Albertsons posts full-year profit despite $774M settlement

Boise-based Albertsons Companies, Inc., reported a net loss in its fourth quarter due to a nearly $774 million charge related to an opioid settlement, even as the grocery giant posted full-year net income and announced a dividend increase and expanded share buyback program Monday.

The company reported a fourth-quarter net loss of $481 million, or 94 cents per share, for the 13 weeks ending Feb. 28, 2026. The loss was driven by a $773.8 million charge ― $599.8 million after taxes ― tied to an opioid settlement framework intended to resolve claims brought by states, political subdivisions, and Native American tribes. Payments under the settlement are expected to be spread over nine years.

Stripping out the opioid charge and other items, adjusted net income for the quarter was $252 million, or 48 cents per share. Adjusted EBITDA came in at $903 million, up from $855 million in the same period a year earlier.

For the full fiscal year, Albertsons reported net income of $217 million, or 40 cents per share, on identical sales growth of 2.0%. Digital sales surged 21% for the year, and the company’s loyalty program grew 12% to 51.2 million members.

“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. “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.”

Pharmacy sales were a drag on results during the quarter, with pricing pressure stemming from the Inflation Reduction Act‘s Medicare drug price negotiation provisions weighing on identical sales, which rose just 0.7% in the fourth quarter.

Despite the quarterly loss, Albertsons’ board raised the quarterly cash dividend 13%, from 15 cents to 17 cents per share, payable May 8 to shareholders of record as of April 24. The board also expanded its share repurchase authorization to $2 billion.

During fiscal 2025, the company invested $1.84 billion in capital expenditures, completing 94 store remodels and opening nine new locations.

For fiscal 2026, Albertsons projected identical sales growth of 0% to 1%, adjusted EBITDA of $3.85 billion to $3.93 billion, and capital expenditures of $2.0 billion to $2.2 billion. The company cited an estimated 150-basis-point headwind from the IRA’s Medicare drug pricing program, which took effect Jan. 1, 2026.

Albertsons operates 2,244 stores across 35 states and Washington, D.C., under banners including Safeway, Vons, Jewel-Osco, and Shaw’s.

This story was written using artificial intelligence with human oversight.