net | $-4.0 | $-5.6 | $-37.6 | $0.3 |
| Income before income taxes | $377.7 | $415.1 | $908.8 | $911.5 |
| Income tax expense | $84.4 | $14.5 | $210.6 | $124.7 |
| Net income | $293.3 | $400.6 | $698.2 | $786.8 |
| Net income per Class A common share | ||||
| Basic net income per Class A common share | $0.55 | $0.69 | $1.25 | $1.36 |
| Diluted net income per Class A common share | $0.55 | $0.69 | $1.25 | $1.35 |
| Weighted average Class A common shares outstanding (in millions) | ||||
| Basic | 531.9 | 580.2 | 556.7 | 579.7 |
| Diluted | 534.7 | 584.1 | 559.4 | 582.9 |
| % of net sales and other revenue | ||||
| Gross margin | 27.4 % | 27.9 % | 27.2 % | 27.8 % |
| Selling and administrative expenses | 24.9 % | 25.1 % | 25.3 % | 25.6 % |
| Store data | ||||
| Number of stores at end of quarter | 2,243 | 2,273 |
| November 29, 2025 | February 22, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $195.1 | $293.6 |
| Receivables, net | $1,018.9 | $834.8 |
| Inventories, net | $5,496.7 | $4,989.0 |
| Other current assets | $386.1 | $441.6 |
| Total current assets | $7,096.8 | $6,559.0 |
| Property and equipment, net | $9,778.9 | $9,811.0 |
| Operating lease right-of-use assets | $6,103.8 | $6,153.4 |
| Intangible assets, net | $2,212.3 | $2,318.0 |
| Goodwill | $1,201.0 | $1,201.0 |
| Other assets | $700.5 | $713.3 |
| TOTAL ASSETS | $27,093.3 | $26,755.7 |
| LIABILITIES | ||
| Current liabilities | ||
| Accounts payable | $4,037.7 | $4,092.7 |
| Accrued salaries and wages | $1,294.0 | $1,345.2 |
| Current maturities of long-term debt and finance lease obligations | $595.7 | $57.6 |
| Current operating lease obligations | $739.9 | $705.5 |
| Other current liabilities | $1,148.0 | $1,050.0 |
| Total current liabilities | $7,815.3 | $7,251.0 |
| Long-term debt and finance lease obligations | $8,417.0 | $7,762.5 |
| Long-term operating lease obligations | $5,679.1 | $5,657.2 |
| Deferred income taxes | $820.6 | $824.1 |
| Other long-term liabilities | $1,859.5 | $1,875.0 |
| Commitments and contingencies | ||
| STOCKHOLDERS’ EQUITY | ||
| Class A common stock | $6.0 | $6.0 |
| Additional paid-in capital | $2,079.1 | $2,184.0 |
| Treasury stock, at cost | $-1,598.3 | $-386.7 |
| Accumulated other comprehensive income | $78.9 | $94.7 |
| Retained earnings | $1,936.1 | $1,487.9 |
| Total stockholders’ equity | $2,501.8 | $3,385.9 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ | $27,093.3 | $26,755.7 |
| EQUITY |