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Sep 06
Albertsons Q2 2025 Earnings Report
Albertsons reported stable earnings for Q2 2025, showing modest revenue growth and improved customer engagement.
Key Takeaways
Albertsons delivered solid Q2 2025 results, with increased revenue, a rise in digital sales, and higher loyalty membership, despite lower margins and adjusted earnings versus the prior year.
Revenue rose to $18.92 billion, driven by pharmacy and digital sales growth.
Net income reached $169 million, or $0.30 per share.
Adjusted EPS was $0.44, down from $0.51 in the prior year.
Loyalty members increased 13% year-over-year to 48.7 million.
Albertsons
Albertsons
Albertsons Revenue by Geographic Location
Revenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
Albertsons raised its FY2025 adjusted EPS outlook and reaffirmed strong performance expectations in key growth areas, while continuing to manage inflation and transformation costs.
Positive Outlook
- Raised adjusted EPS guidance to $2.06–$2.19 from $2.03–$2.16
- Maintained adjusted EBITDA guidance at $3.8B–$3.9B
- Expected identical sales growth increased to 2.2%–2.75%
- Capital expenditures raised to a range of $1.8B–$1.9B
- Strong momentum in digital sales and pharmacy segment
Challenges Ahead
- Gross margin rate declined year-over-year due to higher pharmacy mix and delivery costs
- Adjusted net income declined from $301M to $248M
- Adjusted EBITDA dropped to $848M from $901M in prior year
- Higher interest expense impacted profitability
- Business transformation and merger-related costs increased