Albertsons posts Q4 results, outlines opioid settlement and dividend hike

BOISE, Idaho — Albertsons Companies reported fourth-quarter and full-year results that underscored steady operational performance amid ongoing pharmacy pressures, while outlining key capital allocation moves, including a dividend increase and a major opioid settlement framework.

For the fourth quarter ended Feb. 28, Albertsons posted net sales and other revenue of $20.3 billion, up from $18.8 billion a year earlier, benefiting in part from an extra week in the fiscal period. Identical sales rose 0.7%, with gains driven primarily by pharmacy, though industrywide pricing pressures and mix shifts tempered results.

Digital remained a standout, with sales up 16% in the quarter, while loyalty membership climbed 12% to 51.2 million, reflecting continued traction in the company’s omnichannel strategy.

Despite those gains, Albertsons reported a net loss of $480.8 million, or $0.94 per share, largely due to a $773.8 million charge related to its opioid settlement framework. On an adjusted basis, the company reported net income of $251.7 million, or $0.48 per share, and adjusted EBITDA of $903.4 million.

“Fiscal 2025 was a year of disciplined execution and resilience, as we closed the year with a solid fourth quarter that delivered strong Adjusted EBITDA despite meaningful top-line pharmacy-related headwinds,” said Susan Morris, CEO of Albertsons Companies.

Morris continued, “Across the full year, we remained focused on building a stronger foundation for the future, including investing in our customer value proposition, advancing digital and loyalty, and strengthening the capabilities that support sustainable, long-term growth. As we enter fiscal 2026, we are building on this foundation by scaling our productivity engine and positioning the company to deliver earnings growth, strong cash flow, and long-term shareholder returns.”

For the full fiscal year, identical sales increased by 2.0%, digital sales rose 21%, and adjusted net income reached $1.21 billion.

Opioid settlement weighs on results

A central element of the quarter was the company’s announcement of a $774 million opioid settlement framework intended to resolve substantially all claims brought by state, local, and tribal entities.

The charge associated with the agreement significantly reduced reported earnings for the quarter, though Albertsons emphasized that the settlement does not constitute an admission of wrongdoing. Payments are expected to be made over a nine-year period.

The company also highlighted its long-standing investment in pharmacy practices to ensure safe and appropriate medication use, positioning its pharmacists as frontline healthcare providers in their communities.

Dividend increase signals confidence

Alongside its earnings release, Albertsons announced a 13% increase in its quarterly dividend to $0.17 per share, up from $0.15, raising the annualized dividend to $0.68 per share. The dividend will be paid on May 8 to shareholders of record as of April 24.

The increase reflects management’s confidence in the company’s underlying cash flow and long-term outlook, even amid near-term pharmacy headwinds.

Albertsons has steadily increased its dividend since going public in 2020, raising it from an annualized $0.40 per share to the current level.

Outlook shaped by pharmacy headwinds

Looking ahead, Albertsons expects fiscal 2026 identical sales growth of 0% to 1% and adjusted EBITDA of $3.85 billion to $3.93 billion. The company noted an anticipated 150-basis-point headwind from Medicare drug price negotiations under the Inflation Reduction Act.

At the same time, Albertsons plans to continue investing in digital capabilities, store upgrades, and operational efficiencies, with capital expenditures projected to be between $2.0 billion and $2.2 billion.

The results and accompanying announcements highlight a company balancing steady core performance and digital growth against external pressures in pharmacy, while using capital returns and legal resolution efforts to strengthen its long-term position.